MinRes has released its Quarterly Activity Report for the period to 30 December 2024.
Below are key points from the December quarter, with the full report available via the ASX announcement.
On track to FY25 guidance
- FY25 guidance maintained for all continuing operations, with Onslow Iron progressing towards its nameplate 35 million tonnes per annum (Mtpa) run rate.
- Lost Time Injuries Frequency Rate (LTIFR) of 0.21 and a rolling 12-month Total Reportable Injury Frequency Rate (TRIFR) of 3.83.
- Liquidity as at 31 December 2024 is expected to be $1.5 billion (B), consisting of more than $700 million (M) in cash and a fully undrawn $800M revolving credit facility.
- Net debt as at 31 December 2024 is expected to be $5.1B.
Mining Services
- Quarterly production volumes were 68 million tonnes (Mt), flat quarter on quarter (qoq). Volumes benefited from the ramp up of Onslow Iron and new work, but were offset by lower volumes at the Yilgarn Hub and Bald Hill as those operations transitioned to care and maintenance (C&M).
- FY25 production volumes will be weighted to the second half, aligned with the ramp up of Onslow Iron.
- Commenced two new contracts (rehabilitation and mining) and renewed four existing external crushing contracts.
Iron ore
- Mining continues at steady state, with 6M wet metric tonnes (wmt) of ore mined.
- Delivered strong production of 4.4M wmt, which represents an annualised rate of 17.6M wmt. Shipments totalled 3.2M wmt over the quarter (100% basis).
- In line with the ramp up schedule:
- The haul road commenced operational use by MinRes’ jumbo road train fleet.
- The third transhipper began operating at the Port of Ashburton in October, with the fourth vessel scheduled to arrive in Australia in February 2025.
- All parts of Onslow Iron have been operating cash flow positive since November.
- Total quarterly attributable iron ore production across Onslow Iron, Pilbara and Yilgarn hubs was 8.0M wmt, with shipments of 5.2M wmt.
- The average quarterly realised price across all three hubs was US$84 per dry metric tonne (dmt), a 3% increase qoq and representing an 81% realisation of the Platts 62% IODEX.
Lithium
- The Lithium division continues to focus on lower-volume, higher-quality production with tight cost control to match current market conditions.
- Bald Hill was placed into C&M in November.
- Total quarterly attributable spodumene production across all three sites was 136k dmt, with shipments of 143k dmt.
- The weighted average quarterly realised price achieved across all three sites was US$827/dmt SC6 equivalent (SC6), US$699/dmt on mixed grade basis, a 1% and 10% increase qoq respectively.
Energy
- Transaction entered into with Hancock on MinRes assets in the Perth Basin and Carnarvon Basin for total consideration of up to $1.1B.
- Completed the sale of 100% of Exploration Permits (EP) 368 and 426 to Hancock, with receipt of initial consideration of $780M on 18 December 2024.
