Mineral Resources Limited (ASX: MIN) has released its March quarter activities report for the three-month period to 31 March 2025.
Key points
CORPORATE
MinRes’ commitment to strengthening corporate governance remains unchanged. The process to appoint a new Board Chair, supported by Korn Ferry, is well advanced and on track to conclude in the June quarter.
Post the March quarter, non-executive directors Denise McComish, Jacqueline McGill AO and Susan Corlett resigned from the Board. The Nominations Committee is conducting an assessment of Board skills. The new Chair will be involved in any recruitment process for new directors. Replacement members on Board committees, including the Ethics and Governance Committee, will be selected in due course.
Lost Time Injuries Frequency Rate of 0.21 and a rolling 12-month Total Reportable Injury Frequency Rate of 3.67.
Liquidity as at 31 March 2025 was in excess of $1.25 billion, comprising more than $450 million in cash and a fully undrawn $800m revolving credit facility.
- The Company was in compliance with all of its financial maintenance covenants as at 31 December 2024, allowing full access to its revolving credit facility throughout 2H FY25.
- The Company expects to comply with all financial maintenance covenants, which relate solely to the Company’s revolving credit facility, as at 30 June 2025. There are no financial maintenance covenants associated with the Company’s USD unsecured bonds.
- Given the Company’s strong liquidity and a number of other levers at MinRes’ disposal, an equity raise is not under consideration.
Net debt as at 31 March 2025 was $5.4b. Movements over Q3 FY25 were driven largely by:
- capex outflow of $360m, with another $340m expected in Q4 FY25 in line with FY25 guidance of $2.1b.
- net working capital outflow of $50m. Q4 FY25 net working capital outflow is expected to be similar.
The Onslow Iron carry loan balance as at 31 March 2025 was $789m ($794m as at 31 December 2024). The Company continued to deliver on its obligations regarding its US$400m iron ore prepayment ($632m as at 31 March 2025). This balance will amortise in equal quarterly instalments over FY26, FY27 and FY28.
Cost reduction initiatives continue throughout the business. Since the start of FY25, there has been a reduction of approximately 1,740 roles across head office and sites.
MinRes’ first US$700m 8.125% bond matures in May 2027. From May 2025, there is the opportunity to refinance at no prepayment premium. The Company has full confidence in its access to capital markets and ability to refinance the notes in the coming years. The recent decrease in bond pricing, which was largely correlated with a broader decline in bond and credit markets, had no impact on serviceability nor the Company’s interest expense.
MINING SERVICES
Quarterly production volumes were 62 million tonnes, down 6Mt quarter on quarter (qoq) due to reduced volumes from the Yilgarn Hub and Bald Hill, partially offset by external volume growth.
FY25 production volumes are expected to be at the bottom end of the guidance range (280-300Mt) and weighted to the June quarter in line with the ramp-up of Onslow Iron. FY25 EBITDA per production volume tonne is anticipated to be $2.10 to $2.20/t.
IRON ORE
Total iron ore production across Onslow Iron and the Pilbara Hub was 6.0M wet metric tonnes, with shipments of 5.9M wmt.
The average quarterly realised price across both Onslow Iron and the Pilbara Hub was US$89 per dry metric tonne, a 6% increase qoq and representing an 86% realisation of the Platts 62% IODEX.
Onslow Iron progress over the March quarter:
- The fourth transhipper (MinRes Rosily) began operating at the Port of Ashburton in March 2025 and the fifth vessel (MinRes Peak) is scheduled to arrive in Australia in early May 2025, increasing total transhipping capacity to 35Mtpa.
- A total of 3.6Mt (100%) was shipped in the quarter.
- All parts of Onslow Iron were operating cash flow positive in the March quarter, as they have been since November 2024.
FY25 Onslow Iron volume guidance has now been lowered marginally to 8.5-8.7Mt, from 8.8-9.3Mt previously and FOB costs are expected to be at the upper end of the guidance range ($60-70/t). Pilbara Hub guidance remains unchanged.
The upgrade of the Onslow Iron haul road remains on schedule for completion in Q1 FY26. Onslow Iron remains on track to achieve nameplate capacity of 35Mtpa in Q1 FY26.
LITHIUM
Total quarterly attributable spodumene production across both operating sites was 133k dmt, with shipments of 127k dmt.
FY25 Wodgina volume and cost guidance is maintained while Mt Marion volume guidance is increased to 185-200k dmt SC6, from 150-170k dmt SC6, with cost guidance maintained.
The weighted average quarterly realised price achieved across both hubs was US$844/dmt SC6 equivalent (SC6), up 2% qoq, and US$685/dmt on a mixed grade basis, down 2% qoq.
The March quarterly SC6 FOB cost was $708/dmt at Mt Marion and $775/dmt at Wodgina.
ENERGY
MinRes completed well testing and suspension of Moriary-2 and started the reserves and resource certification process.
The Lockyer-6 well was drilled and reached a depth of 4,456 metres before completing a four-day flow testing period on 6 April 2025, with analysis ongoing.
Drilling of the Dandaragan Deep-1 well, which forms part of the MinRes-Hancock exploration joint venture, commenced on 24 March 2025.
