Mineral Resources Limited · ASX:MIN
Mineral Resources — 1H25 Earnings Presentation
45 slides from Mineral Resources's earnings presentation, Feb 18, 2025
Slide 1: FY25 Half Year Results
FY25 HALF YEAR RESULTS 18 February 2025 ASXMIN
Slide 2: Disclaimer and Important Notices
DISCLAIMER AND IMPORTANT NOTICES This presentation should not be considered as an offer or invitation to subscribe for or purchase any securities in Mineral Resources Limited and its subsidiaries (“MinRes” or “Company”) or as an inducement to make an offer or invitation with respect to those securit
Slide 3: 1H25 Summary
1H25 SUMMARY $2.3bn REVENUE 9% pcp MINING SERVICES AND INFRASTRUCTURE $0.3bn UNDERLYING EBITDA 55% pcp $379M EBITDA – up 49% pcp $0.7bn CASH 21% pcp $1.5bn LIQUIDITY1 Nil DIVIDEND COMMODITIES Onslow Iron ramping-up towards 35Mtpa 1. Cash and undrawn debt facilities FY25 HALF YEAR RESULTS | 3
Slide 4: Operational Review
FY25 HALF YEAR RESULTS OPERATIONAL REVIEW
Slide 5: Mining Services 1H25
MINING SERVICES 1H25 MINING AND PROCESSING HAULAGE MARINE CAMPS External contracts Jumbo road train fleet Three of five 500 rooms occupied Two new, four extended expanded to 110 transhippers launched at Ken’s Bore Resort One new crushing plant Onslow Iron haul road 26 ships loaded Resort restaurant,
Slide 6: Iron Ore 1H25
IRON ORE 1H25 ONSLOW IRON PILBARA HUB YILGARN HUB Shipped Shipped Shipped 2.5M wmt (attributable) 4.9M wmt 2.3M wmt FOB Cost FOB Cost FOB Cost $77/wmt $74/wmt $128/wmt Ramping-up to Acquired Care and maintenance 35Mtpa (100%) nameplate Iron Valley 31 December 2024 FY25 HALF YEAR RESULTS | 6
Slide 7: Onslow Iron Progress
ONSLOW IRON PROGRESS CRUSHING CAPACITY – 40Mtpa • Three NextGen crushers commissioned • Reclaimer and truck load out commissioning • 500-room resort and airport operational HAULAGE CAPACITY – 21Mtpa • 150km haul road operational pit-to-port • Jumbo road train fleet expanding • Truck maintenance faci
Slide 8: Onslow Iron Haul Road
ONSLOW IRON HAUL ROAD Dedicated private 150km haul road from Ken’s Bore mine to the Port of Ashburton, designed with Australian and international experts Sold 49% stake to Morgan Stanley Infrastructure Partners for up to $1.3bn1 Jumbo road trains completed 18,000+ trips to port in past six months Up
Slide 9: Lithium 1H25
LITHIUM 1H25 MT MARION WODGINA BALD HILL Shipped Shipped Shipped 100k dmt SC6 eq1 101k dmt SC6 eq1 60k dmt SC6 eq FOB Cost SC6 FOB Cost SC6 Care and maintenance US$667/dmt2 ($1,076/dmt) US$628/dmt2 ($1,013/dmt) November 2024 Cost out measures Updated Resource3 and accessing higher quality ore 58.1Mt
Slide 10: Energy 1H25 and Overview of Gas Transaction Proceeds
ENERGY OVERVIEW OF GAS TRANSACTION PROCEEDS1 1H25 Contingent value for resource upside $1,131M Hancock contribution to drilling costs $11M $20M $22M $74M Deal with Hancock for Perth and Carnarvon basin assets $18M $6M $780M • 100% sale of EP 368 and 426 $200M • 50/50 joint venture for remaining tene
Slide 11: People and Sustainability
FY25 HALF YEAR RESULTS PEOPLE AND SUSTAINABILITY
Slide 12: People and Workplace Experience
PEOPLE AND WORKPLACE EXPERIENCE SAFETY AND WELLBEING DIVERSITY EMPLOYEE EXPERIENCE TRIFR 3.87 21.6% female Completed 330 flights Impacted by Onslow construction representation with MinRes Air In-house mental health professionals 3.4% Indigenous MinRes childcare five site-based, two office-based repr
