MIN reported after market yesterday and it was solid with underlying revenue of $4.78bn marginally ahead of consensus while net profit after tax (NPAT) of $769m was a big beat relative to market expectations of $689m, while the company will pay a 70c fully franked final dividend next month, taking the FY payout to $1.90, again ahead of expectations.
They did guide to higher capex for FY24 while the decision to pay a higher dividend was an interesting one, the balance sheet of MIN has been a concern of the markets given their big push into Lithium which is the lions share of the $2.75bn in capex guidance. The bulls like MM will say it shows confidence, the bears will say conserving capital should have been the play.
- We continue to like the eclectic mix of mining services, iron ore and lithium that MIN delivers – we hold a 4% MIN weighting in our Flagship Growth Portfolio.
MM is long & bullish MIN
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