Mineral Resources (MIN): This morning, the diversified miner and mining services company reported its 2025 results, which were better than expected. However, to say the company has had an eventful year would be an understatement. The past year has seen MIN generate more headlines than Medibank Private or Atlas Arteria combined would produce in a decade. The HNW Growth Portfolio holds a 3% weight to MIN.

 

Key Points:

  • Profits Down: Profits for the year were down to $-112 million, driven primarily by a retreat in the lithium spodumene price and temporary iron ore transport issues. Pleasingly, the second half of the year saw a $84 million profit, versus a loss in the first half, indicating that conditions are improving for the company, driven by higher lithium prices and increased iron ore volumes. Once again, MIN’s primary business, mining services, was the jewel in the crown, posting record profits driven by increased contract prices, higher volume, and new contract wins. The lithium business is now profitable, thanks to a recovery in prices.
  • Balance Sheet: MIN’s balance sheet is currently at its peak for net debt, although Atlas remains relatively relaxed, as the increase in gearing is not due to a deterioration in MIN’s business, but rather to expansions in lithium and iron ore, with the company spending $3.4 billion to improve its operations. MIN debt has no covenants, with no debt due until 2027. The sale of the energy business and the completion of the haulage road sell-down during the year provided breathing room for MIN. On the call, management reiterated that there will be no dilutive capital raise, as the sell-side analysts had called for six months ago.
  • Onslow Haulage Road: Management has confirmed that the resurfacing of the problematic 150km road is expected to be completed by mid-September and that 35MT nameplate capacity will be achieved in Q1 2026. In the press today it was reported that a MIN truck had overturned over the weekend https://www.afr.com/rear-window/minres-jumbo-truck-crashes-on-its-upgraded-mining-road-20250826-p5mq2g . This news sent investors’ hearts racing, but not in a good way. Apparently, this was due to driver error, with the driver believing that he was approaching a rest bay, when in fact the rest bay was 2 kilometres away and he had driven off the road. The driver was not hurt and has been returned to work, with the road only being closed for 2 hours.  

 

 

CEP Strategy: MIN is a diversified miner and mining services company with four main business segments: mining services, lithium, iron ore, and gas. The company has a unique business model that includes owning assets and providing mining services to its own and external clients. MIN’s next quarterly report, scheduled for release on October 30, will be critical, with a share price re-rating likely if they announce that the road resurfacing is completed.

 

MIN finished down -1.5% to $36.87