Profit booking drives ASX 200 stock Mineral Resources lower despite strong result
Mineral Resources reported a strong December 2025 quarter with record iron ore shipments and upgraded its lithium guidance which has improved investor confidence in its future.
Mineral Resources Limited (ASX: MIN)
on 29 January 2026 announced December 2025 quarter result which was exceptional because of higher commodity prices and disciplined execution.
The company delivered record iron ore shipments from Onslow Iron with 8.7 million tonnes shipped during the quarter and costs were towards the lower end of FY26 guidance.
Lithium stood out during the quarter with attributable spodumene production of 138 thousand dry metric tonnes at an average realised price of US$1,094 per tonne which is a 29% quarter-on-quarter increase.
Mineral Resources upgraded its FY26 lithium volume guidance at both Wodgina and Mt Marion with the help of improved plant performance.
A key corporate development during the period was the binding agreement with POSCO Holdings which will see POSCO acquire a 30% interest in Mineral Resources’ lithium joint venture for upfront cash consideration of around $1.1 billion.
This transaction strengthened the balance sheet which lifted liquidity to more than $1.4 billion and reduced net debt to around $4.9 billion.
Despite the solid quarterly performance, the stock declined on Friday as broader commodity prices softened which weighed on sentiment across the resources sector.
Even after this pullback, Mineral Resources has delivered a return of more than 50% over the past 12 months which reflects investor confidence in its diversified exposure to iron ore, lithium and mining services.
From an operational perspective, management reiterated that FY26 volume and cost guidance across iron ore and mining services remains intact with further cost improvements expected in the second half as lower cost projects ramp up.
The focus is now on disciplined execution with FY26 lithium volume guidance upgraded to 260 to 280k dmt SC6 at Wodgina and 190 to 210k dmt SC6 at Mt Marion compared to the earlier guidance ranges of 220-240k dmt and 160-180k dmt respectively.
(Source: Company Announcements)
Get Your Free Report on Top 5 ASX Stocks on WhatsApp
Instant Access. No Credit Card Required.
Receive on WhatsApp
Checkout Our Recommendation for free - 7 days free trial
Start Free TrialASX Stock Research & Recommendations — 7‑day free trial
Independent, analyst‑driven insights.
- Stock of the week report
- Daily Analysis Report
- No credit card required
Get Your FREE Report
Discover the Top ASX Stocks to Invest In 2026!
Expert Analysis of Top-Performing ASX Stocks
Market Insights and In-Depth Research
Buy, Sell, And Hold Recommendations
Almost There!
Enter your details to download the report
Success!
Preparing your download...
Latest Article
Disclaimer
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.
