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Highlights
- Mineral Resources updates production outlook at Onslow Iron project.
- Shares jump over 13% despite trimmed guidance.
- Leadership transition underway with board changes expected soon.
Shares of Mineral Resources (ASX:MIN) staged an impressive rally during morning trade, defying a recent reduction in production guidance for its flagship Onslow Iron project. Despite trimming its output forecast, the mining company’s stock jumped 13.2% to reach $20.58 by 12:10pm AEST, recovering some ground after falling about 40% earlier this year.
Mineral Resources revised its full-year production estimate for the Onslow Iron project to between 8.5 million and 8.7 million tonnes, a slight downgrade from the previous forecast of 8.8 million to 9.3 million tonnes. While output projections have been adjusted, the ASX mining stock company reaffirmed that production costs are expected to remain within the previously indicated range of $60 to $70 per tonne, though likely near the upper end.
In response to challenging market conditions and a focus on strengthening its balance sheet, Mineral Resources continues to roll out cost reduction initiatives across its operations. A significant step has been the reduction of 1,740 roles across corporate and site locations since the start of the calendar year. These actions are part of broader efforts to manage the company's net debt, which stood at $5.4 billion at the end of the quarter.
Alongside operational updates, Mineral Resources is undergoing notable changes at the leadership level. The company confirmed that the search for a new board chair remains "on track" and is expected to conclude during the June quarter. This follows the sudden departure of non-executive directors Denise McComish, Jacqueline McGill, and Susan Corlett earlier this month. New board members will be announced "in due course," ensuring continuity and strengthening governance structures.
The share price movement suggests investor confidence in Mineral Resources' (ASX:MIN) strategic roadmap, even amidst a backdrop of operational adjustments and leadership transitions. Market sentiment appears to be focusing on the company's long-term potential and ongoing efforts to optimize cost structures while progressing with key projects.
The resilient performance of Mineral Resources highlights the dynamic nature of the mining sector, where operational agility and strategic planning remain critical in navigating fluctuating commodity cycles and internal transformations.
