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The Rise and Rise of Mineral Resources

23 December 2022 05:04

As the company said in its 2022 annual general meeting, Mineral Resources is an Australian success story.

Currently sitting at a $15 billion dollar market cap and trading at $80.10 per share (accurate as of 12:40 pm 22/12/2022 UTC +800), the company has had an approximate 43 per cent share price increase from where it started this year.

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MIN’s share price over 2022 (12:40 pm 22/12/2022 UTC +800)

Mineral Resources’ success can largely be attributed to the vision of managing director Chris Ellison, who founded the company in 1992 with just over 10 thousand dollars in the bank.

Fast forward to November 2022, Ellison stated “The business is going to double over the next two years, and over the next three years it will double again.”

“I used to worry about getting a project that would last a month or a year then I was trying to get something around five years, today we are putting together projects with 30, 40 and 50 years of guaranteed life in them.”

This future-facing attitude is what caused the iron-focused company to add lithium to its portfolio, seeing massive global demand for the battery metal as the world moves towards decarbonisation.

Mineral Resources are as of now one of the top five lithium producers globally, with two of the largest hard-rock lithium mines in the world to its name, Mt Marion and Wodgina, which when combined give MIN an estimated resource of 300 million tonnes of the battery critical metal.

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(Mt Marion)

Located in Western Australia’s legendary Goldfields, Mt Marion is currently producing up to 600 thousand tonnes of mixed spodumene. The mine is currently undergoing a gigantic upgrade that will see it able to hit 900 thousand tonnes annually early next year as MinRes works to take advantage of the burgeoning lithium market.

Wodina, on the other hand, is known to be one of the largest hard rock lithium projects in the world and has an estimated 30-year+ lifespan, with MinRes currently managing all mining operations and producing over 750 thousand tonnes per year.

As such, lithium has become one of MinRes’ core commodities, with the company building out an ambitious growth strategy to match the growing market.

“The lithium business will still be going 50 years from now,” Ellison stated.

A key part of Ellison’s vision for the company is to have a strong and diverse leadership team bringing a wide breadth of voices and perspectives to steer the company into the future.

“Our Board places a high premium on the diversity of experience. As MinRes expands and develops, we believe that bringing in a breadth of expertise and knowledge is key to our success,” Mineral Resources Chairman James McClements said.

MinRes’ latest strategic addition is world-class cricketer and former coach of the Australian national cricket team, Justin Langer.

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(Langer will start on January 1st 2023)

Langer will join the company at the start of next year and will bring with him 14 years of experience, holding various coaching and leadership positions, including his position as Head Coach of Australia’s national team which he held since 2018.

This wouldn’t be the first time mining companies have turned to sports legends in order to bring a fresh perspective, with Langer’s appointment sharing similarities with Olympic gold medalist, Herb Elliot joining mining giant Fortescue metals and founder Andrew Forrest in 2005.

Elliot became non-executive chairman of Fortescue in 2007, and under Elliot’s leadership, Fortescue reached its highest share price since the company was founded.

This won’t be Langer’s first experience in the boardroom either, with the former test cricketer also sitting on the board of the Australian football team the West Coast Eagles since 2017, helping to facilitate the team’s premiership win in 2018 following a 12-year drought.

“Justin’s outstanding leadership experience will further enhance our focus on people and culture, which is critical as we continue to expand our workforce to execute our significant growth strategy,” said McClements.

“Together with the recent announcement of Colleen Hayward as Non-Executive Director, the Board is now well-equipped to address the opportunities that lay ahead for our business.”

The future looks extremely bright for Mineral Resources as its “Australian success story” continues to unfold. With a strong board and outstanding mining projects, shareholders should be extremely excited about the company’s future growth prospects.

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