Key points for investors:
- FY25 performance: The group delivered volumes and cost guidance for FY25 and described the year as a solid performance across segments. Safety (TRIFR) ticked up to 3.84. Liquidity finished strong with >$1.1bn cash at 30 June and net debt of $5.3bn; management says net debt/EBITDA is reducing organically as EBITDA increases.
- Onslow ramp & logistics: Onslow reached a June run-rate equivalent of ~32.4 Mtpa; the haul road upgrade is on track to complete by the end of the September quarter and management expects to reach ~35 Mtpa run-rate around end-September. Onslow was cash flow positive at both mining services and commodity levels; FY25 shipments (100%) ~14 Mt (MinRes share ~8 Mt). Seasonality (cyclone Nov–Mar) and temporary contractor truck use remain execution risks.
- FY26 CapEx and balance sheet: Preliminary FY26 CapEx guidance is ~A$1bn (about half sustaining); deferred payments and timing explain the FY25 underspend. Management expects ~A$150m of asset financing in FY26 (e.g., fleet, trains). The USD700m bond maturing May 2027 is expected to be refinanced within the normal windows; management sees no execution risk, though pricing depends on markets (bonds currently tighter; an indicative cost mentioned ~8.5%).
- Hedging and pricing: Management has introduced 0-cost collars to lock a floor (around 99–100% reference) on a portion of iron-ore volumes for the near term, currently intending not to exceed ~1/3 of production in the half; current hedged volume discussed as ~1–1.5 Mt. Realized iron ore and lithium prices moved during the quarter; MinRes has selectively hedged to capture downside protection.
- Lithium and operations: Wodgina production and recoveries improved materially (production +32% YoY); upgrades including HIC cyclones are expected to lift recoveries toward ~65% in FY26, with final cyclone installation expected by mid-August. Marion shipments exceeded guidance for FY25 and management is pursuing operational flexibility and higher-grade targeting.
- Mining Services: Strong external volumes and an EBITDA/t margin at the higher end of guidance (A$2.10–2.20/t). Contractor trucks are a near-term drag but management expects contractors to be demobilized by end of the quarter, which should improve margins and support achieving the infrastructure milestone tied to Morgan Stanley Infrastructure Partners.
- Energy/exploration: One gas certification returned ~27 Bcf 2C (just below contingent payment threshold); another certification (Lockyer) is impending and could deliver up to ~US$100m contingent payment in best case.
- Risks & items to watch: cyclical/seasonal weather (cyclone season), completion/timing of haul road and transhipper payments, refinancing costs/markets for the May 2027 bond, execution of Wodgina recovery improvements, and FY26 guidance/detail to be released with full-year results at end-August.
Sign In
Buy MALRF
