Can Mineral Resources Rebuild Trust as Onslow Iron Nears Full Capacity?

A Year of Challenges and Strategic Reset

Mineral Resources Limited (ASX – MIN) has released its FY25 results, revealing a year marked by significant challenges but also notable progress. The company faced headwinds from unexpected lithium price volatility and operational setbacks, which dented shareholder confidence and impacted earnings. However, leadership changes and a renewed strategic focus signal a company intent on restoring trust and positioning itself for sustainable growth.

Governance Overhaul and Board Renewal

Since Malcolm Bundey’s appointment as Independent Non-Executive Chair on 1 July 2025, Mineral Resources has embarked on a comprehensive governance refresh. The Board has welcomed two new independent directors with deep financial and governance expertise, Lawrie Tremaine and Ross Carroll, while also appointing a Director of Governance and Compliance. These moves aim to strengthen oversight and accountability, with external reviews by King & Wood Mallesons and Elizabeth Broderick & Co underway to benchmark governance and culture standards.

Onslow Iron – A Generational Asset Coming to Fruition

The standout operational highlight is the rapid ramp-up of the Onslow Iron project in the West Pilbara. From greenfield to a fully operational mine in under two years, Onslow Iron now operates at an annualised run rate of 35 million tonnes per annum, on track to reach nameplate capacity in Q1 FY26. This asset features industry-first infrastructure, including a 150km private haul road and a bespoke port facility, supported by a dedicated FIFO workforce and MinRes Air services. Onslow Iron is expected to generate over $900 million in iron ore EBITDA annually, underpinning the company’s deleveraging and future growth ambitions.

Mining Services – The Stable Earnings Backbone

Mineral Resources’ Mining Services division continues to be a pillar of stability, delivering record earnings and securing multiple new and renewed contracts. With over 85% of contracts life-of-mine and many extending beyond 15 years, this division offers resilience against commodity cycles. The business has grown from modest beginnings to contributing over $800 million in EBITDA, reflecting a compound annual growth rate of 19% over two decades.

Navigating Lithium Market Volatility

The lithium segment remains volatile, with prices falling short of previous peaks. The company acknowledges misjudging the lithium price cycle but has responded by optimizing costs and operational efficiency at key assets like Wodgina and Mt Marion, while placing Bald Hill into care and maintenance. This disciplined approach aims to preserve value and maintain flexibility until market conditions improve.

Financial Discipline and Future Outlook

Mineral Resources is prioritizing balance sheet strength, opting not to pay a final dividend and focusing on organic deleveraging as Onslow Iron ramps up cash flow. The Board sees no immediate need for equity raising but is exploring inorganic deleveraging options through asset recycling. With a refreshed Board and a clear capital management framework in development, the company is positioning itself to capitalize on future opportunities while restoring shareholder confidence.