Mineral Resources is pleased to announce its financial results for the half-year ended 31 December 2022 (1H23).
MinRes generated underlying earnings before interest, tax, depreciation, amortisation and impairment (Underlying EBITDA)^1 of $939 million, up 503% on the prior corresponding period (pcp)^2 .
The Company delivered a strong first-half performance, driven by record Lithium earnings from the conversion of both Mt Marion and Wodgina spodumene concentrate into lithium battery chemicals.
The performance was further underpinned by consistent Mining Services earnings and an improved contribution from Iron Ore on the back of higher achieved prices. Group underlying earnings after tax were $387 million, up $423 million on pcp.
Statutory net profit after tax was $390 million, up $370 million on pcp. Operating cash flow of $281 million was up $399 million on pcp from increased earnings with corresponding increases in working capital associated with the conversion of MinRes’ spodumene concentrate into lithium hydroxide.
The Board of Directors has declared a fully franked interim dividend for FY23 of $1.20 per share. The dividend is due to be paid on 30 March 2023 to shareholders on the register at 10 March 2023.
MinRes delivered a strong and stable 1H23, with achievements including:
- No Lost Time Injuries and maintaining low Total Recordable Injury Frequency Rate of 2.81
- First lithium battery chemicals earnings from Wodgina spodumene concentrate feed
- Record lithium battery chemicals earnings from Mt Marion under the tolling agreement with Jiangxi Ganfeng Lithium Co. Ltd (Ganfeng)
- Extended Ganfeng tolling agreement to December 2023, with an option to extend to December 2024
- Final Investment Decision (FID) made to develop the Red Hill Iron Ore Joint Venture assets as part of the Onslow Iron project, with construction on the project progressing well
- Off-market scrip takeover bid for Norwest Energy NL (ASX: NWE) (Norwest), with the revised offer unanimously recommended by Norwest Directors subsequent to 1H23
MinRes Managing Director Chris Ellison said:
“MinRes had a strong and stable first half, with solid earnings set to deliver shareholders a $1.20 fully franked interim dividend.
We are well set-up for an excellent year, with our balance sheet and performance across all areas in a great position.
“Our first half was headlined by record lithium earnings from conversion of Mt Marion and Wodgina spodumene concentrate into lithium battery chemicals.
“This was underpinned by consistent mining services earnings and a return to positive iron ore earnings due to improved product discounts.
“This financial year is set up for a strong run home, with the pieces in place for an exciting second half that should deliver even better results, as we consistently do.”
View the MinRes FY23 Half-Year Results presentation or watch the results webcast below:
For more information refer to our ASX Announcement.
^1 In order to provide additional insight into the performance of the business, the Group uses non-IFRS measures such as Underlying EBITDA. Reconciliations to IFRS measures are provided in Note 2 of the financial statements.
^2 Comparison to pcp being the half year ended 31 December 2021 (1H22)
