The Mineral Resources Limited (ASX: MIN) share price is plummeting on the back of the company's quarterly report.
Over the first quarter of financial year 2022, Mineral Resources' realised iron ore price represented a realisation of 48% to the Platts average for the quarter.
The company was also negatively affected by COVID-19 travel restrictions over the 3 months ended 30 September.
At the time of writing, the Mineral Resources share price is $39.90, 7% lower than its previous close.
Let's take a closer look at the last quarter for the mining company.
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The quarter just been for Mineral Resources
The Mineral Resources share price is sliding despite the company reporting an increase in production.
Mineral Resources' production volumes for the quarter were 7% higher than they were in the previous quarter. They were also 22% higher than those of the first quarter of financial year 2021.
The company produced and shipped 4.6 million dry metric tonnes of iron ore over the period, 40% more than in the prior corresponding quarter. It's currently in line to meet its financial year 2022 guidance of between 21 and 22 metric tonnes.
Mineral Resources' average realised iron ore price for the quarter was US$78.32 per dry metric tonne. It was dragged down by shipments priced on the September Platts price. It also suffered from US$33.8 million of negative adjustments for the finalisation of financial year 2021 shipments.
Additionally, Mineral Resources' 50%-owned Mt Marion lithium project was negatively impacted by rainfall over the quarter.
It produced 99,536 dry metric tonnes of spodumene, 13% less than in the previous period. However, the project is on target to meet its financial year 2022 production guidance of between 450 kilotons and 475 kilotons.
The average realised spodumene price was US$740.6 per dry metric tonne. Shipments of spodumene were also down 54% on those of the prior quarter due to delays.
Finally, the company's operations were negatively affected by COVID-19 restrictions. Unplanned border closures and lockdowns saw the company's staff's movements limited and resulted in a shortage of road haulage drivers.
Exploration and development
Mineral Resources worked on several exploration and development projects over the quarter just been.
Excitingly, it made a significant gas discovery at its 80%-owned Lockyer Deep-1 exploration well over the quarter.
Mineral Resources has also started installing a 1.5-megawatt solar array and battery at the Wonmunna mine site. Right now, the mine's powered by diesel. However, the solar installation will be able to provide around 30% of its energy needs.
The company continued its engineering and detailed design for the Ashburton Project. Mineral Resources is ready to start the project when approvals are obtained.
The company also noted consultations between the Western Australian government, the Pilbara Port Authority, and Port Hedland users of the Port Development Plan continued through the quarter. The company is confident approvals for the development of South West Creek will be granted soon.
Finally, it acquired Red Hill Iron Limited's 40% interest in the Red Hill iron ore joint venture.
Mineral Resources share price snapshot
The quarter just been wasn't a good period for the Mineral Resources share price. It fell 16.6% over the 3 months ended 30 September.
However, the company's stock is currently trading for around 6% more than it was at the start of 2021.
