MIN +2.26%: posted a strong operational finish to FY25 with some key positives across all 3 areas of their business, while their financial metrics (debt) showed signs of improvement.
- Onslow Iron continues to ramp-up, posting a June month exit run rate of 32.4Mt (100%) basis, relative to nameplate capacity of 34Mt – this was really important as the market remains highly skeptical of their ability to ramp up to this level.
- Mining services volumes were 280Mt, up 11Mt YoY, but at the lower end of the guidance range (280-300Mt).
- The Lithium segment saw sales broadly in-line with expectations; however, Wodigna realised pricing and costs were better than expected.
The balance sheet and liquidity is the key concern here, and while debt remains very high at $5.3bn, this was better than expected of $5.5b, and they have available liquidity of $1.1bn.
This was a good update, and one that showed positive progress in key areas. They still need Iron Ore prices to ideally stay above $100/mt and some ongoing recovery in Lithium would help, but they’re addressing their issues and making progress, with the Haul Road upgrade on track for completion this quarter.
MM is bullish MIN, and more comfortable after today’s update
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