The Mineral Resources (ASX:MIN) share price rose 16% in June. Here's why

With iron ore, lithium and mining services, Mineral Resources seems to do it all

| More on:
Man in overalls at mine cheering

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Mineral Resources Ltd (ASX: MIN) share price made a breakthrough in June, surging 16.48% to a record closing price of $54.30.

Let's take a look at what factors might have pushed the Mineral Resources share price to record territory.

Growing iron ore production

Mineral Resources is Australia's fifth largest iron ore producer, according to its recent Macquarie Conference presentation.

The presentation highlighted the company's ambitious plans. These include increasing iron ore production from 20 million tonnes per annum (mtpa) to 90 mtpa in the next 5 years.

With iron ore prices sitting near all-time highs of US$213/tonne, it's no wonder Macquarie analysts think the Mineral Resources share price could pay some big dividends in the coming years.

Investment into lithium assets

Mineral Resources operates the Mt Marion mine in a 50-50 joint venture with Chinese lithium giant, Ganfeng.

According to Mineral Resources, Mt Marion in WA is the fourth largest hard rock lithium mine in the world.

An upgrade project is under way to expand Mt Marion's production from 206,000 tonnes of spodumene concentrate per annum to 450,000 tonnes pa.

Additionally, Mineral Resources sold a 60% stake in its Wodgina lithium project to another lithium giant, Albemarle, back in 2019. Mineral Resources says the Wodgina project is the "largest hard rock lithium mine in the world".

While production remains halted, the company's third quarter results said the joint venture "regularly reviews market conditions with a view to resuming spodumene concentrate production as and when required and as driven by market demand".

In addition, higher lithium prices and demand has helped the likes of Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE) emerge as some of the best performing S&P/ASX 200 Index (ASX: XJO) shares in FY21.

Also, the resurgence of lithium could be a factor supporting the bullish performance of the Mineral Resources share price.

Growing mining services business

Mineral Resources also specialises in mining services, with operations including construction, crushing, processing and haulage.

According to the company's half-year results, mining services contributed $784 million of the company's total $1,531 million revenue (51%).

The company says it wants its mining services to "more than double" in the next 5 years.

Mineral Resources share price snapshot

Mineral Resources shares have hit the ground running this financial year, reaching a new high of $55.16 today. At the time of writing, they are priced at $55.05 — up 3.17% on yesterday's close.

The company's shares have surged 43% year-to-date, lifting its market capitalisation to $10.3 billion.

Should you invest $1,000 in Allkem right now?

Before you buy Allkem shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Allkem wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Record Highs

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
Bank Shares

CBA shares reach new all time high after 4% surge

CBA shares have done it again.

Read more »

Rising gold share price represented by a green arrow on piles of gold block.
Record Highs

This ASX 200 gold stock just surged to new all-time highs! Here's why

Investors just sent the ASX 200 gold miner rocketing to new record highs. But why?

Read more »

Happy couple doing grocery shopping together.
Consumer Staples & Discretionary Shares

The Coles share price just hit a new all-time high

Coles shares are making history today.

Read more »

Multi-ethnic people looking at camera sitting at public place screaming, shouting and feeling overjoyed about their windfall, good news or sports victory.
Share Market News

ASX 200 strikes new record high

ASX mining stocks and debuting Sigma-Chemist Warehouse shares are soaring today.

Read more »

A woman wearing a yellow and white striped top and headphones plays excitedly with her phone.
Bank Shares

$167: Have CBA shares become a 'meme stock'?

CBA shares have hit yet another new record high this Thursday.

Read more »

Man pointing at a blue rising share price graph.
Record Highs

This $23 billion ASX 200 stock just rocketed 11% to new all-time highs! Here's why

Investors in this ASX 200 financial share are bidding up the stock today. But why?

Read more »

A young bank customer wearing a yellow jumper smiles as she checks her bank balance on her phone.
Bank Shares

CBA shares: Another day, another new record high

What's behind CBA's latest push into record territory?

Read more »

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
Record Highs

Big news: The ASX 200 Index just hit a new record high

Here's how it happened.

Read more »