The Mineral Resources Ltd (ASX: MIN) share price was under pressure on Thursday.
The mining and mining services company's shares ended the day almost 4% lower at $61.02.
This followed the release of the company's second quarter update.
While this decline is disappointing, it could have created a buying opportunity for investors according to analysts at Bell Potter.
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What is the broker saying?
Bell Potter was pleased with the company's performance during the quarter, noting that iron ore, lithium, and mining services volumes were ahead of expectations. It said:
MIN reported quarterly attributable sales above our estimates, including: Onslow iron ore 4.8Mt (BP est. 4.6Mt); Pilbara Hub iron ore 2.4Mt (BP est. 2.0Mt); Wodgina SC6e 76kt (BP est. 60kt); and Mt Marion SC6e 67kt (BP est. 42kt). Mining Services volumes were 85Mt (BP est. 81Mt; 1Q FY26 81Mt) with ramp-up at third party sites. In 1H FY26, Onslow FOB costs were A$52/t (FY26 guidance A$54-59/t) and group capex $600m, expected to trend lower in 2H (FY26 guidance $1,140m). At 31 December 2025, MIN had net debt of $4.9b and available liquidity of $1.4b, $0.5b and $0.3b improvements on the prior quarter, respectively.
The broker was also pleased to see that Mineral Resources is looking to take advantage of the strength in lithium prices by upgrading its production guidance for FY 2026. It adds:
MIN has upgraded FY26 SC6e sales volume guidance by 17% and 18% (midpoint) at Wodgina and Mt Marion, respectively, highlighting strong operational flexibility that enables the company to capitalise on improved lithium prices. All other FY26 guidance metrics are maintained.
The midpoints of guidance point to substantially lower attributable group SC6e sales in 2H (184kt SC6e vs 286kt in 1H) across its operations as mining moves into areas with greater ore variability. Persistent lithium market prices and operational execution could result in further upgrades to SC6e guidance, with MIN receiving the full value uplift prior to completion of the US$765m POSCO selldown scheduled to complete in the current half.
Could the Mineral Resources share price hit $70.00?
According to the note, Bell Potter believes the company's shares are heading to the $70.00 mark.
It has retained its buy rating with an improved price target of $70.00 (from $68.00). Based on the current Mineral Resources share price, this implies potential upside of 15% for investors over the next 12 months.
Commenting on its buy recommendation, the broker said:
Completion of the $1.2b MIN-POSCO lithium transaction will accelerate balance sheet deleveraging paired with higher cash flows from the ramp-up of Onslow iron ore sales. MIN is positioned to benefit from current lithium market pricing strength, holding around 268ktpa (SC6 attributable, pre-POSCO deal completion) of offline spodumene production capacity. MIN's mining services platform delivers a stable earnings stream that is expected to expand with internal and third-party volume growth.
