Mineral Resources (MIN): This morning, the diversified miner and mining services company reported its half-year 2026 results, which were largely in line with market expectations, given that it gave an update in January. The HNW Core Portfolio holds a 4% weight to MIN which is not held in the Income Portfolio

Key Points:

  • Profit Rebound: MIN reported a sharp change to their fortunes in 2026, posting profits of $343 million as against a -$196 million loss 12 months ago – driven primarily by increases in iron ore volumes out of Onslow iron ore mine and a recovery in lithium prices that have continued into 2026. Once again, Mining Service was the jewel in the crown, increasing earnings by 29%, driven by increased volumes from Onslow.
  • Lithium Selldown: During the half, MIN sold down 30% interest it their two lithium mines (Wodgina and Mt Marion) to POSCO for $1.2 billion. This lowers MIN’s weight towards the volatility of lithium markets and gets upfront cash for assets that the market had a $0 value for this time last year.
  • Balance Sheet Deleveraging: Over the past six months, MIN has paid off close to $500 million in debt, taking its net debt position to under $4.9 billion. This has brought MIN’s leverage down to 2.8x or 2.1x, accounting for the lithium selldown (See Below).
  • Dividends on the Horizon: Once MIN has obtained a leverage ratio under 2x, MIN will begin to restart paying dividends to shareholders, which, if current commodity prices are maintained, will be in August this year.
  • Guidance: MIN management reiterated FY26 guidance, with the exception of lithium volumes, which will flex upwards in line with increases in the price of spodumene as their mines are not running at full capacity.

 

 

CEP Strategy: MIN is a diversified miner and mining services company with four main business segments: mining services, lithium, iron ore and gas. Mineral Resources is the world’s 5th largest lithium miner with two operating Tier 1 hard rock mines in Western Australia. The company has a unique business model of owning assets and providing mining services to its own and external clients. This gives investors a per-tonne annuity income stream that is not correlated with commodity prices.

MIN finished down -5% to $51.25, due to overnight commodity price movements rather than the solid result. Over the past year, MIN has been the standout performer in the portfolio, up 98%, though this benefits from timing.