Red Hill Minerals Reports $6.2m Onslow Royalty and Advances Curnamona Drilling

Onslow Iron Royalty Revenue Meets Full-Year Expectations

Red Hill Minerals (ASX:RHI) reported A$6.2 million in royalty revenue from the Onslow Iron Project for the March quarter, bringing the financial year-to-date total to A$21.1 million. This performance sits comfortably within the company’s FY26 guidance of around A$28.7 million, reflecting steady shipments of 6.7 million dry metric tonnes during the quarter. The royalty, based on a 0.75% FOB rate, is derived from operations managed by Mineral Resources Limited (ASX:MIN), which recently upgraded its volume guidance for the project to 31-34 million wet metric tonnes for FY26, up from 30-33 million previously. This consistent royalty stream underpins Red Hill’s cash position and dividend policy.

Curnamona JV Exploration Yields Encouraging Drill Results

Exploration under the Curnamona Earn-In Joint Venture with Peel Mining Limited (ASX:PEX) continues to deliver promising outcomes, particularly at the Broken Hill and Anabama Projects. At Broken Hill, a maiden diamond drilling program completed in late 2025 intersected broad zones of Broken Hill Type (BHT) lead-zinc-silver mineralisation, including 91.1 metres at 0.1% lead and 152.6 metres at 0.2% zinc from drillhole 25DMDD001. These results, complemented by recently finished high-resolution gravity and audio-magnetotelluric (AMT) surveys, are refining structural models and guiding follow-up drill plans. Meanwhile, at Anabama, diamond drilling confirmed copper-gold mineralisation extending 130 metres below historic intercepts, with assays showing up to 1.2% copper and 1.0 g/t gold. Downhole electromagnetic (DHEM) surveys identified high-priority off-hole conductors, prompting planned diamond drilling in June to test strike extensions and depth targets. Access delays caused by flooding are expected to clear ahead of the next phase of fieldwork. These developments reinforce the JV’s potential for significant mineral discoveries in a highly prospective region. The integration of geophysical data with drill results continues to sharpen targeting strategies, highlighting the JV’s evolving exploration maturity.

West Pilbara Drilling Advances Gold and Base Metals Targets

Red Hill’s wholly owned West Pilbara Gold and Base Metals Project is progressing with active drilling programs at multiple prospects. RC drilling has commenced at the Barkley Gold Target, where previous programs extended mineralisation over a strike length exceeding one kilometre, including notable intercepts such as 9 metres at 2.4 grams per tonne gold. Preparatory earthworks and drill pad clearances are underway at the G1 Gold and King Brown Base Metal targets, with drilling scheduled to follow. Early-stage mapping and rock chip sampling at King Brown have identified remnant copper mineralisation and textures indicative of former sulphide presence, with assay results pending. The project’s location adjacent to the Hamersley Basin boundary and proximity to major fault systems underscores its geological appeal. Initial 3D geological modelling and petrological analyses are underway to support ongoing drill planning and interpretation.

Pannawonica Project Advances with Haul Road Licence

The Pannawonica Iron Ore Project in Western Australia saw progress during the quarter with the granting of a miscellaneous licence for the proposed haul road corridor (L08/305), a critical infrastructure component linking the project to third-party haul routes. All necessary access agreements are now in place, facilitating future development activities. Concurrently, Red Hill is reviewing groundwater availability and licence conditions to address water supply requirements. The project retains a Mineral Resource of 62.5 million tonnes at 53.4% iron and an Ore Reserve of 4.68 million tonnes at 56% iron, positioning it as a valuable asset within Red Hill’s portfolio.

Financial Position and Dividend Payment

Despite exploration and development expenditures, Red Hill maintained a robust cash balance of A$59.1 million at quarter-end, down slightly from A$61.3 million in December 2025. This followed receipt of a royalty payment of A$7.8 million, payment of a fully franked dividend of 11.6 cents per share totaling A$7.5 million, and exploration spending of A$1.5 million. Operating cash flows remained positive, supported by ongoing royalty income. Payments to related parties were modest and related to director fees and superannuation. The company’s financial discipline supports continued investment in exploration and shareholder returns.

Red Hill’s exploration momentum is underpinned by a diversified royalty portfolio and active ground programs, positioning it well to leverage mineral discoveries and development opportunities. The integration of geophysical surveys with drilling at the Curnamona JV and West Pilbara projects will be key to unlocking further value in coming quarters.

These developments build on the company’s recent profitable financial year and dividend declaration and follow up on the maiden diamond drilling results at Anabama that confirmed copper-gold mineralisation at depth, reinforcing Red Hill’s exploration credentials.