Mineral Resources upgrades FY26 volume guidance and posts robust lithium prices

Mineral Resources lifts its FY26 volume guidance and reports a sharp rebound in lithium prices in Q3 FY26.

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The Mineral Resources Ltd (ASX: MIN) share price is in focus today after the company upgraded FY26 volume guidance across several key mining operations and reported a strong 92% jump in average lithium prices for the quarter.

Miner standing and smiling in a mine field.

Image source: Getty Images

What did Mineral Resources report?

  • Onslow Iron shipped 7.2Mt in Q3 FY26, with volume guidance upgraded for FY26 to 17.7–19.4M wmt.
  • Mining Services FY26 production guidance lifted to 320–330Mt (from 305–325Mt).
  • Quarterly attributable spodumene concentrate production (Wodgina & Mt Marion) was 127k dmt SC6, with sales of 115k dmt SC6 at an average price of US$2,105/dmt (up 92% quarter-on-quarter).
  • Liquidity increased to $1.8 billion, while net debt was lowered to circa $4.5 billion (from $4.9 billion).
  • FY26 lithium volume guidance lifted at Wodgina (270–290k dmt SC6) and Mt Marion (210–230k dmt SC6).
  • No disruption to fuel supply or operations amid geopolitical tensions; cost guidance maintained across divisions.

What else do investors need to know?

The March quarter saw some interruptions due to tropical cyclones, but key infrastructure across Onslow Iron remained undamaged, with production quickly returning to normal. Mining Services renewed two contracts and completed another, while the Lamb Creek iron ore project achieved its first ore on ship and continues to ramp up as planned.

The company strengthened its capital structure by issuing US$1.3 billion in new Senior Unsecured Notes post quarter-end, primarily to refinance higher-interest notes and further lower existing debt. MinRes' liquidity position is healthy, with nearly $1 billion in cash and an unused $800 million revolving credit facility at quarter's end.

What's next for Mineral Resources?

Mineral Resources is sticking to its strategy of expanding production across both iron ore and lithium, with upgraded FY26 targets reflecting strong operational momentum. Despite higher fuel costs expected in the June quarter, cost guidance has been maintained, and the company continues to pass increased fuel expenses through to customers for its Mining Services division.

The group is progressing project developments, including exploration at Onslow Iron and lithium growth options like the potential restart at Bald Hill and a possible flotation plant at Mt Marion to improve recoveries. Preparations are also underway for further energy exploration drilling in the Perth and Carnarvon Basins.

Mineral Resources share price snapshot

Over the past 12 months, Mineral Resources shares have risen 201%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% 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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