Mineral Resources (ASX: MIN) has released its Quarterly Exploration and Mining Activities Report for the period to 31 December 2022.
KEY POINTS
- Safety performance for the quarter remained strong with no Lost Time Injuries. Total Reportable Injury Frequency Rate was 2.72.
- Mining Services production volumes were 70Mt during the quarter, steady qoq and in line with expectations.
- Iron ore shipments were 4.1M wet metric tonnes (wmt) during the quarter, down 9% qoq, in line with the mine plan and FY23 guidance (17.2 – 18.8M wmt).
- Average realised iron ore price was US$97 per dry metric tonne (dmt), 33% higher qoq and represents a 98% realisation to the Platts 62% IODEX.
- A total of 97k dmt (attributable) of spodumene concentrate was shipped during the quarter, 18% higher qoq.
- A total of 7,418 tonnes (attributable) of lithium hydroxide and lithium carbonate was converted with 6,612 tonnes (attributable) sold during the quarter, up 75% qoq.
- The average realised lithium hydroxide and lithium carbonate revenue was US$65,996/t (exclusive of China VAT).
- The term of the Mt Marion Tolling Agreement with Jiangxi Ganfeng Lithium Co. Ltd was extended by one year to the end of CY23 on similar terms and conditions to the existing agreement.
- The timing of the Mt Marion expansion of production capacity to 900ktpa (100% basis) has been pushed back slightly due to the delayed supply of processing equipment and labour shortages. The upgrade is now expected to commence during April and ramp up to the full run-rate from July 2023. As a result, Mt Marion’s FY23 shipped guidance has been reduced to 250-280k dmt (previously 300-330k dmt) (51% share) of which 40% is expected to be high-grade product (unchanged). Mt Marion’s FY23 FOB cost guidance has subsequently increased to $540-590/t (previously $460-510/t). The capital cost of the project remains at $120 million (100% basis).
- During the quarter, MinRes announced an off-market scrip takeover bid for Norwest Energy NL (ASX: NWE). Post the quarter, Norwest reached agreement with MinRes on the terms of an increase to its current off-market takeover bid. Under the revised offer, accepting Norwest shareholders will receive one fully paid ordinary share in MinRes for every 1,300 Norwest shares. Norwest Directors have unanimously recommended MinRes’ revised offer and the Norwest directors intend to accept the offer in relation to their shares.
