Mineral Resources (ASX:MIN) Shares Surge on Foreign Investment Approval and Cost-Saving Plans

2 min read | September 11, 2024 02:57 PM AEST | By Team Kalkine Media

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Mineral Resources (ASX:MIN) Shares Surge on Foreign Investment Approval and Cost-Saving Plans — Image source: shutterstock

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Shares of Australia's Mineral Resources (ASX:MIN) soared by as much as 22.1% to AU$36.98 during trading on Tuesday, marking their largest intraday percentage gain since November 22, 2018. The stock's sharp rise followed positive developments surrounding its Onslow Iron Project and cost-saving initiatives.

Foreign Investment Review Board Approval

The company announced that it had secured approval from the Foreign Investment Review Board (FIRB) to sell a 49% stake in its Onslow Iron Project's haul road for AU$1.3 billion ($864.63 million). This significant approval bolstered investor confidence, as the sale is expected to provide Mineral Resources with substantial capital for future growth and investment.

Analysts See "Incremental Positive" Update

Following the announcement, Citi described the update as an "incremental positive" for the company. The approval allows Mineral Resources to further enhance its financial flexibility and execute its long-term strategy in key projects.

Cost-Saving Initiatives for FY25

In addition to the FIRB approval, Mineral Resources revealed it is actively exploring cost-saving measures to streamline its operations. The company identified AU$180 million in capital expenditure reductions and AU$120 million in operational cost savings for the fiscal year 2025. These cost-saving initiatives are expected to significantly improve the company's profitability and operational efficiency.

Shares Hit Highest Level Since September 3

At the time of writing on 11 September 2024, Mineral Resources' stock was up 17.3%, with shares hitting their highest level since September 3. The combination of positive news regarding the Onslow Iron Project and the company’s commitment to reducing operational costs has fueled strong investor interest, driving the stock to new highs.

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