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FWIW - Morgan Stanley's target for MIN


Morgan Stanley also suggests the market is ignoring the iron ore leverage of Mineral Resources ((MIN)), likely because of a lack of detail in the reporting for the mining services division. The upgrade to the broker's iron ore price outlook substantially lifts earnings estimates for the business. Morgan Stanley maintains an Overweight rating on the stock with a $20.80 target.


Total short positions as at 1 March 2019 - 1.37%



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Mineral Resources has revealed more problems with the the much-hyped Wodgina lithium project that is subject to a $US1.3 billion deal with global battery metals giant Albemarle.


Chris Ellison-led Mineral Resources said on Thursday that it has suffered significant delays in building the spodumene concentrator at the Wodgina lithium mine, mainly due to having replace faulty valves.


The diversified mining services company said most of the valves had been replaced and it now expected to complete construction of all three trains at the beneficiation plant by the end of September.


The latest hiccup disclosed by Mineral Resources comes after it hosed down claims there were problems with the commissioning of a tailings dam at the mine about 100 kilometres from Port Hedland in Western Australia.


Brad Thompson has the full story here.


Total short positions as at 16/8/10 = 3.32%



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Mineral Resources and Albemarle Corporation complete Wodgina Lithium Project Transaction, establish Joint Venture and agree on way forward

Mineral Resources Limited (ASX: MIN; MRL or the Company) announces the completion today of the

Wodgina Lithium Project transaction and associated arrangements and the establishment of the

MARBL Lithium Joint Venture (collectively, the Transaction) with Albemarle Corporation (NYSE: ALB;



The completion of the Transaction follows the announcement on 14 December 2018 of the binding

Wodgina Asset Sale and Share Subscription Agreement (Sale Agreement) between MRL and

Albemarle as well as the announcement by MRL on 1 August 2019 of a revised arrangement with

Albemarle to include the sale of 60% of the Wodgina Lithium Project, the acquisition of a 40%

interest in the first two 25ktpa lithium hydroxide conversion units currently being built by Albemarle

at its Kemerton hydroxide facility (Kemerton Modules), and the establishment of a 60:40

unincorporated Joint Venture.


As a result, and in line with the terms of the revised arrangements announced on 1 August 2019:


ïâ€Å¡Ãƒ‚· MRL has transferred a 60% interest in the Wodgina Lithium Project (consisting of certain

tenements, assets and related infrastructure) to a subsidiary of Albemarle;


ïâ€Å¡Ãƒ‚· MRL has received the following as consideration for the transfer of the 60% interest in the

Wodgina Lithium Project:


ïâ€Å¡Ãƒ‚· a cash payment of US$820 million (subject to certain completion adjustments1); and


ïâ€Å¡Ãƒ‚· a 40% interest in the Kemerton Modules; and


ïâ€Å¡Ãƒ‚· the MARBL Lithium Joint Venture has been established with MRL and Albemarle holding a 40%

interest and 60% interest respectively.


The MARBL Lithium Joint Venture has today also made the decision to place the Wodgina Lithium

Project on care and maintenance. The decision was made in recognition of challenging global lithium

market conditions and to preserve the value of the world-class Wodgina spodumene orebody. The

MARBL Lithium Joint Venture expects the transition to care and maintenance to take approximately

four weeks. The Company is assessing the implications for our employees and, where possible and

appropriate, will seek to redeploy them across MRLâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s other operations.


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Sohn stock pick: Airlieâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s Emma Fisher - Mineral Resources (MIN ASX)


It's the resources company trading at a 50 per cent discount to its peers and has one of the top four best track records of shareholder value creation over the last 14 years alongside Altium, REA Group and Magellan

Fisher points out that since listing in 2006, MinRes has grown earnings at 15 per cent each year and achieved an average return on invested capital of 19 per cent, as well as a yearly total shareholder return of 26 per cent.


The jewel in MinRes' crown is its mining services business, says Fisher.


She says this business is not tied to the boom and bust capital expenditure cycle like its rivals, but rather it is tied to production.


"Because it's production linked it's absolutely mission critical for its customers so it makes it very difficult to swap out."


Doesn't look like shorters agree with Emma - total short positions as at 18th November, 2019 = 9.24%



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Mineral Resources (MIN) puts itself out as a mining services company with a portfolio of mining operations across lithium and iron ore. MRL has been providing safe, high quality, low cost mining, mining construction and mining infrastructure services in Australia. The business consists of three core pillars: Mining Services, Commodities and Innovation and Infrastructure.

It is hard to deny its success, going from $10 to $60 in the last 5 years, with a quadrupling in the last 20 months, but I have seen the company as having a ragtag of assets. And seen the driving force, Chris Ellison, as a marketer and opportunistic deal maker as much as miner. So I have stayed away. To my detriment; possibly?!


The Lithium assets are indicative of this: the flagship Wodgina mine was put into in care and maintenance on the same day in November 2019 that Albemarle finalised a deal to hand Mineral Resources $US1.3 billion for a 60 per cent stake.Mr Ellison confirmed on Wednesday that Wodgina was likely to stay in mothballs until Albemarle acquired a lithium hydroxide plant in China, with Mineral Resources also keen to boost its downstream exposure.


Neither Albemarle nor Mineral Resource see value in selling unrefined lithium spodumene despite a price rally that sent the share price of Pilbara Minerals, which mines close to Wodgina, to a record high on Wednesday.


Mineral Resources does expect to capture higher spodumene prices in the next few months through its partnership with China's Jiangxi Ganfeng in the Mt Marion mine in WA, but Mr Ellison said the market was still highly sensitive to increases in supply.


We are not in a rush to open up Wodgina and then just go sell rock into the market because it would be very short term, he said. We are not really comfortable that the market can support that type of supply coming into it at the moment.


However, Mr Ellison confirmed Mineral Resources was on the hunt for more lithium deposits in WA to add to Wodgina and Mt Marion.


Mineral Resources is not forecasting any earnings in 2021/22 from the delayed lithium hydroxide plant Albemarle is building at Kemerton in WA.

Albemarle intends to feed Kemerton, plagued by delays and cost blow outs, from the Greenbushes mine it owns through a joint venture with the Chinese Tianqi. Mineral Resources secured a right to 40 per cent of the output of trains 1 and 2 at Kemerton as part of the Wodgina transaction with Albemarle to market the lithium hydroxide.

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