Mineral Resources Limited (ASX: MIN) has provided its financial results for the half-year ended 31 December 2020.
HIGHLIGHTS:
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Keeping our operations free from COVID-19.
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Maintaining a 12-month rolling Lost Time Injury Frequency Rate (LTIFR) of zero and reducing our Total Reportable Injury Frequency Rate (TRIFR) to 2.75, an improvement of 16%.
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Increasing Mining Services production volumes by 23% on pcp.
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Exporting a total of 7.9 million wet metric tonnes (wmt) of iron ore, up 17% on pcp.
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Producing record spodumene volumes at Mt Marion of 262,264 dry metric tonnes (dmt), up 36% on pcp.
The Company generated statutory earnings before interest, tax, depreciation, amortisation and impairment (EBITDA) of $927 million. Underlying EBITDA was $763 million, up 131% on the prior corresponding period (pcp) and underpinned by continued growth in the Mining Services segment and record iron ore sales volumes and prices.
Statutory net profit after tax (NPAT) amounted to $519 million and underlying NPAT was $430 million, up 233% on pcp. Statutory NPAT included $26 million of post-tax impairment charges ($37 million pre-tax) in relation to intangibles, plant and equipment and inventory.
The Directors have declared a fully franked interim dividend of 100 cents per share, an increase of 335% on the interim dividend for 1H20. The dividend is due to be paid on 9 March 2021 to shareholders on the register at 17 February 2021.
Mineral Resources Managing Director Chris Ellison said:
“This has been a very strong and successful six months for Mineral Resources. As events in Western Australia this month have demonstrated, the resources sector is not immune from the reach of COVID-19. We remain focused on keeping our operations COVID-19 free, protecting the health and safety of our people, and safeguarding their employment.
“Despite the backdrop of COVID-19, Mineral Resources has delivered outstanding operational and financial performance in the December half, demonstrating the strength of our business and the ability to maximise returns when commodities like iron ore are doing well. It also vindicates our decision to invest heavily across our iron ore business during the past few years.
“Likewise, Mt Marion has outperformed during this period to deliver record production volumes at lower costs, a remarkable achievement for a spodumene operation in what has been a challenging market. Pleasingly, we are seeing some positive signs in the lithium market and Mineral Resources is well positioned to benefit from this commodity’s upturn as the world renews its focus on green energy and demands greater volumes of high-quality spodumene concentrate.
“Continuing to deliver such solid results is only possible with a world-class team. The 4,000 men and women who work for the Mineral Resources team have once again demonstrated our can-do attitude that has made us what we are today and I thank them sincerely for their tremendous effort and contribution.”
