Why Did Mineral Resources (ASX:MIN) Reinstate Dividends After Record FY26 Results Including Onslow Iron?

Sonal Goyal

09 October 2026 12:12 AM AEDT

Why Did Mineral Resources (ASX:MIN) Reinstate Dividends After Record FY26 Results Including Onslow Iron?

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Diversified miners report group results across Mining services, iron ore and lithium. Mineral Resources Limited (ASX:MIN) released its FY26 results on 27 August 2026, reinstating dividends.

Company overview

Mineral Resources Limited (ASX:MIN), or MinRes, operates mining services, iron ore (Onslow Iron and the Pilbara Hub) and lithium (Wodgina and Mt Marion).

FY26 results

Revenue was A$6.5 billion, up 44%. Underlying EBITDA was A$2.6 billion, up 183%, underlying NPAT A$822 million, up 831%, and reported NPAT A$1.2 billion. Free Cash Flow was A$849 million and Liquidity A$2.4 billion. Net Debt fell A$1.1 billion to A$4.3 billion, a ratio of 1.7 times underlying EBITDA from 5.9 times.

Operations and dividend

Onslow Iron shipped 19.7 million tonnes at A$52 per tonne FOB with A$909 million of underlying EBITDA, while the Pilbara Hub shipped 9.9 million tonnes at A$79. Wodgina and Mt Marion produced 317,000 and 242,000 dry tonnes of SC6 at A$738 and A$847 per tonne. Mining services volumes were 341 million tonnes. A fully franked full-year Dividend of A$0.83 per share was declared, a 20% payout of underlying NPAT, up from nil.

POSCO transaction

Completion of the POSCO transaction, subject to conditions, would generate gross proceeds of US$765 million and reduce net debt to A$3.2 billion, about 1.2 times.

Commentary on Capital allocation

The board said the dividend reflects confidence that the Balance Sheet is healthy and that the company is generating cash to sustain returns through the cycle. The release also highlights governance, Leadership and balance sheet priorities set out a year earlier.

Reported NPAT of A$1.2 billion exceeded underlying NPAT of A$822 million, and the difference arises from items the company excludes from underlying measures. Readers should refer to the full results for the reconciliation.

Segment performance

Mining Services delivered underlying EBITDA of A$689 million on 341 million tonnes of production volume, and the Road Trust contributed A$289 million (100% basis) on 34.4 million tonnes. Onslow Iron contributed A$909 million of underlying EBITDA and the Pilbara Hub A$98 million. Wodgina generated A$470 million and Mt Marion A$302 million.

Total Capital Expenditure was A$1.2 billion (A$1.1 billion net of financing).

Leverage and the POSCO transaction

Net debt of A$4.3 billion is A$1.1 billion lower than a year earlier, and net debt to underlying EBITDA fell to 1.7 times from 5.9 times. If the POSCO transaction completes, MinRes expects gross proceeds of US$765 million and net debt of about A$3.2 billion, a ratio of about 1.2 times. The release states the dividend of A$0.83 per share represents a 20% payout of underlying NPAT and is fully franked.

Sector backdrop

Iron ore and lithium Earnings depend on Commodity prices, and the release notes improved lithium prices.

MinRes combines contract mining services with commodity businesses, so earnings reflect both volumes and prices. Iron ore cost per tonne and lithium prices are key variables, and the release credits improved lithium prices and the Onslow ramp-up.

Reinstating dividends after a period of high Leverage indicates a change in capital allocation priorities, though payouts can vary with earnings.

Mining services, iron ore and lithium each have different earnings drivers, and the company’s results reflect their combined performance. Net debt ratios are widely used by analysts and lenders to assess balance sheet capacity, and the release presents the ratio before and after the POSCO transaction.

Risks shareholders should weigh

Results benefited from prices and ramp-up that may not persist. Net debt remains A$4.3 billion.

The POSCO transaction is conditional.

Capital expenditure of A$1.2 billion continues.

FY26 figures benefited from record Revenue and higher lithium prices, which can reverse, and the company remains highly leveraged at A$4.3 billion of net debt.

Completion of the POSCO transaction is subject to conditions precedent.

What’s next

MinRes held a results call on 27 August 2026. Shareholders may wish to watch for POSCO completion and the dividend payment.

Shareholders may wish to watch for the POSCO completion, the dividend payment and quarterly production updates.

FAQs

Q: What was the FY26 dividend?

A:A$0.83 per share, fully franked, a 20% payout.

Q: What was net debt?

A:A$4.3 billion, down A$1.1 billion.

Q: What is the POSCO transaction?

A:A transaction expected to generate US$765 million of gross proceeds, subject to conditions.

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