MinRes has released its Quarterly Activity Report for the period to 30 September 2024.
Below are key points from the September quarter, with the full report available via the ASX announcement.
Mining Services & Infrastructure
- Quarterly production volumes were 68 million tonnes, up 11% quarter on quarter. FY25 mining services production volumes will be weighted to the second half, aligned with the ramp up of Onslow Iron.
Iron Ore
- Onslow Iron progress:
- Remains on track to reach its nameplate 35Mtpa run rate from June 2025.
- Produced 1.9M wet metric tonnes and shipped 1.4 wmt over the quarter (100%).
- Mining is in a steady state, with 15.6M wmt of total material moved and 3.5M wmt of ore mined.
- Since quarter end and in line with the ramp up schedule:
- The Haul Road has commenced full operational use by our road train fleet across the entire 150km route.
- The third transhipper began operating at the Port of Ashburton, with the fourth vessel scheduled to arrive in Australia in early 2025.
- Including Mining Services, Onslow Iron was operating cash flow positive in the month of October.
- The project was on track to ship circa 880k wmt in the month of October, representing an annualised run-rate of 10.6Mt.
- Total attributable iron ore shipments across all three hubs - Onslow Iron, Pilbara and Yilgarn - were 4.5M wmt.
- The average quarterly realised price across all hubs was US$82 per dry metric tonne (dmt), a 15% decrease qoq and representing an 82% realisation of the Platts 62% IODEX.
Lithium
- The Lithium division is focused on transitioning to lower-volume, higher-quality production to meet current market conditions.
- This transition is supported by detailed cost-out programs currently underway. Cost-reduction measures include roster changes, asset rationalisation, contract and overhead reviews, optimised regional synergies and capital deferral. These programs will continue throughout the second quarter.
- Total lithium production across all three sites was 157k dmt, with shipments of 178k dmt.
- The weighted average quarterly realised price achieved across all three sites was US$815/dmt SC6 equivalent (US$626/dmt mixed grade basis), a decrease of 32% qoq.
Energy
- Transaction entered into with Hancock on the Perth and Carnarvon basins for total consideration of up to $1.1 billion.
- Announced a maiden resource for the Lockyer Gas Project and the Erregulla Oil Project, both located on Exploration Permits 368 and 426.
