The Mineral Resources Limited (ASX: MIN) share price is marching higher in morning trade.
Mineral Resources closed yesterday trading for $74.74 per share and is currently trading for $77.48, up 3.65%.
Below, we look at what the S&P/ASX 200 Index (ASX: XJO) listed iron ore and lithium producer just reported for its third quarter activities for the three months through to 30 September.
Image source: Getty Images
What's impacting the Mineral Resources share price?
On the iron ore front, the Mineral Resources share price is lifting, despite the company reporting a 3% quarter on quarter reduction in iron ore shipments to 4.5 million wet metric tonnes (wmt). However, that's in line with the Mineral Resources' mine plan and its FY23 guidance of 17.2 – 18.8 million wmt.
The miner achieved an average realised iron ore price of US$72.77 per dry metric tonne (dmt) over the quarter, down 15% from the prior quarter.
As for lithium, the company's Mt Marion project shipped 56,000 dmt (51% share) of spodumene concentrate over the quarter at an average realised price of US$2,364/dmt. That price includes grade adjustments and product discounts.
According to the release, Mt Marion production was lower than the prior quarter "due to continued mining of lower-grade transitional ore and plant shutdowns".
Meanwhile, it reported that mining operations continued to ramp up at Wodgina. The first spodumene concentrate was produced from Train 2 in July. Wodgina shipped 26,000 dmt (40% share) over the quarter.
What else happened during the quarter?
All up, Mineral Resources converted a total of 4,703 tonnes (attributable) of lithium hydroxide during the quarter.
The miner also announced its final investment decision (FID) to develop the Red Hill Iron Ore Joint Venture assets with joint venture partners Baosteel Resources Australia, POSCO and AMCI.
Mineral Resources stated the project will see the development of "a new mine, processing plant, airport, accommodation resorts, sealed 150 kilometre haul road, port, marine infrastructure and transhipping vessel fleet".
The Onslow Iron Project is designed to have a 30 year plus mine life with infrastructure capable of producing 35 million tonnes annually.
What's next?
The Mineral Resources share price could be getting some support after the company reaffirmed FY23 guidance of 300,000-330,000 dmt (51% share) for spodumene concentrate shipped at Mt Marion.
Wodgina was also reported to remain on track to meet its FY23 shipped guidance of 190,000-210,000 dmt (50% share).
Mineral Resources reported it plans to commence the next phase of drilling in the onshore Perth Basin in December 2022 following regulatory approval for the North Erregulla 1, Lockyer 2 and Lockyer 3 wells.
Mineral Resources share price snapshot
The Mineral Resources share price has been a stellar performer over the past 12 months, up 94%. To put that in context, the ASX 200 is down 8% over the full year.
