Q4 FY25 Quarterly Activity Report

Mineral Resources (MinRes) is pleased to present its Quarterly Activity Report for the period to 30 June 2025 (Q4 FY25).

KEY HIGHLIGHTS

• FY25 volume and cost guidance achieved in all business segments.
• Strengthened Board with appointment of new independent Non-Executive Chair and two new Non-Executive Directors; Board now leading governance refresh and balance sheet review.
• Liquidity remains strong at over $1.1 billion (B), with net debt to EBITDA continuing to reduce.
• Onslow Iron joint venture (JV) is cashflow positive and progressing to 35 million tonnes per annum (Mtpa) nameplate capacity, achieving an annualised run-rate of 32.4Mtpa in the month of June. Completion of the private haul road upgrade remains on target for Q1 FY26.
• A record low SC6 FOB cost of $641 per dry metric tonne (dmt) was recorded at Wodgina in Q4, supported by ongoing cost reduction efforts and improved recoveries. Additional plant enhancements are expected to increase recovery rates above 65% during FY26.

KEY POINTS

Board renewal

During the quarter, the MinRes Board appointed Malcolm Bundey as an independent Non-Executive Director.

Mr Bundey assumed the position of Chair on 1 July 2025¹, with an immediate focus on continued Board renewal, strengthening governance, Onslow Iron and balance sheet repair.

Post quarter end, two additional independent Non-Executive Directors, Lawrie Tremaine and Ross Carroll, were appointed to the MinRes Board effective 7 July 2025².

King & Wood Mallesons was also engaged to conduct a review of the governance framework and provide a gap analysis of the overall landscape to promote best-in-class practices.

Safety

The Lost Time Injuries Frequency Rate as at 30 June 2025 was 0.14 and the rolling 12-month Total Reportable Injury Frequency Rate (TRIFR) was 3.84.

The increase in the rolling TRIFR is primarily due to higher recordable injury numbers in 1H25, combined with a 65% reduction in total exposure hours with the ramp down of Onslow Iron construction and the transition of Bald Hill into care and maintenance.

Corporate

Liquidity as at 30 June 2025 was in excess of $1.1B, consisting of more than $400 million (M) in cash and $705M in undrawn lines.

During the quarter, the Company drew down $95M on its $800M revolving credit facility to assist with short-term working capital requirements.

The Company expects to have full access to its revolving credit facility going forward. Net debt as at 30 June 2025 is expected to be circa $5.35B.

Movements over Q4 FY25 were driven largely by:

• ~$200M of capex outflow³ spend, bringing FY25 capex to $1.9B (within guidance of $2.1B). Note FY25 capex of $1.9B is net of ~$400M of asset financing
• ~$200M in interest payments
• ~$200M⁴ foreign exchange revaluation gain on the Company’s US$3.05B unsecured bonds
• ~$50M working capital outflow.

The Onslow Iron carry loan balance decreased to $766M as at 30 June 2025 ($789M as at 31 March 2025), reflecting positive cash flow generation by the Onslow Iron joint venture.

Commencing this quarter, the Company will amortise its US$400M iron ore prepayment ($614M as at 30 June 2025) in equal quarterly instalments over FY26, FY27 and FY28 through proceeds from iron ore sales.

The following non-cash pre-tax items in the second half of the financial year, which are subject to audit finalisation, are expected to be included in the FY25 statutory result:

• ~$250M revaluation gain of MinRes’ US$3.05B unsecured bonds as at 30 June 2025 at the prevailing AU$/US$ exchange rate of 0.66 (versus 0.62 as at 31 December 2024).
• ~$80M gain recognised on the divestment of the Yilgarn Hub iron ore operations due to derecognition of closure liabilities.
• ~$40M gain recognised on Perth Basin gas tenements following the sale to Hancock.
• ~($30M) fair value losses on listed investments.
• ~($70M) provision on outstanding balances following the exit of downstream lithium operations in China.
• As part of the FY25 year-end process, the Company is currently undergoing annual impairment testing. While the assessment is incomplete, the Company currently expects non-cash impairments of ~$80M largely related to lithium tenements.
• MinRes is also assessing the carrying value of Resource Development Group (ASX: RDG) assets in its financial statements and expects to recognise a non-cash impairment expense following RDG’s appointment of voluntary administrators⁵.

MINING SERVICES

Quarterly production volumes were a record 83 million tonnes (Mt), up 21Mt quarter on quarter (qoq), driven by the ramp-up of Onslow Iron and external volume growth.

FY25 production volumes were 280Mt, up 11Mt year on year (yoy), and at the lower end of the guidance range (280 - 300Mt). FY25 EBITDA per production volume tonne is anticipated to be ~$2.20/t (upper end of guidance of $2.10-2.20/t).

