asx.jpg

Royalty Holder…..................Hancock
Revenue……………..…..….................n.a.
Mine Life...……………..….........70 years
Commodity……………….............Potash
Operator……...............Sirius Minerals

#16 Sirius Minerals

Australian billionaire Gina Rinehart is sitting on the industry's largest mining royalties, which her father accumulated in the 50s, prospecting for iron ore in Western Australia.

Rinehart's private company, Hancock Prospecting, has always been passive in the royalty sector, collecting cash to invest in farm land, whilst building the massive Roy Hill iron ore mine. That changed in October, when Hancock agreed to pay $250m for a 5 per cent royalty over a potash project in Yorkshire, owned by Australia's Sirius Minerals.

It looked like a big payout, for a project still on the drawing board. If Sirius hits its targets of 13m tonnes per annum at $125 per tonne, the royalty would generate over $80m per annum. But Sirius has plenty of doubters, the royalty agreement ended with bad blood on both sides and Rinehart's funding remains heavily contingent.

If Hancock is toying with the idea of buying new royalties, however, the sector could quickly expand from gold and base metals into the bulk commodities business.

 

 

BACK                                             NEXT >