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Q1 FY24 Quarterly Exploration and Mining Activities Report

Mineral Resources Limited (MinRes) today presented its Quarterly Exploration and Mining Activities Report for the period to 30 September 2023.

Below are key points from the September quarter, with the full Quarterly Report available in our ASX announcement.

  • Safety performance for the quarter was 0.20 Lost Time Injuries. Total Reportable Injury Frequency Rate was 1.96.
  • FY24 volume guidance remains unchanged for all operations.
  • Mining Services production volumes were 66 million tonnes during the quarter, up 14% quarter on quarter.
  • Quarterly iron ore production increased 8% quarter on quarter to 4.8M wet metric tonne (wmt). Shipments of 3.9M wmt were impacted by temporary haulage and port constraints. The average quarterly realised iron ore price was US$99 per dry metric tonne (dmt), representing an 87% realisation of the Platts 62% IODEX.
  • All major approvals have now been received for the Onslow Iron Project. The first ore-on-ship delivery is expected in June 2024. Drill and blast operations commenced at the Ken’s Bore mine site, clearing and earthworks started on the private haul road and construction at the port is well progressed.
  • Mt Marion ore mined increased 31% QoQ as stripping of new areas continued to open multiple mining fronts to access fresh ore. Spodumene concentrate production increased 7%, while shipments rose 5% totalling 64k dmt (attributable).
  • Wodgina ore mined increased 45% QoQ following Stage 1 pit advancement allowed access to fresh ore, while pre-stripping of Stage 2 and 3 has progressed well.
  • Wodgina achieved record quarterly spodumene concentrate production of 45k dmt (attributable), up 10% QoQ. Shipments of 25k dmt (attributable) were impacted over the quarter due to unplanned port maintenance and congestion, with an additional shipment now scheduled in October.
  • Wodgina lithium battery chemical production was 4.8kt and sales were 4.3kt in the quarter. The average realised lithium battery chemical revenue in the quarter was US$34,036/t (excluding VAT).
  • Production testing of the North Erregulla Deep-1 (NED-1) gas discovery produced outstanding results, with a peak instantaneous flow rate of 99 million standard cubic feet per day (mmscf/d) and a CO2 concentration of only 3%.
  • On 30 August 2023, MinRes entered into an Implementation Agreement with the Deed Administrators of Alita Resources Limited which provided for Alita to be placed into liquidation and for Alita to enter a share sale agreement with MinRes for the disposal of its assets which include its interest in the Bald Hill lithium mine. Alita was subsequently placed into liquidation and on 27 September 2023, MinRes and the liquidator entered into the share sale agreement. Completion of the transaction is expected to occur during November 2023.
  • MinRes provided an updated Mineral Resources and Ore Reserves statement for its Mt Marion and Wodgina lithium deposits and an inaugural Mineral Resources and Ore Reserves Statement for its Ken’s Bore iron ore deposit.
  • Post the quarter, MinRes successfully completed a 5-year US$1.1 Billion Senior Unsecured Notes Offering at 9.250%.
  • Subsequent to the quarter, MinRes announced it closed on the restructuring of its MARBL joint venture with Albemarle Corporation (NYSE: ALB) (Albemarle) effective 18 October 2023.