Mineral Resources Limited (ASX: MIN) released its Mineral Resources Q2 FY26 update on 29 January 2026. The Company reported strong performance capitalising on higher lithium prices. The Mineral Resources operations update detailed upgraded volume guidance for both Wodgina and Mt Marion lithium operations.
Figure 1: Mineral Resources Limited iron ore processing infrastructure at a Western Australian operations site. [Source: Mineral Resources Limited]
Total quarterly attributable spodumene production was 138,000 dry metric tonnes SC6 with sales of 143,000 dmt SC6. The average achieved price was US$1,094 per dmt CIF SC6, representing a 29 per cent increase on the prior quarter. The Mineral Resources quarterly report showed net debt reduced materially to approximately $4.9 billion from $5.4 billion.
How Did Iron Ore Operations Perform in the Quarterly Report?
Total quarterly iron ore production across Onslow Iron and the Pilbara Hub was a record 11.5 million wet metric tonnes on a 100 per cent basis. Shipments totalled 11.1 million wmt on a 100 per cent basis. The average quarterly realised iron ore price across both operations was US$91 per dmt.
Onslow Iron shipped 8.7 million wmt in Q2 FY26 on a 100 per cent basis and 17.3 million wmt in 1H26. FOB cost was $50 per wmt for the quarter, with costs tracking towards the bottom end of FY26 guidance of $54 to $59 per wmt. The 1H26 FOB cost was $52 per wmt.
What Did the Mineral Resources Q2 FY26 Update Say About Pilbara Hub?
Pilbara Hub shipments for the quarter were 2.4 million wmt and 1H26 shipments were 5.1 million wmt. The 1H26 FOB cost was $81 per wmt. Following regulatory approvals in November 2025, development of the Lamb Creek Project commenced. Engineering and Construction teams started work on the mine and supporting infrastructure.
Figure 2: Iron ore production, shipments, realised pricing and cost metrics for the quarter ended 31 December 2025. [Source: Mineral Resources Limited]
First ore was successfully crushed from the North Pit at Iron Valley in October 2025. The North Pit will be the primary ore source for the Pilbara Hub for the remainder of FY26. The quarterly FOB cost improved to $78 per wmt, with costs expected to decline over the second half.
What Corporate Developments Were Highlighted in the Mineral Resources Operations Update?
The Mineral Resources quarterly report revealed that the Company executed a binding agreement with POSCO Holdings Inc in November 2025. POSCO will acquire 30 per cent of MinRes’ existing 50 per cent ownership of Wodgina and Mt Marion for total upfront cash consideration of US$765 million. This equates to approximately $1.1 billion at an exchange rate of 0.67.
Figure 3: Processing facilities of Mineral Resources [Source: Mineral Resources Limited]
Net debt as at 31 December 2025 reduced to approximately $4.9 billion from $5.4 billion at 30 September 2025. Liquidity as at 31 December 2025 was in excess of $1.4 billion from $1.1 billion. The Company settled its US$700 million 7.000 per cent unsecured notes due April 2031 in October.
How Did Mining Services Perform in the Mineral Resources Q2 FY26 Update?
Quarterly production volumes were 85 million tonnes, 5 per cent higher quarter-on-quarter. The increase was driven by a ramp-up in volumes at client sites as well as Onslow Iron operating at an annualised run rate of 35 million tonnes per annum over the quarter. Half year production volumes totalled 166 million tonnes.
FY26 guidance for Mining Services is maintained at 305 to 325 million tonnes. The division continues to support both internal operations and external client sites across Western Australia. The ramping up of client site volumes demonstrates strong demand for the Company’s services.
What Exploration Activities Were Detailed in the Operations Update?
At Onslow Iron, a total of 1,920 metres of RC drilling was completed targeting near-mine extensions. A total of 1,177 metres of diamond drilling for metallurgical and geotechnical purposes was completed across Ken’s Bore and Jewel. At Pilbara Hub, drilling continued at Lamb Creek and Iron Valley with 2,826 metres of RC drilling completed.
