Onslow Iron backs strong Q1 results for MinRes
Mineral Resources (ASX: MIN) is on track to reach its full-year guidance driven by the ramp-up of Onslow Iron to its nameplate capacity and a lithium market rebound in Q1 FY26.
Total quarterly iron ore production across the company’s Onslow Iron and Pilbara Hub operations reached 10.9mt with record shipments of 11.4mt, 8.6mt of which were shipped from Onslow Iron — a 50% quarter-on-quarter increase.
Costs at MinRes’ Wodinga and Mt Marion lithium projects were lower than expected with the weighted average realised price achieved rising 31% quarter-on-quarter to about $1280/t [US$849/t].
Total attributable spodumene sales for the quarter reached 142kt (168kt mixed grade), exceeding the production output across both sites of 137kt (161kt mixed grade).
Late last month, MinRes completed the upgrade of the Onslow Iron private haul road. During the quarter, 8.75mt of iron ore was hauled from Ken’s Bore to the Port of Ashburton, representing over 31,800 trips to port, and loaded onto MinRes transhippers.
This satisfied the contingent payment condition by achieving a 35mtpa run rate over three months and, as a result, MinRes will receive the $200m contingent payment from Morgan Stanley Infrastructure Partners (MSIP) in November.
MinRes will also receive $41m from Gina Rinehart-owned Hancock Prospecting for the resource certification and drilling costs associated with the Lockyer-6 onshore gas assets which Hancock purchased for $1.1b from MinRes last year.
During the quarter, MinRes also announced a maiden resource for its Pilbara Hub of 161mt and reserves of 51mt.
Steady net debt of $5.4b was reported for the quarter, despite substantial capital expenditure of $400m, and the Onslow Iron carry loan balance was reduced by $52m in the quarter to $714m.
Two independent non-executive directors, Lawrie Tremaine and Ross Caroll, were also added to the board during the quarter.