Why the Mineral Resources share price lifted today

Mineral Resources offers investors exposure to lithium and iron ore prices. It also has mining giant Albermale as a JV partner.

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The Mineral Resources Limited (ASX: ANO) share price dropped 5% to $14.34 today after the lithium miner confirmed a deal to sell a 60% interest in its Wodinga Lithium mine to Albermale Corporation has received ACCC approval. 

Lithium miners have been on a tear this week on renewed investor optimism over the outlook for lithium prices partly on the back of a strong operating update from battery powered car maker Tesla Inc.

As there's no spot or futures exchange traded market for lithium the commodity's prices are set on an off-take or over-the-counter basis which adds to the price volatility across the sector. 

Mineral Resources is also a serious iron ore miner and posted a net profit of $205 million on sales of $1.51 billion over fiscal 2019. It also paid dividends of 44 cents per share on earnings of $1.08 per share. 

The stock is up around 66% over the past 5 years. 

Tom Richardson owns shares of Dicker Data Limited and Tesla. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. 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.

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