• Revenue: Increased, but specific figures not provided.

• Underlying EBITDA: $302 million, down approximately 55%.

• Mining Services EBITDA: Record $379 million.

• Commodities Loss: Under $30 million.

• Iron Ore EBITDA: $54 million from Onslow, total Iron Ore EBITDA loss of $9 million.

• Lithium Loss: $15 million, with Marion and Wodgina marginally profitable.

• Net Income (NPAT): Loss of $807 million, driven by impairment charges and foreign currency impacts.

• Cash Balance: $720 million at the end of the half.

• Net Debt: Increased to $5.1 billion.

• CapEx: $1.4 billion for the half.

• Available Liquidity: Over $1.5 billion.

• Iron Ore Production: 9.7 million tonnes exported.

• Onslow Iron Production: 6.3 million tonnes produced, 4.6 million tonnes shipped.

• Mount Marion Lithium Shipment: 100,000 tonnes at USD667 per tonne FOB.

• Wodgina Lithium Shipment: 101,000 tonnes at USD628 per tonne FOB.

• Energy Sale: $780 million from selling two tenements in the Perth Basin.

• Warning! GuruFocus has detected 10 Warning Signs with MALRF.

Release Date: February 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Mineral Resources Ltd (MALRF) reported a successful ramp-up of the Onslow Iron project, achieving substantial capacity with over 40 million tonnes of capacity.

• The Onslow Iron project is cash flow positive, contributing significantly to the company's ability to deleverage its balance sheet.

• Mining Services delivered a record EBITDA of nearly $380 million, showcasing strong growth and long-term potential.

• The company has a strong liquidity position with over $1.5 billion available, focusing on banking cash and minimizing spend.

• Mineral Resources Ltd (MALRF) has made significant progress in reducing costs in its lithium operations, with both Mount Marion and Wodgina becoming profitable in December.

Negative Points

• The company faced significant weather-related challenges, including cyclones, which delayed the Onslow Iron project ramp-up by about six weeks.

• The Yilgarn operation was closed due to high costs, resulting in an $87 million loss as it moved to care and maintenance.

• The company reported a loss of $807 million, driven by impairment charges and foreign currency impacts.

• The lithium segment experienced a downturn, with a loss of $15 million due to lower spodumene prices and market conditions.

• The Onslow Haul Road required additional investment for repairs and upgrades, with an estimated $170 million spend over the next six months.

Q & A Highlights

Q: Can you provide more details on the issues with the haul road and the confidence in ramping up production? A: Christopher Ellison, Managing Director, explained that the road was designed by national and international experts and is about 95% correct. The issues are not related to safety but are due to unprecedented weather conditions. Trial work on remediation has been successful, and the road is expected to support the planned ramp-up.