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Onslow Iron And Lithium Operations Will Increase Output

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MIN
AnalystConsensusTarget
Not Invested
Published 02 Feb 2025

Update shared on06 Aug 2025

Fair value Increased 5.16%
Previous
AnalystConsensusTarget's Fair Value
AU$29.91
13.6% overvalued intrinsic discount
07 Aug
AU$33.98
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1Y
-34.3%
7D
13.8%

The upward revision in Mineral Resources’ Analyst Price Target reflects a modest rise in the future P/E ratio alongside a slight decrease in the discount rate, resulting in a new consensus fair value of A$29.91.


What's in the News


  • Mineral Resources Limited is considering selling a 10%-15% stake in its mining services business, potentially raising $750 million to $1.1 billion, with alternative options to monetize assets such as its Onslow haul road and Onslow Iron loan receivables.
  • The company is financially viable with iron ore prices above USD 61 per tonne from FY2027 onward, and free cash flow is projected to cover interest payments threefold in FY2026, with net debt to EBITDA expected to drop from 6.2x to 2.2x next year.
  • Analysts do not anticipate issues servicing debt unless iron ore prices fall below USD 78 per tonne, with refinancing considered feasible.
  • An undisclosed buyer acquired an unknown stake in Mineral Resources Limited from HESTA managed by H.E.S.T. Australia Ltd.

Valuation Changes


Summary of Valuation Changes for Mineral Resources

  • The Consensus Analyst Price Target has risen from A$28.44 to A$29.91.
  • The Future P/E for Mineral Resources has risen slightly from 13.77x to 14.35x.
  • The Discount Rate for Mineral Resources has fallen slightly from 8.76% to 8.44%.

Disclaimer

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