Mineral Resources shares lift after upgrading iron ore, lithium production guidance
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The news: Mineral Resources shares lifted in morning trade after the miner upgraded its full-year production guidance for mining from its Onslow iron ore mine as well as its Wodgina and Mount Marion lithium projects. Mining services volumes guidance was also upgraded.
The miner also completed a USD1.3 billion debt raise via senior unsecured notes which had been announced to the market on 21 April.
The number: At 1:55pm AEST, shares in Mineral Resources had lifted 5.6% to $65.36.
The company upgraded its full-year guidance from the Onslow project from between 17.1 million to 18.8 million wet metric tonnes to 17.7 million to 19.4 million tonnes.
Spodumene guidance for Wodgina was lifted to 270,000 to 290,000 tonnes, up from 260,000 and 280,000 tonnes. Mount Marion guidance was lifted to 210,000 and 230,000 tonnes, up from between 190,000 and 210,000 tonnes.
Mining services production volume guidance for the full year has been upgraded to between 320 million to 330 million tonnes, from 305 million and 325 million tonnes.
The context: RBC Capital Markets analyst Kaan Peker said in a note to clients that while third quarter volumes were softer compared to the preceding quarter, this was “largely explained by weather and shipment timing”.
He also flagged that lithium pricing is “strong…driving earnings upside and accelerating deleveraging”. Onslow is also “quickly returning to nameplate after cyclones”.
What they said: “Net, the result reinforces confidence in system capacity and FY26 delivery, with the balance sheet improving faster than expected, with net debt ($4.5b) and liquidity improving over the quarter,” Peker said.
