Ann: FY25 Half Year Financial Report and Appendix 4D, page-3

The financial results for Mineral Resources Limited (MinRes) for the half-year ended 31 December 2024 show mixed performance. Here’s a breakdown of good and bad aspects of the results:

Good Aspects:

✅ Mining Services Performance:

• Record underlying EBITDA of $379M, up 49% from 1H24.
• Stable production volumes (136M wet metric tonnes).
• New contracts and renewals indicate strong operational demand.

✅ Onslow Iron Progress:

• Project is ramping up and is now operating cash flow positive.
• January shipments annualized at 18Mtpa, heading towards nameplate capacity of 35Mtpa.
• Investment in infrastructure upgrades to reduce downtime and maintenance costs.

✅ Strong Liquidity Position:

• $1,520M available liquidity (including $720M cash on hand).
• Received $1.1B upfront payment for Onslow Iron haul road sale.
• $780M cash consideration from Hancock Prospecting transaction.

✅ Strategic Transactions:

• Sale of a 49% interest in Onslow Iron haul road to Morgan Stanley Infrastructure Partners.
• Energy sector expansion through a deal with Hancock worth up to $1.13B.

Bad Aspects:

❌ Revenue Decline:

• $2,290M, down 9% from $2,515M in 1H24.

❌ Profit Collapse & Huge Net Loss:

• Underlying NPAT:($196M) vs. $196M in 1H24.
• Statutory NPAT:($807M) (loss), down 252% from $530M profit in 1H24.
• Driven by $352M impairment charges (mainly Bald Hill) and $232M foreign currency losses.

❌ Lithium Business Struggles:

• Bald Hill placed into care & maintenance due to low prices.
• Lithium price drop: from US$1,719/dmt (1H24) to US$820/dmt (1H25).
• Lower production in Mt Marion and Wodgina.

❌ Debt Increased:

• Net debt rose to $5,084M (from $4,428M).
• Capital expenditure remains high ($1,098M in 1H25).

❌ Dividend Suspension:

• No interim dividend due to financial constraints.
• Last year’s interim dividend was 20c per share.

Overall Verdict

• For Investors: This is a bad result due to the large net loss, revenue decline, debt increase, and no dividends.
• For Operations: Mining services is performing well, and Onslow Iron could be a long-term success if ramp-up continues as planned.
• For Future Outlook: The company is prioritizing balance sheet stability and strategic investments, so if commodity prices recover, MinRes could bounce back.