The Mineral Resources Ltd (ASX: MIN) share price is leaping higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock and diversified resources producer closed yesterday trading for $51.87. In morning trade on Friday, shares are changing hands for $55.00 apiece, up 6.0%.
For some context, the ASX 200 is up 0.7% at this same time.
This follows the release of Mineral Resources quarterly update for the three months to 30 June.
Here's what the miner reported.
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Mineral Resources share price leaps as guidance met
Investors are bidding up the Mineral Resources share price after the miner reported a 9% increase in its FY 2024 production volumes for its mining services division. Production volumes reached 269 million tonnes (Mt), within the guidance of 260 Mt to 280 Mt.
Quarterly production volumes, however, were down 12% from the prior three months to 61 Mt. Management said that was primarily due to lower mine development at the company's Wodgina and Mt Marion sites.
Total June quarter attributable iron ore shipments increased 6% quarter on quarter to 4.8M wet metric tonnes (wmt), which resulted in FY 2024 shipments of 18.1M wmt, also within guidance.
The average quarterly realised price across all sites was US$94 per dry metric tonne (dmt).
Among key developments in Mineral Resources' energy division, the miner submitted two production licence applications for its Lockyer Gas Project in May for declared location blocks over the Lockyer and North Erregulla gas fields.
Major corporate activities included the sale of a 49% interest in the Onslow Iron dedicated haul road to Morgan Stanley Infrastructure Partners for $1.3 billion. Completion is expected in 1H FY 2025.
Management expects FY 2024 net debt to be around $4.4 billion, with liquidity of approximately $2.8 billion.
Turning to its lithium business, the Mineral Resources share price also looks to be getting a lift, with FY 2024 spodumene concentrate production increasing 40% year on year to a record 328,000 dmt. June quarter production of 89,000 dmt was in line with the prior quarter.
Over the June quarter, the miner shipped 95,000 dmt (67,000 dmt SC6) and sold 76,000 dmt (52,000 dmt SC6) at a realised spodumene concentrate price of US$797/dmt on a 4.2% basis (US$1,178/dmt on a SC6 basis).
Management noted that spodumene product grade improved following enhanced plant performance and higher quality ore feed.
Mineral Resources is also continuing with the ongoing exploration and development of its core iron ore, lithium, and energy projects.
How has the ASX 200 miner been tracking?
Hit by slumping lithium and iron ore prices, the Mineral Resources share price is still trading near 52-week lows.
With today's intraday boost factored in, shares are down 27% over 12 months.
