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- Red Hill Iron set to pay a special dividend of 20 cents per share fully franked
- Shareholders who own stock in RHI before May 16 will be eligible for the dividend
- The record date will be on May 17, before payment on May 31
- In addition, fellow ASX listed company Mineral Resources is set to pay a final $200 million for the sale of Red Hill’s interest in the Red Hill Iron Ore Joint venture
- Shares in Red Hill Iron were up 11.4 per cent to $3.81 as of 1:43 pm AEST
Red Hill Iron (RHI) has announced it will pay a special dividend of 20 cents per share fully franked, prompting a midday spike in its share price.
Shareholders who own stocks in RHI before May 16 will be eligible for the dividend. The record date will be on May 17, before payment on May 31.
RHI says the decision reflects its board objective of delivering funds, which are in excess of the need to maintain a reasonable level of financial strength, to shareholders.
Red Hill’s current funds sit at around $83 million, with the company already having paid income tax to date of $39 million.
In addition, the company says progress at its Red Hill Iron Ore joint venture (RHIOJV) in the Pilbara this quarter has met expectations, and first production is on track for Q1 in 2024.
Fellow ASX listed company Mineral Resources (MIN) is set to pay a final $200 million for the sale of Red Hill’s RHIOJV interest.
This will happen once the first commercial shipment of iron ore extracted from the project tenements departs port, at which point, Red Hill will begin receiving 0.75 per cent FOB royalty streams from the project.
Shares in Red Hill Iron were up 11.4 per cent to $3.81 as of 1:43 pm AEST.
