The Mineral Resources Limited (ASX: MIN) share price will be in focus on Thursday.
This morning the mining and mining services company released its fourth quarter and full year update.
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Mineral Resources share price on watch after record 12 months
- FY 2022 iron ore shipments of 19.2M wet metric tonnes (wmt)
- Full year spodumene concentrate shipments of 442kt
- Mining Services production volumes hit a record 274Mt for FY 2022
What happened during the quarter and full year?
During the three months ended 30 June, Mineral Resources reported iron ore shipments of 4.7M wmt. This took its FY 2022 iron ore shipments to 19.2M wmt, which was at the upper end of FY 2022 guidance range of 18.5-19.5M wmt.
Things weren't quite as positive for the company's Mt Marion operation and Mining Services business, which fell a touch short of guidance in FY 2022.
The release reveals that Mining Services production volumes were 64Mt during the quarter. And while this led to a record of 274Mt for FY 2022, it was below the guidance range of 275Mt to 290Mt.
In respect to Mt Marion, after shipping 141k dmt of spodumene concentrate during the quarter, its full year shipments came to 442k dmt. This was marginally below its guidance of 450-475k dmt.
Though, two positives were its costs and the realised spodumene concentrate price it received.
Mt Marion costs are expected to be with its guidance of A$570-A615/dmt and the price it received for its spodumene continues to increase. During the fourth quarter, Mineral Resources reported a realised spodumene concentrate price of US$2,645 per dmt, which was 35% higher quarter on quarter.
In addition, the company revealed that its maiden share of offtake for Mt Marion spodumene concentrate was converted into 6,722t of lithium hydroxide in China under the tolling agreement with Ganfeng.
The structure of this agreement means that Mt Marion lithium hydroxide EBITDA for FY 2022 is now expected to be US$150 to US$160 million and revenue for the sale of this product is now expected to be US$510 million to US$520 million.
No guidance has been given for FY 2023.
