RED HILL MINERALS LIMITED For personal use only
Level 2, 9 Havelock Street, West Perth WA 6005
PO Box 689, West Perth WA 6872
Telephone: (61 8) 9481 8627
ABN: 44 114 553 392
E-mail: redhillinfo@redhilliron.com.au
Website: www.redhilliron.com.au
31 January 2022
Company Announcements Office
ASX Limited
Level 4, 20 Bridge Street
SYDNEY NSW 2000
ACTIVITIES REPORT FOR THE QUARTER ENDED 31 DECEMBER 2021
CORPORATE
On 10 November 2021 the Company paid a fully franked Special Dividend of $1.20 per share. The board has established a policy of delivering funds to shareholders that it deems are in excess of the need to maintain a reasonable level of financial strength. The Company currently holds funds of around $111 million after payment of the dividend and first instalment of income tax of $11 million.
RED HILL IRON ORE PROJECT
The sale of the Company's 40% interest in the Red Hill Iron Ore Joint Venture (RHIOJV) to Mineral Resources Limited (MinRes) resulted in an initial payment of $200 million on 2 September 2021. A further $200 million is to be paid when the first commercial shipment of iron ore extracted from the RHIOJV tenements departs port. Red Hill Iron will also receive a 0.75% FOB royalty revenue stream from all future production from the RHIOJV tenements and, for the first 10 years, also from the APIJV owned Upper Red Hill Creek tenement. Red Hill Iron will receive additional royalties of 0.75% FOB from all production from the MRL owned Bungaroo South resources that are developed in association with RHIOJV production.
MinRes has advised the ASX in their latest Quarterly Report (Refer ASX: MIN 25 January 2022) that they have continued to progress their Ashburton Project with significant engineering and detailed design continuing. MinRes has contracted to have two transhippers built at a major COSCO shipyard in China, with an option for two additional transhippers to be delivered in-line with the projected production ramp up.
MinRes also advised that the project economics are compelling through all economic cycles and that they remain ready to commence construction as soon as final Government and regulatory approvals are obtained.
For personal use only
RED HILL IRON OTHER MINERALS PROJECT
The RHIOJV is limited to the iron ore rights in the RHIOJV tenements and our Company retains the rights to all other minerals in this 1,900 sq km tenement package.
The Company has employed Michael Wall as Exploration Manager for the Other Minerals project with the brief to establish an appropriate exploration team and to lead our gold and base metal exploration. Mike has extensive industry experience and already has a detailed involvement in and knowledge of the project's geology and exploration opportunities.
The Company is currently carrying out a $300,000 core cutting and assaying campaign to test past diamond drilling samples for their gold and base metal content. Assay of RC drilling pulps will also enhance knowledge of regional geochemistry. Results from this initial work is expected late in the next quarter.
Figure 1: Priority Gold and Base Metal Targets
For personal use only
PANNAWONICA PROJECT
The Company continued work on evaluating the development of its 100% owned Pannawonica Iron Ore Project during the quarter. The base case being studied is the development of a mining operation based on an Ore Reserve of 4.68 million tonnes (Mt) at 56% Iron at a 54.5% iron cut-off grade (Refer Table 1) out of the total project Mineral Resource of 62.5 Mt at 53.4% Iron (Refer Table 1). Red Hill Iron is examining various technologies to assess whether they can be utilised to upgrade portions of this large resource base, that are currently not included in our mining plan, to deliver an increased tonnage at the product target grade of 56% iron at a lower cut-off grade to increase iron ore inventory.
Field environmental work was completed during the past quarter and results are anticipated to be available in the third quarter.
Mining Leases have been granted and a Heritage Agreement has been executed.
Refer ASX announcements 14 April 2014 and 23 July 2021.
Category | Tonnes (M) | Fe (%) |
Mineral Resources | ||
Measured | 5.5 | 53.8 |
Indicated | 47.6 | 53.4 |
Inferred | 9.3 | 53.4 |
Total | 62.5 | 53.4 |
Ore Reserves | ||
Proved | 0.63 | 55.7 |
Probable | 4.05 | 56.0 |
Total | 4.68 | 56.0 |
The Ore Reserves are contained within the Mineral Resources
Table 1: Pannawonica Mineral Resources and Ore Reserves
Compliance Statement
The detailed information relating to the Mineral Resources and Ore Reserves reported in this announcement was announced in the Company's ASX announcements dated 14 April 2014 and 23 July 2021. The Company confirms that it is not aware of any new information or data that materially affects the information included in the ASX announcements dated 14 April 2014 and 23 July 2021 and all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons' findings are presented have not materially changed from previous market announcements.
For personal use only
Figure 2: Pannawonica Whitegate High | Figure 3: Pannawonica Redgate High |
Grade Pit Locations | Grade Pit Locations |
PAYMENTS TO RELATED PARTIES
The $170,000 cash outflow reported under Section 6.1 of the Appendix 5B Quarterly Cash Flow Report relates to director fees, director consulting fees and shared office and administration fees paid to a company of which a director is also a director of Red Hill Iron.
Authorised by the Board
Joshua Pitt
Chairman
For personal use only
Rule 5.5
Appendix 5B
Mining exploration entity or oil and gas exploration entity
quarterly cash flow report
Name of entity
Red Hill Iron Limited | |
ABN | Quarter ended ("current quarter") |
44 114 553 392 | 31 December 2021 |
Consolidated statement of cash flows | Current quarter | Year to date | ||
$A'000 | (6 months) | |||
$A'000 | ||||
1. | Cash flows from operating activities | |||
1.1 | Receipts from customers | - | - | |
1.2 | Payments for | |||
(a) | exploration & evaluation | (342) | (445) | |
(b) | development | - | - | |
(c) | production | - | - | |
(d) | staff costs | (7) | (11) | |
(e) | administration and corporate costs | (2,098) | (2,592) | |
1.3 | Dividends received (see note 3) | - | - | |
1.4 | Interest received | 33 | 40 | |
1.5 | Interest and other costs of finance paid | - | - | |
1.6 | Income taxes paid | (11,000) | (11,000) | |
1.7 | Government grants and tax incentives | - | - | |
1.8 | Other (provide details if material) | - | - | |
1.9 | Net cash from / (used in) operating | (13,414) | (14,008) | |
activities | ||||
2. | Cash flows from investing activities | |||
2.1 | Payments to acquire or for: | |||
(a) | entities | - | - | |
(b) | tenements | - | - | |
(c) | property, plant and equipment | - | - | |
(d) | exploration & evaluation | - | - | |
(e) | investments | - | - | |
(f) | other non-current assets | - | - |
ASX Listing Rules Appendix 5B (17/07/20) | Page 1 |
+ See chapter 19 of the ASX Listing Rules for defined terms. |
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Red Hill Iron Limited published this content on 31 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 January 2022 04:00:03 UTC.
