Update shared on 06 Nov 2025
Fair value Increased 13%The analyst price target for Mineral Resources has been raised from $37.51 to $42.22. This reflects analysts' increased optimism due to stronger projected revenue growth and improved profit margins.
What's in the News
- Mineral Resources Limited is considering selling its West Australian lithium mines, including Wodgina, Mt Marion, and Bald Hill, in an effort to reduce a substantial $5.3 billion debt pile. (Key Developments)
- The company reported an annual loss of $904 million, leading to discussions around asset sales and portfolio restructuring. (Key Developments)
- Managing director Chris Ellison, who has been involved in recent joint venture restructures, is set to leave the company. The timeline for his departure remains unconfirmed. (Key Developments)
- New chairman Mal Bundey stated that the board has ranked company assets by strategic importance and may recycle certain assets to improve the balance sheet. (Key Developments)
Valuation Changes
- Consensus Analyst Price Target: Increased from A$37.51 to A$42.22. This reflects greater optimism about Mineral Resources' valuation.
- Discount Rate: Risen slightly from 8.45% to 8.74%, which suggests a modest uptick in perceived risk or required return.
- Revenue Growth: Upgraded from 6.76% to 7.22%, indicating expectations of stronger top-line performance.
- Net Profit Margin: Improved significantly from 3.43% to 6.22%, signaling higher anticipated profitability.
- Future P/E: Declined markedly from 50.2x to 31.0x. This suggests the shares are now seen as less expensive relative to projected earnings.
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