Is Investing in Mineral Resources Now a Prudent Decision?
Mineral Resources landed one of the biggest deals of the year with POSCO, strengthened its balance sheet and ramped up iron ore output,
Mineral Resources Limited (ASX: MIN)
on 12 November announced a major binding deal with POSCO Holdings to set up a new joint venture for the lithium business.
POSCO is paying upfront cash of US$765 million and will get a 15% stake in each mine while MinRes retains 70% along with its operating role in the new entity and values its 50% share in Wodgina and Mt Marion around $3.9 billion.
MinRes said the money from the deal will be used to repay debt and improve balance sheet.
The company had a record start to the year with iron ore shipments of 11.4 million tonnes on a 100% basis and the biggest performer was Onslow Iron which reached its full 35Mtpa run rate between August and October.
in Q1 FY26, 8.6 million tonnes were shipped from Onslow, which is 50% higher than Q4 and the company is now set to receive a $200 million contingent payment from Morgan Stanley Infrastructure Partners.
The company has $1.1 billion in liquidity and the company also refinanced its US$700 million notes which brings the interest costs down and pushed maturity to 2031.
The POSCO deal is expected to finish in the first half of 2026 and Lamb Creek development Construction is planned for Q2 FY26.
The company also has plans to advance multiple gas exploration wells across the Perth and Carnarvon basins.
Mineral Resources has set up a pretty ambitious path with its assets and looks in a good position to deliver another year of growth in FY26.
(Source: Company Reports)
1.Is Mineral Resources a good stock to buy?
Yes, Mineral Resources looks attractive because it has struck a major US$765 million lithium deal with POSCO that strengthens its balance sheet and the company is entering FY26 a clear path for long-term expansion in iron ore, lithium, and mining services.
2. Does Mineral Resources pay a dividend?
The company did not pay dividends in FY25 but paid total dividends of $1.00 in FY22, $1.900 in FY23 and $0.20 in FY24.
(Source: Company Reports)
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