Mineral Resources : FY26 Q3 Results Call Transcript

About this update from Mineral Resources Limited

CALL: Q3 FY26 Quarterly Activities Report - Analyst Call DATE: Thursday, 30 April 2026 REPRESENTATIVES: Malcolm Bundey, Chair Mark Wilson, Chief Financial Officer Chris Chong, GM Investor Relations Mark Wilson, Chief Financial Officer: Good morning, everyone. It's Mark Wilson, CFO, MinRes, speaking, and joining me today is Mal Bundey, Independent Non-Executive Chair, and Chris Chong, GM of Investor Relations. I'll start this morning with a few opening remarks on the quarter before we move to questions. The March quarter delivered more solid progress across the business. We navigated our operations through two tropical cyclones, upgraded volume guidance across multiple divisions. We strengthened liquidity and reduced our net debt by $400 million. After quarter end, we also completed a US$1.3 billion notes offering that materially reduces our cost of debt and pushes out our debt maturity profile. Strong operating performance, high commodity prices and active balance sheet management are together driving faster deleveraging. While this improves flexibility, it does not change our disciplined approach to capital allocation. Our priorities remain balance sheet strength first, then selective high return brownfields growth. Starting with the balance sheet, liquidity strengthened to $1.8 billion at 31 March, up from $1.4 billion at 31 December. That comprised just under $1 billion in cash, and a fully undrawn $800 million revolving credit facility. Net debt reduced to approximately $4.5 billion from $4.9 billion at the end of December, continuing our positive deleveraging trend. This quarter end net debt number included $101 million positive foreign exchange revaluation on our unsecured bonds. We also continued to reduce legacy balance sheet items with the Onslow carry loan reducing to $459 million from $553 million, and the Iron Ore prepayment amortising to $440 million from $500 million. Post quarter end, we issued US$1.3 billion of new senior unsecured notes across two tranches; US$650 million at 6%, they're due May 2032, and US$650 million at 6.25% due May 2034. This lowers our finance costs, extends duration, and improves the resilience of the balance sheet. Specifically, the transaction reduces finance costs by around $48 million per year, lowers our weighted average cost of debt from 8.4% to 7.4%, and extends weighted average tenor from 3.1 years to 5 year...

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