Mineral Resources provided Q3 2025 update, one that was eagerly anticipated with the market looking for more information on the Onslow ramp-up and the haul road resurfacing. The HNW Growth Portfolio holds a 2% weight to MIN.
Key Points:
Onslow remains on target to hit a nameplate capacity of 35 MT per year in the September quarter this year, which will see the business significantly deleveraged.
- Mining services had a strong quarter. 62 MT were processed, and the profit margin was $2.10 per tonne.
- The lithium business returned to profitability following significant cost cuts, which included 1,740 roles across the head office and mine sites.
- While net debt is high, it was lower than market expectations due to cost controls, and it has $1.3 billion in cash reserves. With no bonds due until 2027, management announced that an equity raise was not under consideration, which was a move that would disappoint some investment bankers in Mosman after a second yacht from the capital raising fees.
- MIN announced that the new board chairperson will be selected before the end of June, and they will assist in selecting new board members going forward.
Why was the stock up? The stock is up due to the strong cost control measures MIN has put in place whilst the full ramp-up of the Onslow mine proceeds. The business will de-lever very quickly once the mine is at nameplate capacity. Today, MIN’s management showed that they have made moves to fix the issues identified in February that have contributed to MIN’s share price weakness.
MIN finished up +13.2% to $20.57
