Update shared on08 Oct 2025
Fair value Increased 5.19%Analysts have raised their price target for Mineral Resources from $34.79 to $36.60 per share, citing modest improvements in forecasted revenue growth and profit margins as key drivers for the upward revision.
What's in the News
- Mineral Resources Limited is considering the sale of its West Australian lithium mines, including Wodgina, Mt Marion, and Bald Hill. This move is part of a strategy to address a significant $5.3 billion debt pile (Key Developments).
- The company reported an annual loss of $904 million, prompting a review and re-ranking of its asset portfolio to identify potential divestitures (Key Developments).
- Managing director Chris Ellison, who is embroiled in scandal, will be leaving the company according to newly appointed chairman Mal Bundey. The exact timing remains unconfirmed (Key Developments).
- Chairman Mal Bundey stated that assets are being categorized for possible sale, with a focus on improving the company's balance sheet. There are no plans for an equity raising (Key Developments).
- An increase in lithium prices is expected to enhance buyer interest in any eventual formal sales process (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has risen from A$34.79 to A$36.60 per share, reflecting a modest increase in perceived fair value.
- Discount Rate has increased slightly from 8.34% to 8.38%, indicating a marginally higher risk assessment.
- Revenue Growth forecast has improved from 9.08% to 9.28% annually.
- Net Profit Margin expectation has more than doubled, climbing from 1.05% to 2.45%.
- Future P/E ratio has fallen significantly from 142.37x to 63.81x, suggesting higher expected earnings relative to price.
Disclaimer
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