MinRes Reinstates Dividend on Record FY26 Revenue of $6.5b

Mineral Resources Limited (ASX:MIN) reported revenue of $6.5 billion for the 12 months to 30 June 2026, up 44 per cent on FY25, and Underlying EBITDA of $2.6 billion, up 183 per cent, which the company states represents an Underlying EBITDA margin of 39 per cent. Underlying net profit after tax was $822 million, up 831 per cent, and reported net profit after tax was $1.2 billion, up 236 per cent. MinRes said the reported result included a $168 million non-cash foreign exchange gain, a $134 million gain on the contingent consideration from Morgan Stanley Infrastructure Partners on the Onslow Iron haul road transaction, a $78 million non-cash financial assets revaluation gain and a $69 million impairment relating to the Lucky Bay garnet operation, which was placed into care and maintenance effective 1 July 2026. Underlying EBITDA and Underlying NPAT are non-IFRS measures reconciled in the FY26 results presentation and the financial statements. Free cash flow was $849 million after capital expenditure of $1.1 billion and distributions to Morgan Stanley Infrastructure Partners of $124 million. Liquidity increased to $2.4 billion, comprising $1.6 billion of cash and an undrawn $800 million revolving credit facility, and net debt fell by $1.1 billion to $4.3 billion. Net debt to Underlying EBITDA was 1.7 times, down from 5.9 times. The board declared a fully franked FY26 full year dividend of $0.83 per ordinary share, representing a 20 per cent payout of Underlying NPAT, up from nil, due to be paid on 30 September 2026.

Segment Underlying EBITDA was $976 million for Mining Services, $1,001 million for Iron Ore and $771 million for Lithium. Within those segments Onslow Iron contributed $909 million on 19.7 million tonnes at an FOB cost of $52 a tonne and the Pilbara Hub $98 million on 9.9 million tonnes at $79 a tonne, while Wodgina contributed $470 million and Mt Marion $302 million; volumes are stated on an attributable basis unless otherwise noted, and the release states FOB cost is presented per wet metric tonne for iron ore and assumes a diesel price of $1.25 a litre including the Fuel Tax Credit. MinRes reported FY26 operating cash flows before interest and tax of $2.4 billion including $430 million of receipts on the Onslow Iron carry loan, and separately of $2.6 billion excluding movements on that carry loan and an iron ore prepayment, which it says represents 102 per cent cash conversion on Underlying EBITDA. For FY27 the company guided Mining Services production of 370 to 390 million tonnes, Onslow Iron volumes of 20.0 to 21.7 million tonnes at an FOB cost of $54 to $58 a tonne and total capital expenditure of $1.4 billion, with volumes and capital expenditure based on MinRes' current share. MinRes said the agreement for POSCO Holdings to acquire 30 per cent of its 50 per cent ownership in Wodgina and Mt Marion is expected to complete in the first half of FY27 subject to satisfaction of conditions precedent, generating gross proceeds of US$765 million and expected to reduce net debt to $3.2 billion.