MinRes profits plummet, down 200% from first half of FY2024

Despite assurances from managing director Chris Ellison that the Onslow Iron Project of Mineral Resources Ltd (ASX:MIN) would be “transformative” for the company moving forward, the numbers for the first half of the 2025 financial year (FY) are nothing short of abysmal.

Compared to the same period in the 2024 financial year, the company’s underlying earnings before indexation, taxation, depreciation and amortisation (EBITDA) have slumped 55% to $302 million.

MinRes’ statutory net profit after tax (NPAT) plummeted 200%, falling from a positive $530 million in the first six months of the 2024 FY to a loss of $807 million.

The company’s share price has fallen 9.9% today to $27.48 per share at the time of writing.

Debts far outstrip liquidity

Compounding MinRes’ woes, the company’s cash position is also in dire straits, with available liquidity of $1.52 billion against net debt of $5.084 billion.

The large debt – much of which is held up in US dollar bonds – is applying even more pressure to the struggling company as the US dollar climbs, and MinRes’ targeted commodities of iron and lithium languish.

The company has about $720 million in cash in the bank, down by $188 million from the six months prior.

Much of the loss over the last six months has been attributed to the suspension of the Bald Hill Lithium Mine, put into care and maintenance in December under pressure from weak lithium prices.

MinRes says its Onslow Iron Operation has been generating a positive cashflow since November but damage to the haul road to the project has forced the company to reduce production guidance, falling from 10.5 million-11.7 million tonnes to a new forecast of between 8.8 million tonnes and 9.3 million tonnes.

More questions have also been raised over managing director Ellison’s business dealings, with accusations of tax evasion, misusing company resources for personal benefit, and offering lucrative contracts to family members.

Ellison has already paid a $3.79 million penalty imposed by MinRes as it investigates alleged misdeeds.

The company stated he would be replaced as managing director sometime before April 2026, despite remaining the biggest shareholder with about 11.5% of the company’s stock.