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Highlights

  • Mineral Resources is an ASX-listed mining services firm with headquarters in Western Australia
  • In FY23, the company recorded 90% YoY rise in dividend per share to AUD 1.90 per share
  • Ellison (Christopher James) has the maximum stake in the firm with a shareholding of around 1.51%

Mineral Resources Limited (ASX: MIN) is a diversified resource company with operations focused on lithium, iron ore, energy and mining services across Western Australia. The company has been engaged in offering secure, low-cost, high quality mining, mining infrastructure and mining construction services in Australia.

In the financial year 2023 (FY23), the company registered a nearly 40% YoY rise in yearly revenue to AUD 4,779.1 million, while the underlying EBITDA increased by 71.3% YoY to AUD 1,754 million. The company paid AUD 1.90 per share dividend, up 90% YoY.

During the reported period, the company witnessed financial growth on the back of record lithium earnings from predictable mining services margins, increased volumes and an increase in iron ore prices.

Top 10 shareholders of MIN

The top 10 shareholders of MIN have nearly 29.01% shareholding in the company, while the top four have around 19.97% shareholding. Ellison (Christopher James) and State Street Global Advisors Australia Ltd. are the two biggest shareholders in the company, , with a shareholding of around 11.51% and 2.85%, respectively.

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Recent business update

Through an ASX filing dated 1 December 2023, the company informed that for Mt Marion, an 18-month underground development contract has been given to Develop Global Limited. The contract value is AUD 46 million. Mt Marion is a joint venture between Mineral Resources and Ganfeng Lithium Co Ltd.

Through an ASX update dated 10 November 2023, Pantoro Limited shared that it has entered into a binding agreement with MIN through which Pantoro has divested its 1005 lithium, copper, nickel and cobalt rights over the Norseman Gold Project for maximum AUD 60 million cash consideration plus royalties.

Outlook

The company’s business has doubled from 2019 to 2022 via CSI mining services and technology advancements are creating new opportunities. The company is also focused on strengthening onshore exploration campaigns through renewable projects.

Furthermore, the company has recently reported a natural gas discovery after completion of coring, drilling and wireline logging at the North Erregulla Deep-1 conventional gas exploration well.

Over the five years the company expects to double the lithium chemical capacity of its Tier 1 resources. Also, the company seeks to increase its global scale and bring competitive advantage through increase in exposure and operatorship of Wodgina.

In the energy segment, the company will focus on appraisal and exploration campaigns over FY24 and FY25 to improve resources in the onshore Carnarvon and Perth basins.

Share performance of MIN

MIN shares closed 0.803% higher at AUD 61.51 apiece on 13 December 2023, with a market capitalisation of AUD 11.91 billion. With this, MIN’s share price has dropped by 27.62% in the last 12 months and has decreased by 6.02% in the last month.

The 52-week high of MIN is AUD 96.97, recorded on 24 January 2023, while the 52-week low is AUD 56.2, recorded on 23 October2023.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 13 December 2023. The reference data in this report has been partly sourced from REFINITIV.