At Wodgina, drilling during the quarter largely focused on resource definition with a total of 4,607 metres completed in Stage 3. At Mt Marion, an infill drill program in the N9/N11 pit was commenced and completed with 1,968 metres of RC drilled. Results have been incorporated into an updated planning model.
What Is the Financial Outlook and Guidance?
The Mineral Resources operations update stated that FY26 volume and cost guidance is maintained across all divisions except lithium, which was upgraded. Onslow Iron guidance is 17.1 to 18.8 million wmt with FOB cost guidance of $54 to $59 per wmt. Pilbara Hub guidance is 9.0 to 10.0 million wmt with FOB cost guidance of $75 to $80 per wmt.
Figure 4: Drilling and exploration activities underway at a Mineral Resources Limited site. [Source: Mineral Resources Limited]
Capital expenditure in the quarter was approximately $200 million, bringing 1H26 total to approximately $600 million. This is in line with expectations that FY26 capex guidance of $1.1 billion would be weighted to the first half. Net interest paid in the quarter was approximately $180 million.
Share Price and Market Performance
Mineral Resources shares are currently trading at $60.910 with a market capitalisation of $12.53 billion. The stock has traded in a 52-week range of $14.050 to $65.790 per share. The Company’s share price performance reflects strong operational execution and improved lithium pricing.
Figure 5: Mineral Resources Limited share price performance over the past 12 months. [Source: Australian Securities Exchange]
The Mineral Resources Q2 FY26 update demonstrates value creation through operational excellence and debt reduction. The lithium volume guidance upgrades and POSCO Holdings transaction support the investment thesis. Investors will monitor lithium price trends and Onslow Iron ramp-up progress in the coming quarters.
About Mineral Resources Limited
Mineral Resources Limited is a leading diversified resources company with extensive operations in lithium, iron ore, energy and mining services. The Company operates across Western Australia with major assets including Onslow Iron, Wodgina, Mt Marion and the Pilbara Hub. Mineral Resources is headquartered in Osborne Park, Western Australia and is listed on the Australian Securities Exchange.
The Company employs thousands of people across its operations. Mineral Resources maintains a strong focus on operational excellence, safety and financial discipline. The Company is well-positioned to capitalise on demand for critical minerals, including lithium and iron ore.
Final Thoughts
The Mineral Resources Q2 FY26 update demonstrated strong operational performance across divisions. The lithium volume guidance upgrades reflect confidence in production capabilities at both Wodgina and Mt Marion. The 29 per cent increase in realised lithium prices contributed to improved financial performance.
The Mineral Resources operations update highlighted successful debt reduction and liquidity improvement. Net debt decreased by $500 million while liquidity increased by $300 million, demonstrating rapid deleveraging. The POSCO Holdings transaction will provide additional capital to strengthen the balance sheet.
The Mineral Resources quarterly report positions the Company well for the second half of FY26. Iron ore operations continue to perform strongly with costs tracking favourably against guidance. The combination of operational excellence and strategic capital management supports long-term value creation.
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FAQs
Q1. What were the lithium volume guidance upgrades in the Mineral Resources Q2 FY26 update?
Ans. Wodgina guidance increased to 260,000 to 280,000 dmt SC6 from 220,000 to 240,000 dmt SC6, and Mt Marion increased to 190,000 to 210,000 dmt SC6 from 160,000 to 180,000 dmt SC6.
Q2. What was the lithium realised price reported in the Mineral Resources operations update?
Ans. The weighted average quarterly realised price across both sites was US$1,094 per dmt CIF SC6, representing a 29 per cent increase quarter-on-quarter.
Q3. How much did net debt reduce according to the Mineral Resources quarterly report?
Ans. Net debt reduced to approximately $4.9 billion as at 31 December 2025 from $5.4 billion as at 30 September 2025.
Q4. What is the value of the POSCO Holdings transaction?
Ans. POSCO Holdings Inc will acquire 30 per cent of MinRes’ existing 50 per cent ownership of Wodgina and Mt Marion for US$765 million or approximately $1.1 billion.
