MIN +13.7%: It’s been a long, painful ride for holders of Mineral Resources (MM included), but today’s quarterly update has delivered long-awaited vindication – the stock rallied another 13.7% as investors continued to price in a turnaround story that looks tangible across all divisions.
MIN posted a strong Q1 operational result, comfortably ahead of expectations across iron ore, lithium, and mining services.
- Iron ore shipments: 7.65Mt, +31% q/q, a record.
- Spodumene concentrate: 161kt, +12% q/q, with sales up and pricing improving.
- Mining services volumes: 81Mt, only slightly lower q/q but tracking toward the top end of FY guidance (305–325Mt).
The Onslow iron ore project, the source of delays, accidents, and shareholder frustration, hit its full 35Mtpa run rate, shipping 8.6Mt over the quarter and triggering a $200m milestone payment from Morgan Stanley Infrastructure Partners.
Lithium, meanwhile, enjoyed a price rebound (up 31% q/q to US$849/t SC6), lifting earnings momentum just as MIN’s balance sheet stabilises.
Net debt remained steady at $5.4b despite $400m in capex, reflecting stronger cash generation and improved cost discipline. CFO Mark Wilson made it clear that lithium asset sales are not a necessity, saying MIN “will only transact if we see real value there.”
A further $41m payment from Gina Rinehart’s Hancock Prospecting post-quarter end and the completion of the Lockyer-6 certification added to the positive tone.
Under new chairman Malcolm Bundey, the board has been refreshed following a bruising year for founder Chris Ellison and the company’s reputation, however, this is a lessen on execution – get that right, and the noise can be short lived.
While we’ve worn plenty of pain on MIN which weighed last year’s results, our position is now in the black. The business is once again generating cash, iron ore and lithium prices are moving in its favour, and governance risk is subsiding. While the debt load remains elevated, we think the market is starting to reprice the optionality embedded across MIN’s diversified model.
MM remains long & bullish MIN
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