Mineral Resources shares gain on 'strong operational finish' to FY25
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More news: Mineral Resources shares were higher in morning trade after the mining group met its full-year production and cost guidance.
MinRes shares were up 2.7% to $30.90 at 12:15pm AEST, extending gains of more than 45% over the last 12 month.
RBC Capital Markets analyst Kaan Peker said he expects a "positive response" to the fourth-quarter result, which showed a "strong operational finish" to the financial year.
Peker noted that MinRes' mining services production beat market estimates and net debt came in lower than expected due to lower capital expenditure spend.
MinRes meets FY25 guidance as Onslow Iron nears nameplate capacity
The news: Mineral Resources has met its full-year production and cost guidance as its Onslow Iron joint venture turned cashflow positive and the company achieved record low mining costs.
The numbers: MinRes met guidance for each of its business segments, with total mining services production of 280 million tonnes hitting its target range of 280 million to 300 million tonnes. This was up 11 million tonnes compared to the previous year.
The miner said its Onslow Iron joint venture is now cashflow positive and progressing to its nameplate capacity of 35 million tonnes per year. It achieved an annualised run-rate of 32.4 million tonnes per year in the month of June.
The context: MinRes, which appointed new chair Malcolm Bundey and two new non-executive directors earlier this month, said the upgrade of the Onslow Iron private haul road remains on schedule for completion in Q1 FY26.
The company expects iron ore shipped from the project to reach 17.1 million to 18.8 million tonnes in FY26.
The source: ASX
