Hancock Prospecting reports $5b net profit after tax in 2023
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The news: Gina Rinehart's Hancock Prospecting has reported net profit after tax of $5 billion for the year ended 30 June — a 15.3% decline on the year prior.
It also said it has paid $3.7 billion in total taxes during the year and claims to be one of Australia's largest corporate taxpayers.
The numbers: Hancock's Roy Hill iron ore mine shipped a record 63.3 million tonnes and earned $2.7 billion in profit after tax during the year. Its Hope Downs iron ore mines shipped 46.5 million tonnes and earned net profit after tax of more than $1.3 billion.
Hancock paid $2.25 billion in dividends to its shareholders for the last financial year and a further $800 million in September. Hancock earned a total of $13.2 billion in total revenue for the year.
The company's gearing ratio has dropped to 1% this year from 55% in 2019 after paying back debt, with some lease liabilities remaining. Hancock’s total assets increased by 12% over the year.
The context: Hancock Prospecting has been investing in lithium, buying large and rapid stakes in lithium plays Liontown Resources (19.9%) and Azure Minerals (18.9%). Both stakes were bought while the companies were under M&A offers.
It also invested in the energy space, acquiring oil and gas explorer and developer Warrego Energy in February. Last year, it acquired oil and gas play Senex Energy alongside POSCO. Senex subsequently saw its planned $1 billion natural gas expansion in the Surat Basin stalled after federal government capped coal and gas prices to contain energy prices.
The source: Hancock Prospecting media release
