Mineral Resources Surges 11% Despite Iron Ore Setbacks and Rising Debt

April 29, 2025 11:41 AM AEST | By Team Kalkine Media

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Mineral Resources Surges 11% Despite Iron Ore Setbacks and Rising Debt — Image source: shutterstock

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Highlights

Mineral Resources shares surge despite weaker quarterly results

Iron ore production guidance trimmed amid rising debt concerns

Board overhaul progress announced following governance issues

Shares of Mineral Resources (ASX:MIN) soared nearly 11% on Tuesday, defying the backdrop of a weaker-than-expected quarterly update. Investors appeared to focus on long-term prospects rather than immediate challenges, providing a lift to the embattled miner’s stock.

The company announced a cut in iron ore production guidance from its flagship Onslow Iron Project, trimming expectations to as low as 8.5 million tonnes, a reduction of about 8%. Mineral Resources also flagged that borrowings and operational costs are anticipated to climb further, pushing out the timeline for managing its substantial $5.4 billion in net debt.

Financial pressures intensified during the recent quarter, with net debt swelling by an additional $400 million. The miner projected a further increase of $340 million by the end of the financial year. Despite these headwinds, the market responded positively, perhaps encouraged by Mineral Resources' efforts to address internal governance challenges.

Over the past six months, the company has faced scrutiny after it emerged that founder Chris Ellison had been implicated in an offshore tax matter. A board-led investigation into Ellison’s actions found they had caused significant reputational harm. In response, Mineral Resources has accelerated efforts to refresh its leadership structure.

Progress in appointing a new board chair remains on track, with expectations to finalize the appointment in the coming quarter. The company also plans to fill the vacancies left by the recent departure of directors Denise McComish, Jacqueline McGill, and Susan Corlett. Mineral Resources has assured stakeholders that replacements for these key committee roles will be announced in due course.

Despite its operational and reputational hurdles, the strong share price rebound suggests renewed investor optimism about Mineral Resources' ability to navigate these turbulent times and restructure for future growth.

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