Mineral Resources Limited (ASX: MIN) shares will be on watch today after it released its June 2019 quarter report.
Mineral Resources is a mining and mining services business based in Adelaide. Together with its subsidiaries, the company provides a wide range of general mine services, contract crushing, infrastructure provision and recovery of base metals concentrate for export.
Mineral Resources June 2019 Quarter
Minerals Resources said that it shipped a total of 3.3 million tonnes (mt) of iron ore during the fourth quarter of FY19. This was in line with the previous quarter and up 49% on the last quarter of FY18.
The company also said that Koolyanobbing was in full production during the quarter, operating at its target yearly rate of 6mt of iron ore production. Mineral Resources said that additional road train haulage units were obtained and a fourth rail consist was brought online during the quarter, with plans to increase production to 7.5mt per year by the first quarter of FY20.
On the lithium side of things, Mineral Resources produced 81,000 tonnes of spodumene concentrate, which was 15% less than the last quarter, but the proportion of high-grade 6% spodumene concentrate increased to 69% compared to 66% last quarter.
Construction of the Wodgina Lithium Project’s three-stage 750,000 dry tonne per year plant and infrastructure progressed during the quarter. Train one is complete, train two commissioning is underway and train three construction is progressing.
The binding sale agreement between Mineral Resources and Albemarle regarding a 50% interest in the Wodgina Lithium Project continues, but it has just announced confirmation of Chinese anti-trust clearance.
At Mt Marin a RC drilling program was completed and the ‘All-in 6% Concentrate Upgrade Project’ is complete.
Is Mineral Resources A Buy?
I like Mineral Resources’ joint strategy of iron ore and lithium mining, and the company is investing for growth, but it’s really hard to know which way commodity prices will go year to year.
That’s why I prefer the idea of owning the shares of the reliable businesses in the free report that can grow profit consistently.
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