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  • Mineral Resources (MIN) has released its financial results for 1H FY21, showing it more than tripled its net profit after tax (NPAT)
  • The ASX-200 lister recorded an underlying NPAT of $433 million, an increase of 233 per cent when compared to the same period last year
  • Underlying earnings before interest, taxes, depreciation, and amortisation also increased by 131 per cent, totalling $763 million for the half year
  • In addition to this, revenue jumped up 55 per cent over the period, while Mineral Resources ended December with a reduced cash balance of $1.13 billion
  • Its operating cash flow also increased over the half year to $516 million, up $303 million compared to the previous period in 2020
  • Activities wise, the company produced record spodumene volumes during the period and a 17 per cent increase in the amount of exported iron ore
  • The huge spike in iron ore prices is being credited for MIN’s strong profits and earnings, with shareholders issued a $1 per share interim dividend
  • Mineral Resources has ended Wednesday down 0.54 per cent at $36.80 per share

Mineral Resources (MIN) has released its financial results for the first half of the 2021 financial year, revealing it more than tripled its net profit after tax (NPAT).

Results

The ASX-200 lister’s underlying NPAT for the first half totalled $433 million, an increase of 233 per cent when compared to the same period last year.

The jump in profit is being credited to rising iron ore prices, with MIN’s earnings and revenue figures also increasing over 1H FY21.

The company’s underlying earnings before interest, taxes, depreciation, and amortisation rose by 131 per cent, totalling $763 million for the half year.

The mining stock’s revenue also jumped up 55 per cent over the period, to total $1.53 billion.

Investors in Mineral Resources are set to share in the results, with a $1 per share interim dividend set to be paid on March 9.

All up, MIN ended December 31 with a cash balance of $1.13 billion, down from just under $1.31 billion at the end of 1H FY20.

The company’s operating cash flow also increased over the half year to total $516 million, up $303 million compared to the previous period in 2020.

In addition to this, Mineral Resource’s capital expenditure was also up 83 per cent during this half-year period to $351 million.

Activities

In terms of activities, the mining stock enjoyed record spodumene production volumes from its jointly owned Mt Marion Lithium Project.

A total of 262,264 dry metric tonnes of spodumene was produced over the period, up 36 per cent compared to 1H FY20.

However, it wasn’t all good news on the lithium front with prices reducing by 50 per cent when compared year on year.

Comparatively, iron ore performed exceedingly well, with the company’s total exports hitting 7.9 million tonnes, an increase of 17 per cent year on year.

Iron ore prices also increased considerably, with MIN hitting an average of around US$126 per dry tonne (around A$162.8 per dry tonne).

“Despite the backdrop of COVID-19, Mineral Resources has delivered outstanding operational and financial performance in the December half, demonstrating the strength of our business and the ability to maximise returns when commodities like iron ore are doing well,” Managing Director Chris Ellison said.

“Likewise, Mt Marion has outperformed during this period to deliver record production volumes at lower costs, a remarkable achievement for a spodumene operation in what has been a challenging market,” he added.

Following the half year results announcement, Mineral Resources has ended Wednesday’s trading session down a slight 0.54 per cent at $36.80 per share.

MIN by the numbers
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