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On 21st February 2019, mining player, Mineral Resources Limited (ASX:MIN) has announced its H1FY19 financial results with a brief glimpse on the strategy it intends to pursue to become Australia's leading integrated mining services provider. The revenue for H1FY19 is reported at $555 million which is down by 35% from the previous year revenue of $926 million in H1FY18. The reasons stated for this decline were suspended Direct Ship Ore (DSO) activities at the Wodgina Lithium Project, delays in approvals for the start-up of the Koolyanobbing Iron Ore Project and many more.
On the EBITDA front the picture is even worse. The reported EBIDTA for H1FY19 stood at $72 million as compared to the H1FY18 reported EBITDA of $349 million, which is a massive 80% decline. Normalised EBITDA also took a hit by 59% and reported at $102 million from previous year's numbers of $247 million.
The company almost wiped out its entire net profit after tax (NPAT) as compared to the previous year. The NPAT for H1FY19 was reported at $13 million compared to $163 million in H1FY18, down by eye-opening figure of 92%.
However, a massive increase of 598% is seen in the capital expenditure of the company which stood at $494 million in H1FY19 as compared to only $71 million in H1FY18. But this has also put a strain on the balance sheet of the company due to excessive long-term borrowings and consequently increased it from $165.7 million in H1FY18 to $716.5 million in H1FY19.
On a positive side, the company maintained its dividend policy and announced a fully franked interim dividend of 13 cents per share which will be paid on 17th April 2019. The ex-date and record date for the dividend is 15th March 2019 and 18th March 2019 respectively.
Post the news release on 21st February 2019, the stock closed the trading session at A$17.150, down by 3.435% from the previous closing of A$17.76.
On 6th February 2019, MIN reported that for the upcoming March 2019 quarter, 6% spodumene concentrate will be sold for $US 791.84 per dry metric tonne. In the quarter ended 31st December 2018, the 6% spodumene concentrate was sold for $US 930.80/dmt.
MIN also published its exploration and mining activities report for the Q2 FY19 on 30th January 2019. In the report, the acquisition of the Kumina Iron Ore Project had been stated as completed.
Mineral Resources Limited had announced on 22nd January 2019, referring to their previous announcement on 27th July 2018, about the Farm-in Joint Venture (FVJA) between two companies MRL and Hing-Kong based Brockman Mining Limited, in the iron ore project named Marillana which is situated in Pilbara, Western Australia. The company announced the execution of an agreement by both the parties about FJVA being unconditional and the commencement of the farm-in period.
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