Hancock’s full-year profit grows 56%

Gina Rinehart’s Hancock Prospecting has grown its net profit to about $4 billion, while the group’s largest revenue earner repaid its entire debt over the financial year.

Hancock reported revenue of $10.6 billion in the year to June 30, up from $8.4 billion in FY19.

Its net profit was up 56 per cent, from $2.6 billion.

Hancock said its acquisition of Atlas Iron earlier this year contributed significantly to the result.

Atlas operates in Western Australia’s Pilbara region and is also developing two new mines: Corunna Downs, which is under construction, and Miralga Creek (in the planning stages).

Meanwhile, Hancock’s Roy Hill Holdings remains the largest revenue and profit earner for the group.

The Roy Hill iron ore mine, situated in the Pilbara’s Chichester Range, is an open-pit, bulk-mining operation that uses a 60 million tonnes per annum wet processing plant.

Its four joint venture Hope Downs mines operated at full capacity in FY20, Hancock said, having produced 47mt of ore.

The strong result allowed the Rinehart-chaired business to repay its $US7.2 billion ($10.2 billion) debt facility four years ahead of schedule.

The use of cash to repay debt, however, reduced the company’s total assets to $21 billion, down from $22.3 billion in FY19.

Last month, Roy Hill paid its first dividend of $475 million, shared between Hancock and all Roy Hill owners.

Hancock’s total dividends were $710 million in FY20, representing 40 per cent of its after-tax profits and up from $483 million in FY19.