2024 Annual
Report

The most productive year yet for Mineral Resources saw our company deliver significant internal achievements and push through external challenges, which in many ways reflects the very nature of our long-term success.

Our track record for seizing opportunities and remaining agile to changing environments has guided MinRes’ growth into one of Australia’s leading resources developers and operators. FY24 delivered strong operational performance headlined by the launch of our transformational Onslow Iron project – which achieved first ore on ship ahead of schedule in May – supported by record mining services earnings and record lithium production from Wodgina and Mt Marion mines.

Challenging global commodity markets, particularly in lithium, impacted overall earnings. Combined with the significant capital investment in Onslow Iron, this environment reinforced the company’s ongoing focus on responsible balance sheet management while emphasising multiple liquidity options that remain available.

MinRes’ diverse business model provides structure and reliability to help weather economic headwinds. While net debt has increased, it is manageable and covenant light with tenor structured for the profile of future earnings. The Board and Executive are aligned on a near-term conservative approach and that MinRes’ world-class commodity assets and unique business model, including noncyclical services and infrastructure earnings, positions us to deliver ongoing returns for our shareholders and a longer-term focus on continued growth.

FY24 was a milestone year for MinRes as it continued to invest in long-life assets such as Onslow Iron, which will deliver transformational growth for our company.

During the year, Chinese entities established new sources of lithium supply in Africa and China, resulting in a sharp reduction in global lithium prices. The average price realised by MinRes for its lithium sales dropped by more than 70 per cent compared to the previous year and this flowed directly through to MinRes’ profits.

Nevertheless, Underlying EBITDA remained solid at $1.1 billion, down 40 per cent on the prior year, while headline revenue of $5.3 billion was up 10 per cent on the prior year.

The company’s result was underpinned by encouraging operational and production performances across key business pillars, demonstrating the diversity and strength of MinRes’ business model.

Mining Services remains the heartbeat of MinRes and in FY24 delivered the Group’s standout financial performance, with record Underlying EBITDA of $550 million up 14 per cent on the prior year.

Earnings were driven by growth in external crushing and haulage volumes as we continue to strengthen MinRes’ reputation as one of the most innovative and reliable mining services providers in Australia.

Record production volumes from Mt Marion and Wodgina mines assisted in mitigating the impact of the decline in lithium prices, with the Lithium division delivering Underlying EBITDA of $384 million. While markets remain challenging, MinRes will focus on reducing costs and optimising product output in readiness for improved lithium prices.

Our Iron Ore division delivered on guidance across production volumes and costs. Revenue of $2.6 billion was up 20 per cent year on year, bolstered by improved achieved prices from lower product discounts and increased shipments.

MinRes has significant value embedded across its various operations and is constantly assessing opportunities to release this value where it makes sense to do so.

Our Mining Services division continues to strengthen its reputation as one of Australia’s leading providers of innovative and reliable mining services, supporting a growing list of MinRes projects and tier 1 mining clients.

Operating as wholly owned MinRes subsidiary CSI Mining Services (CSI), this key business pillar delivers pit-to-ship service capability unique to the resources industry – spanning construction, mining, crushing, processing and haulage services – specialising in build, own and operate projects.

In FY24 our Mining Services division delivered an exceptional performance, headlined by a nine per cent increase in production volumes to 269 million wmt. Record earnings of $550 million were up 14 per cent year-on-year and accounted for more than half of MinRes’ total Underlying EBITDA.

Our position as a leading mining services provider was also strengthened with six new contract awards and three contract renewals in the past 12 months.

A notable highlight was our expansion into Queensland, when in Q3 CSI was awarded a road haulage contract for Rio Tinto’s operations in Weipa. Securing this contract marked several milestones for our business, including our first project on the east coast, the first time operating at a bauxite mine site and the first time utilising multiple quad road trains.

Importantly, CSI has employed more than 50 site-based personnel to support this contract and continues to prioritise local employment and businesses to support our Queensland operations.

This year our business was also awarded crushing contracts supporting Tier 1 clients in Western Australia. These included the supply and operation of a 10Mtpa crushing plant at McPhee Creek, supply and operation of a 15Mtpa crushing plant at Hope Downs 4 and the provision of mobile crushing services at Mining Area C.

In FY24 we also deployed the latest iteration of our modular crushing plant technology – NextGen 3 – across MinRes projects and client sites. The NextGen 3 plant has been enhanced with carbon fibre screens, delivering significantly higher structural strength when compared to carbon steel. Screens were developed in-house and manufactured in less than six weeks.

The past 12 months have been momentous for MinRes’ iron ore business, with the launch of our flagship Onslow Iron project.

Onslow Iron marks our company’s transition to low-cost, long-life iron ore operations that will help deliver benefits to all Australians for decades to come.

Over FY24 we experienced continued stable demand for iron ore with a preference for lower-grade products due to their price competitiveness over premium product. Iron ore prices reached a high of $143.95 in early January, before falling around 30 per cent by the end of June.

Within the Chinese market, there has been a decline in demand for steel from the property sector, however other sectors such as infrastructure, consumer goods, automotive and ship building have been growing.

With relatively good demand throughout the year for our products, we were able to draw down on inventory and ship 18.1Mtpa across our Yilgarn, Pilbara and Onslow Iron operations.

Our energy division is pursuing low-cost, reliable and cleaner fuel sources to reduce emissions and support MinRes’ future growth.

MinRes continues to actively explore opportunities for natural gas and renewable energy to provide reliable and cost-effective alternatives, reduce our company’s dependency on diesel and improve our sustainability performance.

Our Energy division will also support MinRes’ emission reduction activities through a range of hybridisation and electrification projects focused on integrating cleaner energy solutions across our operations.

MinRes has been active in conventional gas exploration since 2015 and is now the largest acreage holder in the onshore Perth and Carnarvon basins.