Mineral Resources closed FY26 with all operational guidance achieved or exceeded across every business segment while simultaneously strengthening its balance sheet, positioning the company well for the demanding commodity environment ahead. The company delivered record annual production volumes of 341 million tonnes in Mining Services, 29.5 million tonnes of iron ore, and 559,000 dry metric tonnes of lithium concentrate, demonstrating the maturity and scale of its diversified portfolio.
The iron ore division delivered mixed but solid results. Onslow Iron shipped 19.7 million wmt for the year, exceeding upgraded guidance of 17.7 to 19.4 million wmt, with a standout FOB cost of $52 per wmt that undercut the guidance range of $54 to $59 per wmt. This cost performance is particularly notable given inflationary pressures across mining operations globally. The Pilbara Hub reached 9.9 million wmt at the upper end of the 9.0 to 10.0 million wmt guidance range, though at the higher end of its $75 to $80 per wmt cost guidance at $79 per wmt, reflecting expected ramp-up costs as Lamb Creek continues to mature.
Lithium delivered the more compelling operational story. Wodgina recorded sales of 317,000 dmt SC6, materially outperforming the upgraded guidance of 270 to 290,000 dmt SC6 and achieving a FOB cost of $738 per dmt at the lower end of guidance at $730 to $800 per dmt. Mt Marion delivered 242,000 dmt SC6, also ahead of upgraded guidance of 210 to 230,000 dmt SC6, with costs within the $820 to $890 per dmt guidance range. In the final quarter, lithium sales reached a record 158,000 dmt SC6 at an average realised price of US$2,425 per dmt CIF, up 15 percent quarter-on-quarter, underscoring the strengthening demand environment and margin trajectory.
The balance sheet narrative reflects prudent capital management. Liquidity strengthened to $2.4 billion in the quarter, up $600 million, while net debt declined to $4.3 billion from $4.5 billion in the prior quarter. The company executed a refinancing in April, issuing US$1.3 billion of new senior unsecured notes across two tranches with improved coupons of 6.00 and 6.25 percent, and used the proceeds to retire higher-cost debt and eliminate an iron ore prepayment facility. Net interest paid declined to $348 million for the full year, demonstrating the benefit of active debt management. The Onslow Iron carry loan also reduced significantly to $335 million.
Investors should monitor several developments. The lithium cost trajectory and production volumes remain critical given the segment’s higher margins and the path to full nameplate capacity. Iron ore pricing and cost inflation warrant close watch as external input pressures evolve. Capital allocation policy at an improved balance sheet position will signal management’s confidence in both commodity fundamentals and the sustainability of cash generation.
This announcement is price sensitive and has been flagged as material by the ASX.
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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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