It's been a tough year for Mineral Resources Ltd (ASX: MIN) shareholders.
Mineral Resources shares have lost more than 50% of their value over the past 12 months.
The resources company, with operations in lithium, iron ore, energy, and mining services, has taken hits on multiple fronts.
With the prices of iron ore and lithium plummeting over the past year, Mineral Resources has seen profits shrink and debt balloon.
The company reported net debt of $5.08 billion for 1H FY25, up from $4.4 billion for the prior corresponding period.
And a series of scandals involving Mineral Resources founder and CEO Chris Ellison has not helped the company's cause.
In October last year, Ellison admitted to his involvement in a tax evasion ploy that saw him personally profit at the expense of the company.
In a bid to restore confidence in the company and its leadership, Mineral Resources announced in November it would establish an ethics and governance committee.
Not cricket
But the company's credibility came under further scrutiny in April when three board members resigned.
Susie Corlett, Jacqueline McGill, and Denise McComish all left the company and the ethics committee within a few weeks.
Now, Mineral Resources has announced a series of key appointments in a bid to restore confidence in the company.
Former Origin Energy Ltd (ASX: ORG) and Woodside Energy Group Ltd (ASX: WDS) CFO, Lawrie Tremaine, has joined the Mineral Resources Board. Ross Carroll, another former Woodside CFO, will also join the Board as a non-executive director.
Mineral Resources Chair Malcolm Bundey, who also took up his post this month, said the appointments reflect his priorities as Chair.
To strengthen our Board composition, our corporate governance and place a comprehensive focus on the balance sheet. This is a major first step in our Board renewal process.
I acknowledge that regaining trust takes time, sustained effort and delivery of performance outcomes, but I am confident our new directors will greatly assist the MinRes Board and executive in ensuring we deliver on our commitments.
Lawrie Tremaine and Ross Carroll will both also join the ethics and governance committee alongside former test cricketer Justin Langer.
Trouble at the top
As the Mineral Resources Board undergoes a reshuffle, uncertainty remains over the company's managing director position.
Ellison previously announced he would step down from the managing director role.
But now it's understood Ellison is reconsidering his plans to exit the company.
What next?
Investors will be looking forward to seeing Mineral Resources resolve its ongoing leadership issues.
The Board faces a challenging period ahead, but establishing a clear direction and having a solid leadership team in place will certainly improve the company's outlook.
