Mineral Resources (MIN) Q4 2024 earnings summary

Executive summary

• Onslow Iron achieved first ore on ship in May, ahead of schedule and just 11 months after breaking ground, marking a major milestone.

• Sold a 49% interest in the Onslow Haul Road for AUD 1.3 billion, with completion expected in 1H FY25, strengthening the balance sheet.

• FY24 mining services production volumes rose 9% year-on-year to 269Mt, within guidance, despite a 12% sequential quarterly decline.

• Record lithium shipments from Wodgina and Mount Marion, up 41% and 46% year-on-year, respectively.

• FY 2024 results were largely in line with guidance, with strong operational performance across all segments.

Financial highlights

• Mining services FY24 volumes reached 269Mt, up 9% year-on-year, hitting the midpoint of guidance.

• Attributable iron ore shipments reached 18.1Mt, up 3% year-on-year and within guidance.

• Yilgarn shipped 7.6Mt at a FOB cost of $108/tonne; Pilbara shipped 10.4Mt at $97/tonne.

• Average realized iron ore price was $94/tonne, with an 84% realization and discounts for lower grade at 14%-16%.

• FY24 net debt expected around AUD 4.4 billion; liquidity of AUD 2.8 billion at June 30, including AUD 900 million cash and undrawn facilities.

Outlook and guidance

• Onslow ramp-up targets unchanged: 20Mtpa by year-end, 35Mtpa by June next year.

• Expansion to 50Mtpa under development, with approvals and capital investment planning underway.

• Yilgarn Hub exports to cease by 31 December 2024, with up to 4.0Mt to be shipped by year-end.

• Lithium production guidance for FY25 to be provided at full-year results; cautious approach to new supply due to market conditions.

• FY24 lithium battery chemical sales exceeded guidance at 24kt.