The Mineral Resources Limited (ASX: MIN) share price has bolted out of the gates this morning and is up 4.03% (at the time of writing) after the Aussie miner released its financial results for the half year ended 31 December 2019 (1H20).
What did Mineral Resources announce?
During the 6 months to December 2019, Mineral Resources generated statutory earnings before interest, tax, depreciation and amortisation (EBITDA) of $1,575 million. This result included a $1,290 million gain on the disposal of a 60% interest in the Wodgina Lithium Project (Wodgina).
Underlying EBITDA was $330 million, up 224% on the prior corresponding period, underpinned by strong growth in the mining services segment and record iron ore sales.
Statutory net profit after tax (NPAT) amounted to $884 million and underlying NPAT was $129 million, up 279%. Statutory NPAT included $114 million of post-tax impairment charges ($164 million pre-tax) in relation to capitalised exploration and mine development expenditure, plant and equipment and stockpiles.
The miner also declared a fully franked interim dividend of 23.0 cents per share, which is an increase of 77% on the interim dividend for 1H19.
New initiatives delivered
A number of major initiatives were delivered during 1H20, including the completion of the sale of a 60% interest in Wodgina to Albemarle Corporation and the establishment of the 60:40 Albemarle/MRL unincorporated MARBL Lithium Joint Venture (MARBL JV). This latter transaction returned the company to a net cash positive position.
Mineral Resources also ramped up its Koolyanobbing iron ore production, and has plans to further increase production to 11 million tonnes per annum from February 2020. It also acquired the Parker Range tenements from Cazaly Iron Pty Ltd, which are scheduled to enter production in 2H20.
The Wodgina transaction with Albemarle enabled Mineral Resources to return to a net cash positive position. It also reported a very good half in its Mining Services business, including retaining existing contracts and winning new contracts.
Commenting on the results, Mineral Resource’s managing director Chris Ellison stated:
The first half of this financial year has set MRL up to deliver another year of strong performance for all shareholders while delivering outcomes in line with our long-term goals. I am pleased to reaffirm the full-year guidance that we provided at our AGM in November.
The post Mineral Resources share price lifts on half-year results appeared first on Motley Fool Australia.
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