The Mineral Resources Ltd (ASX: MIN) share price had a difficult end to the year in 2024, with shares wallowing more than 48% in the red.
Shares in the iron ore and lithium miner finished trading Wednesday at $35.50 apiece, close to their lowest mark since 2021.
Governance issues involving founder and CEO Chris Ellison, along with falling commodity prices, troubled the stock last year. But is the tide finally turning for Mineral Resources? Let's see what the experts think.
Mineral Resources share price takes a beating
The Mineral Resources share price lost nearly half its value in 2024, underscored by a mix of headwinds that soured investor sentiment.
Commodity prices were weak in 2024, with declines across the board. Two of the company's key resources, iron ore and lithium, were both heavily down during the year.
Iron ore started last year at US$140 per tonne and, after a steep selloff, currently fetches US$99.44 per tonne.
According to Trading Economics, a softer Chinese economy and a strengthening US dollar impacted prices last year.
This has extended to 2025, where the US dollar's strength is " driven by expectations of fewer Federal Reserve interest rate cuts this year".
Aside from the commodity markets, a series of events involving founder and CEO Chris Ellison also marred the Mineral Resources share price.
Ellison is set to step down within the next year or so following the debacle.
Mineral Resources 2025 outlook
Despite these headwinds, some experts see value in the mining giant and are bullish on its prospects this year.
Bell Potter is bullish on Mineral Resources, rating the stock a buy with a price target of $61.
As my colleague James reported, the broker sees a potential rebound in lithium prices by 2026, which could boost the company's earnings.
Meanwhile, Ellerston Capital also likes the Mineral Resources share price after buying the stock in November. Speaking to the Australian Financial Review, director Chris Kourtis said:
Mineral Resources, a stock we have never owned in the past, was introduced in late November to the portfolio as a high conviction long.
We have closely followed for many years but couldn't get over the line on valuation grounds until now.
Hugh Dive of Atlas Funds Management reckons Mineral Resources will have a comeback year in 2025. As reported by the AFR, Dive likes the stock because current issues are within management's control, in line with his broader investment thesis.
However, not all analysts are convinced. Goldman Sachs is neutral but sees "upside risks" if commodity prices recover. It has a hold rating on the stock, with a price target of $41 apiece from its November note.
Mineral Resources share price takeout
As to what's in store for the Mineral Resources share price this year, it really depends on commodity prices and what they do, specifically iron ore and lithium
With a new CEO on the horizon, time will tell if the company can execute its agenda. Until then, it must endure the mechanics of underlying commodity markets.
