Mineral Resources (ASX:MIN) Sees Revenue and EBITDA Slide in 1HFY25, Commits to 9 Mt Onslow Iron Production in FY25

Highlights

• MIN’s Revenue for the first half of FY 2025 fell 9% YoY, largely due to weaker iron ore and lithium prices.
• Inventory turnover improved to 2.5x in 1HFY25
• Mineral Resources continues to invest in the Onslow Iron project, with guidance for 8.8–9.3 million tonnes of iron ore production in FY 2025.

Mineral Resources Limited (ASX:MIN) is a diversified resources company listed on the Australian Stock Exchange (ASX) and it operates across multiple sectors including lithium, iron ore, energy, and mining services. Projects of MIN spans across Western Australia.

In the first half of the financial year 2025 (1HFY25), ended 31 December 2024, Mineral Resources saw a decline in revenueby 9% YoY to AUD 2,290 million compared to AUD 2,515 million in the previous year. The drop was primarily driven by weaker iron ore and lithium prices, which negatively impacted the profitability of the company’s core divisions. However, the group saw a positive performance in its Mining Services division, particularly with the Onslow Iron operation.

Underlying EBITDA in 1HFY25 experienced a 55% drop, coming in at AUD 302 million, compared to AUD 675 million for the same period in FY 2024.

On a positive note, the company reported an improvement in its inventory turnover, which rose to 2.5x in 1HFY25 from 1.9x in the same period last year. Furthermore, net assets increased by 6% YoY as of 31 December 2024. However, net debt rose by 15% YoY.

Board Changes

In a significant move, Denise McComish, a Non-Executive Director of Mineral Resources, resigned from her position, effective immediately, on 23 April 2025. McComish, who had joined the board in December 2023, also serves several Australian boards. The Nominations Committee is actively seeking a new Chair, with an announcement expected within this quarter.

Strategic Outlook

Looking forward, Mineral Resources remains committed to developing its Onslow Iron project, which is poised to become a low-cost, long-life iron ore producer. Despite delays related to weather conditions during ramp-up, the company expects to produce between 8.8 and 9.3 million tonnes of iron ore from the Onslow Iron project in FY 2025. The FOB (Free on Board) costs are projected to be between AUD 60 and AUD 70 per tonne, positioning the operation for profitability amid fluctuating market prices.

The lithium division remains a key area of focus, with the company concentrating on cost reductions and improving operational efficiency to optimise value in the long term. Meanwhile, the energy arm of Mineral Resources is pursuing joint ventures to accelerate natural gas exploration and development, which could serve as a valuable revenue stream for the company.

Share performance of MIN

MIN shares closed at AUD 18.23 per share on 24 April 2025 with a market cap of AUD 3.38 billion. In the last month, MIN’s share price has dropped by almost 25.07% and in the last six months, it has recorded a drop of around 49.23%.

52-week high of MIN is AUD 79.76, while 52-week low is AUD 14.05.

Support and Resistance Summary

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 24 April 2025. The reference data in this report has been partly sourced from REFINITIV.

Technical Indicators Defined:

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

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