Mineral Resources Limited reported a mixed financial performance for the half-year ending December 31, 2024, with significant revenue drops but positive cash flow developments from strategic asset sales.

Target Information

Mineral Resources Limited (MinRes) has published its financial results for the half-year period ending December 31, 2024. The results indicate a significant decline in various financial metrics due to a weaker pricing environment. Notably, revenue fell by 9% to $2,290 million, and underlying EBITDA decreased by 55% to $302 million. Furthermore, underlying net profit after tax (NPAT) reflected a decline of 200%, leading to a statutory NPAT of ($807 million), which includes substantial impairment charges and translation impacts from foreign currency balances.

Despite these declines, MinRes maintained a strong liquidity position amid peak investment phases at its Onslow Iron project. The company achieved substantial cash inflows from strategic asset sales, including a $1.1 billion upfront payment related to a 49% stake in the Onslow Iron haul road and an initial $780 million payment from a gas transaction with Hancock Prospecting Pty Ltd.

Industry Overview

The mining industry in Australia continues to face challenges, particularly in relation to fluctuating commodity prices. Iron ore and lithium have experienced significant price