Mineral Resources Limited reports a dramatic turnaround with a $573 million half-year profit, driven by Onslow Iron’s ramp-up and stronger lithium markets. The company reaffirms FY26 guidance amid strategic joint ventures and balance sheet strengthening.
- Statutory net profit after tax of $573 million, reversing prior loss
- Onslow Iron achieves 35Mtpa nameplate capacity, boosting iron ore volumes
- Lithium operations deliver higher spodumene volumes and improved prices
- Underlying EBITDA triples to $1.17 billion, led by Mining Services and iron ore
- No interim dividend declared as focus remains on deleveraging and capital management
Strong Financial Turnaround
Mineral Resources Limited (ASX: MIN) has delivered a striking half-year performance for the period ending 31 December 2025, posting a statutory net profit after tax (NPAT) of $573 million. This marks a significant reversal from the $807 million loss recorded in the prior corresponding period. Underlying EBITDA surged 286% to $1.17 billion, reflecting a combination of improved commodity prices, operational ramp-up at key assets, and robust Mining Services earnings.
Onslow Iron Reaches Full Capacity
The standout operational highlight was Onslow Iron achieving its 35 million tonnes per annum (Mtpa) nameplate capacity in August 2025. This milestone underpinned a 69% increase in iron ore revenue to $1.87 billion, with attributable shipments rising to 9.8 million wet metric tonnes. The average realised iron ore price at Onslow Iron was US$93 per dry metric tonne, representing an 89% realisation of the benchmark Platts 62% IODEX price. Importantly, Onslow Iron’s FOB costs fell 32% to $52 per wet metric tonne, driven by higher volumes and operational efficiencies, contributing $519 million in underlying EBITDA.
Lithium Operations Gain Momentum
Lithium mining also showed marked improvement. The Group sold 286,000 dry metric tonnes of spodumene concentrate (SC6) across Wodgina and Mt Marion, up significantly from the prior period. Wodgina’s production increased 65%, with an average CIF price of US$1,002 per tonne, while Mt Marion’s output rose 23% with prices averaging US$933 per tonne. Lithium segment underlying EBITDA jumped to $167 million, reflecting both higher prices and improved recoveries. The company flagged that the third processing train at Wodgina will operate opportunistically in the second half of FY26, supported by ongoing development.
Mining Services and Capital Management
Mining Services, providing integrated pit-to-ship solutions, recorded a 29% increase in underlying EBITDA to $488 million despite a 10% revenue decline due to contract transitions. Production volumes rose to 166 million wet metric tonnes, boosted by Onslow Iron’s steady-state operations and contract ramp-ups. The Group’s balance sheet remains strong with $638 million in cash and $800 million in undrawn debt facilities, providing $1.44 billion in liquidity. The Board elected not to declare an interim dividend, prioritising balance sheet deleveraging and disciplined capital allocation.
Strategic Developments and Outlook
Corporate changes included new executive appointments and the deconsolidation of Resource Development Group Limited following voluntary administration. The company reaffirmed its FY26 guidance, expecting Mining Services production volumes to grow 12.5% to 305-325 million tonnes and iron ore costs at Onslow Iron to remain at the low end of guidance. A key pending development is the POSCO Holdings Inc transaction, where POSCO will acquire a 30% interest in the Group’s lithium assets for US$765 million, subject to conditions precedent. This deal is expected to accelerate deleveraging and reshape the lithium business structure.
Overall, Mineral Resources is transitioning to a more mature, cash-generative model anchored by Onslow Iron and supported by diversified earnings streams. The company’s focus on operational excellence, capital discipline, and strategic partnerships positions it well for sustainable growth in a volatile commodity environment.
Bottom Line?
As Mineral Resources consolidates gains from Onslow Iron and lithium, the market will watch closely for POSCO deal completion and cost trends in 2H26.
Questions in the middle?
- How will the POSCO transaction reshape Mineral Resources’ lithium operations and capital structure?
- What are the risks to lithium cost forecasts given expected feed quality changes in 2H26?
- How will the deconsolidation of Resource Development Group impact ongoing operational performance?