Mineral Resources (MinRes) shares have surged, climbing 9 per cent to $46.20 in a single day and soaring 124 per cent over the past six months, driven by record iron ore production and shipments.
The company released it latest quarterly report, highlighting MinRes’ operational strength across its iron ore and lithium divisions, with Onslow Iron shipping 8.6 million tonnes (100 per cent basis) in the first quarter and operating at its full 35 million tonne (Mt) per annum nameplate capacity between August and October.
This milestone triggers a $200 million contingent payment from Morgan Stanley Infrastructure Partners (MSIP), adding to the company’s financial momentum.
Total quarterly iron ore production across Onslow Iron and the Pilbara Hub was a record of 10.9Mt, with record shipments of 11.4Mt.
MinRes managing director Chris Ellison said the achievement of after hitting key operational targets at Onslow underscores the company’s operational excellence.
“I’m proud of the dedication and expertise that has brought the project to consistent nameplate levels, showcasing the extraordinary capability of our people and the strength of our innovative pit-to-ship supply chain,” Ellison said.
The Pilbara Hub also posted strong results, with shipments of 2.7Mt and a maiden resource of 161Mt, while lithium operations at Wodgina and Mt Marion saw higher recoveries and production, supported by optimisation projects. Average realised lithium prices increased 31 per cent quarter-on-quarter to $US849 per tonne SC6, strengthening revenue outcomes.
MinRes chair Malcolm Bundey said the contingent payment and operational achievements reinforce the company’s project execution capability.
“It also reinforces the quality of our world-class mining services business, which has driven the successful ramp-up of the project’s pit-to-ship supply chain,” Bundey said.
MinRes remains in a robust financial position, with liquidity of $1.1 billion and net debt steady at $5.4 billion, alongside $400 million in capital expenditure during the quarter.
Onslow Iron’s upgraded 150km private haul road has supported unconstrained haulage, enabling record shipments and underpinning MinRes’ continued focus on operational efficiency and disciplined balance sheet management.
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