The Mineral Resources Ltd (ASX: MIN) share price is pushing higher on Wednesday.
In morning trade, the mining and mining services company's shares are up over 2% to $72.50.
This follows the release of the company's fourth-quarter and full-year update.
Mineral Resources share price higher on update
Here's a summary of how the company performed during the quarter:
- Iron ore shipments of 4.3M wet metric tonnes (wmt).
- Mining services production volumes of 58Mt
- Mt Marion SC6 equivalent spodumene shipments of 39k dry metric tonnes (dmt)
- Wodgina SC6 equivalent spodumene shipments of 34k dmt
- Wodgina lithium battery chemical production of 4.2kt
What happened during the quarter?
For the three months ended 30 June, Mineral Resources' mining services production volumes were 58Mt. This took its full-year production to 248Mt for FY 2023, which was in line with its revised guidance of 245Mt to 255Mt.
Mineral Resources' iron ore shipments came in at 4.3M wmt for the quarter and 17.5M wmt for FY 2023. Management advised that its combined free on board (FOB) costs are expected to be at the upper end of the FY 2023 guidance range of $73 to $83 per tonne. The average quarterly realised iron ore price was US$91 per dmt.
Over at its Mt Marion lithium project, its SC6 equivalent spodumene shipments were 39k dmt. This brings its FY 2023 shipments to 149k dmt, which is in line with its revised guidance of 145-150k dmt. Costs are expected to be within guidance of $1,200-$1,250 per dmt. The average quarterly realised spodumene price was US$2,589 per dmt. Looking ahead, future shipments should be supported by the expansion of the Mt Marion processing plant, which was completed in June 2023.
At Wodgina, its SC6 equivalent spodumene shipments were 34k dmt for the quarter. This resulted in FY 2023 shipments of 143k dmt, which is marginally below the revised guidance of 150k dmt. However, costs are expected to be within guidance of $925-$975 per dmt.
Finally, Wodgina's lithium battery chemical production in the quarter was 4.2kt and 11.5kt for FY 2023. This is in line with the company's production guidance of 11.5kt to 12.5kt. From this, lithium battery chemical sales came to 7.3kt for FY 2023, which is in line with its sales guidance of 7.0kt to 7.5kt. The average realised lithium battery chemical revenue in the quarter was US$40,484 per tonne.
The Mineral Resources share price is now up almost 50% over the last 12 months.
