The mining services company is closing in on its all-time high…
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The Mineral Resources Limited (ASX: MIN) share price is having a day out today, nearing its all-time high. Investors appear to be buoyant on the company’s prospects, particularly after a number of broker upgrades recently.
At the time of writing, the mining services company’s shares fetching for $50.99, up 0.43%.
What’s going on with the Mineral Resources share price?
Investors are continuing to snap up Mineral Resources shares despite no recent announcement from the company.
However, in its last update to the ASX in May, Mineral Resources provided a performance snapshot at the Macquarie Conference.
The company highlighted that its key financial metrics have surged during the first half of FY21. As such, revenue grew to $1.5 billion, up 55% over the prior corresponding period. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) also increased to $763 million, up 131%.
The robust result came off the back of an upswing in iron ore production volumes. This is despite the company experiencing haulage constraints caused by COVID-19 state border closures.
Mineral Resources’ lithium production remained consistent compared to the previous comparable period. Spodumene mined slightly increased, along with production and shipping.
And lastly, natural gas exploration and development activities are on track. The company is seeking to secure its own natural gas supply to provide energy security for future mining operations.
Mineral Resources received two prospective gas exploration permits in the onshore Perth and Northern Carnarvon Basins in March 2021.
What do the brokers think?
Since its May 2021 investor presentation, several brokers raised their price targets for Mineral Resources.
Global investment bank Citi lifted its 12-month outlook by 2% to $51.00. Following suit, Macquarie appeared bullish on the Mineral Resources share price, raising its price by 20% to $73.00. This implies an upside of roughly 40% on the current share price.
More recently though, JPMorgan also lifted it original note by 8.4% to $51.70 for the mining services company.
The Mineral Resources share price has accelerated by more than 140% over the past year, and is up 35% year-to-date.
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Motley Fool contributor Aaron Teboneras 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.