Shares of Australian miner Mineral Resources Limited (AU:MIN) soared 3.5% today after the company released favourable production numbers for FY24 in its activity update. The company’s production volumes increased by 9% year-over-year to 269 Mt (million tonnes) in FY24, which was within the forecast range of 260 Mt to 280 Mt.
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The company will announce its full-year results for FY24 on August 29.
Mineral Resources is a diversified resources company with operations in lithium, iron ore, energy, and mining services throughout Western Australia.
Highlights of MIN’s Update
In the fourth quarter, Mineral Resources’ production volumes in its mining services fell by 12% to 61 Mt compared to the previous quarter, mainly due to reduced mine development at the Wodgina and Mt. Marion sites. Meanwhile, iron ore shipments for Q4 rose by 6% quarter-on-quarter to 4.8 million WMT (wet metric tonnes), leading to total FY24 shipments of 18.1 million WMT, in line with guidance.
Speaking of the lithium business, the company achieved record shipments of Spodumene from Wodgina and Mt Marion, marking growth rates of 41% and 46% year-over-year, respectively.
Moving ahead, Mineral Resources aims to expand its energy sector, exploring potential gas projects in the Perth Basin. The company submitted two production licence applications for its Lockyer Gas Project, covering the Lockyer and North Erregulla gas fields. This move came after the exceptional results from the Lockyer-5 gas well in March 2024.
Is Mineral Resources a Good Share to Buy?
According to TipRanks’ consensus, MIN stock has been assigned a Moderate Buy rating, backed by seven Buy, three Sell, and three Hold recommendations. The Mineral Resources share price target is AU$67.43, which is 26.07% above the current trading price.
Year-to-date, MIN stock has lost 24% in trading.
