Mineral Resources upgrades lithium guidance on strong Q2 sales

Mineral Resources upgraded FY26 lithium guidance and delivered strong Q2 results with higher sales and lower debt.

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The Mineral Resources Ltd (ASX: MIN) share price is in focus today after the miner released a strong Q2 FY26 update, with lithium sales up 29% and iron ore shipments hitting record levels.

What did Mineral Resources report?

  • Quarterly attributable lithium spodumene production: 138,000 dmt SC6; sales: 143,000 dmt SC6 at US$1,094/dmt, up 29% on the previous quarter
  • Iron ore: Onslow Iron shipped 8.7Mt (100% basis) with 1H26 costs tracking at $52/wmt, near the bottom end of guidance
  • Lithium FY26 volume guidance upgraded: Wodgina to 260–280k dmt SC6 (previously 220–240k); Mt Marion to 190–210k dmt SC6 (previously 160–180k)
  • Group liquidity strengthened to over $1.4B; net debt reduced to about $4.9B from $5.4B
  • Binding agreement for POSCO Holdings to acquire a 30% stake in MinRes' lithium operations for ~US$765M

What else do investors need to know?

The company maintained FY26 volume and cost guidance across all divisions except for the higher lithium volumes. Operating performance in mining services also improved, with a 5% quarterly increase in production volumes to 85Mt.

MinRes continues to reduce its net debt as Onslow Iron ramps up to nameplate capacity, and the liquidity position is bolstered by strong operating cash flows and financing activities, including a recent US$700M bond issue and successful refinancing of existing notes.

Board renewal saw two new Independent Non-Executive Directors welcomed, and the safety record improved, with the LTIFR dropping to 0.00 for the quarter. MinRes also advanced key iron ore and lithium projects and flagged ongoing exploration at Wodgina and Mt Marion.

What's next for Mineral Resources?

Looking ahead, the Wodgina and Mt Marion lithium upgrades put MinRes in a strong position to benefit from higher pricing into the second half of FY26. The company is focused on completing the POSCO transaction and managing its capital structure as it maintains operating discipline.

Further iron ore cost improvements are targeted as new projects like Lamb Creek and lower-cost ore sources come online, supporting long-term production and margin stability. MinRes continues to assess the possible restart of Bald Hill and development options at Mt Marion.

Mineral Resources share price snapshot

Over the past 12 months, Mineral Resources shares have risen 73%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period. 

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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