Slide 13: 1H25 Sustainability
1H25 SUSTAINABILITY 3.8MW solar array installed at Ken’s Bore Decarbonisation fund introduced across all MinRes operations $16M in Traditional Owner business contracts FY25 HALF YEAR RESULTS | 13
Slide 14: Financial Performance
FY25 HALF YEAR RESULTS FINANCIAL PERFORMANCE
Slide 15: Corporate Governance
CORPORATE GOVERNANCE Strengthened processes and procedures with Ethics and Governance Committee oversight New Chair recruitment process – appointment expected this half Progressing new internal governance-focused function FY25 HALF YEAR RESULTS | 15
Slide 16: 1H25 Underlying Profit and Loss
UNDERLYING PROFIT AND LOSS ($M) 1H24 1H25 VARIANCE VARIANCE % 1H25 UNDERLYING Revenue 2,515 2,290 (225) (9%) PROFIT AND LOSS Underlying EBITDA 675 302 (373) (55%) - Mining Services 254 379 125 - Commodities 542 (28) (570) $2.3bn REVENUE 9% pcp - Corporate and intersegment (121) (49) 71 UNDERLYING $0
Slide 17: 1H25 Underlying EBITDA
1H25 UNDERLYING EBITDA ($M) Commentary 1H24 Underlying EBITDA 675 Lithium volume and FOB Cost 30 Increased volumes sold, partially offset by higher spodumene FOB cost Controllable Lower volumes and write-downs of remaining stockpiles with transition to care Iron Ore volume and FOB Cost (35) and main
Slide 18: 1H25 Cash Flow
1H25 CASH FLOW CASH FLOW ($M) Underlying EBITDA 1H24 675 1H25 302 VARIANCE (373) • Movement in working capital Movement in working capital: includes ($0.3bn) Onslow carried expenditure1 and ($0.5bn) mainly - Onslow carry loan receivable1 - (320) (320) related to the decrease in payables - Other work
Slide 19: 1H25 Capital Expenditure
1H25 CAPITAL EXPENDITURE RESOURCE CAPEX1 ($M) GROWTH SUSTAINING DEVELOPMENT AND 1H25 COMMENTS EXPLORATION Lithium 50 161 15 226 • Sustaining includes deferred strip of $126M Iron Ore 116 61 10 187 • Sustaining includes deferred strip of $51M Onslow Iron • Development capex associated with infrastruc
Slide 20: 1H25 Summary Balance Sheet
1H25 SUMMARY BALANCE SHEET ($M) FY24 1H25 VARIANCE BALANCE SHEET Inventories Current receivables 607 578 (29) - Trade and other receivables 908 861 (47) $0.7bn CASH - Current Onslow carry-loan receivable1 Trade and other payables 119 (1,784) 331 (1,518) 211 266 Other (313) (209) 105 Net working capi
Slide 21: 1H25 Net Debt Waterfall
1H25 NET DEBT WATERFALL - (1,000) (2,000) (3,000) Net investing activities = $442M2 Net cash from operating activities1 = ($656M) $M (4,000) (4,428) 302 Carry Loan (320) (139) (5,000) Exploration (62) (778) (317) 9 Sustaining (242) (126) (5,084) (189) Growth (1,057) (6,000) 1,678 (1,361) 263 (7,000)
Slide 22: Debt Maturity Profile and Overview
DEBT MATURITY PROFILE1 TRADING LEVELS SINCE MAY 20222 AND OVERVIEW $110.0 $800M RCF due Jun-27 $105.75 2.0 US$700M due May-27 $105.0 1.8 US$625M due Nov-27 1.6 US$1,100M due Oct-28 $103.00 US$625M due May-30 $102.00 1.4 1.2 $100.0 $100.25 $bn 1.0 0.8 0.6 $95.0 0.4 May-22 Oct-22 May-23 Nov-23 May-24
Slide 23: Balance Sheet Considerations
