MinRes shares jump as lithium mines sustain profitability
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More news: Shares in Mineral Resources climbed more than 7% in early trading, after the miner reported its three lithium mines remained profitable despite the sharp downturn in spodumene prices.
Mineral Resources says lithium mines still profitable despite price crash
The news: Mineral Resources said its lithium mines remain "profitable at current prices" despite the downturn, with volume and cost guidance unchanged for the financial year.
The numbers: In its second-quarter activities report, MinRes said its three mines at Wodgina, Mt Marion and Bald Hill in Western Australia are still profitable at current spodumene prices. The miner said production at Mt Marion was up 30% compared to the previous quarter, while shipments increased 34%. MinRes also reported strong performance in its iron ore operations, with shipments up 23% quarter on quarter.
The context: Lithium prices have plummeted in recent months due to rising supplies of the battery metal coupled with softening demand. However, MinRes assured shareholders that all of its lithium mines remain profitable, while noting anticipated production cost reductions at its Wodgina and Mt Marion mines.
The source: ASX announcement
