Mineral Resources (MIN) H2 2025 earnings summary

Executive summary

• Onslow Iron achieved a 35Mtpa run rate, supporting FY26 guidance, with first ore shipped in May 2024 and annualized production in line with targets.

• Mining Services delivered record EBITDA of $737M, up 34% year-over-year, driven by Onslow Iron ramp-up, new contracts, and high retention rates.

• Revenue for FY25 was $4.5bn, down 15% year-over-year, with underlying EBITDA of $901M, also down 15% year-over-year.

• Significant impairments of $806M (pre-tax) and $632M (post-tax) were recognized, mainly on RDG, Bald Hill, and lithium assets.

• Board strengthened with new independent Chair and directors, with ongoing governance and capital allocation reviews.

Financial highlights

• Underlying NPAT was a loss of $112M, with reported NPAT a loss of $896M due to impairment charges.

• Operating cash flow before interest and tax was negative $27M, with free cash flow from operations at negative $883M.

• Capex outflow totaled $1.9bn, below guidance, with $1.8bn proceeds from divestments and asset sales.

• Liquidity at June 30 stood at over $1.1bn, with net debt increased to $5.3bn and no near-term maturities.

• No final dividend declared for FY25 to prioritize balance sheet strength.

Outlook and guidance

• Onslow Iron expected to achieve nameplate capacity in Q1 FY26, with production guidance of 30.0–33.0Mt (100% basis) at $54–59/wmt FOB cost.

• Mining Services forecast production volumes of 305–325Mt, ~12.5% growth, with margins expected to remain around $2 per ton.

• Pilbara Hub to produce 9–10Mt at $75–80/wmt FOB cost, with Lamb Creek extending mine life.

• Lithium operations targeting 220–240k dmt (Wodgina) and 160–180k dmt (Mt Marion) in FY26, with ongoing cost reductions.

• FY26 capex guidance is $1.1bn, focused on sustaining capital, Onslow Iron, Pilbara Hub, and exploration.