Mineral Resources (MinRes) has announced its financial results for the half-year ending 31 December 2024.
The business saw solid underlying financial results despite a weaker price environment.
MinRes reported a revenue of $2.3 million which was nine per cent lower than the first half of 2024.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) was $302 million, 55 per cent lower than 1H24.
Underlying net profit after taxes (NPAT) came in at $196 million, down by 200 per cent compared to 1H24, while the business’ statutory NPAT figure of $807 million was down 252 per cent on 1H24.
However, MinRes achieved a record underlying EBITDA of $379 million (a 49 per cent increase over 1H24) in its Mining Services division, consisting of a production EBITDA of $350 million and inaugural Onslow Iron Road Trust EBITDA of $29 million.
In this area, production volumes were stable at 136 million wet metric tonnes.
Additionally, MinRes commenced two new contracts (rehabilitation and mining) and renewed four existing external crushing contracts.
MinRes also maintained a strong liquidity position while funding peak investment for its Onslow Iron project.
Commenting on these financial results, MinRes Managing Director, Chris Ellision, said the first half had delivered huge progress ramping-up production at Onslow Iron – a project changing the quality of the company’s earnings across commodities and mining services.
“I’m pleased to report all parts of the Onslow Iron pit-to-ship supply chain were operational, with the first three transhippers performing beyond expectations at this stage of the ramp-up,” he said.
“Transhippers four and five are due to arrive at the Port of Ashburton in February and April respectively, with each vessel adding seven million tonnes per annum capacity to the project.”
Within this period, MinRes also highlighted its ability to crystallise value for shareholders with the completion of the $1.1 billion divestment of a 49 per cent stake in the Onslow Iron haul road.
January shipments from Onslow Iron were operating at an annualised run rate of 18 million tonnes, well on the way to the Onslow Iron’s nameplate capacity, before eight days of transhipping were lost due to Severe Tropical Cyclone Sean.
Ellison acknowledged MinRes investors’ focus on the company’s balance sheet, which reflects a period of high construction spend at Onslow Iron.
“Capital expenditure peaked in the first half and Onslow Iron is now generating positive cash flow, which will enable MinRes to accelerate efforts to deleverage the balance sheet,” he said.
“Nonetheless, the Board took the prudent step to temporarily halt dividend payments.”
Record underlying earnings of $379 million in 1H24 from Mining Services was offset by the impact of weakness in iron ore and lithium prices.
Ellison said it had been a challenging six-month period for MinRes, but the company remains resilient.
“It’s a credit to the dedication and professionalism of the Mineral Resources team that we remain in a strong position and well placed to deliver improved performance going forward,” he said.
In other news, FBT Transwest been re-certified with ISO 9001 for a further three years.
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