Record earnings from lithium have pushed a powerful first half for mining firm Mineral Resources, and it expects a fair stronger second half.
MinRes on Friday posted a five-fold enhance in underlying earnings earlier than curiosity, tax, depreciation, amortisation and impairment of $939 million for the six months to December 31.
Net revenue was $390 million, up $370 million from the identical interval final 12 months, pushed by lithium earnings after spodumene focus from its Mt Marion and Wodgina operations was transformed into lithium battery chemical compounds.
There have been report earnings from Mt Marion, a hard-rock lithium mine in WA’s Goldfields area, underneath the settlement with China’s Jiangxi Ganfeng Lithium.
“This half has seen us take the business from a mining services contractor and upstream miner to a leading downstream supplier of lithium to global auto manufacturers,” MinRes Managing Director Chris Ellison mentioned.
During the half, MinRes delivered its first earnings from lithium battery chemical compounds produced from Wodgina spodumene.
Wodgina, one of many largest recognized arduous rock lithium deposits on this planet, continues to ramp up with two trains operational and all three trains commissioned.
MinRes additionally prolonged its lithium battery chemical compounds provide take care of China’s Ganfeng to December 2023, with an possibility for each events to additional lengthen it to the top of calendar 2024.
Mining companies have been regular through the half and there was an improved contribution from iron ore on larger achieved costs.
The firm mentioned vital progress continues to be made to unlock stranded deposits on the game-changing Onslow Iron undertaking, which can allow it to be a low value, long-life iron ore producer.
“We are well set up for an excellent year, with our balance sheet and performance across all areas in a great position,” Mr Ellison mentioned.
“We’re also taking MinRes to the world by exploring options outside of Western Australia across the business.”
The board declared a totally franked interim dividend for FY23 of $1.20 per share.
Source: www.perthnow.com.au
