Mineral Resources Limited (ASX: MIN) has cut down any talk of selling off any of its four business units, including lithium.
Mineral Resources shares are currently trading at $80.48, a 2.98% fall. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) is also down 0.09% today.
Meanwhile, some of its ASX lithium peers are also suffering today — Pilbara Minerals Ltd (ASX: PLS) shares are falling 3.57%, and the Core Lithium Ltd (ASX: CXO) share price is 2.83% in the red.
So what is going on at Mineral Resources?
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What did Mineral Resources say?
Mineral Resources has four business segments — iron ore, energy (gas), lithium, and mining services. As my Foolish colleague Bronwyn noted, there had been speculation earlier this year the company could sell off its lithium business.
However, talk of this has now been shot down. The company's managing director Chris Ellison, speaking to the Australian Financial Review after Thursday's AGM, said:
I've got no plans right now to go out there and to peel off any of those four business units.
Right now we have got all the cash that we need to develop Ashburton and to develop the lithium business out.
At its AGM yesterday, Mineral Resources described itself as a "world top five lithium producer".
The company highlighted in the next two years, it plans to double capacity at its Mt Marion hard rock lithium asset, ramp up the Kemerton hydroxide plant and "toll and convert" spodumene to hydroxide.
Looking ahead to the next three to five years, the company said it plans to "own lithium hydroxide conversion" and "target 118ktpa hydroxide production".
In the first quarter of FY23, Mineral Resources revealed it had converted 4,703 tonnes of spodumene to lithium hydroxide in the quarter.
Mineral Resources also highlighted battery-grade lithium products are "critical to a renewable energy future" and supporting global decarbonisation.
The company said it operates 29% of the world's hard rock lithium supply.
Mineral Resources share price snapshot
Mineral Resources shares have exploded around 100% in a year, while they have leapt more than 40% year to date.
For perspective, the ASX 200 Materials Index has climbed 13% in a year.
The company has a market capitalisation of nearly $15.3 billion based on the current share price.
