The Mineral Resources Limited (ASX: MIN) share price has been on fire in 2021. Shares in the Aussie lithium and iron ore miner are up 76% in the past 12 months and outperforming the S&P/ASX 200 Index (ASX: XJO).
Here's what's driving this ASX share higher in the year to date.
Why the Mineral Resources share price has beaten the ASX 200 in the last year
Let's start with the Aussie benchmark index. The ASX 200 index is up 22% in the past 12 months and sitting at more than 7,400 points right now.
Those are some strong gains from the broad market index. However, the Mineral Resources share price has more than tripled those gains in the last year.
As with any resources share, it pays to look at the commodity prices to help explain share price moves. Both lithium and iron ore prices have been surging higher since November 2020.
Iron ore prices climbed 95% to a peak of US$229.50 per tonne on 12 May 2021, while lithium carbonate prices are up 137% to 92,500 Chinese Yuan per tonne.
There has been a steep iron ore price decline since mid-July which has been reflected in the Mineral Resources share price in the last month or so. That's largely been driven by concerns about a regulatory crackdown in China and the country reducing imports to drive its steel industry.
Shares in the Aussie resources group have fallen 14.6% in the past month but are still outperforming the benchmark ASX 200 index over the past 12 months.
The Aussie resources group reported its full-year earnings on August 11 and posted a 230% increase in underlying net profit after tax to $1,103 million. Group revenue rocketed 76% to $3,734 million as the company announced a 175 cents per share final dividend for shareholders.
Foolish takeaway
At the time of writing, the Mineral Resources share price is down 1.47%, trading at $52.12. It has a price to earnings (P/E) ratio of 7.8 times with a dividend yield of 5.25%.
