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Home / Iron ore / MinRes says this year “most significant” in its history as advances world-class growth projects

Mineral Resources

  • ASX: MIN
    • Fe
    • Li

MinRes says this year “most significant” in its history as advances world-class growth projects

  • 21 February

Leading mining services contractor Mineral Resources (ASX: MIN) says this financial year is the most significant in the company’s history as the Perth company establishes the platform for long-term growth. Signing off on December half revenue of $554.7 million and normalised EBITDA of $102 million, MinRes declared $494 million in capital expenditure in the six-month period, led by development of the world-class Wodgina lithium project in the Pilbara. MinRes said its advanced project pipeline would deliver significant long-term shareholder value. The company declared a 13c a share fully franked interim dividend.


Mineral Resources Limited (ASX: MIN) (‘MRL’ or ‘the Company’) is pleased to announce its financial results for the half year ended 31 December 2018 (H1 FY19) and provide an update on initiatives carried out during the period as part of the Company’s strategy to become Australia’s leading integrated mining services provider.

Guidance provided previously at the Annual General Meeting (AGM) in November 2018[1] was for full 2019 financial year (FY19) Earnings Before Interest Tax, Depreciation and Amortisation (EBITDA) of between $280 million to $320 million, weighted 35% to the first half and 65% to the second half of the financial year.

H1 FY19 EBITDA for MRL is broadly in line with this guidance, with EBITDA of $72 million after an unrealised accounting loss in respect of the Group’s investment in Pilbara Minerals Limited (ASX: PLS) of $30 million. Normalised EBITDA, after adding back this unrealised loss, is $102 million. After providing for income tax and non-controlling interest, profits amounted to $13 million.

During the six months to 31 December 2018, the Company delivered on a number of major initiatives including:

  • Execution of a transaction with Albemarle Corporation to sell 50% of the Wodgina Lithium Project for US$1.15 billion and, upon completion, establish a 50:50 joint venture;

  • Expenditure of almost $400 million on the construction of world-class lithium mining and processing facilities at Wodgina and Mt Marion;

  • Acquisition of additional equity in Mt Marion to take MRL’s stake to 50%;

  • Completion of the acquisition of the Koolyanobbing Iron Ore Project, enabling operations in the Yilgarn region to continue;

  • Establishment of a 50:50 joint venture with Brockman Mining Limited in relation to the Marillana Iron Ore Project in the Pilbara;

  • Acquisition of the Kumina Iron Ore Project in the Pilbara; and

  • Achievement of substantial progress across the portfolio of innovation projects including:

    • completing the detailed design of the Bulk Ore Shuttle System;

    • completing the third carbon fibre dump tray; and

    • commencing construction of a hydrogen/synthetic graphite test plant.

MRL’s Managing Director Chris Ellison said, “This has undoubtedly been the most significant year in the Company’s history. The financial results for the first half of FY19 reflect our strategic decision to invest in a number of longer term growth projects.

These projects will assist us maximise the value of our lithium ore bodies while the infrastructure and innovation initiatives we have been developing over the past 3 to 5 years will provide us with additional, industry changing mining services capability.

Together, these projects will create long-term shareholder value through the development of our world-class resources assets and increased annuity style earnings from enhanced mining services offerings.”

[1] ASX:20181122 AGM – Managing Directors Presentation Pg.13

 

Min Res Info Pack.JPG

To view the H1 FY19 Results Info pack, please click here or image above

To view the H1 FY19 Results Investor Presentation, please click here.

View full announcement

Peter Klinger

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