Mineral Resources has delivered a strong quarterly update with broad-based production guidance upgrades across its entire portfolio, signaling improved operational momentum and executing on its growth initiatives. The company lifted FY26 volume guidance at Onslow Iron, Mining Services, and both its lithium operations at Wodgina and Mt Marion, demonstrating enhanced confidence in delivery following the March quarter.
At Onslow Iron, production of 7.8 million tonnes and shipments of 7.2Mt in Q3 were constrained by cyclones Mitchell and Narelle, yet the operation recovered swiftly with no damage to key infrastructure. The company upgraded full-year guidance to 17.7-19.4M wmt from 17.1-18.8M wmt, with costs tracking at the lower end. Mining Services production guidance jumped to 320-330Mt from 305-325Mt, reflecting the ramp-up at newly commissioned Lamb Creek, which achieved first ore on ship in March. These upgrades underscore the company’s ability to navigate operational challenges while maintaining execution on planned expansions.
The lithium division represents a particularly bright spot for MinRes. Quarterly spodumene concentrate production reached 127,000 dry metric tonnes, with sales of 115,000 dmt achieved at an average price of US$2,105 per dmt, representing a remarkable 92 percent increase from the prior quarter. This price recovery reflects tightening lithium markets and validates MinRes’ significant exposure to this structural growth market. The company upgraded FY26 volume guidance at Wodgina to 270-290k dmt from 260-280k dmt and at Mt Marion to 210-230k dmt from 190-210k dmt, maintaining existing cost guidance. These volume lifts, combined with the stabilized pricing environment, position the lithium division as a material earnings driver in coming periods.
From a financial perspective, MinRes’ deleveraging remains on track. Net debt fell to approximately 4.5 billion dollars from 4.9 billion dollars at year-end December, while liquidity strengthened to 1.8 billion dollars from 1.4 billion dollars. The company benefited from a 101 million dollar positive foreign exchange revaluation on its unsecured bonds. Capital expenditure in the quarter reached approximately 240 million dollars, reflecting investment in growth projects. Post-quarter, MinRes issued US$1.3 billion in new Senior Unsecured Notes across two tranches with coupons of 6.00 and 6.25 percent, extending its debt maturity profile and maintaining financial flexibility.
The key variables for investors to monitor include the company’s ability to maintain production momentum at Onslow Iron and Pilbara Hub, lithium spot price stability given the operational leverage to pricing, and progress in reducing absolute debt levels toward the company’s stated targets. Investors should also note whether cost guidance holds as inflationary pressures persist across the mining sector. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Mineral Resources Limited (ASX: MIN)
Mineral Resources Limited is an Australian mining company that operates mining services and mineral production across multiple commodities including iron ore and lithium, primarily in Western Australia. The company provides pit-to-ship mining solutions, mineral processing and transport services, and develops and mines iron ore from its flagship Onslow project and lithium from its Western Australian mines. It operates through Mining Services, Iron Ore, Lithium, and Energy and Other segments.
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