Mining

Australia’s MinRes Shares Fall 10% on Disappointing Results

 

Shares in Australia’s Mineral Resources fell as much as 10% on Wednesday after the company delivered its worst first-half financial results in three years.

Net profit dived 96% to just A$20 million due to plunging iron ore prices and higher costs. The company shares stood at A$52.495 at 4pm Sydney time, down 9.3% on Tuesday’s close.

The miner and mining services company posted an underlying net loss after tax of $36 million and scrapped its interim dividend.

“These results do not reflect the substantial progress in our iron ore, lithium and gas businesses during the last six months which will create significant value for decades to come and which underpins our long-term growth for our mining services division,” chief executive Chris Ellison said.

Mineral Resources’ revenue fell 12% to $1.4 billion while cash on hand fell 51% to $800 million.

The company said it remained on target to meet volume guidance for fiscal 2022 of a 15-20% increase for mining services, spodumene export guidance of 450,000-475,000 tonnes a year and the revised full-year iron ore export guidance of 18.5-19.5 million tonnes per year.

Mineral Resources said it would increase indigenous Australian participation in its business after the hiring of Aboriginal and Torres Strait Islanders grew 76% in 2021.

This week, it signed a three-year funding and partnership agreement with the Goldfields Aboriginal Business Chamber to support more indigenous businesses across the region of Western Australia in which it operates.

 

• George Russell
 

 

READ MORE:

China’s Huayou Buys Lithium Mine in Zimbabwe for $422m

 

Tsingshan and Chengxin To Produce Lithium in Indonesia

 

Aussie lithium miners upbeat over China electric vehicle boom

 

George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

Recent Posts

US Set to Restore China Solar Tech Tariffs After Korea Firm Plea

The solar division of Korean conglomerate Hanwha Corp, Qcells, is looking to protect a planned…

31 mins ago

Biden to Propose Tripling Tariffs on Metal Products From China

President eyes hiking tariffs amid a push for blue-collar votes on a visit to Pittsburgh,…

8 hours ago

Japanese Firms Eye Moves to the US as ‘China Illusion’ Fades

With Japanese firms now wary about investing in China, the US's economic resilience has proven…

9 hours ago

Apple Eyes Indonesia Fab as it Reduces China Reliance – AP

Apple CEO Cook also met Vietnamese Prime Minister Pham Minh Chinh in Hanoi on Tuesday as the…

10 hours ago

IMF Tips 3.2% Global Growth, Warns China on Property Crisis

IMF chief economist says China’s economy is strained by its property crisis and warns that…

11 hours ago

Nikkei Dips on Profit Taking, Hang Seng Flat Despite Rules Boost

Japan’s impending earning season saw investors rushing to cash in while Hong Kong shares were…

11 hours ago