Mineral Resources shares advance after meeting FY guidance
Make us a preferred source
Make us a preferred source on Google
More news: Shares in Mineral Resources surged at the start of trading on the ASX after the mining group posted a boost to full-year production volumes and met FY24 guidance.
Shares were up 5.4% to $54.69 by 10:45am AEST, having shed more than 25% over the past 12 months.
Mineral Resources hikes FY production, meets guidance
The news: Mineral Resources reported an increase to full-year production volumes and met FY24 guidance, despite a double-digit fall quarter over quarter.
The numbers: The mining major said FY24 production totalled 269 metric tonnes (Mt), a 9% uplift on the prior year's tally, and met the lower end of its guidance range of 260 Mt to 280 Mt.
However, quarterly production volumes were down 12% quarter on quarter to 61 Mt, as the company flagged lower mine development at its Wodgina and Mount Marion sites.
Over the year, Wodgina and Mount Marion delivered record shipments, up 41% and 46% respectively year on year.
Iron ore shipments totalled 7.6 million wet metric tonnes (wmt) during FY24 — at the lower end of its guidance range of 7.5 million to 8.3 million wmt. Free on board costs were $108 per wmt for the year, outside of its guidance of $97 to $107 per wmt.
The context: Mineral Resources' Yilgarn hub, which is due to end shipments by 31 December, 2024, lifted iron ore production in the June quarter but shipped volumes dropped due to reduced feed availability as a result of continued onsite haulage constraints.
Last month, the company run by billionaire Chris Ellison announced it would shut down its iron ore mines at the Yilgarn hub in Western Australia because they were no longer financially viable.
The source: ASX announcement