Second-half EBITDA/t margins were adversely affected by the use of 64 contractor road trains at Onslow Iron in the quarter. The use of supplementary contractor road trains is expected to wind down from September, following completion of the Onslow Iron private haul road upgrade expected in that month.

IRON ORE

Total quarterly iron ore production across Onslow Iron and the Pilbara Hub was 8.9M wet metric tonnes (wmt) (100%), with shipments of 8.3M wmt (100%).

At Onslow Iron, a total of 5.8M wmt (100%) was shipped in the quarter, up 59% qoq, to bring FY25 shipments to 14.0Mt (100%), at the upper end of guidance. June shipments were 2.7M wmt (100%), representing a run-rate of 32.4Mtpa. June quarter Onslow Iron FOB cost was $57/wmt, bringing FY25 Onslow Iron FOB cost to circa $63/wmt, at the bottom end of guidance.

Pilbara Hub achieved FY25 shipments of 9.7M wmt at the upper end of guidance (9.0-10.0M wmt) with FY25 FOB cost expected to be $76/wmt.
The average quarterly realised price across both Onslow Iron and the Pilbara Hub was US$79/dry metric tonne (dmt), a 11% decrease qoq and representing an 80% realisation of the Platts 62% IODEX.

Onslow Iron progress over the June quarter:

• The fifth transhipper began operating in June and was commissioned in July, increasing total transhipping capacity to 35Mtpa.
• MinRes significantly increased Mineral Resources and Ore Reserves statements⁶ (100% basis) with Mineral Resources of 744Mt and Ore Reserves of 359Mt.

The upgrade of the Onslow Iron private haul road remains on schedule for completion in Q1 FY26. Onslow Iron remains on track to hit nameplate capacity of 35Mtpa at the back end of Q1 FY26.

MinRes expects FY26 Onslow Iron shipped volumes of 17.1-18.8Mt (30.0-33.0Mt, 100% basis).

MinRes completed the sale of the Yilgarn Hub iron ore operations and assets to an unrelated third-party on 30 June 2025⁷.

LITHIUM

Total quarterly attributable spodumene production across both operating sites was 144k dry metric tonnes (dmt), with shipments of 135k dmt.

The weighted average quarterly realised price achieved across both sites was US$642/dmt SC6 equivalent (SC6), down 24% qoq.

Spodumene concentrate prices have strengthened markedly since June, with MinRes achieving prices of close to US$800/dmt SC6, including a small parcel at circa US$900/dmt SC6.

Mt Marion shipped 203k dmt of SC6 equivalent product in FY25, outperforming the upper end of its previously increased guidance range (185-200k dmt SC6) with expected FY25 FOB cost of $902/dmt⁸.

Wodgina shipped 214k dmt of SC6 equivalent product in FY25, in line with guidance (210-230k dmt SC6) with its FY25 FOB cost expected to be $849/dmt.

ENERGY

An independent expert has certified a 2C contingent resource of 27 billion cubic feet (Bcf) for Moriary-2.

Although this outcome does not meet the minimum 30 Bcf threshold for an upside purchase price adjustment⁹, it confirms a substantial gas resource and further demonstrates the prospective potential of the region.

The Lockyer-6 reserve and resource certification process is expected to be completed in Q1 FY26.

The Bamberg-1 well, which forms part of the MinRes-Hancock exploration joint venture, encountered multiple gas shows and was cased and suspended for a future testing program.

For more details, please refer to Q4 Quarterly Activity Report on our website.

1. ^{ASX announcements 19 May 2025 and 30 June 2025.}
2. ^{ASX announcement 7 July 2025.}
3. ^{Consistent with prior reporting, capex outflow is net of asset financing and includes Onslow Iron development expenditure incurred on behalf of the API JV. MinRes will recover this development expenditure, plus capitalised interest, through the Onslow Iron carry loan.}
4. ^{The Group’s US$3.05B unsecured bonds were revalued using an AU$/US$ rate of 0.66 as at 30 June 2025 (versus 0.63 as at 31 March 2025).}
5. ^{ASX announcement 28 July 2025. Mineral Resources Limited – Quarterly Activity Report – April to June 2025 (Q4 FY25)}
6. ^{ASX announcement 21 May 2025.}
7. ^{ASX announcement 30 June 2025.}
8. ^{FY25 FOB cost of $902/dmt excluding a $11M net realisable value write down of low-grade stockpiles in the quarter resulting from a decline in spodumene prices.}
9. ^{ASX announcement 31 October 2024.}