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Mineral Resources Ltd. Q3 FY24: Mining Services Production Dips, Iron Ore Shipments Down

Mineral Resources Ltd. Q3 FY24_ Mining Services Production Dips, Iron Ore Shipments Down
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Mineral Resources released its quarterly exploration and mining activity report for the quarter, January to March 2024 (Q3 FY24), on April 24, 2024. As of today, Mineral Resources Ltd. stock is trading between 66.31 AUD and 69.39 AUD per share. The Mineral Resources ASX is a leading mining services company. Its operations focus on mining services, iron ore, lithium, energy, engineering, and construction. 

The Q3 FY24 report from Mineral Resources Ltd. is a crucial update, providing key insights into the company’s performance and future plans.  

Despite a 4% dip in mining services production volume quarter on quarter, Mineral Resources Ltd. (ASX: MIN) has seen a promising 9% increase in year-to-date production, with a total production of 208 Metric tonnes.

Mineral Resources Ltd. (ASX: MIN) ‘s iron ore shipments decreased by 6% to 4 million wet metric tonnes. The Company received an average quarterly price of 92 USD per dry metric tonne. The company’s Onslow iron ore project is its main focus, and the mining operations are being carried out to full capacity. The Onslow iron ore project has moved a total material of 9.4 metric tonnes this quarter. 

A spodumene shipment (SC6 equivalent) of 22,000 dry metric tonnes was sold at 1300 USD per tonne in March 2024, as the industry witnessed an increase in lithium prices later in the quarter. Over the quarter, the SC6 equivalent received a weighted average cost of 1030 USD per dry metric tonne at all three operating locations. Over the quarter, The Wodgina ore produced 49,000 dry metric tonnes of spodumene. However, the production volume is forecasted to drop in FY2024, whereas the costs are predicted to rise. The spodumene concentrate production at Mt. Marion increased by 9% quarter on quarter, accounting for 91000 dry metric tonnes. Lithium battery chemical production for the quarter was 6800 tonnes, and a 7% quarter-on-quarter increase in its sales was observed, with 7000 tonnes sold during the closed quarter. 

The Wodgina lithium mine owned by Mineral Resources Ltd.Figure: The Wodgina lithium mine owned by Mineral Resources Ltd.

Mineral Resources Ltd. also announced its Lockyer-5, Sidetrack-1 well in the Perth Basin, which holds 27 metres of net gas pay with an 18% average porosity. Testing of the well revealed a maximum flow rate of 106 million standard cubic feet per day and an average flow rate of 104 million standard cubic feet per day, the highest recorded stabilised flow rate in the Perth Basin.

Mineral Resources Ltd. has strategically planned to introduce a partner in the Onslow Iron dedicated haul road, a move that is progressing well and will be executed in this half. The Company is also keen to advance similarly to fund the proposed development of its gas processing facility in the Perth Basin, demonstrating its commitment to future growth and development. 

Mineral Resources Ltd. (ASX: MIN) ‘s share price is down 14.3% compared to last year. As of today, the stock is priced at 68.82 AUD per share. The 52-week range for this stock is 52.52 AUD—77.44 AUD per share. Chris Ellison, Founder and Managing director of Mineral Resources Ltd., has over 36 years of experience in the mining contracting, engineering, and resource processing industries.

Lithium is an essential metal from the perspective of its applications, ranging from batteries to medicines. It is the lightest known metal and has the highest electrochemical potential. Lithium is in continuous demand as it is used to make rechargeable lithium-ion batteries for various digital devices and electric vehicles. With a rise in the global market for lithium batteries, lithium prices are predicted to rise shortly. Australia is the largest producer and exporter of lithium and has the largest known lithium deposits. Mineral Resources Ltd is making a significant contribution to Lithium extraction, and the Company’s assets hold substantial economic value. 

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