Mineral Resources Limited (ASX: MIN) has released its December Quarter activities report, highlighting a strong operational performance, the ongoing profitability of its lithium operations and good progress with the Onslow Iron project development.
Key points:
Strong operational performance delivered
- FY24 volume and cost guidance remains unchanged for all operations.
- Safety performance was 0.18 Lost Time Injuries. Total Reportable Injury Frequency Rate was 1.90.
Mining Services
- Production volumes were 72Mt during the quarter, up 9% quarter on quarter (qoq).
Iron Ore
- Iron ore shipments increased 23% qoq to 4.8M wet metric tonne (wmt).
- Average quarterly realised price was US$119 per dry metric tonne (dmt), representing a 93% realisation of the Platts 62% IODEX.
Onslow Iron project
- Onslow Iron is progressing at pace and expected to be delivered well within budget.
- Project remains on target for first ore-on-ship in June 2024.
- Successful completion of first transhipper sea trials, with the first two transhippers scheduled to arrive in April.
Lithium
- Wodgina, Mt Marion and Bald Hill are profitable at current prices.
- Costs at Wodgina and Mt Marion are forecast to decrease this year as stripping completes.
- Mt Marion spodumene concentrate production increased 30% qoq and shipments rose 34% qoq to a total of 86k dmt.
- Wodgina achieved attributable quarterly spodumene concentrate production of 55k dmt, with improved plant recoveries. Spodumene concentrate shipments increased significantly to 65k dmt.
- Wodgina lithium battery chemical production was 6.8kt and sales were up 52% qoq to 6.5kt.
- Completed the restructuring of MARBL joint venture. Received net proceeds of US$383 million during the quarter from Albemarle for MinRes’ share of Kemerton lithium hydroxide processing plant and completion adjustments at Wodgina and Kemerton.
- Finalised the acquisition of Bald Hill, assuming project control on 1 November 2023. Over this period, the mine produced 26k dmt of spodumene concentrate, with 20k dmt shipped.
Energy
- Lockyer-5 gas drilling commenced and will be developed as one of 10 production wells. FID on the gas processing facility is expected this quarter.
- Energy division commenced assembly of a new drill rig, which is expected to be operational from mid-2024.
Corporate
- Completed a five-year US$1.1 Billion Senior Unsecured Notes Offering at 9.250%.
- 1H24 net debt is expected to be between $3.472 billion and $3.612 billion.
- Expect to introduce a partner to own a 49% interest in the Onslow Iron dedicated haul road this half to coincide with first ore on ship.
