Mineral Resources (MinRes) has reported solid progress across its iron ore and lithium operations in the first half of the 2023–24 financial year.
The major miner reported more than $2.5 billion in revenue, representing a seven per cent increase from the prior corresponding period. As of December 31 2023, MinRes held more than $1.3 billion in cash.
“MinRes’ diversified business model ensured a solid set of financial results despite weaker lithium prices,” MinRes managing director Chris Ellison said.
“Underlying EBITDA (earnings before interest, taxes, depreciation, and amortisation) of $674.9 million was evenly split between lithium ($271.4 million), iron ore ($266.2 million) and mining services ($253.7 million), with statutory net profit after tax of $518 million.”
The Onslow Iron project made great progress during the period, with construction remaining on time and budget and its first ore-on-ship scheduled for June.
“We currently have more than 2000 people working on the project,” Ellison said.
“Our unique ‘build, own, operate’ model at Onslow Iron ensures we have full control over costs and project delivery despite the high inflationary environment.”
The Mount Marion plant expansion was commissioned, with 99,000 dry metric tonnes (dmt) of SC6 equivalent spodumene concentrate shipped across the half-year, representing a 39 per cent increase.
Pre-strip activities at Wodgina are also well advanced, with 87,000dmt of SC6 equivalent spodumene concentrate shipped, representing a 36 per cent increase.
“Shipments from Wodgina and Mount Marion were up significantly over the year,” Ellison said.
“We took the opportunity with last year’s high prices to complete major pre-strip activity. Unit costs are now falling at both sites. Further reducing costs while prices are depressed remains a priority this half.”
MinRes revealed the Mount Marion underground mineral resource has increased 111 per cent to 19.3 million tonnes at 1.22 per cent lithium oxide.
“A diamond drilling program in the December quarter has significantly increased the confidence of the upper part of the North Pit underground resource,” MinRes said.
The company expects to complete 80,000m of reverse circulation and diamond drilling at Mount Marion over the next 18 months.
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