Mineral Resources (MinRes) has announced its financial results for the half year ended 31 December 2023 (1H24), which reported strong operational performance across all businesses.
Revenue was up 7 per cent to $2.51 billion, with underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $674 million.
MinRes’ diversified business model was key to this solid set of financial results, despite weaker lithium prices. A focus on delivery has lithium, iron ore and mining services divisions on track to guidance and Onslow Iron on schedule for first ore-on-ship in June 2024.
Highlights included:
Safety
- Maintained an industry leading Total Recordable Injury Frequency rate of 1.90.
- Lost Time Injury Frequency Rate was 0.18.
Mining Services
- Production of 139Mt within guidance and delivered Underlying EBITDA of $253.7 million.
- Awarded five new contracts and renewed three contracts with Tier 1 clients.
Iron Ore
- Sales volumes of 8.7M wet metric tonnes (wmt) on track to guidance across both hubs.
- Onslow Iron construction within budget and on target for first ore-on-ship in June 2024.
Lithium
- Mt Marion plant expansion commissioned, with 99k dry metric tonnes (dmt) of SC6 equivalent spodumene concentrate shipped, up 39%.
- Pre-strip activities at Wodgina well advanced and 87k dmt of SC6 equivalent spodumene concentrate shipped, up 36%.
- Acquired Bald Hill effective 1 November 2023, with 18k dmt of SC6 equivalent spodumene concentrate shipped.
Energy
- High quality clean gas has been intersected through further drilling activities.
- Development application lodged for gas processing facility.
Commenting on the results, MinRes Managing Director Chris Ellison said: “Incredible progress was made on Onslow Iron over the half. We currently have more than 2,000 people working on the project, with first ore-on-ship on targeted for June 2024.
“Our unique ‘build, own, operate’ model at Onslow Iron ensures we have full control over costs and project delivery despite the high inflationary environment. The in-house expertise that gives MinRes a competitive advantage was recognised with the creation of our fifth pillar, Engineering and Construction.
“We continued to invest in the Lithium business, with the acquisition of a third hard rock mine, Bald Hill, and the expansion of our footprint in Western Australia through strategic investments in the world’s most prospective ground.
“Shipments from Wodgina and Mt Marion were up significantly over the year. We took the opportunity with last year’s high prices to complete major pre-strip activity. Unit costs are now falling at both sites. Further reducing costs while prices are depressed remains a priority this half.
“Iron Ore was the half’s star performer as stronger prices and solid volumes drove up revenue 37 per cent to $1.32 million. Mining Services was awarded five new contracts and renewed three contracts, including our first major contract in Queensland.
“The Energy division progressed our pathway to gas production. The processing facility’s development application has been submitted and a Final Investment Decision is due this half.
“MinRes continues to redefine the FIFO experience. Recent initiatives include direct flights from the east coast, couples moving into resort-style accommodation and the introduction of a la carte service.
“We are now expanding our mental health service with the recruitment of a team of counsellors who will provide expert support at our sites. We remain committed to investing in our 7,200-strong workforce, whose dedication and professionalism made this half’s impressive achievements possible.”
