Mineral Resources (ASX:MIN) executives highlighted what they described as a “successful quarter” across the business during an analyst call covering the company’s December 2025 exploration and mining activity report, pointing to steady performance at Onslow Iron, improved lithium output, and ongoing balance-sheet strengthening.
Chief Financial Officer Mark Wilson, joined by General Manager of Investor Relations Chris Chong and Chair Mel Bundy, said the quarter “underscored the strengths of the business,” citing operational consistency in iron ore and “agility to capture opportunities in an improving lithium market.”
Lithium: guidance upgrade and focus on recoveries
According to Wilson, the joint venture does not expect to receive “clean feed for a third train” until the “final quarter of this calendar year.” He added that head grade is expected to be “a bit lower this half,” which was cited as a reason the company did not simply double volume guidance despite running the third train when possible.
On operations, Wilson told analysts Wodgina recoveries averaged “70% on average for the quarter,” crediting site initiatives and saying the team is “pushing to go higher.” At Mount Marion, he said performance benefited from working through the “central pits,” which provided higher-grade ore and better recoveries. However, he cautioned that guidance reflects a shift toward “northern pits,” which he said have higher strip requirements and lower recoveries due to more complex ore.
Management also discussed studies underway that could affect future lithium output:
- Bald Hill: Wilson said the company is undertaking a study on a potential restart and stressed a prudent approach given lithium’s volatility. He cautioned analysts not to “get ahead of yourselves” on assumptions, while noting MinRes’ ability to move people and equipment is a competitive strength. He referenced prior comments that remobilizing and restarting the plant “could be up to four months” if a decision is made.
- Mount Marion flotation plant and underground: Wilson said design work on flotation is ongoing and expected to be completed “in the coming months.” On underground mining, he said work has already been done and spending has occurred, but the company has not yet decided to take a restart proposal back to the board. He said underground was expected to feed “about a third” of the mine’s feed.
Asked about whether customers might support projects through contract “floors,” Wilson described a lithium market that is “moving quite quickly” and “volatile,” with trading activity and complexity across spodumene, hydroxide, and carbonate markets. He said formal structures were not impossible, but “more complex” in the current environment.
Iron ore: Onslow operating at nameplate capacity
On the iron ore side, Wilson said Onslow Iron continues to operate at nameplate capacity. He also noted development of Lamb Creek is progressing at the Pilbara hub and that final exports from Wonmunna are scheduled for April.
Analysts asked about shipments and downtime. Wilson said the current quarter is typically the most challenging for weather, noting recent impacts from “high swell and wind.” He said MinRes plans for disruption and allows for “55 days a year for downtime in one form or another.”
Wilson said maintenance on transhippers is routine but had more impact in the reported quarter than previously. To smooth the program, he pointed to plans for additional equipment, saying a sixth transhipper is expected to be operating by “the middle of this year,” with a seventh “early into the new financial year.” He also said the transhipper remains the bottleneck as the business pushes toward higher export rates.
On the mine-to-port chain, Wilson said MinRes is “very, very happy” with performance across the mine, crushing, stockpiles, haulage, and the haul road, adding there were “no constraints on speed” and that the road is “performing well.”
Wilson also confirmed that Onslow’s realized price includes hedging impacts, while stating there is “no impact” from prepayments because those are done at market.
Costs and capital: steady expectations
Responding to questions on Onslow capital intensity, Wilson said the company has been consistent on expectations of around “AUD 2 a ton,” and does not expect that to change materially in the short term. He added the company will provide FY27 guidance mid-year.
On costs more broadly, Wilson said management was “very, very happy with costs” and that the quarter supported the view that the company has “a pretty good grip” on cost positioning. He said MinRes is guiding to the “low end” of guidance, while noting assumptions for the second half include slightly lower shipped tonnes and some “rise and fall impacts” as the calendar year turns.
For lithium, Wilson said increased production volumes could imply “a slight increase in stripping costs,” but he did not expect overall capital expenditure guidance to shift materially.
Balance sheet: liquidity up, debt down; POSCO JV noted
Wilson said “balance sheet transformation is progressing as planned,” with liquidity strengthened to “over AUD 1.4 billion” and net debt reduced by “AUD 500 million” to “below AUD 4.9 billion.” He also said the POSCO lithium joint venture announced in November is expected to “further accelerate de-leveraging.”
Asked about the effective date of the POSCO transaction and whether a “cash box structure” could limit participation in current price trends, Wilson said there is “no effective date,” adding the company would “capture the full uplift.”
Accounting items: purchase price adjustments and RDG review
Wilson addressed questions about flagged financial statement impacts, including an “AUD 220 million purchase price adjustment” related to haul road and gas transactions. He said these adjustments flow through the profit and loss statement but are expected to be treated as “non-underlying.”
He also said the company is reviewing the carrying value of RDG assets as it finalizes interim results over the coming weeks, noting the asset had a carrying value of “about AUD 70 million” at the full year.
Wilson closed his prepared comments by saying the report indicates MinRes is entering the second half with “positive operational momentum,” “favorable market conditions,” and a strengthening balance sheet.
About Mineral Resources (ASX:MIN)
Mineral Resources Limited, together with subsidiaries, operates as a mining services company in Australia, Asia, and internationally. It operates through five segments: Mining Services, Iron Ore, Lithium, Energy, and Other Commodities. The company offers contract crushing, screening, and processing; specialized mine services, including materials handling, plant and equipment hire and maintenance, tails recovery, and aggregate crushing; and design, engineering, and construction services for resources sector.
