MinRes made a strong start to FY27, with record Mining Services production, a record export month at Onslow Iron, record attributable lithium sales and a further strengthening of the balance sheet.
- Mining Services production volumes of 103Mt were a record, up 10% quarter-on-quarter (qoq).
- Onslow Iron shipped 9.2M wmt (100% basis), including a record export month of 3.49M wmt in September. Attributable shipped volumes were 5.0M wmt, with an FOB cost of $53/wmt outperforming the FY27 guidance range of $54–58/wmt.
- Pilbara Hub produced 3.2M wmt and shipped 2.9M wmt, with Lamb Creek now fully operational. The FOB cost of $75/wmt was in line with guidance of $74–79/wmt.
- Record attributable lithium sales of 170k dmt SC6 were up 8% qoq.
Balance sheet strengthening
Net debt reduced by around $200 million to approximately $4.1 billion and liquidity increased by approximately $100 million to $2.5 billion. This was after capital expenditure of around $300 million and payment of the FY26 dividend of approximately $200 million.
Liquidity comprised $1.7 billion in cash and a fully undrawn $800 million revolving credit facility. The reduction in net debt was largely driven by a ~$170 million increase in cash.
In September, Fitch upgraded MinRes' credit rating to BB (stable) from BB- (stable), citing capital allocation discipline, significant deleveraging and expanding operations as key catalysts for the upgrade.
The Onslow Iron carry loan balance reduced to $303 million.
Mining Services
Record quarterly production volumes of 103Mt were 10% higher qoq, driven by the Bald Hill and Pilbara Hub ramp-ups and increased stripping at Mt Marion.
One new external contract for ore sorting commenced, two existing external crushing contracts were renewed and two contracts were completed during the quarter.
Iron Ore
Quarterly attributable iron ore shipments across Onslow Iron and the Pilbara Hub totalled 7.9M wmt. The average quarterly realised iron ore price across both operations was US$83/dmt, down 5% qoq, representing an 85% realisation of the Platts 61% CFR Index.
Onslow Iron
Onslow Iron produced a record 10.3M wmt (100% basis), up 17% qoq, and shipped 9.2M wmt (100% basis), representing an annualised run rate of approximately 36.9M wmt. A total of 45 vessels were loaded during the quarter. Attributable shipped volumes were 5.0M wmt.
The average quarterly realised price was US$83/dmt, representing an 86% realisation of the Platts 61% CFR Index. The quarterly FOB cost was $53/wmt, outperforming the guidance range of $54–58/wmt.
A total of 9.3M wmt (100% basis) was hauled to the Port of Ashburton, using a daily average of 100 MinRes jumbo road trains. Following maintenance works on the port in-load circuit early in the quarter, September was the highest export month on record at 3.49M wmt (100% basis), surpassing the previous high of 3.28M wmt set in June 2026.
The seventh transhipper, MinRes Karri, was commissioned in August. With the fleet now at seven, one transhipper will rotate through scheduled maintenance while six remain in operation. The first transhipper was sent to Singapore for maintenance during the quarter.
The first part of the scheduled dredging campaign has been completed. Dredging is scheduled to resume in mid-November for completion by the end of Q2 FY27, with only a minimal impact to volumes expected.
Construction of the 270-room Onslow Iron Resort recommenced in July, with completion expected in early FY28. Construction of non-processing infrastructure, including heavy-vehicle facilities at Upper Cane and a truck management facility at Ken's Bore, is progressing and on track for completion by the end of Q2 FY27.
Pilbara Hub
Pilbara Hub produced 3.2M wmt, up 55% qoq, and shipped 2.9M wmt. Lump weighting of total shipments increased to 43%.
Lamb Creek successfully transitioned from commissioning to full operations in the quarter, less than a year after breaking ground in December 2025. In that time, MinRes' Engineering and Construction team has delivered the fixed crushing plant, mine access road, tyre changing facility, heavy and light vehicle washdown areas, administration buildings and a 200-person village.
The average quarterly realised price was US$81/dmt, representing an 84% realisation of the Platts 61% CFR Index. The quarterly FOB cost was $75/wmt, in line with guidance of $74–79/wmt.
