Is Mineral Resources Betting Big on Lithium as Prices Power Higher?
Source: Kapitales Research
Highlights:
Lithium upgrade: Mineral Resources Limited (ASX: MIN) lifted its FY2026 lithium volume guidance for Wodgina and Mt Marion after strong quarterly production, at the time of writing.
Higher prices: The average realised lithium price rose to US$1,094 per dmt, at the time of writing, up 29% quarter-on-quarter.
Stronger balance sheet: Liquidity improved to over $1.4 billion and net debt reduced to around $4.9 billion, at the time of writing.
MinRes Lifts Guidance After Strong December Quarter
Mineral Resources Limited (ASX: MIN) delivered a mixed session on the ASX after upgrading its lithium production outlook for FY2026, following a robust December quarter performance. At the time of writing, the stock had earlier gained around 0.5%, before easing to $60.43, reflecting ongoing volatility in the resources sector. The company said strong operational results, particularly in lithium, allowed it to lift volume guidance while keeping cost forecasts unchanged across its major projects.
Lithium Business Steals the Spotlight
Mineral Resources reported quarterly attributable spodumene production of 138,000 dry metric tonnes (dmt), with sales of 143,000 dmt, at the time of writing. The average realised lithium price was US$1,094 per dmt, representing a 29% increase from the previous quarter. Following the strong results, the company lifted its lithium production outlook for FY2026. Wodgina is now expected to produce between 260,000 and 280,000 dmt, while Mt Marion guidance was lifted to 190,000–210,000 dmt. Importantly, cost guidance for both operations was maintained, signalling improving margins as prices strengthen.
Iron Ore and Deleveraging Progress
The iron ore division also delivered solid results. Onslow Iron shipped 8.7 million tonnes during the quarter, with costs tracking toward the lower end of full-year guidance. Management noted that performance is improving as operations move from the build phase into regular production.
Balance Sheet Gets a Boost
Mineral Resources also highlighted significant balance sheet improvements. Liquidity increased to more than $1.4 billion, at the time of writing, while net debt fell to around $4.9 billion, down from $5.4 billion in the previous quarter. The company also confirmed a binding agreement with POSCO Holdings, which will inject about US$765 million in cash for a minority stake in its lithium assets, further strengthening financial flexibility.
Outlook Remains Optimistic
With lithium demand linked to electric vehicles and energy storage continuing to rise, investors appear cautiously optimistic. At the time of writing, Mineral Resources’ upgraded guidance suggests the company is positioning itself to capitalise on higher prices while tightening costs, a combination that could support earnings growth into FY2026.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
x
Daily Dose of Buy, Sell & Hold recommendations before the market opens.
Start Your 7 Days Free Trial Now!
We use cookies to help us improve, promote, and protect our services.
By continuing to use this site, we assume you consent to this.
Read our
Privacy Policy
and
Terms & Conditions
Is Mineral Resources Betting Big on Lithium as Prices Power Higher?
Highlights:
MinRes Lifts Guidance After Strong December Quarter
Mineral Resources Limited (ASX: MIN) delivered a mixed session on the ASX after upgrading its lithium production outlook for FY2026, following a robust December quarter performance. At the time of writing, the stock had earlier gained around 0.5%, before easing to $60.43, reflecting ongoing volatility in the resources sector. The company said strong operational results, particularly in lithium, allowed it to lift volume guidance while keeping cost forecasts unchanged across its major projects.
Lithium Business Steals the Spotlight
Mineral Resources reported quarterly attributable spodumene production of 138,000 dry metric tonnes (dmt), with sales of 143,000 dmt, at the time of writing. The average realised lithium price was US$1,094 per dmt, representing a 29% increase from the previous quarter. Following the strong results, the company lifted its lithium production outlook for FY2026. Wodgina is now expected to produce between 260,000 and 280,000 dmt, while Mt Marion guidance was lifted to 190,000–210,000 dmt. Importantly, cost guidance for both operations was maintained, signalling improving margins as prices strengthen.
Iron Ore and Deleveraging Progress
The iron ore division also delivered solid results. Onslow Iron shipped 8.7 million tonnes during the quarter, with costs tracking toward the lower end of full-year guidance. Management noted that performance is improving as operations move from the build phase into regular production.
Balance Sheet Gets a Boost
Mineral Resources also highlighted significant balance sheet improvements. Liquidity increased to more than $1.4 billion, at the time of writing, while net debt fell to around $4.9 billion, down from $5.4 billion in the previous quarter. The company also confirmed a binding agreement with POSCO Holdings, which will inject about US$765 million in cash for a minority stake in its lithium assets, further strengthening financial flexibility.
Outlook Remains Optimistic
With lithium demand linked to electric vehicles and energy storage continuing to rise, investors appear cautiously optimistic. At the time of writing, Mineral Resources’ upgraded guidance suggests the company is positioning itself to capitalise on higher prices while tightening costs, a combination that could support earnings growth into FY2026.
Disclaimer for Kapitales Research
The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au