MIN delivered a strong 1H result, with earnings beating expectations as margins improved across the business, particularly in mining services. Operational performance is strengthening as key assets ramp up, and guidance remains unchanged with Onslow performing well. No dividend was declared, as expected, with the focus still on reducing debt. Deleveraging has progressed significantly, with net debt falling and the balance sheet improving, putting the company on track to reinstate dividends earlier than previously expected, potentially by 1H27. This is supported by asset sales (including a lithium sell-down) and continued earnings growth, although future growth capex could delay this.
Looking ahead, key areas to watch are continued debt reduction, progress on governance and CEO succession, and execution of asset sales. Overall, we believe the outlook remains positive, supported by strong operations, improving financials, and a pathway back to shareholder returns.
At this stage, MIN’s revenue is ~60% iron ore and 13% lithium, with mining services filling the gap, but it has the ability to deliver step-change growth from lithium moving forward.
- We can see MIN testing $70 in the coming year.
MM is bullish toward MIN around $50
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