Lithium
Total quarterly attributable spodumene production across all three lithium projects was 166k dmt SC6 (200k dmt mixed grade), up 17% qoq.
Total sales were a record 170k dmt SC6 (204k dmt mixed grade), up 8% qoq, at a weighted average realised price of US$1,873/dmt CIF SC6. The price was down 23% qoq, impacted by a fall in spot lithium prices in September. As most of MinRes' lithium sales are made on the spot market, the company's realised prices move ahead of the lagging indices.
Wodgina
All three processing trains operated continuously, lifting production 9% qoq to a record 102k dmt. Recoveries improved to 70% (68% in Q4 FY26). Total material moved rose 4% qoq as Stage 4 mining commenced, and ore mined increased 72% qoq as Stage 3 ore became available.
Quarterly sales totalled 90k dmt SC6 at an average realised price of US$1,854/dmt CIF SC6, down 24% qoq. The quarterly SC6 FOB cost was $674/dmt, in line with guidance of $640–710/dmt SC6.
A study of expansion options is underway, with a decision on whether to proceed to detailed engineering design expected in Q2 FY27.
Mt Marion
FY27 is a transitional year for Mt Marion, with volumes moderating as the northern pits open with a planned high-stripping profile. Total material moved increased 23% qoq as stripping in N10 commenced, while ore mined decreased 45% qoq. Ore was sourced from N8 and N9, with the strip ratio expected to decrease overall through the year as higher volumes of ore are exposed in N11.
Production was 71k dmt, 13% lower qoq, with recoveries of 52% (59% in Q4 FY26) reflecting a higher proportion of lower-grade contact ore.
Quarterly sales totalled 58k dmt SC6 at an average realised price of US$1,891/dmt CIF SC6, down 21% qoq. The quarterly SC6 FOB cost of $1,029/dmt reflects lower recoveries. The FY27 SC6 FOB cost is expected to be at the upper end of guidance of $960–1,020/dmt SC6, as recoveries are expected to improve marginally.
Construction of the flotation plant commenced in the quarter, with earthworks on track and procurement of long-lead equipment underway. Macmahon Holdings Limited (ASX: MAH), the appointed underground mining contractor, mobilised to site in July. It commenced rehabilitation works in the North box cut in August and blasting of the decline in early September.
Bald Hill
Operations at Bald Hill continued to ramp up, with the plant transitioning to being primarily fed from freshly mined ore rather than stockpiled inventory. The dense media separation plant was successfully commissioned and is ramping up towards design capacity of 140ktpa SC6 in Q2 FY27. Recoveries increased to 63% as the plant stabilised.
Quarterly production was 27k dmt and sales totalled 21k dmt SC6 at an average realised price of US$1,903/dmt CIF SC6. The quarterly SC6 FOB cost of $1,498/dmt reflects the lower volumes of the ramp-up quarter. The FY27 FOB cost is expected to be in line with guidance of $1,150–1,250/dmt SC6.
Plant expansion study options are progressing, and an infill drilling program to define a maiden reserve is scheduled to commence in Q3 FY27.
Fuel
MinRes experienced no disruption to fuel supply or operations in the quarter. Average diesel prices for the quarter were largely in line with the $1.25 per litre assumed in the FY27 FOB cost guidance. Prices rose to approximately $1.60 per litre in September, which is expected to be reflected in FOB costs from October due to a one-month pricing lag.
Based on current prices, the company expects FY27 FOB costs to be within guidance.
Safety
The rolling 12-month Lost Time Injury Frequency Rate (LTIFR) as at 30 September 2026 was 1.01, a 16% improvement qoq. The rolling 12-month Total Reportable Injury Frequency Rate (TRIFR) was 6.41, a 9% improvement qoq.
Safety remains a priority for MinRes, with continued focus on educating employees and reinforcing the systems, processes and behaviours that keep them safe. This quarter, the company progressed the new Real Talk, Real Change safety program across all locations. The program addresses recurring injury types, tests risks in the field and targets a shift in controls towards engineering and elimination of hazards.
For more details on MinRes' Q1 FY27 performance, please refer to the ASX announcement.
