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Highlights
- MinRes outperforms ASX200 after sharp 6% intraday rise
- HESTA exits stake amid ongoing governance concerns
- ASIC probe and board resignations cloud outlook
Despite facing mounting governance challenges and the full exit of a major institutional investor, shares of Mineral Resources (ASX:MIN) staged a notable rebound, emerging as the top gainer on the ASX200. The stock climbed 6.36% to reach AUD 22.40 by early afternoon trading, even as it remains down over 70% year-on-year.
The recent price move came on the heels of an announcement from superannuation fund HESTA, which disclosed it had completely exited its position in Mineral Resources, citing long-standing concerns about corporate governance.
HESTA’s decision followed the abrupt resignation of three directors in April. These directors were part of the company's ethics and governance committee, established just months earlier in November 2024. According to HESTA, their departure marked a significant step backward in addressing governance risks.
The fund had initially placed Mineral Resources on its watchlist in October 2024, expressing concern over what it described as insufficient action to improve board oversight and succession planning. Of particular note is the Australian Securities and Investments Commission (ASIC)'s ongoing investigation into managing director Chris Ellison. Ellison admitted to involvement in an alleged tax evasion scheme, intensifying scrutiny from regulators and stakeholders alike.
HESTA stated that while it has consistently engaged with Mineral Resources’ leadership to drive positive change, it ultimately concluded that no credible path forward was currently evident. The upcoming succession of the company’s chair was also cited as a contributing factor to the decision.
Despite the divestment, the broader market response has been unexpectedly upbeat, with investors showing renewed interest in the stock. This rally positions Mineral Resources among the stronger movers on the ASX200, even amid continued volatility.
Other companies like WiseTech Global (ASX:WTC), Woodside Energy (ASX:WDS), and Santos (ASX:STO) also remain under HESTA’s watch for governance-related reviews.
For investors following ASX dividend stocks, ongoing transparency and governance metrics remain essential considerations as they assess long-term stability in the mining and resources sector.
The situation with Mineral Resources highlights the market's complex relationship with corporate governance: while short-term price movements can offer opportunity, sustained performance may hinge on the resolution of deeper structural issues.
