The Mineral Resources Limited (ASX: MIN) share price continues to shine this year, posting a 39% return over the previous 3 months.
At the time of writing, Mineral Resources shares are exchanging hands at $59.99, a 1.66% dip into the red on the day.
Let's zoom in on the tailwinds driving the Australian mining company's share price lately.
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New drilling advancements
On 6 July 2021, the company announced its wholly-owned subsidiary Energy Resources Limited had secured a drilling rig for the Lockyer Deep 1 well. The conventional gas exploration well is located onshore in the Perth Basin, along the coast of Western Australia.
The exploration permit for the Lockyer Deep 1 is a joint venture between Energy Resources and Norwest Energy NL (ASX: NWE). The interests are divided into an 80%-20% split between Energy Resources and Norwest, respectively.
Energy Resources can now start gas exploration drilling at the site of the well towards the end of July.
Speaking on the potential benefits of the well's success to the company, Mineral Resources managing director Chris Ellison said:
The drilling of Lockyer Deep 1 will be a significant milestone for MRL because it will signify the start of an extensive conventional gas exploration program in our onshore Perth Basin and Northern Carnarvon Basin acreage in line with our strategy to secure our own energy at the lowest cost and lowest emissions possible.
Investors seem to have liked this outcome, as Mineral's shares have climbed by 5% since the announcement.
Macquarie presentation day
Mineral Resources' presentation at the Macquarie Conference on 5 May seems to have been a key inflection point its share price.
In the presentation, the company detailed it is the world's largest crushing contractor. Additionally, it stated it is Australia's 5th largest iron ore producer and the world's 5th largest lithium miner.
Given the strengths in iron-ore markets observed this year, it stands to reason that Mineral Resources will receive a premium for its iron-ore sales.
Analysts at Macquarie Group Ltd (ASX: MQG) were quick to upgrade price targets following the conference. They have assigned an outperform rating with a price target of $73.
Investors have relished the bullish commentary, rewarding Mineral's shares with a 24% gain since the timing of the conference.
Mineral Resources share price snapshot
Mineral Resources continues to be a performing name on the ASX this year, gaining nearly 40% in 3 months.
The Mineral Resources share price has posted a return of 153% over the last 12 months. By contrast, the S&P / ASX 200 Index (ASX: XJO) has posted a return of 22% over the same period.
The company has a market capitalisation of $11.5 billion at the time of writing.
