Key Highlights

• The FY26 results, released on 27 August 2026, marked a clear change in tone, and the September quarter was the first test of whether that momentum would carry into FY27.

• According to the quarterly report, Onslow Iron produced a record 10.3 million wet tonnes (100% basis), up 17% on the prior quarter.

• Net Debt was roughly $4.1 billion, about $200 million lower than at the end of June, with Liquidity of around $2.5 billion.

• Iron ore covers the Onslow Iron project, in which MinRes holds a 57% share, and the Pilbara Hub.

What does Mineral Resources (ASX:MIN)' record September quarter say about its turnaround, and what still stands in the way? The first quarter of FY27, reported on 23 October 2026, showed record iron ore and lithium output alongside lower net debt. It also showed falling lithium prices and a rising diesel bill, so the picture is improving but not uniformly comfortable.

Why the quarter matters

Mineral Resources (ASX:MIN) spent much of the past two years under Balance Sheet pressure, with heavy Capital spending on the Onslow Iron project and weak lithium prices. The FY26 results, released on 27 August 2026, marked a clear change in tone, and the September quarter was the first test of whether that momentum would carry into FY27.

According to the quarterly report, Onslow Iron produced a record 10.3 million wet tonnes (100% basis), up 17% on the prior quarter. Net debt was roughly $4.1 billion, about $200 million lower than at the end of June, with liquidity of around $2.5 billion.

What the company does

MinRes has three main Earnings streams. Mining Services crushes, processes and moves ore for third parties and for its own projects. Iron ore covers the Onslow Iron project, in which MinRes holds a 57% share, and the Pilbara Hub. Lithium covers spodumene concentrate from the Wodgina and Mt Marion joint ventures and the Bald Hill mine.

The Commodity exposures are therefore specific. Iron ore Revenue follows the Platts 61% CFR benchmark, against which MinRes realised about 85% on a combined basis in the quarter. Lithium revenue follows spodumene concentrate prices, which are far more volatile than iron ore.

The FY26 results

For the year ended 30 June 2026, the company reported revenue of $6.5 billion, up 44%, and underlying EBITDA of $2.6 billion, up 183%. Underlying net profit after tax was $822 million, while reported profit of $1.2 billion included non-cash gains.

Free Cash Flow was $849 million after $1.1 billion of capital spending. Net debt fell by $1.1 billion to $4.3 billion, or 1.7 times underlying EBITDA, down from 5.9 times a year earlier. A fully franked final Dividend of 83 cents per share was declared, the first after a nil payout for FY25, and it was paid on 30 September 2026.

By segment, attributable underlying EBITDA was $1,001 million for iron ore, $976 million for Mining Services and $771 million for lithium. Onslow Iron contributed $909 million of the iron ore total, at a free-on-board cost of $52 per wet tonne.

September quarter operations

Mining Services output reached a record 103 million tonnes, helped by ramp-ups at Bald Hill and the Pilbara Hub. Onslow shipped 9.2 million wet tonnes on a 100% basis, and September exports of 3.49 million wet tonnes were a monthly record. Its FOB cost was $53 per wet tonne, below the lower end of the FY27 guidance range of $54 to $58.

The Pilbara Hub produced 3.2 million wet tonnes, up 55%, at an FOB cost of $75 per wet tonne, within its $74 to $79 range. Combined attributable iron ore shipments were 7.9 million wet tonnes at a realised price of US$83 per dry tonne, down 5%.

Lithium sales were a record 170,000 dry tonnes of SC6-equivalent on an attributable basis, but the realised price fell 23% to US$1,873 per tonne. Wodgina set a production record of 102,000 dry tonnes. Mt Marion was weaker, with production down 13% and recoveries of 52%, and it expects FY27 costs at the upper end of its guidance range. Bald Hill's FOB cost of $1,498 per tonne remains well above its FY27 guidance of $1,150 to $1,250 while its processing plant ramps up.

Balance sheet and portfolio changes

A further lever is the pending sale to POSCO of 30% of MinRes' 50% interest in Wodgina and Mt Marion for US$765 million of gross proceeds. Completion is subject to conditions and was expected in the first half of FY27. If it completes, the company has indicated net debt would fall to about $3.2 billion, roughly 1.2 times underlying EBITDA.

Sector conditions and competitive position

In iron ore, MinRes is a mid-sized Pilbara producer competing with far larger rivals that enjoy deeper infrastructure and lower costs. Its realised price discount to the benchmark is one of the more controllable value drivers.

In lithium, the quarter showed the other side of the cycle. Sales volumes hit records while prices dropped by almost a quarter, and the company's high-cost assets, particularly Bald Hill and Mt Marion, are the most exposed if prices soften further. Wodgina has the lower cost base.

Risks and uncertainties

Diesel is a near-term cost risk. FY27 guidance assumes $1.25 per litre, but September prices were around $1.60 per litre and are expected to flow into costs from October. Management has said it expects costs to stay within guidance, which is a company expectation rather than an outcome.

Other risks include iron ore and lithium price volatility, ramp-up execution at Onslow and Bald Hill, the conditions attached to the POSCO transaction, and the planned dredging at Onslow, which resumes in mid-November 2026 and is due to finish by the end of the December quarter. Net debt of around $4.1 billion also remains substantial, leaving less room for error if commodity prices weaken together.

The company announced on 2 November 2026 that its chief financial officer, Mark Wilson, will retire at the end of December 2026.

What to watch next

Several dated events are scheduled. A decision on moving Wodgina's expansion into detailed engineering design is expected in the second quarter of FY27. Bald Hill's dense media separation plant is due to reach its 140,000 tonne-a-year design capacity in the same period. First blasts at the Mt Marion underground access portal were reported on 3 November 2026, and the 270-room Onslow Iron Resort is expected to be complete in early FY28.

FY27 guidance was maintained across all divisions, including Capital Expenditure of $1.4 billion. The next regular update will be the December quarter report, where readers can check progress against these milestones and cost ranges.