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Highlights

  • Mineral Resources is a mining service provider and also owns and operates commodity assets
  • In FY23, the company witnessed almost 40% growth in revenue and over 70% rise in EBIT
  • MIN shares closed 0.094% higher at AUD 63.550 apiece on 18 October 2023

Mineral Resources Limited (ASX: MIN) is an ASX-listed materials firm which has evolved from a mining service provider to operating and owning its commodity projects. The company and its subsidiaries offer mining logistics and pit-to-port mining services.

The company has employed substantial capital across its key growth projects, including building long-life Onslow iron projects, expanding its lithium portfolio and a natural gas exploration campaign in the onshore Perth Basin. The company expects these projects to drive its growth for decades.

In the financial year 2023, the company registered a 39.8% YoY rise in revenue to AUD 4,779.1 million and a 71.3% growth in underlying EBIT to AUD 1,754.0 million. Its financial performance during the reported period was underpinned by record lithium earnings, increased volume, and improved iron ore prices.

Top 10 shareholders of MIN

The top 10 shareholders of MIN have around 28.57% stake in the company. Ellison (Christopher James) and Norges Bank Investment Management (NBIM) have the highest stake in the firm, with a shareholding of 11.51% and 2.82%, respectively.

Recent business update

Through a recent update dated 4 October 2023, the company informed that it had concluded the offering of its USD 1.1 billion, 9.250% senior unsecured notes due 2028. The company would direct the proceeds from this transaction towards general corporate purposes, including capital expenditures.

Outlook

Over the next five years, the company expects to double its lithium chemical capacity from its Tier 1 resources. In FY24, the company will continue its appraisal and exploration campaign in the energy business segment.

Moreover, the increase in exposure and operatorship of a tier 1 lithium asset – Wodgina and full vertical integration in the coming five years through a restructured MARBL joint venture agreement is expected to bring competitive advantage and increase global scale.

Share performance of MIN

MIN’s share price closed 0.09% up at AUD 63.55 apiece on 18 October 2023. Including this, MIN’s share price has plunged by 27.53% in the past nine months and has dropped by 9.83% in the past one month.

The 52-week high of MIN is AUD 96.97 apiece, recorded on 24 January 2023, and the 52-week low is AUD 59.31 apiece, recorded on 9 October 2023.

 

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

 

Note 2: The reference date for all price data, currency, is 18 October 2023. The reference data in this report has been partly sourced from REFINITIV.