Mineral Resources reports strong production in the March quarter and highlights expansion plans

Mineral Resources (MinRes) released March 2024 quarterly report on 24 April, highlighting operational achievements and strategic expansions in the lithium sector. The company reported a weighted average price of US$1,030 per tonne achieved across its three operations (Mt Marion, Bald Hill and Wodgina).

Wodgina is projected to meet the lower end of its yearly production guidance with higher costs due to a higher proportion of oxide feed that impacted plant recoveries, having produced 49,000 dmt and shipped 64,000 dmt of spodumene concentrate. Mt Marion saw a 9% quarter-on-quarter increase in production to 91,000 dmt of spodumene concentrate, driven by improved plant utilization and ore recoveries, despite a 20% reduction in ore mined due to cost-cutting measures. The newly acquired Bald Hill contributed an additional 30,000 dmt of production, emphasizing MinRes's focus on expansion and operational efficiency.

MinRes' strategic developments include a binding agreement to acquire the Lake Johnston nickel concentrator from Poseidon Nickel Limited, showcasing a diversification in processing facilities. Additionally, exploration and resource development efforts at Mt Marion and Wodgina are intensifying, with successful drilling activities indicating potential for future mining expansions.

Author: Hongqiu Su | Battery Metals Analyst Associate | London Office, Shanghai Metals Market
Email: lilysu@smm.cn