The Mineral Resources share price has hit a new record high every week for the past eight weeks!
The post Mineral Resources (ASX:MIN) share price hits another record high after quarterly update appeared first on The Motley Fool Australia. –
The Mineral Resources Limited (ASX: MIN) share price has edged higher on Friday after the company announced its June quarter and full-year FY21 activities report.
Shares in the diversified mining company briefly hit an intraday all-time high of $64.25.
At the time of writing, the Mineral Resources share price is up 0.52% to $63.75.
Record iron ore performance
Mineral Resources reported a record 5.2 million wet metric tonnes (wmt) of iron ore shipments in the June quarter, a quarter-on-quarter (QoQ) increase of 27%.
Overall shipments for FY21 increased by 23% to a record 17.3 million wmt. This is slightly below its revised full-year guidance of 17.4 million to 18 million wmt.
The issues dragging shipment expectations down were largely out of the company’s control. Its final three planned shipments were delayed due to port congestion.
In terms of iron ore production, the company delivered 5.2 million wmt in the June quarter, up 6% QoQ.
Overall FY21 production was a record 19.5 million wmt, a 38% increase compared to a year ago.
The company achieved an average realised iron ore price of US$178 per dry metric tonne (dmt) for the quarter, a 23% increase QoQ.
Lithium production ramping up
The Mt Marion project produced 144,024 dmt of lithium spodumene in the June quarter, a 5% increase QoQ.
Pleasingly, FY21 production came in at 484,984 dmt, a 34% increase compared to a year ago. This is also above the company’s guidance of 450,000 to 475,000 dmt.
Mineral Resources also operates a 40:60 joint venture for the Wodgina Lithium project.
The company cites this asset as “one of the largest known hard rock lithium deposits in the world”.
The project remains in “care and maintenance”, with both parties actively reviewing market conditions with “a view to [resume] spodumene concentrate production as and when required and as driven by market demand”.
Renewable and clean energy focus
Mineral Resources believes gas will play an important role in the company’s transition from diesel fuel to cleaner energy sources.
The company is currently undertaking a drilling program at its Lockyer Deep Prospect, located in the highly prospective northern section of the Perth Basin.
In addition, the company is committed to developing a Decarbonisation Roadmap to reach net zero emissions by 2050.
Today’s announcement highlighted that work has begun to install a 1.5MW solar array and battery at its Monmunna mine.
Mineral Resources share price snapshot
The Mineral Resources share price has stormed 65.35% higher year-to-date.
Factors likely driving the outstanding performance could include sky-high iron ore prices and the hype around the lithium sector.
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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.