MinRes reports $5.27b in revenue in FY24

Mineral Resources (ASX: MIN) has released its FY24 results with the period highlighted by record underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $550m.

While revenue increased 10% from FY23 to $5.27b, underlying net profit after tax decreased 79% to $158m. Mineral Resources credits the increase in revenue to the growth in mining services revenue from the Onslow iron project in WA.

Looking at MinRes’ production, production volumes totalled 269mwmt, up 9% from 248mwmt in FY23, and first ore was delivered from Onslow ahead of schedule.

Additionally, MinRes’ mining services division was awarded six new contracts and three contracts were renewed with Tier 1 clients.

MinRes’ iron ore division achieved shipments of 18.1mwmt across all hubs, a 3% increase on the prior corresponding period. Mining is continuing to ramp up at Onslow and construction of the dedicated haul road is scheduled for completion in October 2024.

The lithium division achieved total attributable share of SC6 equivalent spodumene concentrate shipments across all three operations of 486kdmt. Record shipments were achieved from Wodgina and Mt Marion, 201kdmt and 218kdmt, respectively.

The Mt Marion plant expansion was commissioned and the underground decline began, while the restructure of the MARBL joint venture was completed with MinRes increasing its ownership in Wodgina to 50%.

MinRes managing director Chris Ellison says FY24 was the biggest year of development in the company’s history.

“Onslow iron achieved first ore ship ahead of schedule in May, just 11 months after we broke ground at the Ken’s Bore mine site,” he said.

“Our hands-on, agile and creative culture made Onslow iron possible and will enable the unlocking of an entire new mining region in the West Pilbara.

“Overall, the results highlight the strength of MinRes’ business model, with our diverse income streams all contributing to solid group earnings, despite a depressed lithium price.”

Looking to FY25, MinRes expects production across all its assets to be between 295mt to 315mt.

“Given the stubborn lithium price and our remaining investment in Onslow iron, we will continue to take a conservative approach during FY25, deferring expansion projects and focusing on cost reduction and cash preservation,” Mr Ellison said.