Wright Prospecting has continued to generate huge profits and dividends for its low-profile Perth owners while also revealing a board restructure after the retirement of chairman Ian Cochrane.
Wright Prospecting has continued to generate huge profits and dividends for its low-profile Perth owners while also revealing a board restructure after the retirement of chairman Ian Cochrane.
Annual financial statements lodged with ASIC show Wright paid $230 million in dividends over the past year, as it continued to benefit from the strong iron ore market.
The dividend was up from the $173 million it paid in each of the two previous financial years.
The company is owned by the descendants of the late Peter Wright, who was Lang Hancock’s business partner.
Its main source of income is iron ore royalties, stemming from agreements negotiated with Rio Tinto in the 1960s.
Its annual report disclosed that mining royalty income increased by 36 per cent to $150 million while its share of income from the Hancock & Wright partnership increased to $146 million.
The company’s largest expense is lawyers’ fees, which increased to $3.9 million.
This reflects the cost of multiple long-running disputes, including with Lang Hancock’s daughter Gina Rinehart and more recently with one of Peter Wright’s children, Julian Wright.
The company’s net profit, after paying a big tax bill, was $204.9 million for the year to June 2020, up from $160 million previously.
The directors’ report said the increased revenue and profit reflected higher average commodity prices and was achieved despite lower shipment volumes.
The report also disclosed that chairman Ian Cochrane and director Keith Gordon retired at the end of March.
Mr Cochrane has retained several other board roles, most notably at Perenti Global, while Mr Gordon has stepped down from all board positions to work full time at leadership consulting firm Red Emu Advisory.
They have been replaced by corporate lawyer Jon Carson, who worked with Mr Cochrane at Clifford Chance, and professional director Yasmin Broughton, who worked with Mr Carson early in her career at Blake Dawson Waldron (now Ashurst).
The new directors represent VOC Group, which is owned by Leonie Baldock and Alexandra Burt, the daughters of the late Michael Wright.
As well as chairing Wright Prospecting, Mr Carson has also become chair of VOC.
Wright’s two other directors are Michael Ashforth and David McMahon, who represent AMB Holdings.
AMB is owned by Angela Bennett, the daughter of Peter Wright and sister of Michael Wright.
Julian Wright has taken legal action again Mrs Bennett and the estate of his late brother, claiming he was deceived when he sold out of the family company for $6.8 million in 1987.
