Mineral Resources posts record $1.2b first-half EBITDA
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The news: Mineral Resources has posted a 171% lift in first-half profit to $573 million as underlying EBITDA came in at $1.2 billion due to what it said was “outstanding operational performance” from its Onslow Iron project, improved lithium recoveries and record mining services revenue.
The numbers: The profit figure was above last year’s first-half net loss of $807 million and ahead of consensus estimates of $457.2 million, according to Visible Alpha data.
Mining services production delivered $347 million in first-half EBITDA while Wodgina and Mt Marion delivered $113 million and $57 million respectively.
Underlying EBITDA was 286% higher year on year, and higher than the $1.08 billion expected by analysts. The company did not declare an interim dividend.
The context: The miner said it delivered "it's best half year result", with the Onslow Iron Ore project running at its 35 million tonnes per year nameplate capacity since August. The company also sold 30% of its 50% stake in the Wodgina and Mt Marion lithium projects.
The company said it is on track to deliver its FY26 volume and cost guidance.
Mineral Resources continues to work through a King & Wood Mallesons corporate governance review and has engaged Elizabeth Broderick & Co to "refresh the initial culture review". Leadership succession planning is also still ongoing.
What they said: "It's been a defining half operationally. Onslow Iron has safely achieved nameplate capacity, with sustained performance demonstrating Mining Services' innovative solutions and our team's operational excellence," Mineral Resources chair Malcolm Bundey said.
"Our people are the driving force behind this transformational project, which has achieved key milestones ahead of schedule, including receipt of the haul road contingency payment in the first half. This positions MinRes as a reliable, cost-competitive iron ore producer with significant scale."
The source: ASX
