Mineral Resources has delivered a strong set of half-year results, surpassing consensus expectations, according to Morgans analyst Annabelle Sleeman. The company’s underlying EBITDA beat forecasts by 7 per cent, showcasing effective operational execution across key projects. Mineral Resources is a leading Australian mining services company with world-class commodity production of iron ore and lithium. The company provides a range of services, including contract crushing, screening, and processing.
Sleeman highlighted the Onslow iron ore project as a proven and cash-generating asset, while also noting the earnings resilience of the mining services division. The company’s lithium exposure positions it favourably to capitalise on improving market conditions. Mineral Resources reported an underlying EBITDA of $1.17 billion, an underlying profit of $343 million, and free cash flow of $293 million for the period.
The company’s strong financial performance has significantly reduced its net debt, now standing at $4.9 million. This puts Mineral Resources on track to achieve its target of a net debt-to-EBITDA ratio of less than two times by the end of the 2026 financial year, three years ahead of previous expectations.
Despite the positive results, Sleeman maintained a “hold” rating on Mineral Resources shares, with a target price of $67. However, she acknowledged that the current share price of $54.09 makes the stock more appealing relative to its valuation. Recent trading saw shares rise by 2.1 per cent, reflecting investor confidence in the company’s performance and outlook.