BALANCE SHEET Confident in ability to reduce net debt position and delever through earnings growth CONSIDERATIONS SIGNIFICANT CURRENT RECEIVABLES BALANCE CREDIT METRICS FY24 1H25 • Carry loan of ~$800M3 – expected forecast inflows of ~$250M next 12 months • Potential to earn over $500M in additional
Slide 24: FY25 Guidance
FY25 GUIDANCE IRON ORE LITHIUM ONSLOW PILBARA HUB MT MARION WODGINA MinRes Share 57%1 100% 50% 50% Spodumene Spodumene Product All Fines 25% Lump Grade 4.1% Grade 5.5% Volume 150 to 170k dmt 210 to 230k dmt 8.8 to 9.3Mt 9.0 to 10.0Mt (attributable) (SC6 equivalent) (SC6 equivalent) $870 to $970/t $8
Slide 25: FY25 Capex Guidance
FY25 CAPEX GUIDANCE RESOURCE DEVELOPMENT CAPEX1 ($M) GROWTH SUSTAINING FY25 COMMENTS AND EXPLORATION • Reflects capex reductions, with sustaining (including Lithium 95 268 25 388 deferred strip) reduced to $211M Iron Ore 132 116 22 270 • Sustaining includes deferred strip of $84M Onslow Iron 1,024 -
Slide 26: Operational Outlook
FY25 HALF YEAR RESULTS OPERATIONAL OUTLOOK
Slide 27: Mining Services Outlook
MINING Onslow Iron accelerates growth1 2.5 1,000 SERVICES OUTLOOK 2.0 1.9 1.9 1.9 2.0 800 1.7 1.7 Innovative build, own and operate 1.5 mining services business entering its 600 strongest growth period 1.0 Long term order book 400 More than 70% over 20 years 0.5 200 Paid on tonnes mined (TMM), crush
Slide 28: Onslow Iron Outlook
ONSLOW $1,850M ONSLOW MINRES 57% EARNINGS SENSITIVITY (A$M)4,5 1,612 IRON 1,506 1,400 1,294 OUTLOOK 1,188 $1,350M 1189 1083 977 871 Target 35Mtpa1 MineCo 765 $850M breakeven nameplate 423 Target 30+ YEAR2 280 280 280 280 280 280 Mining mine life $350M Services EBITDA 281 281 281 281 281 281 OFFTAKE
Slide 29: Lithium Outlook
LITHIUM OUTLOOK OPERATIONAL PRIORITIES Tier 1 hard rock assets in one of the world’s best jurisdictions MT MARION • Complete float plant study • Assess underground timing • Progress near-mine exploration Ongoing focus on improving performance and recoveries WODGINA Lithium business supported by stro
Slide 30: Energy Outlook
ENERGY OUTLOOK Ongoing exploration program across highly prospective regions in Western Australia Prove up deal with Hancock Prospecting Confirm medium-term exploration and drill schedule Continue to pursue quality assets in Perth and Carnarvon basins FY25 HALF YEAR RESULTS | 30
Slide 31: Business Focus
BUSINESS FOCUS BALANCE SHEET EXISTING OPERATIONS PEOPLE AND CULTURE Disciplined financial Progressing Onslow Iron Attracting and retaining management ramp-up to 35Mtpa quality people Strong liquidity, covenant light Managing costs and quality Providing safe and supportive and no near-term maturities
Slide 32: Questions?
FY25 HALF YEAR RESULTS QUESTIONS?
Slide 33: Appendix
FY25 HALF YEAR RESULTS APPENDIX
Slide 34: 1H25 Reconciliation of Non-IFRS Information
1H25 RECONCILIATION OF NON-IFRS INFORMATION 1H243 1H25 RECONCILIATION OF NON-IFRS FINANCIAL INFORMATION ($M) Tax (expense) Tax (expense) PBT1 NPAT2 PBT1 NPAT2 /benefit2 /benefit2 Underlying results 283 (87) 196 (282) 86 (196) Items excluded from underlying results1: Impairment charges (mainly on Bal
Slide 35: 1H25 Operating Segments
1H25 1H24 1H25 OPERATING OPERATING SEGMENTS Underlying Underlying SEGMENTS Revenue Margin D&A Revenue Margin D&A EBITDA EBITDA ($M) Mining 1,452 254 17% (108) 1,716 379 22% (170) Services • Mining Services growth driven by Onslow ramp-up and Iron Ore1 1,329 266 20% (61) 1,108 (9) (1%) (97) contribut
