Mineral Resources (MinRes) has announced its full-year results and provided an update on founder Chris Ellison’s departure.
The company posted revenue of $4.45 billion, down 15 per cent from the previous year, while underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was $901 million, also down 15 per cent. Net debt had increased by 21 per cent on the previous year to $5.35 billion.
The underlying net loss after tax was $112 million and the statutory net loss after tax was $896 million, including $632 million of post-tax impairment charges, which the company said were previously flagged.
Despite the tough results, new MinRes chair Malcolm Bundey was positive about the company’s outlook.
He said the board was focused on three key areas to uplift the company’s performance in the coming year: robust governance, board renewal and an orderly succession of the managing director; a strengthened balance sheet and disciplined capital allocation; and the full delivery of Onslow Iron to nameplate capacity.
MinRes has undergone a governance refresh with the appointment of Bundey as independent non-executive chair and two new independent non-executive directors.
As part of the revamp, the board is undertaking a capital allocation framework review as it looks to focus on cost control and operational improvements.
One of the bright spots for the company was its mining services division, with earnings underpinned by record production volumes along with inaugural Onslow Iron Road Trust earnings.
The Onslow Iron operation operated at an annualised run rate of 35 million tonnes per annum (Mtpa) in the four weeks to August 26, in line with guidance for achieving nameplate capacity in the first quarter of the 2025–26 financial year.
MinRes said the Onslow Iron joint venture was operating cash‑flow positive and the Onslow Iron carry loan balance was starting to reduce.
In a letter to shareholders, MinRes chair Malcolm Bundey said the company has faced significant challenges, but he took on the role of chair “with strong conviction about the remarkable strength and future of our company”.
Bundey joined MinRes as non-executive chair in July. He said that upon joining, he was impressed with the underlying strength of the company, especially its mining services business.
“My decision to join MinRes was founded on careful due diligence, including an early site visit to Onslow Iron and reviews of the operating divisions and balance sheet,” he said.
“I’ve been energised by the entrepreneurial, results-driven culture and the extraordinary mining services business, which is underpinned by innovative infrastructure and has proven to be resilient to price cycles – a true ‘razor and razor blades’ model.”
He also addressed the question of the ongoing leadership of MinRes managing director Chris Ellison.
“I appreciate that shareholders are looking for clarity on succession planning for founder and managing director Chris Ellison,” he said.
“My focus as chair is on ensuring that Chris’ succession is robust and carefully planned in the best interests of our shareholders and our people. This must be a process, not an event. Chris remains integral to this process, working closely with the board and myself to ensure it is conducted in an orderly, professional manner with Chris’ support.”
He said the company was working hard to overcome its recent governance issues.
“The challenges and disappointments of the past year are clear,” Bundey said. “I acknowledge the negative headlines, regulatory scrutiny and the erosion of confidence. Our response is now driving meaningful change. We are rebuilding the board, resolving legacy related party transactions, enhancing disclosure to the market and advancing an independent governance review with King & Wood Mallesons and culture review with EB&Co.”
Ellison did not comment directly on his leadership succession in the shareholder letter.
“FY25 was about making progress and delivering Onslow Iron, strengthening our mining services business and navigating the lithium market with discipline and a long-term focus,” he said.
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Want to connect with the mining industry? Register to attend AIMEX and WA Mining Conference.
Want to connect with the mining industry? Register to attend AIMEX and WA Mining Conference.
Want to connect with the mining industry? Register to attend AIMEX and WA Mining Conference.
Want to connect with the mining industry? Register to attend AIMEX and WA Mining Conference.
