Mineral Resources (MIN) Q2 2025 earnings summary

Executive summary

• Liquidity remains strong at AUD 1.5 billion, including AUD 700 million cash and an undrawn AUD 800 million revolving credit facility.

• Net debt at 31 December was AUD 5.1 billion, reflecting major inflows from asset sales, significant CapEx outflows, and working capital movements.

• Onslow Iron project is generating positive cash flow, with carry loan repayments underway and production ramping up toward a 35Mtpa run rate.

• Cost reduction initiatives have led to 1,200 roles exiting since FY 2025, with further impacts expected in the second half and measures implemented at lithium operations.

• Safety remains a priority, with a rolling 12-month TRIFR of 3.83 and LTIFR of 0.21, impacted by construction activity.

Financial highlights

• Received AUD 1.1 billion from the sale of a 49% road stake and AUD 780 million from the Hancock gas sale.

• CapEx for the first half was AUD 1.4 billion, mainly for Onslow Iron infrastructure completion.

• Net debt adversely impacted by a AUD 300 million revaluation of U.S. bonds due to FX movements.

• Mining Services production volumes were flat quarter-on-quarter at 68 million tons.

• Iron ore production across three hubs was 8 million tons, with shipments of 5.2 million at an average realized price of $84/ton.

• Lithium spodumene production was 136,000 dmt, shipments 143,000 dmt, with an average realized price of $827/ton SC6 equivalent.

Outlook and guidance

• Maintaining volume and cost guidance for all continuing operations in FY25.

• Onslow Iron ramp-up to 35Mtpa continues, with third crusher commissioning and additional transshippers arriving.

• Cost reduction measures in lithium expected to further lower unit costs in the second half.

• Yilgarn Hub and Bald Hill transitioned to care and maintenance; potential Yilgarn asset sale process underway.

• No significant further payables unwind expected; slight receivables build anticipated as volumes increase.