Key Highlights

• Record Mining Services production volumes of 103 million tonnes, up 10% quarter-on-quarter

• Onslow Iron shipped 9.2Mt at a FOB cost of $53/wmt, outperforming the guidance range of $54-$58/wmt

• Net Debt decreased by $0.2 billion to approximately $4.1 billion, with Liquidity of $2.5 billion

• Fitch upgraded MinRes' Credit rating to BB with a stable outlook

Mineral Resources Ltd (ASX:MIN) closed at A$48.21 on 05 November 2026, rising 11.19% for the session. The S&P/ASX 200 (XJO) gained 2.61% (+230.60 points) to 9,065.10, while the S&P/ASX 300 Metal & Mining index (XMM) advanced 7.90% (+580.50 points) to 7,930.90. Overnight Wall Street gains following Democrats' decisive U.S. midterm election victory provided a tailwind for global Equity markets. Gold gained 1.77% to USD 4,145.70, silver rose 1.00% to USD 53.22, and copper edged up 0.06% to USD 14,086.00. Mineral Resources is a diversified Australian resources company with operations spanning iron ore, lithium, and mining services across Western Australia.

FY27 Guidance Maintained Across All Divisions

In its quarterly activity report released on 23 October 2026, MinRes confirmed FY27 guidance remained unchanged across all operating divisions. Onslow Iron is targeting attributable shipments of 20.0 to 21.7 million wet metric tonnes at a FOB cost of $54 to $58 per wmt. The Pilbara Hub is guiding for 10.0 to 11.0 million wmt at $74 to $79 per wmt. On the lithium side, Wodgina is targeting 360,000 to 390,000 dry metric tonnes of spodumene concentrate (SC6) at a FOB cost of $640 to $710 per dmt, while Mt Marion is guiding for 200,000 to 240,000 dmt at $960 to $1,020 per dmt. Mining Services production is targeted at 370 to 390 million tonnes for the full year.

Iron Ore and Lithium Performance

During the September quarter, Onslow Iron shipped 5.0 million wmt on an attributable basis, with total shipments of 9.2Mt at 100% and September marking a record export month of 3.49 million wmt. The FOB cost of $53 per wmt came in below the lower end of guidance. The Pilbara Hub produced 3.2 million wmt and shipped 2.9 million tonnes, with Lamb Creek now fully operational. In lithium, attributable sales reached a record 170,000 dmt of SC6, up 8% quarter-on-quarter. Wodgina delivered 90,000 dmt at a FOB cost of $674 per dmt, while Mt Marion produced 58,000 dmt at $1,029 per dmt. The Bald Hill operation contributed 21,000 dmt at $1,498 per dmt during its ramp-up phase. Mt Marion is in a transitional year, with flotation plant construction progressing and underground access development commencing.

Balance Sheet and Corporate Developments

MinRes ended the quarter with cash of $1.7 billion and total liquidity of $2.5 billion, including an $800 million fully undrawn revolving credit facility. Net debt decreased to approximately $4.1 billion, largely driven by a roughly $170 million increase in cash. Gross Capital Expenditure for the quarter was $310 million against full-year guidance of $1.425 billion. The Onslow Iron carry Loan balance was reduced to $303 million. Fitch upgraded the company's credit rating to BB with a stable outlook from BB- stable, citing capital allocation discipline and expanding operations. ASIC concluded its investigation into the company with no enforcement action taken. Chief Executive Lithium Joshua Thurlow resigned during the quarter, with Chief Executive Iron Ore and Energy Darren Hardy assuming additional responsibility for the lithium division.

Safety and Operational Efficiency

The company's rolling 12-month lost-time injury frequency rate improved 16% quarter-on-quarter to 1.01, while the total recordable injury frequency rate decreased 9% to 6.41. The company progressed its Real Talk, Real Change safety program across all locations. Average diesel prices during the quarter aligned with the $1.25 per litre assumed in guidance, though prices rose to approximately $1.60 per litre in September, with the impact expected to flow through from October. Based on the increased fuel price, FOB cost increases are estimated at approximately $1 per wmt for Onslow Iron, $2 per wmt for the Pilbara Hub, and around $20 per dmt for lithium operations. Mining Services recorded its highest-ever quarterly production volumes of 103 million tonnes, up 10% quarter-on-quarter.

Risks to Consider

Key risks include elevated fuel costs that could push operating expenses beyond guidance ranges, particularly if diesel prices remain above $1.60 per litre. The $4.1 billion net debt position remains a significant Balance Sheet consideration despite the recent reduction. Lithium price Volatility continues to affect margins at the Mt Marion and Bald Hill operations, where FOB costs remain above industry averages. The departure of the Chief Executive Lithium introduces a Leadership transition risk. The pending completion of the POSCO Holdings lithium transaction, expected in the first half of FY27, adds further uncertainty.

The Road Ahead

Mineral Resources enters the remainder of FY27 with all divisions tracking within guidance and record mining services volumes supporting the broader operational trajectory. The Fitch credit upgrade, declining net debt, and Onslow Iron's outperformance on costs provide a backdrop of improving financial metrics. Investors will be monitoring diesel price impacts, the lithium division leadership transition, and the anticipated POSCO transaction completion as the year progresses.