Australian (ASX) Stock Market Forum

MIN - Mineral Resources

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Value Hunter said:
Indeed. As I have said before USD GDP per capita in Australia is lower now than it was in 2013...... Hasn't stopped large corporations from making record profits though.
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Well they are the ones that run the show, if they aren't making record profits they just threaten to shut up shop and the Western Govts all take a nervous $hit.
Nothing much changes, just the faces at the front desk, after the election.
Where is the value adding, made in Australia happening? As if.
Like @Smurf1976 said the individual States are showing more promise, well the ones that aren't broke are.

The private companies aren't there to provide a public service, the Govts are.

The private companies are there to make the maximum money they can, while working within the guidelines the Govt and society sets, as simple as that.

The Govt sets regulatory conditions and costs related to taxes and wages. Society puts limits on what companies can charge by not buying the product.

Getting of topic, but to keep blaming companies for doing their job is IMO counter productive.
As Indonesia did, put conditions on the companies for extracting the ore, we did it in the 1960's.
 
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Value Hunter said:
Indeed. As I have said before USD GDP per capita in Australia is lower now than it was in 2013...... Hasn't stopped large corporations from making record profits though.
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well over the decades ( and centuries ) is to squeeze the heck out of the middle class ( and small business )

many large businesses swallow ( or crush ) smaller rivals ( the banking sector is currently a good example )

so the small business has to be alert and nimble .. find a space where he/she can make enough profit for one ( or two or three ) wages , try to grow from there , and hopefully leverage the efficiencies in being small
 
sptrawler said:
Getting of topic, but to keep blaming companies for doing their job is IMO counter productive.
As Indonesia did, put conditions on the companies for extracting the ore, we did it in the 1960's.
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Norway has massive royalty taxes on oil which are invested into their sovereign wealth fund. At least in Norway when their oil eventually runs out they will have something to show for it. Australia is too dumb of a country to do something similar and any taxation revenue we get from our natural resources (which is not enough) is just squandered on pork barrelling. When we start running out of natural resources at some point we will have nothing to show for it.
 
Value Hunter said:
Norway has massive royalty taxes on oil which are invested into their sovereign wealth fund. At least in Norway when their oil eventually runs out they will have something to show for it. Australia is too dumb of a country to do something similar and any taxation revenue we get from our natural resources (which is not enough) is just squandered on pork barrelling. When we start running out of natural resources at some point we will have nothing to show for it.
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Exactly correct, the companies didn't set up the wealth fund, the Government did.
 
Value Hunter said:
Norway has massive royalty taxes on oil which are invested into their sovereign wealth fund. At least in Norway when their oil eventually runs out they will have something to show for it. Australia is too dumb of a country to do something similar and any taxation revenue we get from our natural resources (which is not enough) is just squandered on pork barrelling. When we start running out of natural resources at some point we will have nothing to show for it.
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Over tax stuff and corporations just pack their stuff and leave. The problem with Australia is that it's a continent island out in the middle of nowhere surrounded by poorer nations. We've had very slack govts over the years with very short sighted views, gas, oil and coal we can't have cheap to make solid industries because of political BS, while other countries move forward in leaps and bounds.

Anything that most govts put their hands on is a disaster long term, our govt has been disastrous with spending money, Covid relief package rorts, nuclear subs, private jets, NBN, roof batts just to name a few.

Give them more money to manage and they'll most likely gamble it at the casinos with hookers and cocaine.


Differences between rich and poor are increasing in Norway​

Published 10.03.2023

We might imagine that the differences between people in Norway are small, but this is not true. On the contrary, inequities have increased in recent years. And it matters who your parents are.


  • “The inequalities between people in Norway have increased, despite political ambitions to reduce social differences in health and quality of life,” says Ottar Ness.
  • Although child poverty in Norway is low by international standards, it has been increasing. The fact that child poverty has increased at a faster rate than for the population as a whole is a call to action, he believes.
  • “The richest ten per cent of Norway’s population have become much richer since 2010. The lowest 50 per cent have hardly had any increase in wealth at all,” says Ness.
  • Almost 12 per cent of all children in Norway come from homes with long-term poverty. This has consequences. These children have a greater risk of feeling ill at ease in school, of struggling mentally and being bullied. They often have poor school results in mathematics, writing and reading.
  • “The report shows that [Norway has] a society with some large health inequalities, depending on individuals’ background, and that these differences have only become greater in recent years. This is cause for concern,” says Ingvild Kjerkol, Norway’s Minister of Health and Care Services in a press release.
 
TimeISmoney said:
Over tax stuff and corporations just pack their stuff and leave. The problem with Australia is that it's a continent island out in the middle of nowhere surrounded by poorer nations. We've had very slack govts over the years with very short sighted views, gas, oil and coal we can't have cheap to make solid industries because of political BS, while other countries move forward in leaps and bounds.

Anything that most govts put their hands on is a disaster long term, our govt has been disastrous with spending money, Covid relief package rorts, nuclear subs, private jets, NBN, roof batts just to name a few.

Give them more money to manage and they'll most likely gamble it at the casinos with hookers and cocaine.


Differences between rich and poor are increasing in Norway​

Published 10.03.2023

We might imagine that the differences between people in Norway are small, but this is not true. On the contrary, inequities have increased in recent years. And it matters who your parents are.


