Mineral Resources says diversification key to revenue increase

Mineral Resources (MinRes) (ASX: MIN) has announced its financial results for H1 FY24, reporting strong operational performance across all businesses. 

The miner says revenue was up 7% to $2.51b, with underlying earnings before interest, tax, depreciation and amortisation of $674m. 

A diversified business model was key to the solid financial results, despite weaker lithium prices, according to the miner. ? 

MinRes managing director Chris Ellison says “incredible progress was made on Onslow Iron over the half”.  

“We currently have more than 2,000 people working on the project, with first ore-on-ship on target for June 2024,” he said. 

“Our unique ‘build, own, operate’ model at Onslow Iron ensures we have full control over costs and project delivery despite the high inflationary environment.  

“The in-house expertise that gives MinRes a competitive advantage was recognised with the creation of our fifth pillar, Engineering and Construction.” 

MinRes says sales volumes of 8.7wmt of iron ore is on track to achieve guidance. 

“We continued to invest in the lithium business, with the acquisition of a third hard rock mine, Bald Hill, and the expansion of our footprint in WA through strategic investments in the world’s most prospective ground,” Mr Ellison said. 

“Shipments from Wodgina and Mt Marion were up significantly over the year. 

“We took the opportunity with last year’s high prices to complete major pre-strip activity.  

“Unit costs are now falling at both sites. Further reducing costs while prices are depressed remains a priority this half.” 

MinRes also reported its Mining Services division was awarded five new contracts and renewed three contracts, including the company’s first major contract in Queensland. 

“MinRes continues to redefine the FIFO experience,” Mr Ellison said.  

“Recent initiatives include direct flights from the east coast, couples moving into resort-style accommodation and the introduction of a la carte service. 

“We are now expanding our mental health service with the recruitment of a team of counsellors who will provide expert support at our sites.  

“We remain committed to investing in our 7,200-strong workforce, whose dedication and professionalism made this half’s impressive achievements possible.”