Mineral Resources Limited posted a $896 million statutory loss for FY25, driven by significant impairments, while Onslow Iron achieved commercial production and governance reforms reshape the board.
- FY25 revenue down 15% to $4.472 billion
- Statutory net loss after tax of $896 million due to $632 million impairments
- Onslow Iron project reached commercial production with strong ramp-up
- No dividends declared amid balance sheet strengthening focus
- Board renewal and governance reforms following ASIC investigations
Financial Results Overview
Mineral Resources Limited (ASX – MIN) reported a challenging FY25 with revenues declining 15% to $4.472 billion and a statutory net loss after tax of $896 million. This loss was primarily driven by significant non-cash impairment charges totaling $632 million, including $337 million related to the Bald Hill lithium project and $192 million linked to Resource Development Group Limited (RDG) assets. Despite these setbacks, the company generated an underlying EBITDA of $901 million, down 15% from the prior year, supported by record earnings in its Mining Services division.
Operational Highlights and Project Updates
The Onslow Iron project marked a major milestone by achieving commercial production as of 30 June 2025. The ramp-up phase progressed well, with shipments reaching an annualised run-rate of 32.4 million wet metric tonnes in June. Onslow Iron contributed $287 million in underlying EBITDA, reflecting improved cost efficiencies with FOB costs falling to $63 per wet metric tonne. Meanwhile, the Yilgarn Hub was transitioned to care and maintenance and subsequently sold, generating a post-tax gain of $51 million.
Governance Reforms and Board Renewal
FY25 was also a year of significant governance transformation for Mineral Resources. Following regulatory scrutiny including ASIC investigations and a class action related to governance matters, the company undertook a comprehensive review of its corporate governance framework. This included the appointment of new independent non-executive directors Mal Bundey, Ross Carroll, and Lawrie Tremaine, and the establishment of an Ethics and Governance Committee. The Board also introduced a permanent Director of Governance and Compliance role to enhance oversight and transparency.
Financial Position and Capital Management
Mineral Resources maintained a strong liquidity position with over $1.1 billion available, comprising $412 million in cash and $705 million in undrawn credit facilities. The company’s capital structure is anchored by US$3.05 billion in senior unsecured bonds with no maturities before mid-2027 and an $800 million secured revolving credit facility. The Board elected not to declare a dividend for FY25, prioritising balance sheet deleveraging and disciplined capital expenditure, which is forecast at $1.1 billion for FY26, including $0.5 billion for sustaining capex and $0.5 billion for Onslow Iron development.
Outlook and Strategic Focus
Looking ahead, Mineral Resources expects continued operational momentum with Onslow Iron targeting nameplate capacity in Q1 FY26 and forecast shipments of 17.1 to 18.8 million wet metric tonnes (30.0 to 33.0 million on a 100% basis) in FY26. The Mining Services division anticipates volume growth of approximately 12.5%, underpinning a stable earnings base. Lithium operations remain cautious amid volatile market conditions but are focused on cost reductions and operational improvements. The Energy division is advancing joint ventures with Hancock Prospecting to explore gas prospects in the Perth and Carnarvon basins. The company’s immediate priorities include strengthening the balance sheet, executing governance reforms, and managing regulatory risks while positioning for sustainable growth.
Regulatory and Legal Challenges
Mineral Resources continues to cooperate with ongoing ASIC investigations and faces a class action related to past governance issues. Additionally, RDG, a 64.31% owned subsidiary, entered voluntary administration post balance date. MinRes has proposed acquiring RDG’s subsidiaries and assets, subject to creditor approval. These developments add uncertainty but the company remains focused on mitigating risks and restoring shareholder confidence.
Bottom Line?
As Mineral Resources navigates regulatory challenges and operational ramp-ups, investors will watch closely for governance progress and balance sheet repair.
Questions in the middle?
- How will ongoing ASIC investigations and class action outcomes impact Mineral Resources’ future governance and financials?
- What are the implications of RDG’s voluntary administration and MinRes’ acquisition proposal for the Group’s balance sheet?
- Can Onslow Iron sustain its ramp-up and deliver the forecast production and cost targets in FY26?