Onslow Iron Ships 8.6Mt in Q1; Lithium Prices Surge 31% to US$849/dmt

Onslow Iron Reaches Full Capacity

Mineral Resources Limited (ASX, MIN) has kicked off FY26 with a strong first quarter, highlighted by its Onslow Iron operation hitting its 35 million tonnes per annum (Mtpa) nameplate capacity between August and October 2025. This milestone not only marks a significant operational achievement but also triggers a $200 million contingent payment from Morgan Stanley Infrastructure Partners, reflecting the value of the upgraded private haul road and haulage operations.

The ramp-up at Onslow Iron was supported by a 37% quarter-on-quarter increase in production to 8.4 million wet metric tonnes (wmt) and a 50% increase in shipments to 8.6 million wmt (100% basis). The FOB cost remained at the low end of guidance at $54 per wmt, underscoring operational efficiency as the mine transitions from construction to steady-state operations.

Lithium Prices and Production Momentum

The lithium segment also delivered robust results, with total attributable spodumene concentrate production reaching 137,000 dry metric tonnes (dmt) SC6 equivalent and sales slightly exceeding production at 142,000 dmt SC6. Notably, the average realised lithium price surged 31% quarter-on-quarter to US$849 per dmt SC6, driven by strong market demand and successful recovery and throughput optimisation projects at both Mt Marion and Wodgina.

Wodgina’s recovery improvements, averaging 67%, were bolstered by commissioning of new high-intensity conditioning dewatering cyclones, while Mt Marion continued to ramp up production with an 18% increase quarter-on-quarter. Both sites remain on track to meet FY26 guidance, although some cost pressures are anticipated in the second half due to ore quality transitions.

Board Renewal and Financial Strength

In a strategic move to bolster governance and oversight, Mineral Resources appointed four highly credentialed Independent Non-Executive Directors during the quarter, including Malcolm Bundey as Chair. This board renewal aligns with the company’s growth ambitions and commitment to strong corporate governance.

Financially, the company maintained a strong liquidity position of $1.1 billion and steady net debt of $5.4 billion despite capital expenditure of approximately $400 million in the quarter. The refinancing of US$700 million notes at a reduced coupon of 7.0% extending maturity to 2031 further strengthens the balance sheet and provides greater financial flexibility.

Operational Highlights and Exploration

Mining services volumes remained stable at 81 million wmt, supported by the Onslow Iron ramp-up offsetting reduced activity at other sites. The Pilbara Hub achieved record shipments of 2.7 million wmt, with ongoing transition from Wonmunna to Lamb Creek expected to reduce costs in the second half of FY26.

Exploration and resource development continued actively across iron ore and lithium projects, including drilling programs at Wodgina and Mt Marion, and geological surveys at Onslow Iron and the Pilbara Hub. Energy exploration had mixed results, with the Gingin Brook-1 well abandoned due to technical issues, but drilling is set to resume in early 2026.