Mineral Resources shares rocket despite guidance downgrade
Make us a preferred source
Make us a preferred source on Google
The news: Mineral Resources shares surged in morning trade, even as the mining group cut production guidance at its Onslow Iron project by 8%.
The numbers: MinRes shares were up 13.2% to $20.58 at 12:10pm AEST, having retreated around 40% since the turn of the year.
The company now expects full-year output at its flagship Onslow Iron project to be between 8.5 and 8.7 million tonnes, down from 8.8 to 9.3 million tonnes. Costs are expected to be at the upper end of the existing guidance range of $60 to $70 per tonne.
MinRes said cost reduction initiatives are continuing throughout the business as net debt reached $5.4 billion during the quarter. There has been a reduction of 1,740 roles across head office and sites since the start of the calendar year.
The miner also noted that the process to appoint a new board chair is "on track" to conclude in the June quarter. It said replacement members on the board will be selected "in due course" following the abrupt departure of non-executive directors Denise McComish, Jacqueline McGill and Susan Corlett this month.
The source: ASX
