Mineral Resources Limited (ASX: MIN) has released its financial results for the fiscal year 2024, showcasing resilience in the face of a challenging lithium market.
The company reported a 10 per cent increase in revenue to $5,278 million, despite a significant downturn in lithium prices.
The mining services giant experienced a decline in profitability, with underlying EBITDA falling 40 per cent to $1,057 million and underlying Net Profit After Tax (NPAT) dropping 79 per cent to $158 million compared to the previous year.
However, the company maintained a strong liquidity position, with available liquidity of $2,833 million, including $908 million in cash.
A major highlight of the year was the commencement of operations at the Onslow Iron project, which achieved its first ore shipment in May 2024, ahead of schedule.
Managing Director Chris Ellison praised this achievement, stating: “This phenomenal achievement is a testament to the in-house project delivery expertise that MinRes has developed over more than three decades.”
The company’s Mining Services division delivered a record underlying EBITDA of $550 million, up 14 per cent from the previous year, driven by increased production volumes and new contract wins.
The Iron Ore division also saw growth, with exports increasing by 3 per cent to 18.1 million wet metric tonnes and revenue rising 20 per cent to $2,578 million.
Despite the challenging lithium market, Mineral Resources achieved record shipments from its Wodgina and Mt Marion operations.
The company also completed the acquisition of Bald Hill, expanding its lithium portfolio.
Looking ahead to FY25, Mineral Resources expects significant growth in its Mining Services division, particularly as the Onslow Iron project ramps up to full production.
The company anticipates improved cash flow and rapid deleveraging of its balance sheet from early 2025.
Ellison emphasised the company’s adaptability, stating: “Our management team has decades of experience through commodity peaks and troughs.
“I have full confidence in our ability to manage the balance sheet and keep delivering leading returns for our shareholders.”
As Mineral Resources navigates the current market conditions, it remains focused on cost reduction and cash preservation while maintaining flexibility to capitalise on future opportunities in its diverse portfolio of mining and energy assets.
