Record Mining Services earnings and delivery of the transformational Onslow Iron project headline MinRes' full year financial results.
Highlights for the year ended 30 June 2024 (FY24) included:
Mining Services:
- Production volumes increased 9% to 269 million tonnes.
- Delivered record Underlying EBITDA of $550 million, up 14%.
- Awarded six new contracts and renewed three contracts.
- Entered into a binding agreement with Morgan Stanley Infrastructure Partners for the sale of a 49% interest in the Onslow Iron dedicated haul road for total expected proceeds of $1.3 billion.
Iron Ore:
- Onslow Iron delivered first ore on ship in May 2024.
- Exports totalled 18.1 million tonnes across all hubs, up 3%, and revenue increased 20% to $2.5 billion.
Lithium:
- Record shipments from Wodgina (up 41% to 201,000 tonnes SC6) and Mt Marion (up 46% to 218,000 tonnes SC6).
- Acquired Bald Hill in November 2023, with 67,000 tonnes SC6 shipped.
- Completed the restructure of the MARBL joint venture, increasing ownership in Wodgina to 50%.
- Achieved price of US$1,279 per tonne SC6, down 76%.
Energy:
- Lockyer-5 Sidetrack-1 development well achieved the highest stabilised flow rate in the Perth Basin of 104 million standard cubic feet per day.
- North Erregulla-2 well test achieved a strong flow rate, with a current estimated potential average production rate of more than 1,100 barrels of oil per day.
The Total Recordable Injury Frequency Rate was 2.74 and the Lost Time Injury Frequency Rate was 0.14 for FY24. These increases reflect significant construction activity during the year – and safety remains a top priority.
Revenue increased 10% to $5.3 billion, driven by growth in Mining Services revenue from Onslow Iron construction and higher iron ore revenue, offset by weaker lithium pricing.
Underlying EBITDA was $1.1 billion, a 40% reduction, while statutory Net Profit After Tax was $114 million.
MinRes enters FY25 with the conclusion of the construction phase of the world-class Onslow Iron project and targeted ramp-up to 35 million tonnes per annum from June 2025.
The successful commencement of Onslow Iron transitions the Iron Ore division to low-cost and long-life operations and will be a major growth catalyst for the Mining Services division.
The Lithium division will concentrate on lowering costs and capital spend while assessing and maintaining flexibility to increase production subject to improved market conditions.
The Energy division has advanced to the development stage and looks forward to further exploration and definition of numerous natural gas and oil prospects in coming years.
MinRes Managing Director Chris Ellison said FY24 was the biggest year of development in the company’s history.
“Onslow Iron achieved first ore on ship ahead of schedule in May, just 11 months after we broke ground at the Ken’s Bore mine site. This phenomenal achievement is a testament to the in-house project delivery expertise that MinRes has developed over more than three decades,” he said.
“Our hands-on, agile and creative culture made Onslow Iron possible and will enable the unlocking of an entire new mining region in the West Pilbara. Thank you to our people for their commitment, professionalism and ingenuity in making this vision a reality.
“Our meaningful partnerships with every level of government, communities and – importantly – the Traditional Owners of the lands that Onslow Iron is located on has helped bring the project to life. We look forward to continuing to spread the project’s benefits widely.”
Mr Ellison said that, overall, the results highlight the strength of MinRes’ business model, with diverse income streams all contributing to solid group earnings, despite a depressed lithium price.
“Given the stubborn lithium price and our remaining investment in Onslow Iron, we will continue to take a conservative approach during FY25, deferring expansion projects and focusing on cost reduction and cash preservation. This approach was reflected by the Board’s decision to not declare a final dividend for FY24,” he said.
“Our management team has decades of experience through commodity peaks and troughs. I have full confidence in our ability to manage the balance sheet and keep delivering leading returns for our shareholders.”
For more information, visit the MinRes Investor Centre.
