Mineral Resources Limited (ASX:MIN) Reports Strong Mining Services Earnings in 1H25 Results
Financial Performance
Mineral Resources Limited reported revenue of $2,290 million for the half-year ended 31 December 2024, a decrease of 9% compared to $2,515 million in 1H24. Underlying EBITDA fell by 55% to $302 million from $675 million in the previous year. The company recorded an underlying net profit after tax (NPAT) of ($196 million), a decline of 200% from $196 million in 1H24. Statutory NPAT was ($807 million), down 252% from ($530 million) in the same period last year.
Operational Highlights
The Mining Services division delivered a record underlying EBITDA of $379 million, up 49% from $254 million in 1H24. Production volumes remained stable at 136 million wet metric tonnes. The Iron Ore division saw shipments increase by 11% to 9.7 million wet metric tonnes, while the Lithium division’s shipments rose by 28% to 261k dry metric tonnes SC6. Onslow Iron development progressed well, achieving production of 6.3 million tonnes and shipments of 4.6 million tonnes, turning operating cash flow positive from November.
Liquidity and Investments
Mineral Resources maintained available liquidity of $1,520 million, including $720 million in cash on hand. The company received $1,100 million from the sale of a 49% interest in the Onslow Iron haul road and $780 million from gas transactions with Hancock Prospecting. Net debt increased to $5,084 million from $4,428 million in FY24.
Executive Comments
MinRes Managing Director Chris Ellison stated, “Across the first half we made huge progress in ramping up production at Onslow Iron, a project that will transform the quality of our earnings across commodities and mining services. I’m pleased to report all parts of the Onslow Iron pit-to-ship supply chain were operational, with the first three transhippers performing beyond expectations at this stage of the ramp up. … It has been a challenging six-month period for MinRes, but our Company has a history of weathering storms and coming out stronger. It is a credit to the dedication and professionalism of the MinRes team that we remain in a strong position and well placed to deliver improved performance going forward.”
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.