The miner posted its strongest quarterly mining services on record and beat volume guidance at Onslow Iron, but the market is asking about the lithium market's next move.
Mineral Resources delivered a record close to its fiscal year. The June quarter produced the company’s strongest mining services volumes on record, and Onslow Iron ran at an average annualized rate of 38 million tonnes. CFO Mark Wilson told the call the company exceeded volume guidance at both Onslow Iron and its lithium operations for the full year.
Attributable spodumene sales hit a record 158,000 tonnes on an SC6 equivalent basis. Mining services volumes came in above the top end of upgraded guidance. Wilson credited cost discipline across the board for keeping margins intact through the quarter.
The numbers landed at a time when the lithium market remains under pressure from oversupply. MinRes’s record spodumene sales during the quarter suggest the company is pushing volume to capture market share, even as prices stay weak. Wilson did not offer specific forward guidance on lithium pricing during the call, but the record sales figure signals the company is betting on scale to ride out the downturn.
On the iron ore side, Onslow Iron's ramp to 38 million tonnes per annum is a key metric. The project has been the focus of investor attention since its startup, and hitting that run rate within the fiscal year removes one layer of execution risk. BofA Securities' Kate McCutcheon asked about sustaining that pace; Wilson said the operation is running at design capacity and the team is focused on consistency.
Goldman Sachs' Paul Young pushed for detail on capital allocation. Wilson reiterated that the priority remains debt reduction and funding the growth pipeline, with no change to the dividend policy. Morgan Stanley's Rahul Anand asked about the lithium expansion timeline. Wilson said the company will update the market at the full-year results in August.
The stock has been under pressure this year alongside the broader lithium sector. The record operational quarter provides a floor for earnings, but the next catalyst is the August result and any update on lithium market conditions. MinRes’s ability to sustain record volumes while maintaining cost discipline will determine whether the market re-rates the stock or waits for clearer signs of a price recovery.
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