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MinRes announces FY23 financial results

MinRes has announced its financial results for the full year ended 30 June 2023 (FY23).

Underlying EBITDA was up 71 per cent to $1.8 billion, revenue was up 40 per cent to $4.8 billion and a full year dividend of $1.90 declared.

 

Highlights included:

Lithium:

  • Achieved record Underlying EBITDA of $1.3 billion following strong pricing and increased volumes.
  • Wodgina continued to ramp up, with two trains operational and all three trains commissioned.
  • Wodgina ownership to increase to 50 per cent as part of renegotiated MARBL joint venture agreement with Albemarle Corporation.
  • Completed construction of the Mt Marion plant expansion and executed major exploration program which revealed strong underground potential.

Iron ore:

  • Final Investment Decision (FID) made to develop the Onslow Iron project.
  • Onslow Iron received all major approvals, with construction well progressed.

Energy:

  • Drilled two onshore natural gas discoveries in the Perth Basin.
  • Completed the takeover of Norwest Energy NL.

Mining Services:

  • Awarded six new contracts and renewed four contracts with Tier 1 clients.
  • Delivered production volumes of 248 million tonnes and Underlying EBITDA of $484 million.

Safety:

  • Maintained a low Total Recordable Injury Frequency Rate (TRIFR) of 2.08.
  • Time Injury Frequency Rate (LTIFR) of 0.07, a slight increase from the prior year.

Statutory net profit after tax was $244 million, and included $552 million of non-cash, post-tax impairment charges mainly on assets related to the Utah Point Hub and Yilgarn Hub iron ore operations.

The impairment represents a re-estimation of the value of these assets considering the ore that is available to be mined, current forecast prices, and estimated operating costs for labour, rail and port charges.

These operations continue to play a part in MinRes’ transition to a lower-cost, longer-life iron ore portfolio.

The company is investing in exploration to maximise the value potential from the Yilgarn, while options for Utah Point are being considered as part of the South West Creek development.

MinRes Managing Director Chris Ellison said the tragic death of contractor employee, who lost his life during construction at the Ken’s Bore site in June, impacted everyone at MinRes.

The company is determined to learn from the tragedy and safety remained a top priority.

“MinRes continued to execute our high-growth strategy and I’m proud of what our team achieved on the major development projects that will set up MinRes for decades to come,” he said.

“Our flagship Onslow Iron project made enormous progress. All major approvals have been received, construction is on track and the project will start generating cash in 12 months.

“In Lithium, we demonstrated agility by restructuring our joint ventures in response to the evolving market. The expansion of the Mt Marion plant was completed and a major exploration program revealed strong underground potential, while our ownership of Wodgina will increase to 50 per cent.

“The Energy division made another two natural gas discoveries in the Perth Basin.

“We have enough gas to help the Western Australian domestic market stay in long-term surplus, and to export to the world as LNG, but the significant capital investment required to maximise this potential is being held back by the current WA domestic gas policy.

“Mining Services, which remains the heart of our business, was awarded six new contracts with Tier 1 clients. The division will benefit from the ramp up of activities across our operations and the deployment of its world-leading innovations.

“These achievements ensure we are well-placed for another year of transformational growth across all parts of our business that will continue to drive value for our shareholders.”

For more information on our FY23 performance, read our 2023 Financial Year Report.