Slide 36: Mining Services Performance
MINING SERVICES PERFORMANCE 1H23 2H23 1H24 2H24 1H25 MINING SERVICES PRODUCTION1 Production Tonnes1 Mwmt 138 110 139 131 136 Road Trust Tonnes2 Mwmt - - - - 3.6 160 3.0 146 138 139 136 Revenue $M 1,194 1,368 1,452 1,928 1,716 140 128 130 124 125 Production volumes (M wmt) 2.5 EBITDA per Tonne ($/wmt
Slide 37: Iron Ore Pilbara Hub
PILBARA HUB (100% attributable basis, unless UNITS 1H24 2H24 FY24 1H25 IRON ORE PILBARA otherwise indicated) TMM Mwmt 21.4 17.2 38.6 22.0 Ore mined Produced kwmt kwmt 5,277 5,307 4,478 4,229 9,755 9,536 5,551 5,183 HUB Shipped kwmt 4,981 5,390 10,371 4,884 • 4.9Mt exported in 1H25, 25% lump Lump wei
Slide 38: Iron Ore Yilgarn Hub
IRON ORE YILGARN HUB (100% attributable basis, unless UNITS 1H24 2H24 FY24 1H25 YILGARN HUB otherwise indicated) TMM Mwmt 16.4 14.4 30.8 4.6 Ore mined kwmt 3,673 3,117 6,790 1,696 • 2.3Mt exported in 1H25, Produced kwmt 3,956 3,538 7,494 2,335 34% lump Shipped kwmt 3,758 3,796 7,554 2,348 • Transiti
Slide 39: Iron Ore Onslow
ONSLOW (100% basis, unless otherwise indicated. Attributable volumes are expected UNITS 1H24 2H24 FY24 1H25 IRON ORE ONSLOW to average at MinRes’ 57% direct equity share over the life of the project.)1 TMM2 Mwmt 5.2 21.9 27.2 29.0 Ore mined kwmt - 868 868 9,494 Produced kwmt - 386 386 6,321 • Ramp-u
Slide 40: Lithium Mt Marion
LITHIUM MT MARION1 (50% attributable basis, unless otherwise indicated) UNITS 1H24 2H24 FY24 1H25 MT MARION TMM (100% basis) Ore mined (100% basis) M wmt k dmt 24.6 2,048 20.4 1,792 45.0 3,840 17.7 1,306 Produced k dmt 147 181 328 125 • Reduced production in line Shipped SC6 k dmt 99 119 218 100 Tot
Slide 41: Lithium Wodgina
WODGINA1 UNITS 1H24 2H24 FY24 1H25 LITHIUM (50% attributable basis from 18 October 2023, unless otherwise indicated) TMM (100% basis) M wmt 24.2 24.1 48.3 19.1 WODGINA Ore mined (100% basis) k dmt 1,910 2,453 4,363 2,358 Produced k dmt 101 111 212 105 Total Spodumene Shipped SC6 k dmt 87 114 201 101
Slide 42: Lithium Bald Hill
LITHIUM BALD HILL (100% attributable basis, unless otherwise indicated) UNITS 1H24 2H24 FY24 1H25 BALD HILL TMM (100% basis) Ore mined (100% basis) M wmt k dmt 2.2 175 9.4 834 11.6 1,009 5.9 554 Produced k dmt 26 65 91 63 • Placed into care and Shipped SC6 k dmt 18 49 67 60 Total Spodumene maintenan
Slide 43: Bond Overview
BOND OVERVIEW $110.0 TRADING LEVELS SINCE MAY 20221 $105.75 $105.0 $103.00 $102.00 $100.0 $100.25 $95.0 May-22 Oct-22 May-23 Nov-23 May-24 Nov-24 8.125% Notes Due May-27 8.000% Notes Due Nov-27 9.250% Notes Due Oct-28 8.500% Notes Due May-30 SIZE (US$M) COUPON MATURITY CALLABLE AT PAR RATING PRICE Y
Slide 44: Glossary of Terms
GLOSSARY OF TERMS 1H, 2H, FY First half, second half, full year LTIFR Lost time injury frequency rate as a 12-month rolling average $ Australian dollar M Million US$ United States dollar MSIP Morgan Stanley Infrastructure Partners bn Billion Net debt / (cash) Gross debt less cash and cash equivalent
Slide 45: OFFICE: 20 Walters Drive, Osborne Park, WA 6017 POSTAL: Locked Bag 13,
OFFICE: 20 Walters Drive, Osborne Park, WA 6017 POSTAL: Locked Bag 13, Osborne Park DC, WA 6916 P +61 8 9329 3600 www.mineralresources.com.au