Mineral Resources Ltd (ASX: MIN) shares have climbed around 10% over the past month, putting the stock back in focus.
The move adds to an already strong year for the miner, with shares rising sharply since April. With the stock now trading near the top of its range, investors are starting to ask what has been driving the strength and whether it can continue.
Big moves in commodity prices, especially lithium
One of the main drivers behind Mineral Resources' recent momentum has been improving sentiment in the lithium market. Lithium prices in China have climbed sharply in recent weeks, as tighter supply and stronger demand for batteries and electric vehicles support the market.
Lithium remains a core part of Mineral Resources' business. The company holds major stakes in lithium operations, including Wodgina and Mt Marion. While prices have been volatile in 2025, renewed optimism around future supply tightening and potential shortages has helped lift investor confidence.
Iron ore operations are ramping up
Another big catalyst for the stock is the company's progress in its iron ore business, particularly at the Onslow Iron Project in Western Australia. Recent operational updates show strong production and a continued ramp-up, which is helping support the company's revenue base.
Iron ore prices have also remained fairly solid, with ongoing infrastructure and construction demand from Asia supporting the market. This has given diversified miners like Mineral Resources additional earnings support as other parts of the business improve.
Balance sheet moves have reduced risk
Investors have also reacted positively to steps taken to strengthen Mineral Resources' balance sheet.
Earlier this year, the company announced a deal to sell a 30% stake in its lithium business to POSCO Holdings. The sale brought in fresh cash, which Mineral Resources has used to pay down debt and improve its financial position.
The company has also refinanced parts of its debt and pushed repayment dates further into the future, giving it more flexibility as major projects continue to ramp-up.
What are brokers saying?
Broker views on Mineral Resources remain mixed, but sentiment has improved in recent months.
Several analysts have pointed to stabilising lithium prices and strong iron ore performance as reasons for the recent share price strength. Others remain cautious, noting the stock has already had a strong run and commodity prices can change quickly.
Price targets currently sit across a wide range. Morgans has a more conservative view, with a target of $47.40. UBS and Bell Potter are more optimistic, with targets sitting at $58.60 and $59, respectively.
Foolish Takeaway
The Mineral Resources share price has lifted around 10% over the past month for a combination of reasons.
Improving lithium prices, solid iron ore performance, and balance sheet progress have all played a role. Overall, the business looks more stable today than it did earlier in the year, which has helped rebuild investor confidence.
That said, Mineral Resources is still a cyclical mining stock. Future performance will always depend heavily on commodity prices and the company's continued execution.
After such a strong run, I am happy to keep Mineral Resources on my watchlist rather than chase it higher.
