Insights

Why the Mineral Resources (ASX:MIN) share price is lifting today

The company is looking to end the week on a positive note.
The post Why the Mineral Resources (ASX:MIN) share price is lifting today appeared first on The Motley Fool Australia. –

The Mineral Resources Ltd (ASX: MIN) share price is climbing on Friday morning. This comes after the mining services company provided an update on the Red Iron Ore Joint Venture (RHIOJV) acquisition.

At the time of writing, Mineral Resources shares are up 3.49% to $55.15. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.40% to 7,515 points.

Let’s take a closer look and see what’s driving Minerals Resources shares higher today.

What did Mineral Resources announce?

In today’s statement, Mineral Resources advised it has completed the acquisition of RHIOJV, 40% owned by Red Hill Iron Limited (ASX: RHI).

This follows yesterday’s Red Hill shareholder vote, which approved the conditional RHIOJV interest acquisition.

Mineral Resources paid Red Hill $200 million in cash without tapping into its debt facilities. It will deliver a further $200 million when the first commercial shipment of iron ore extracted from RHIOJV departs the port.

In addition to the payments, Red Hill Iron will receive a royalty fee of 0.75% of free on board (FOB) revenue.

Mineral Resources expects the latest purchase to enhance its strategy on expanding its resource inventory around the Ashburton Hub. This underpins a long-term and sustainable iron ore export business for the company.

The RHIOJV tenements, located in the West Pilbara region of Western Australia, contain a mineral resource of 820 million tonnes (Mt) with a grade of 56.44% iron ore. It is estimated that the area covers around 1,900 square kilometres along the western margin of the Hamersley Province.

The remaining 60% interest of the RHIOJV is controlled by the Australian Premium Iron Joint Venture (APIJV).

Mineral Resources share price snapshot

Over the past 12 months, Mineral Resources shares have gone strength to strength, rising 80%. In 2021 alone, its shares are travelling 40% higher on the back of surging iron ore and lithium prices.

Mineral Resources presides a market capitalisation of roughly $10 billion on valuation grounds, with approximately 188 million shares outstanding.

The post Why the Mineral Resources (ASX:MIN) share price is lifting today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Mineral Resources right now?

Before you consider Mineral Resources, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Mineral Resources wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

How does the Mineral Resources (ASX:MIN) dividend compare to the materials sector?
Which shares on the ASX 300 are on the move today?

Why the Mineral Resources (ASX:MIN) share price is up 5% in 6 days
Why ASX lithium shares are having a bumper start to the week

Why the Mineral Resources (ASX:MIN) share price has beaten the ASX 200 in the last year

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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!