Mineral Resources records 20-year high FY26 revenue
Mineral Resources records 20-year high FY26 revenue
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Key Points
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FY26 cash flows included $430 million of receipts on the Onslow Iron carry loan, with $335 million outstanding at 30 June, contributing to operating cash generation.
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Lithium operations benefited from higher recoveries and increased three-train utilisation at the Wodgina asset, supporting stronger lithium performance.
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The Lamb Creek development has extended the life of the Pilbara Hub mine, enhancing ore supply continuity.
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Free cash flow for the period was $0.8 billion, up 141% on the prior corresponding period, underscoring enhanced cash generation.
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Completion of the POSCO deal is anticipated to unlock further balance sheet strength and disciplined growth opportunities for Mineral Resources.
Mineral Resources hit a 20-year high with record FY26 revenue of $6.5 billion, up 44% from the prior year, driven by iron ore and lithium strength Kalkine. The company swung to a net profit of $1.2 billion and slashed net debt by $1.1 billion, signaling a dramatic turnaround as its Onslow Iron mine ramped to full capacity.
Management reinstated a fully franked dividend of 83 cents per share and lifted liquidity to $2.4 billion, positioning the company for growth across iron ore, lithium, and energy projects The Market Online. The stronger balance sheet comes as Mining Services volumes hit a record 341 million tonnes.
Onslow Iron Reaches Full Production Capacity
Onslow Iron hit nameplate capacity of 35 million tonnes per annum in August 2025, turbocharging iron ore output Kalkine. FY26 shipments reached 29.5 million tonnes, a 47% jump year-over-year. This ramp-up was the primary driver behind record revenue and underlying EBITDA of $2.6 billion, which surged 183% from the prior year.
The Lamb Creek development extended ore supply for the Pilbara Hub, ensuring sustained production. This project smoothed the transition from construction to steady-state operations, removing supply bottlenecks that had constrained prior-year volumes.
Lithium Operations Deliver Higher Recovery Rates
Lithium assets at Wodgina and Mt Marion boosted overall profitability through improved recoveries and higher three-train utilisation Kalkine. The company sold 559,000 dry metric tonnes of lithium products in FY26, reflecting stronger operational performance. These assets benefit from long-term contracted revenue streams.
Higher recoveries mean the company extracted more sellable product from each tonne of ore processed. This operational efficiency gain, combined with increased run-time across all three processing trains, lifted lithium cash generation during a period of volatile commodity prices.
Mining Services Contracts Drive Record Volumes
Mining Services volumes hit 341 million tonnes in FY26, a record for the division Kalkine. The company secured six contract renewals and four new third-party contracts, underpinning this expansion. FY27 guidance calls for 9% to 14% volume growth, reflecting robust demand from external customers.
Strong contract retention and new wins demonstrate customer confidence in Mineral Resources' execution. The division's scale and efficiency continue to attract mining operators seeking reliable haulage and logistics support across Western Australia.
Cash Flow Surge and Balance Sheet Fortification
Free cash flow jumped 141% to $0.8 billion, fueled by operating cash generation and $430 million of receipts on the Onslow Iron carry loan Kalkine. Net debt fell $1.1 billion to $335 million outstanding at 30 June. The company now holds $2.4 billion in liquidity, double the prior year.
Management expects the pending POSCO deal to unlock further balance-sheet strength and support disciplined growth across iron ore, lithium, and energy projects Kalkine. This positions Mineral Resources to fund expansions and shareholder returns without straining capital.
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