Mineral Resources (MIN) H2 2024 earnings summary

Executive summary

• Achieved record mining services earnings and delivered first ore from Onslow Iron ahead of schedule, marking a major milestone despite lithium prices at historic lows impacting earnings.

• Revenue rose 10% year-over-year to $5.3bn, but underlying EBITDA fell 40% to $1.057bn and underlying NPAT dropped 79% to $158m due to commodity price headwinds.

• Focused on cost control, cash conservation, and operational efficiency across all segments, with no final dividend declared to preserve cash.

• Strategic partnerships and capital recycling, including the $1.3bn sale of a 49% interest in the Onslow Iron haul road, strengthened the balance sheet.

• Cash balance at year-end was $0.9bn, with net debt increasing to $4.4bn due to significant capex and investments.

Financial highlights

• Revenue reached $5.3bn, up 10% year-over-year; underlying EBITDA was $1.057bn, down 40%; underlying NPAT was $158m, down 79%.

• Mining services EBITDA grew 14% to $550m; iron ore EBITDA at $394m, lithium EBITDA at $384m, both affected by market prices.

• Operating cash flow before financing and tax increased 9% to $1.9bn, with a 124% cash conversion rate excluding iron ore prepayments.

• Net debt at $4.4bn; liquidity at $2.8bn as of June 30.

• Total capex for FY24 was $3.36bn, mainly for Onslow Iron.

Outlook and guidance

• Onslow Iron ramping to 35Mtpa by June 2025, supporting rapid deleveraging and significant cash flow.

• FY25 capex guidance set at $1.95bn; mining services production volumes targeted at 295–315Mt.

• Mining services expected to double EBITDA run rate to $1.25–1.3bn in 18 months.

• Lithium production throttled back to preserve cash; further cost reductions planned.

• No expansion beyond 35Mtpa at Onslow in the next 12 months; future growth contingent on market conditions.