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Highlights

  • Mineral Resources is a diversified resources entity with extensive operations in lithium, iron ore, energy, and mining services across Western Australia
  • In 1HFY24, MIN’s revenue grew by almost 7% YoY to AUD 2,515 million
  • By FY28, iron ore production is expected to touch 92Mn wmt

Mineral Resources Limited (ASX: MIN) is an ASX-listed mineral exploration company, engaged in the development of its portfolio of mining operations across numerous commodities, including lithium and iron ore. The company offers high-quality, safe, low-cost mining, mining infrastructure, and mining construction in Australia.

In the financial year 2023 (FY23), the company recorded a nearly 40% YoY rise in the revenue to AUD 4,779.10 million, a 76.9% YoY rise in the EBITDA to AUD 1,755.60 million, and a 171.8% YoY increase in net debt to AUD 1,895.90 million. During the reported period, net income dropped by 30.3% YoY to AUD 243.30 million.

Key metrics of 1HFY24

In the first half of FY24 (1HFY24), the company recorded around 7% YoY growth in its revenue to AUD 2,515 million, driven by higher lithium prices, iron ore prices, and increased volumes of lithium sold. In 1HFY24, underlying EBITDA dropped by 28% YoY to AUD 675 million, and underlying NPAT fell by 49% YoY to AUD 196 million.

Latest quarterly performance

In the third quarter of FY24 (3QFY24), iron ore shipments dropped by 6% QoQ to 4.5mn wet metric tonnes (wmt) and the average realised price stood at USD 98 per dry metric tonne, showing a 79% realisation of the Platts 62% IODEX during the reported period.

In the lithium sector, spodumene concentrate prices increased later in the quarter, and in March 2024, the company saw the shipment of 22k dry metric tonnes sold at USD 1300/t.

In the energy sector, the Lockyer-5 Sidetrack-1 revealed 27m of net gas pay with an average porosity of 18% in 3QFY24.

Outlook

The mining services are expected to enhance margins and increase volumes via long-life, high-quality projects. By FY28, mining services are expected to produce 876 contracted tonnes.

In the near term, lithium production is expected to grow with modest capital requirements. By FY28, it is projected to produce 1,496 kt of SC6 equivalent.

By FY28, iron ore production is expected to touch 92M wmt).

Share performance of MIN

MIN shares closed 1.16% higher at AUD 56.57 apiece on 26 June 2024. Including today’s gain, MIN’s share price has dropped by nearly 20.07% in the past one year and has recorded a fall of 17.17% in the last three months.

The 52-week high of MIN is AUD 79.76, recorded on 22 May 2024, and the 52-week low is AUD 52.52, recorded on 22 January 2024.

MIN Daily Technical Chart, Source: REFINITIV

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 26 June 2024. The reference data in this report has been partly sourced from REFINITIV.