What's Macquarie's price target on Mineral Resources shares?

Macquarie delivers its verdict for the outlook of Mineral Resources shares.

| More on:
a miniature moulded model of a man bent over with a pick working stands behind a sign that has lithium's scientific abbreviation 'Li' with the word lithium underneath it against a sparse bland background.

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 $44.67. As we head into the Friday lunch hour, shares are swapping hands for $46.39 apiece, up 3.9%.

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

Over the longer term, Mineral Resources shares remain down 9.8% since this time last year and down some 50% from their January 2023 all-time closing highs amid ongoing weakness in global lithium prices.

That's a look in the rearview.

Now, here's what the team at Macquarie Group Ltd (ASX: MQG) expect in the year ahead.

What now for Mineral Resources shares?

In Macquarie's new 'Diversified Miners Preview' report, the broker said it expects Mineral Resources has ramped up its iron ore sales Onslow Iron Project in Western Australia in the first quarter of FY 2026.

Macquarie noted:

Our 1QFY26 estimates for MIN are positive, with a +11% beat on Onslow sales (~8.3Mt) vs consensus (VA) of ~7.4Mt. Pilbara Hub shipments are in line with VA at ~2.4Mt. We are also in line with VA on lithium, with overall Li shipment from Wodgina/Mt Marion of 127kt vs. VA of 128kt.

Despite forecasting a 29% quarter-on-quarter increase in iron ore shipments, Macquarie maintained its underperform rating on Mineral Resources shares.

According to the broker:

QoQ, iron ore shipments (on our estimates) are forecast to be up strongly (+44%) driven by the continued Onslow ramp-up, marginally offset by weaker production from the Pilbara Hub (-6%). We expect net iron ore shipments to be up 29% (100% basis).

When Mineral Resources reported its FY 2025 results, management also provided FY 2026 guidance.

The ASX 200 mining stock's FY 2026 capex is $1.1 billion, with about half to be invested at Onslow Iron and the remaining relating to sustaining capex. Management forecasts the company's Mining Services division will deliver production volumes of 305 to 325 million tonnes (Mt), which would equate to 12.5% volume growth.

As for the struggling lithium segment, that's been throwing up headwinds for Mineral Resources shares, the miner said it is focused on cost reductions and efficiencies to "ensure the business is well positioned to benefit when [lithium] prices recover".

Commenting on that guidance, Macquarie said:

In terms of FY26 guidance, we are aligned with MIN's mid-point guidance across all production/opex metrics for iron ore/lithium. We note difference in our FY26 Capex estimate of ~1.0B, which is slightly below MIN's mid-point guidance of ~A$1.14b (VA: ~A $1.15b).

Connecting the dots, Macquarie has a $43.63 price target on Mineral Resources shares. That's about 6% below current levels.

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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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

Engineer at an underground mine and talking to a miner.
Opinions

Best ASX mining stock to buy right now: Fortescue or South32?

Here’s my pick between the two mining majors.

Read more »

Coal miner holding a giant coal rock in his hand making a circle with his hand, symbolising a rising share price.
Resources Shares

This soaring ASX mining stock backed by billionaire Gina Rinehart just unveiled "exceptional" news

Building momentum.

Read more »

Five happy miners standing next to each other representing ASX coal mining shares which some brokers say could pay big dividends this year
Broker Notes

7 ASX mining shares to buy for Christmas amid upgrades from Macquarie

Macquarie has boosted its outlook for these seven ASX mining stocks. Let’s see why.

Read more »

man in hardhat looking confused
Resources Shares

Up 308% in 2025, this high-flying ASX mining stock is sinking on Monday. But why?

Rough day for investors.

Read more »

asx silver shares represented by silver bull statue next to silver bear statue
Share Fallers

Up 118% in 2025, why is this All Ords ASX silver share crashing on Monday?

Investors are punishing this outperforming ASX silver share today. But why?

Read more »

A smiling man wearing a collared blue shirt and black jacket holds a piece of black rock containing rare earths.
Resources Shares

Up 69% since July, guess which All Ords ASX rare earths share is leaping higher today on major leadership news

Investors are piling into the ASX rare earths share on Monday. Let’s see why.

Read more »

Rocket going up above mountains, symbolising a record high.
Resources Shares

This obscure ASX mining stock has rocketed by 95% in just one month. Here's why.

Booming market.

Read more »

A mining worker wearing a white hardhat and a high vis vest stands on a platform overlooking a huge mine, thinking about what comes next.
Resources Shares

ASX 200 mining shares outperform as iron ore and copper prices strengthen

BHP, Fortescue, and Rio Tinto shares reached new 52-week highs while the ASX 200 edged up 0.24%.

Read more »