Mineral Resources shares lift off on record results

ASX investors are piling into Mineral Resources shares following the miner's quarterly results.

| More on:
View of a mine site.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Mineral Resources Ltd (ASX: MIN) shares are charging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium miner and diversified resources producer closed yesterday trading for $30.10. In morning trade on Wednesday, shares are changing hands for $30.93 apiece, up 2.8%.

For some context, the ASX 200 is down 0.1% at this same time.

This outperformance follows the release of Mineral Resources quarterly update for the three months to 30 June.

Here are the highlights.

Mineral Resource shares jumping higher

Mineral Resources shares are marching higher today. The miner reported that it achieved its full year FY 2025 cost and production guidance across its iron ore, lithium and mining services segments.

The ASX 200 miner's Onslow Iron joint venture (JV) became cashflow positive. Management said Onslow Iron is progressing to its 35 million tonne per annum (Mtpa) nameplate capacity, having achieved an annualised run-rate of 32.4Mtpa in June.

The company highlighted record low costs at its Wodgina lithium project. SC6 (spodumene) free on board (FOB) cost of $641 per dry metric tonne (dmt) was recorded at Wodgina in the June quarter. Management expects that additional plant enhancements will increase recovery rates above 65% during FY 2026.

The company's mining services segment appears to be driving its share price higher. The miner reported all time high quarterly production volumes of 83 million tonnes (Mt), up 21Mt from the March quarter. Management attributed the increase to the ramp-up of Onslow Iron and external volume growth.

FY 2025 production volumes came in at 280Mt, up 11Mt year on year. This was at the lower end of the miner's guidance range of 280MT to 300Mt.

In its iron ore segment, Mineral Resources reported total quarterly iron ore production across Onslow Iron and the Pilbara Hub of 8.9 million wet metric tonnes (wmt) (on a 100% basis), with shipments of 8.3M wmt.

The average quarterly realised price across both Onslow Iron and the Pilbara Hub declined by 11% from the prior quarter to US$79/dry metric tonne (dmt).

Mineral Resources shares could enjoy longer-term support, with the upgrade of the Onslow Iron private haul road remaining on schedule for completion in Q1 FY 2026. And Onslow Iron was said to remain on track to hit nameplate capacity of 35Mtpa towards the end of Q1 FY 2026.

FY 2026 Onslow Iron shipped volumes are forecast to be 17.1Mt to18.8Mt (30.0Mt to 33.0Mt on a 100% basis).

What about lithium?

Turning to its lithium operations, Mineral Resources total quarterly attributable spodumene production across both its operating sites was 144k dry metric tonnes (dmt), with shipments of 135k dmt.

The weighted average quarterly realised price was US$642/dmt SC6 equivalent. That was down 24% from the prior quarter.

However, management noted that, spodumene concentrate prices "have strengthened markedly since June".

As at 30 June, the company had more than $400 million in cash and $705 million in undrawn credit.

With today's boost factored in, Mineral Resources shares remain down 40.5% since this time last year.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Resources Shares

Green stock market graph with a rising arrow symbolising a rising share price.
Resources Shares

So the PLS share price made it past $5. Big deal. What's next?

The lithium miner's shares are rocketing higher.

Read more »

Image of young successful engineer, with blueprints, notepad and digital tablet, observing the project implementation on construction site and in mine.
Resources Shares

South32 shares hit a 12-month high after a solid first-half performance

Good numbers delivered across the board.

Read more »

Concept image of a businessman riding a bull on an upwards arrow.
Resources Shares

Up 108% in a year, why this buy-rated ASX 300 mining stock is tipped for more outperformance

A top broker is flagging more gains ahead for this surging ASX 300 mining stock. But why?

Read more »

Four people on the beach leap high into the air.
Opinions

4 reasons why I think BHP shares are a must-buy for 2026

The mining giant's shares are now 20% higher than this time last year.

Read more »

Miner holding a silver nugget.
Resources Shares

Up 300% over a year, this minerals explorer still has further to go, one broker says

Recent silver and tin exploration results are encouraging.

Read more »

A miner holding a hard hat stands in the foreground of an open-cut mine.
Resources Shares

Dateline shares halted as investors await key announcement

Dateline shares are halted as investors await a potentially market-moving announcement.

Read more »

Engineer looking at mining trucks at a mine site.
Resources Shares

Why this fund manager is buying BHP shares

A leading fund manager expects BHP shares to deliver more outperformance in 2026. Let’s see why.

Read more »

Three women athletes lie flat on a running track as though they have had a long hard race where they have fought hard but lost the event.
Broker Notes

Brokers rate 2 ASX All Ords rippers of 2025: Is their phenomenal run over?

Both of these ASX shares more than tripled in value last year.

Read more »