With Chinese car maker BYD overtaking Tesla to become the biggest supplier of EVs in the world, Lithium could foresee its demand picking up. The stocks of these company’s are likely to witness the momentum.
Mineral Resources Limited (ASX: MIN)
Mineral Resources Limited (ASX: MIN) declared its FY25 half-year results, presenting good operational performance despite a weaker pricing environment across key commodities. The company achieved revenue of $2.29 billion, down 9% year-on-year, with underlying EBITDA falling 55% to $302 million and a statutory NPAT loss of $807 million. The losses were mainly driven by impairments at Bald Hill and foreign exchange impacts. Liquidity continued strong at $1.52 billion, supported by a $1.1 billion payment from the sale of a 49% stake in the Onslow Iron haul road and a $780 million cash injection from its energy transaction with Hancock Prospecting. Net debt rose to $5.08 billion due to peak investment in Onslow Iron, prompting a temporary suspension of dividend payments.
Mining Services delivered record underlying EBITDA of $379 million, up 49%, increased by production and the first earnings from the Onslow Iron Road Trust. Production volumes remained stable at 136 million wet metric tonnes, supported by new and renewed contracts. The Onslow Iron project saw strong progress with 6.3Mt produced and 4.6Mt shipped in 1H25. January shipments reached an annualised rate of 18Mtpa before Cyclone Sean disrupted operations, causing haul road damage and delays. Upgrades including cement stabilisation and asphalt resurfacing are underway and set to complete by September 2025, ensuring long-term efficiency.
In Lithium, MinRes shipped 261k dmt of SC6, up 28%, despite weaker prices and market conditions. Production was intentionally reduced at Mt Marion and Wodgina to focus on high-quality output and cost control, while Bald Hill was placed into care and maintenance. In Energy, the company advanced joint ventures in the Perth and Carnarvon basins with Hancock to accelerate gas exploration. With Onslow Iron approaching full ramp-up and transhipper fleet expansion progressing, MinRes expects a return to stronger cash flow and earnings growth in 2H25 and beyond.
Pilbara Minerals Ltd (ASX: PLS)
Pilbara Minerals Ltd (ASX: PLS), on 20 February 2025 announced its half-year result for FY25. The company achieving strong production and sales volumes at its Pilgangoora Operation. Spodumene concentrate production increased by 28% to 408.3kt, with sales volumes up 37% to 418.6kt. Despite this, average realised prices dropped by 58% to US$688/t, leading to a 44% fall in revenue to $426M. The P680 expansion was completed on time and budget, and the P1000 project reached first ore in January 2025 and is now ramping up. To optimise operations and reduce costs, the higher-cost Ngungaju plant was placed in care and maintenance, part of the newly implemented P850 model. Disruption from Cyclone Zelia caused a short production halt, but FY25 guidance remains unchanged.
Financial outcomes were challenged by lower lithium prices. Underlying EBITDA dropped 83% to $74M, with the Pilgangoora Operation recording a $7M underlying loss after tax. Group statutory loss after tax was $69M, influenced by lower prices, higher depreciation, and investment in new projects. Cash margin from operations remained positive at $41M, though mine development and sustaining capital led to a net outflow of $61M. Capital expenditure totaled $436M, including key investments in P680 and P1000 expansions, infrastructure, and mine development. The balance sheet remains strong, with $1.2B in cash and $625M in undrawn facilities.
The company completed the acquisition of Latin Resources in February 2025, bringing the Colina Project in Brazil into its portfolio. A review is underway to optimise the asset through exploration and project studies. The company plans to spend $45M–$50M in H2 FY25 on acquisition costs and early development activities, including $20M–$25M on exploration and licensing. The investment is seen as a counter-cyclical move to expand resources and build future development flexibility. Through continued global investment in the energy transition and a strong cash position, Pilbara Minerals is focused on long-term market-aligned growth.
(Source: Company Announcements)
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