MinRes shareholders rewarded after big half

MINERAL Resources has more than tripled its interim dividend after a strong six months.
MinRes shareholders rewarded after big half MinRes shareholders rewarded after big half MinRes shareholders rewarded after big half MinRes shareholders rewarded after big half MinRes shareholders rewarded after big half

The company posted an underlying net profit after tax of $430 million, up 233%, and statutory NPAT of $519 million included $26 million of post-tax impairment charges in relation to intangibles, plant and equipment and inventory.

Underlying EBITDA jumped 131% to $763 million, while statutory EBITDA was $927 million.

Operating cashflow more than doubled to $516 million.

Mineral Resources managing director Chris Ellison described 2020 as a "fairly solid year".

The strong result was driven by growth in the mining services division, a 17% increase in iron ore shipments to a record 7.9 million tonnes, stronger iron ore pricing, and record lithium production of 262,264 dry metric tonnes.

MinRes declared a fully franked interim dividend of $1 per share, up 335%.

Guidance for FY21 for the commodities business is iron ore exports of 19.5-20.5Mt and lithium exports of 450,000-475,000t.

The mining services business is expected to grow by 20-25% this financial year alone and "at least double" in the next three years.

"So we've got some work to do," Ellison said.

Capex for FY21 is estimated to be $600 million.

The company had $1.1 billion cash at the end of December and net debt of $75 million.

Shares in MinRes fell 1.2% to $36.55. The stock hit an all-time high of over $40 in December.