Key Highlights

• FY2026 statutory net profit rose to AUD 20.06 million from AUD 9.13 million.

• Royalty income reached AUD 28.76 million as Onslow Iron achieved nameplate capacity.

• The company declared a fully franked final Dividend of 10.8 cents per share.

• Earnings remain concentrated around one royalty and depend on production and realised iron ore pricing.

Red Hill Minerals (ASX:RHI) does not mine a tonne of the iron ore that pays its bills. It sold that Business years ago, and the slice of Revenue it kept has just more than doubled its annual profit.

In its FY26 results summary lodged with the ASX on 8 September 2026, Red Hill reported statutory net profit after tax of $20.06 million for the year to 30 June 2026, against $9.13 million in FY25. Earnings Per Share climbed to 31.27 cents from 14.24 cents.

Total income of $31.56 million supported a fully franked final dividend of 10.8 cents per share.

One royalty does nearly all the work

Royalty income of $28.76 million was roughly 91 per cent of total income, up from $11.88 million a year earlier. The company attributed the increase to the Onslow Iron Project in Western Australia reaching nameplate capacity of 35 million tonnes a year.

Red Hill holds a 0.75 per cent free on board royalty over Onslow, operated by Mineral Resources. The Annual Report says income is recognised when the operator sells iron ore under customer contracts, calculated as a percentage of invoiced amounts.

The arrangement dates from the sale of the company's 40 per cent interest in the Red Hill Iron Ore Joint Venture to Mineral Resources for $400 million, put to shareholders in 2021. Those proceeds were banked years ago. The FY26 jump is recurring royalty revenue, not a disposal gain.

The cash pile helps, but it is not the story

Interest income contributed $2.63 million, about 8 per cent of total income, with other income of $0.17 million. The company closed the year with $62.77 million in cash: $6.77 million in bank balances and $56.00 million in term deposits and at call accounts.

That buffer earns a useful return, but it is not what drove the earnings jump. Income tax expense was $8.75 million. Royalty receipts in the June quarter alone were $7.7 million, lifting cash from $59.1 million at the end of March.

Dividends tied to royalty receipts

Red Hill said it distributes approximately half of its royalty receipts to shareholders. The 10.8 cent final dividend follows an interim of 11.6 cents paid in March 2026, taking declared FY26 dividends to 22.4 cents per share, all fully franked.

The shares trade ex dividend on 15 September 2026, with a Record Date of 16 September and payment on 30 September. Executive chairman Joshua Pitt linked the result to Onslow reaching nameplate capacity, according to the announcement.

Exploration spend and the risks worth watching

Exploration expenditure totalled $7.26 million, with $6.81 million capitalised. Red Hill earned its full 75 per cent interest in the Curnamona joint venture after meeting a $6.5 million commitment, and reported a diamond drill intercept at Anabama of 20.0 metres at 0.6 per cent copper, 0.2 grams per tonne gold and 3.0 grams per tonne silver. That is a drill result, not a mineral resource.

Eighteen reverse circulation holes for 3,476 metres were completed at West Pilbara, and 2,000 metres of diamond drilling was planned at Broken Hill for September. Red Hill also holds a 2 per cent gross revenue royalty over Sandstone gold, where the covered resource was expanded to 1.34 million ounces, and a 1.5 per cent net smelter royalty on Thomson.

The concentration risk is plain. Almost all earnings depend on one operator's output and on iron ore prices, neither of which Red Hill controls. Because the royalty is struck free on board, freight and pricing deductions matter, and the company flagged rising shipping costs linked to Middle East disruption.

The next confirmed dates are the dividend payment on 30 September and the September quarterly report. Red Hill expects FY27 Onslow production to exceed nameplate capacity, though that is an expectation rather than a delivered outcome.