Why is the Mineral Resources (ASX:MIN) share price up 4% today?

Record high after record high, the Mineral Resources share price is surging in 2021.

asx 200 share investor climbing up stairs of an upward trending red arrow into the sky and clouds

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 continues to trend higher, adding another 4.21% today to $59.57.

The company has operations in both iron ore and lithium mining, as well as a mining services division offering services including processing, crushing and logistics.

What's driving the Mineral Resources share price?

The Mineral Resources share price is enjoying the best of both worlds with iron ore and lithium peers rallying strongly on Monday.

Iron ore majors BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Limited (ASX: RIO) have finished 3.36%, 3.18% and 1.91% higher today.

According to Mineral Resources, the company is Australia's 5th largest iron ore producer, with aspirations to more than triple its iron ore production in the next five years from 20 million tonnes per annum (Mtpa) to 90Mtpa.

Iron ore prices have continued to defy expectations, currently trading around US$215/tonne. On the back of sky-high prices, Mineral Resources is wasting no time capitalising with its production plans.

The company also operates two high-profile lithium joint ventures, one with Chinese lithium giant Ganfeng and the other with US-based Albemarle.

Pleasingly, ASX lithium heavyweights, Galaxy Resources Limited (ASX: GXY), Pilbara Minerals Ltd (ASX: PLS) and Orocobre Limited (ASX: ORE) also have delivered a strong showing today, up 2.94%, 2.35% and 2.5% respectively.

To capitalise on surging lithium prices, an upgrade project is currently underway with its Ganfeng joint venture, aiming to expand Mt Marion's production from 206,000 tonnes of spodumene concentrate per annum to 450,000 tonnes pa.

More broadly speaking, resources is the best performing sector on Monday, with the S&P/ASX Materials (INDEXASX: XMJ) up 2.22%.

Mineral Resources share price snapshot

The Mineral Resources share price set a new all-time record high of $59.68 this afternoon.

The company's shares have been a standout performer, running 59% year-to-date and 162% in the last 12 months.

Mineral Resources has a market capitalisation of about $11.2 billion. The figure pales in comparison to iron ore giants such as Fortescue, which has a market capitalisation of about $75.9 billion.

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 Share Gainers

A happy girl in a yellow playsuit with a zip gives the thumbs up
BNPL shares

Is this why the Zip share price keeps breaking records?

Zip shareholders have been enjoying a record breaking year. Is this why?

Read more »

A man and a woman sit in front of a laptop looking fascinated and captivated.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a volatile, but positive, day for ASX shares this Thursday.

Read more »

Excited group of friends sitting on sofa watching sports on TV and celebrating.
Share Gainers

Why Block, GQG, Neuren, and Sigma shares are racing higher today

These shares are rising on Thursday. But why?

Read more »

Happy shareholders clap and smile as they listen to a company earnings report.
Share Gainers

Why Brainchip, Cooper Energy, Core Lithium, and Neuren shares are roaring higher today

These shares are having a good time on hump day. But why?

Read more »

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors endured a rough day of trading this Tuesday.

Read more »

A mature-aged couple high-five each other as they celebrate a financial win and early retirement
Share Gainers

Why this ASX 300 stock is soaring 12% after a disastrous year

This company has had a dramatic reversal of fortunes this Tuesday...

Read more »

A young woman wearing overalls and a yellow t-shirt kicks one leg in the air showing excitement over the latest ASX 200 shares to hit 52-week highs
Share Gainers

Why Core Lithium, Imugene, Lifestyle Communities, and Mineral Resources shares are charging higher

These shares are having a good session. What's going on?

Read more »

A young woman smiles as she rides a zip line high above the trees.
Share Gainers

4 ASX All Ords shares up 315% to 682% in a year!

Investors have sent these ASX All Ords shares flying higher. But why?

Read more »