Mineral Resources (ASX: MIN) – Q1 FY27 Quarterly Activity Report

Mineral Resources maintained full-year production guidance across all divisions while posting record quarterly production volumes and delivering cost outperformance at its major operations. Mining services production reached 103 million tonnes, a 10 percent increase on the prior quarter, driven by ramp-ups at Bald Hill and Pilbara Hub alongside increased stripping activity at Mt Marion.

The iron ore division delivered the most tangible near-term positive, with Onslow Iron recording its strongest monthly export on record at 3.49 million wet metric tonnes in September and achieving a quarterly free-on-board cost of $53 per wet metric tonne, beating the $54-$58 guidance range. Across both Onslow Iron and Pilbara Hub, the company shipped 7.9 million wet metric tonnes at an average realised price of $83 per dry metric tonne, down 5 percent on the prior quarter but representing an 85 percent realisation of the Platts 61 percent cost, insurance and freight index. Cost outperformance on iron ore, with Pilbara Hub also tracking within guidance at $75 per wet metric tonne, suggests operational execution remains sharp across the producing assets.

Lithium presents a more complicated picture. The company achieved record attributable sales of 170,000 dry metric tonnes spodumene concentrate at 6 percent lithium oxide equivalent grade, an 8 percent quarter-on-quarter increase. However, the weighted average realised price fell to $1,873 per dry metric tonne cost, insurance and freight basis, down 23 percent on the prior quarter, reflecting weaker spot lithium prices in September. The company noted this pricing volatility moves ahead of lagging indices given its spot market exposure. Mt Marion remains in what management describes as a transitional year, with production expected to moderate as the company opens northern pits with elevated stripping profiles and constructs the flotation plant, expected to yield cost benefits once operational.

The balance sheet strengthened in the quarter, with net debt reducing $200 million to approximately $4.1 billion and liquidity reaching $2.5 billion. The company paid $200 million in full-year dividends and executed $310 million in capex while still building cash by $170 million quarter-on-quarter. This deleveraging supported a credit rating upgrade from Fitch to BB with a stable outlook. An ASIC investigation also concluded with no enforcement action.

Operationally, safety metrics improved with lost time injury frequency rate falling 16 percent quarter-on-quarter to 1.01 and total reportable injury frequency rate improving 9 percent to 6.41 per million hours. The company saw one offsetting development when Chief Executive Lithium Joshua Thurlow resigned to pursue an opportunity overseas, with Chief Executive Iron Ore Darren Hardy assuming lithium responsibilities in addition to his current role.

Investors should monitor whether diesel price movements of recent months stabilise within the company’s cost assumptions, how lithium spot prices evolve in coming months and recovery rates through Mt Marion’s mine transition, and progress on the POSCO Holdings transaction, which management expects to complete in the first half of FY27 subject to conditions precedent. This announcement is price sensitive and has been classified 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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