In key news on Australian stocks, Mineral Resources Limited (AU:MIN) shares rose over 3% on Thursday despite the company reporting lower earnings in its half-yearly results for FY24. The company’s underlying EBITDA decreased by 28.1% to AU$674.9 million in the first half. The Mineral Resources share price tumbled during the early trading hours but ended the day at a gain of 3.06%. Investors responded positively to the results, as the company stayed on course to meet its FY24 guidance across lithium, iron ore, and mining services divisions.
Mineral Resources is a diversified resources company with operations in lithium, iron ore, energy, and mining services throughout Western Australia.
Key Highlights of the Results
For the six months that ended on December 31, 2023, Mineral Resources reported a 7% growth in its revenues to AU$2.5 billion compared to the corresponding period last year. Iron Ore emerged as the standout performer for the company, with revenue surging by 37% to AU$1.33 billion, propelled by robust prices and solid volumes.
Mineral Resources emphasized that its diversified business model played a significant role in driving its robust performance despite the challenges posed by its lithium operations. The company’s Wodgina lithium operation recorded underlying EBITDA of AU$134.1 million, a decrease from AU$177.2 million in the previous year. This decline was attributed to lower lithium prices, partially mitigated by increased volumes and reduced spodumene costs.
Is Mineral Resources a Good Stock to Buy?
Post-results, analyst Kate McCutcheon from Citi confirmed a Buy rating on the stock, predicting an upside of almost 16%. On the other hand, Goldman Sachs’ analyst Paul Young upheld a Sell rating, foreseeing a downside of 12% in the share price.
According to TipRanks’ consensus, MIN stock has been assigned a Hold rating, backed by four Buy, three Sell, and two Hold recommendations. The Mineral Resources share price target is AU$64.44, which is 5.18% above the current trading price.
