Ann: Quarterly Activity Report - Q3 FY25, page-6

*Here’s a detailed summary and forward outlook of the Mineral Resources Limited (MinRes) Q3 FY25 Report:

Detailed Summary (Q3 FY25: January–March 2025)

Corporate:

• Board Changes:
  Three non-executive directors (McComish, McGill AO, Corlett) resigned. Recruitment for new directors is underway, with a new Chair appointment expected by June 2025.

• Financials:

  • Liquidity > $1.25 billion (including $450M cash + $800M undrawn credit).

  • Net debt: $5.4 billion (including Onslow Iron carry loan $789M).

  • Capex: $360M in Q3, another ~$340M expected in Q4. FY25 capex guidance is $2.1B.

  • No equity raise planned; refinancing of 2027 bond available from May 2025 without penalty.

• Cost Cutting:
  ~1,740 roles reduced since start of FY25.

Mining Services:

• Production:
  62Mt produced (down 6Mt qoq), reflecting lower Yilgarn and Bald Hill volumes.

• Outlook:
  FY25 production expected at bottom end of guidance (280–300Mt), weighted to Q4.

Iron Ore:

• Total Iron Ore Production:
  6.0M wmt produced, 5.9M wmt shipped.

• Realised Price:
  US$89/dmt (up 6% qoq; 86% realisation of Platts 62% IODEX).

• Onslow Iron:

  • 3.6Mt shipped (cash flow positive since Nov 2024).

  • Haulage constraints from roadworks; upgrade ongoing, full capacity 35Mtpa expected by Q1 FY26.

  • Volume guidance slightly lowered to 8.5–8.7Mt for FY25 (from 8.8–9.3Mt).

  • FOB costs expected at the upper end of guidance ($60–70/t).

• Pilbara Hub:

  • Minor cyclone impacts.

  • Realised iron ore price US$90/dmt (+10% qoq).

  • March FOB cost: $80/wmt; FY25 guidance of $76–86/wmt maintained.

• Yilgarn Hub:

  • Placed into care and maintenance and assets now up for sale.

Lithium:

• Mt Marion:

  • Production: 70k dmt (+21% qoq).

  • Sales price: US$845/dmt SC6 (+4% qoq).

  • Volume guidance increased to 185–200k dmt SC6.

  • Cost guidance maintained at $870–970/dmt.

• Wodgina:

  • Production: 63k dmt (+17% qoq).

  • Sales price: US$846/dmt SC6.

  • Cost guidance maintained at $800–890/dmt.

• Lithium Prices:
  Remained relatively stable qoq.

Energy:

• Gas Exploration:

  • Moriary-2 well completed; resource certification underway.

  • Lockyer-6 drilling and flow testing completed (awaiting results).

  • Dandaragan Deep-1 drilling commenced.

• Seismic Survey:
  Planning for EP510 Avenger 2D seismic survey (Carnarvon Basin) for Q4 FY25.

Safety:

• Lost Time Injury Frequency Rate (LTIFR): 0.21

• Total Reportable Injury Frequency Rate (TRIFR): 3.67

Forward Outlook

Category	Outlook
Corporate	Strong liquidity; no equity raise planned; Board refresh to conclude by mid-2025; bond refinancing flexibility from May 2025.
Mining Services	FY25 volumes expected at the bottom of guidance range but weighted to Q4 (ramp-up of Onslow Iron shipments).
Iron Ore	Onslow Iron will be critical: aiming for full 35Mtpa nameplate in Q1 FY26. Short-term haulage bottlenecks easing from June/September with haul road upgrades. Strong demand for Onslow product.
Lithium	Production up and costs trending lower. Mt Marion volume guidance upgraded. Prices stabilized but market remains volatile. Full benefit of cost reductions expected in 2H FY25.
Energy	Advancing Perth Basin gas exploration and seismic survey, setting up for resource upgrades in 2H FY25/early FY26.
Challenges	Pilbara Port Authority fee dispute (up to $1.40/t) could impact Onslow Iron operating costs if unfavorable. Haul road/weather risks remain short-term headwinds.
Financials	Targeting covenant compliance at 30 June 2025. Strong cash liquidity supports stability; confident in bond refinancing without stress.
Divestments	Yilgarn Hub asset sale underway, could provide additional cash inflow if successful.

Quick Key Figures Snapshot:

• Net Debt: $5.4B

• Liquidity: >$1.25B

• Iron Ore Shipments: 5.9M wmt

• Lithium Shipments: 127k dmt

• Onslow Iron Volume FY25: 8.5–8.7Mt (lowered)

• Mining Services Volume FY25: 280–300Mt (bottom end)

Overall Tone:
✅ Solid liquidity and no need for capital raise.
✅ Onslow Iron progressing well, full ramp-up in sight.
⚠️ Short-term haulage/weather impacts on iron ore volumes.
⚠️ Lithium prices relatively stable but risks remain in the market.
⚠️ Potential headwinds from unresolved port fee dispute.

*gpt4o