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Roy Hill's mine in Pilbara, Western Australia (Posco Holdings) |
Posco Holdings said on Tuesday the company has received 85 billion won ($62 million) in dividends from the third quarter earnings of Roy Hill Holdings, recouping the investment it has made into the holding company of Australian iron ore miner Roy Hill.
With the latest dividend payment, Posco Holdings has received a total of 1.3 trillion won in total in the form of dividends and discounts on iron ore that the company imported from Australia, retrieving 1.3 trillion won of investment it made to acquire the stake in Roy Hill Holdings, Posco Holdings added.
According to Posco Holdings, the dividend payment was made as Roy Hill Holdings’ board decided to pay 800 million Australian dollars ($512 million) in dividends to its investors for the third quarter.
“Roy Hill Holdings has been showing a solid performance. Roy Hill Holdings’ net profit between July 2022 and June 2023 reaches 2.7 billion. The company’s net profit in the third quarter is also estimated at AU$900 million,” Posco Holdings said.
The 85 billion won dividend will be included in Posco Holdings’ net profit during the term, the company added.
Posco Holdings has been holding a 12.5 percent stake in Roy Hill Holdings since 2010, when it made a 1.3 trillion won of investment to get access to Australian iron ore.
In 2020, Posco Holdings received 130 billion won in dividends from Roy Hill Holdings. Posco Holdings have received discounts on the Australian miner as a stakeholder, it added.
Posco Holdings currently imports more than 20 percent of its annual iron ore use from Roy Hill that operates an iron ore mine in Pilbara, Western Australia – the largest single mine in the country that is estimated to contain 2.3 billion tons of iron ore reserves with its annual output reaching 63 million tons.
Meanwhile, Posco Holdings has been participating in 21 raw material projects around the world since 1981, after the company made an investment in the Mount Thorley Warkworth mine in Australia.
Around 40 percent of Posco Group's raw material needs are covered by materials from those overseas projects, Posco Holdings added.
