We’ve included MIN this morning as we hold the miner in our Active Growth Portfolio, but it only generated ~13% of its revenue from Li in FY25. MIN has placed its Bald Hill lithium mine in Western Australia under care and maintenance, but like a number in space, it can ramp up production if prices justify, with substantial lithium production capacity from ongoing expansions at Wodgina and Mt Marion.
Medium term, their Li revenue could easily increase to ~35–50% depending on market conditions and project ramp-ups, however the rest of the business is now on firmer footing. The main areas of concern were Governance, and whether or not they could reach their aggressive forecasts for the Onslow iron ore project.
- Malcolm Bundey has recently joined the board as Chairman and has appointed four new non-executive directors. Governance is improving.
- There has been very positive progress of its Onslow iron ore project, with the project exceeding targeted nameplate iron ore shipments of 35mtpa in August and September.
We think MIN will continue to see a material uplift in earnings which will accelerate deleveraging, targeting a move north of $50.
MM is bullish towards MIN ~$45
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