Why the Mineral Resources Limited share price is climbing today

Shares in lithium miner and iron ore mining services business Mineral Resources Limited (ASX: MIN) climbed 3.5% to $15.70 today after the group handed in its report card for the financial year ending June 30, 2018. Below is a summary of the results with comparisons to the prior corresponding year.

  • Net profit up 35% to $272 million, versus $201 million in FY17
  • Revenue of $1,707 million, versus $1,470 million
  • Normalised EBITDA of $507 million, versus $464 million
  • Final dividend of 40cps, full year fully franked dividends of 65cps, up 20% on a 50% payout ratio
  • Sold 3.5 million tonnes of lithium direct ship ore form Mount Wodinga
  • Sold 382,000 tonnes of lithium spodumene from Mt Marion
  • $240 million cash in hand

Mineral resources is the Chris Ellison led business that was engulfed in controversy in late July after the share price spiked after the CEO gave a private briefing to a group of powerful institutional investors.

In what Mineral Resources termed an “investor discussion” its CEO reportedly let slip that the company expected future annual EBITDA totalling $600 million from its Wodinga Lithium project.

However, the company insisted that this estimate could be worked out by using publicly available information and as such there was no breach of Australia’s regulatory laws on the provision of inside information.

On the day of the private “investor discussion” the share price surged from an opening price of $15.41 to a closing price of $16.58, with Mr Ellison likely to be crossing certain fundies at the briefing off his Christmas card list.

Ironically, the stock has retreated back to $15.29 today with the company due to provide full year FY 2019 EBITDA guidance at its AGM later in the year.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Atlassian.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.