Mineral Resources Ltd
MIN: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$33.00 | Jkzpv | Pyngqgjq |
Mineral Resources: Softer Earnings on Lithium Pricing and Stubborn Costs Before Onslow's Ramp
We sharply lower our fiscal 2024 and fiscal 2025 earnings per share forecasts for no-moat iron ore and lithium miner Mineral Resources by 73% and 38% to AUD 0.67 and AUD 3.61, respectively. The drivers are short-term in nature and our AUD 67 fair value estimate stands. The shares are up more than 30% against February lows and at AUD 75 somewhat overvalued in 3-star territory. Early first iron ore deliveries from the Onslow iron ore project have buoyed the share price, even in the face of low lithium prices.