Mineral Resources: From Deleveraging to Diversification – The Mining Services Engine Drives a Record Year

Record Results and a Balance Sheet Turnaround

Mineral Resources delivered what Chris Ellison called “the most significant year in MinRes' history,” — Christopher Ellison, Founder and Managing Director · 2026-08-26 with record revenue of $6.5 billion and underlying EBITDA of $2.6 billion. CFO Mark Wilson underscored the quality of the earnings: “This was the strongest financial year in MinRes' history.” — Mark Wilson, Chief Financial Officer · 2026-08-26 The turnaround is stark—underlying NPAT swung from a loss to $822 million, and net debt fell by $1.1 billion to $4.3 billion, with leverage dropping from 5.9x to 1.7x. The restored dividend of $0.83 per share (20% payout) signals confidence in the balance sheet and a return of capital to shareholders after years of heavy investment.

The Mining Services Moat

The heart of the story is order book quality. As Ellison put it, "Around 70% of our Mining Services order book runs on more than 15 years. These are long-term build-own-operate contracts with rates indexed every year and very low sustaining capital." This infrastructure-like earnings stream is less commodity-sensitive than the market appreciates. Volume hit a record 341 million tonnes, with EBITDA up 32%. The company is guiding to 370–390 million tonnes for FY '27, driven by Onslow Iron beyond nameplate, the Bald Hill restart, and higher stripping at Mt Marion.

The strategic pivot is unmistakable. After years of balance sheet restraint and a singular focus on Onslow, Ellison now says:

We are really focused on copper as our next commodity, and we really don't want to grow too much more in the lithium and the iron ore.

Lithium Repositioning and the POSCO Transaction

On lithium, the company is repositioning its portfolio. Wodgina is back on the cost curve, Mt Marion is investing in a float plant and underground development, and Bald Hill is ramping to nameplate. The POSCO deal—selling 30% of its lithium interests for USD 765 million—is expected to complete later this year. As Ellison noted, “We're pretty happy with the deal that we've done with POSCO. I mean they're a great partner. We hope to settle that out later this year and bank the cash.” — Christopher Ellison, Founder and Managing Director · 2026-08-26 The proceeds will further reduce debt and fund the brownfield growth agenda.

Continuity and Change Versus Prior Quarters

The shift in tone is notable. In February 2026, Ellison said, “We've got a couple of areas in both the Perth Basin and the Carnarvon Basin that look very promising” — Christopher Ellison, Managing Director · 2026-02-20—but the emphasis was on balance sheet repair. A year earlier, Mark Wilson had called Mining Services “the jewel and the crown in this business” — Mark G. Wilson, Chief Financial Officer · 2025-07-30, and that description rings even truer today. The company has moved from survival mode to offensive positioning, with a clear pipeline for copper and international expansion. The global top keywords for the quarter—"Earnings growth" and "Fortress balance sheet"—align perfectly with MinRes's narrative of record earnings and a repaired balance sheet. This is a name in motion, and the market is voting with a dividend.