Iron ore prices weigh on Mineral Resources' (ASX:MIN) earnings

Company News

by Lauren Evans

Mineral Resources’ (ASX:MIN) earnings dropped 80 per cent in the half year ending December 31, due to the collapse in iron ore prices and widening discounts.

The mining company decided not to declare an interim dividend due to the loss and volatile iron ore conditions. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 80 per cent from the prior year to $156 million.

The company reported a net loss after tax of $36 million, down 108 per cent from the prior year period, while statutory net profit after tax fell 96 per cent to $20 million.

“It hasn’t been easy and the challenges during 1H22 were amplified by the collapse in iron ore prices. This has delivered our worst first half financial result in three years,” said managing director Chris Ellison. 

“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.”

The company said it remains on target to meet FY22 volume guidance of a 15-20 per cent increase for mining services, spodumene export guidance of 450-475,000 tonnes, and the revised full year iron ore export guidance of 18.5-19.5 millton tonnes a year. 

Shares in Mineral Resources (ASX:MIN) are trading 8.2 per cent lower at $53.15.

Are you a 708 sophisticated investor?

A sophisticated investor is defined under Section 708 of the Corporations Act (net assets of $2.5 million or annual incomes in excess of $250,000).

They are eligible to receive information regarding wholesale investment opportunities that are not available to regular or retail investors.

Please subscribe if you would like to be alerted to these types of opportunities.