URGENT UPDATE: The net asset value of Gina Rinehart’s Hancock Prospecting has surged to $43.5 billion, marking a significant increase of $3 billion since last year. However, the dividends paid out to Rinehart and her family members have fallen sharply, dropping to $488 million for the financial year ending June 30, 2025.
This development underscores a growing concern as the cash flow to Australia’s wealthiest individual continues to decline, following a peak of $1.2 billion in 2021. The decrease in dividends comes as Hancock’s investments in rare earth producers such as Lynas Rare Earths and MP Materials have seen substantial gains on paper, yet these companies do not currently distribute dividends.
Hancock’s portfolio is diversifying, with significant investments in the energy sector, including a notable $1.1 billion deal last October for mineral exploration permits in the Perth Basin. Additionally, the company has ventured into real estate in Perth and Brisbane, while also holding agricultural interests primarily in beef and dairy. The firm owns iconic brands such as Driza-Bone, Rossi Boots, and Kidman apparel.
Despite the increase in assets, Hancock is experiencing declining profits from its primary iron ore holdings. The Roy Hill mine, one of its flagship operations, reported a profit of $1.8 billion for the 2025 financial year, down from a record $3.2 billion the previous year. Similarly, Atlas Iron saw its net profit fall to $260 million, down from $440 million.
In a significant move to consolidate its mining operations, Rinehart has announced plans to merge Roy Hill and Atlas into a single entity, termed Hancock Iron Ore. This strategic decision aims to streamline operations and potentially enhance profitability in a challenging market.
Hancock executive director Tad Watroba expressed pride in the company’s achievements, stating, “Under the dedicated leadership of Mrs. Rinehart, Hancock has become the most successful private company in Australia’s history. Our staff are rightly proud of being part of this very successful company.”
The latest developments reflect a complex landscape for Hancock Prospecting and Rinehart, as the company navigates the dual challenges of rising asset values and declining cash distributions. Investors and industry watchers will be keenly observing how Hancock adapts its strategies amid these shifting dynamics.
Stay tuned for more updates as this story develops.
