Highlights

• FY26 guidance achieved across iron ore, lithium and mining services segments with record annual volumes.
• Onslow Iron delivered 19.7M wmt attributable shipments, exceeding upgraded guidance at lower FOB costs.
• Lithium sales reached record levels as Wodgina and Mt Marion outperformed production expectations.
• The company enhanced its financial position, increasing liquidity to AU$2.4 billion while lowering net debt to approximately AU$4.3 billion, reflecting stronger cash generation and improved balance sheet resilience.
• Mining Services volumes increased 22% year on year to 341Mt.

Strong FY26 Performance Drives Positive Investor ResponseMineral Resources Limited (ASX: MIN) surged 4.18% to a CMP of AU$55.320 following the release of its June 2026 quarterly activity report, highlighting improved operational execution, stronger financial flexibility and resilient performance across its diversified resources portfolio. The company concluded FY26 with all major operating segments achieving or exceeding guidance, supported by record annual volumes across mining services, iron ore and lithium operations.The quarterly update demonstrated improved operational scale, with Mining Services delivering record annual volumes of 341Mt, while iron ore shipments reached 29.5Mt and lithium sales totalled 559k dmt SC6 during FY26. The combination of higher volumes, disciplined cost control and a strengthened balance sheet has positioned MinRes with greater flexibility heading into FY2027.Mining Services Achieves Record Production GrowthMining Services remained a key contributor to MinRes’ operational performance, recording FY26 production volumes of 341Mt, representing a 22% year-on-year increase and exceeding the upgraded guidance range of 320-330Mt.During the June quarter, production volumes reached a record 94Mt, increasing 18% quarter on quarter. The increase was driven by higher operational activity across the Onslow Iron production chain, along with elevated stripping activities at Mt Marion.The company also expanded its contracted services base, commencing two new joint venture contracts focused on rehabilitation and ore sorting, while renewing an existing external crushing contract. This highlights the continued scalability of MinRes’ mining services platform and provides potential support for future recurring earnings.Onslow Iron Strengthens Iron Ore Growth ProfileOnslow Iron continued to demonstrate strong operational momentum, producing 8.8Mt and shipping a record 9.6Mt during Q4 FY26 on a 100% basis. FY26 attributable shipments reached 19.7M wmt, exceeding the upgraded guidance range of 17.7-19.4M wmt.The project also delivered cost efficiency, with FY26 FOB costs of AU$52/wmt, below the guided range of AU$54-$59/wmt. During the quarter, total iron ore production across Onslow Iron and Pilbara Hub reached 10.8M wmt, while shipments totalled 12.3M wmt on a 100% basis.Onslow Iron’s infrastructure development also progressed, with the arrival of the sixth transhipper and preparation for the seventh vessel, supporting future shipment capacity and operational expansion.Pilbara Hub Maintains Stable ContributionThe Pilbara Hub delivered FY26 shipments of 9.9M wmt, reaching the upper end of its upgraded guidance range of 9.0-10.0M wmt. The operation recorded an FY26 FOB cost of AU$79/wmt, remaining within the guided range of AU$75-$80/wmt.The Lamb Creek project continued to advance during the quarter, with mine access infrastructure progressing and wet commissioning of the fixed crushing plant scheduled for Q1 FY27. The project provides additional growth potential within MinRes’ iron ore portfolio.Lithium Portfolio Shows Improving Market ConditionsMinRes’ lithium division delivered a significant improvement during FY26, supported by strong sales momentum from Wodgina and Mt Marion. Quarterly attributable lithium sales achieved a record 158k dmt SC6, supported by stronger operational performance, while the average realised spodumene price increased 15% quarter on quarter to US$2,425/dmt CIF SC6.Wodgina delivered a record FY26 performance, generating sales of 317k dmt SC6 and exceeding its upgraded guidance range of 270-290k dmt SC6, reflecting improved production efficiency and stronger market conditions. The operation delivered an FY26 FOB cost of AU$738/dmt SC6, positioned at the lower end of its guidance range.Mt Marion delivered a stronger-than-expected FY26 performance, achieving sales of 242k dmt SC6, above its upgraded guidance range of 210-230k dmt SC6, reflecting improved operational execution and consistent production performance. The operation-maintained cost discipline, achieving an FY26 FOB cost of AU$847/dmt SC6 within its guidance range.Bald Hill Restart Adds Future Lithium OptionalityThe restart of Bald Hill operations represents an additional growth opportunity within MinRes’ lithium portfolio. Bald Hill operations resumed in May, with the first concentrate produced in June. After the quarter ended, the company completed its initial spodumene concentrate shipment in July, with the project progressing towards a targeted ramp-up to full production capacity of 140k dmt SC6 by Q2 FY27.The company is evaluating potential expansion opportunities at Bald Hill, which could support higher production capacity and contribute to extending the project’s operational life.Balance Sheet Strength Improves Financial FlexibilityMinRes ended FY26 with a stronger financial position, supported by improved liquidity and debt reduction. Liquidity increased to AU$2.4 billion, including AU$1.6 billion in cash, while net debt declined to approximately AU$4.3 billion.Compared with FY25, cash increased to AU$1.6 billion from AU$0.4 billion, while net debt reduced from AU$5.3 billion to AU$4.3 billion. Liquidity improved significantly to AU$2.4 billion from AU$1.1 billion.The company also completed refinancing initiatives, issuing US$1.3 billion of senior unsecured notes to strengthen its debt maturity profile.Outlook: Execution Remains Key for FY2027 GrowthMineral Resources enters FY2027 with improved operational scale, stronger liquidity and diversified exposure across iron ore, lithium and mining services. The successful delivery of FY26 guidance across all segments demonstrates improving execution capability and operational maturity.Future valuation upside will likely depend on continued ramp-up of Onslow Iron, sustained lithium market recovery, successful Bald Hill expansion and disciplined capital allocation. While commodity price volatility and execution risks remain important considerations, MinRes’ stronger balance sheet and growing production base provide a supportive foundation for long-term growth.Note- All data presented is based on information available at the time of writing.Disclaimer for Kapitales ResearchThe 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. 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