  • “The inequalities between people in Norway have increased, despite political ambitions to reduce social differences in health and quality of life,” says Ottar Ness.
  • Although child poverty in Norway is low by international standards, it has been increasing. The fact that child poverty has increased at a faster rate than for the population as a whole is a call to action, he believes.
  • “The richest ten per cent of Norway’s population have become much richer since 2010. The lowest 50 per cent have hardly had any increase in wealth at all,” says Ness.
  • Almost 12 per cent of all children in Norway come from homes with long-term poverty. This has consequences. These children have a greater risk of feeling ill at ease in school, of struggling mentally and being bullied. They often have poor school results in mathematics, writing and reading.
  • “The report shows that [Norway has] a society with some large health inequalities, depending on individuals’ background, and that these differences have only become greater in recent years. This is cause for concern,” says Ingvild Kjerkol, Norway’s Minister of Health and Care Services in a press release.
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Exactly, the elites and by definition rich, run the Govts, the politicians in most cases are just people trying to jump the divide and break the constraints of being a middle class pleb.
That's basically why nothing changes and also is what you said above in the first paragraph.
I'Ve been to Norway twice in the last couple of years, life there doesn't look better than here.
Anyway we are drifting into politics and on that metric Australia is apalling IMO, neither side has a long term plan, just a plan on how to win the next election.
Last post in this thread.
Off topic. Lol
 
FIRB Approval and Business Update

FIRB approval received for $1.3 billion minority stake sale in Onslow Iron haul road Mineral Resources Limited (ASX: MIN) (MinRes or Company) is pleased to announce that the Foreign Investment Review Board has provided unconditional approval for the sale of a 49% interest in the Onslow Ironhaul road (Haul Road) to investment funds managed by Morgan Stanley Infrastructure Partners (MSIP) for total expected proceeds of $1,300 million.
All conditions precedent are now satisfied and completion of the transaction is due to occur within 15 business days.
Upon completion, MinRes will receive the upfront cash consideration of $1,100 million from MSIP.
The additional deferred cash consideration of $200 million will be paid to MinRes subject to Onslow Iron achieving a 35 million wet metric tonnes per annum run rate for any quarter before 30 June 2026.
Upon receipt of the $1,100 million upfront cash payment, the Company’s US$750 million undrawn bridge facility will be cancelled.
MSIP is a private infrastructure investment platform within Morgan Stanley Investment Management.
Onslow Iron has now shipped more than one million tonnes of iron ore (100% basis) since first ore on ship was achieved in May 2024. Shipments are increasing in line with the ramp-up plan, with 134kt exported in July 2024,532kt in August 2024 and 720kt expected to be shipped in September 2024.
The project will be operationally complete with the completion of the Haul Road in October 2024 and remains on track to reach its nameplate 35Mtpa run rate from June 2025.
At current iron ore prices and while still ramping up, MinRes’ operations at Onslow Iron will be cash flow positive from October 2024.
As outlined in the FY24 full year result, Onslow Iron remains on time and fully funded to completion.
As production volumes rise, cash inflows will increase significantly, facilitating a rapid deleveraging of the balance sheet.
Cash inflows include mining services and Haul Road income, neither of which are correlated to the iron ore price. In addition, MinRes will receive 80% of its project joint venture partners’ share of free cash flows from Onslow Iron operations as repayment of the carried expenditure loan.
Capital and operating cost reductions MinRes continues to monitor commodity markets and manage its balance sheet accordingly. As foreshadowed at the FY24 full year results, the Company has been exploring measures to reduce capital and operational expenditure across the business.
Approximately $180 million of FY25 capital expenditure savings and $120 million of FY25 operational cost savings have been identified, including in the Lithium division.
Cost savings in Lithium include a reduction to operational headcount by transitioning to a two weeks on, one week off roster (from a two weeks on, two weeks off roster) at the Mt Marion and Wodgina operations.
Employees have been notified and these changes will take effect over the next four to six weeks.
There is no change to the Lithium FY25 production guidance or Mining Services FY25 volume guidance as a result of these operational changes.

MinRes Managing Director Chris Ellison said:“Our partnership with Morgan Stanley Infrastructure Partners will release $1.3 billion of value from the haul road,highlighting the quality of earnings that Onslow Iron is set to achieve.“

Importantly, under this unique partnership, MinRes maintains majority exposure to the stable earnings that the haul road will deliver over the project’s life.“
Onslow Iron is scheduled to be operationally complete next month, with the ramp-up progressing to plan and the project cash flow positive for MinRes from October.“

As foreshadowed in our full year results, MinRes is focused on reducing costs and preserving cash in response to a period of low lithium prices and a softer iron ore price.
“We continue to identify measures to reduce capital and operational expenditure to suit the business environment.“
As the haul road partnership demonstrates, we have many non-dilutionary levers at our disposal across the business to release additional value for shareholders.”

ENDS

i hold MIN ( 'free-carried' )
 
divs4ever said:
FIRB Approval and Business Update

FIRB approval received for $1.3 billion minority stake sale in Onslow Iron haul road Mineral Resources Limited (ASX: MIN) (MinRes or Company) is pleased to announce that the Foreign Investment Review Board has provided unconditional approval for the sale of a 49% interest in the Onslow Ironhaul road (Haul Road) to investment funds managed by Morgan Stanley Infrastructure Partners (MSIP) for total expected proceeds of $1,300 million.
All conditions precedent are now satisfied and completion of the transaction is due to occur within 15 business days.
Upon completion, MinRes will receive the upfront cash consideration of $1,100 million from MSIP.
The additional deferred cash consideration of $200 million will be paid to MinRes subject to Onslow Iron achieving a 35 million wet metric tonnes per annum run rate for any quarter before 30 June 2026.
Upon receipt of the $1,100 million upfront cash payment, the Company’s US$750 million undrawn bridge facility will be cancelled.
MSIP is a private infrastructure investment platform within Morgan Stanley Investment Management.
Onslow Iron has now shipped more than one million tonnes of iron ore (100% basis) since first ore on ship was achieved in May 2024. Shipments are increasing in line with the ramp-up plan, with 134kt exported in July 2024,532kt in August 2024 and 720kt expected to be shipped in September 2024.
The project will be operationally complete with the completion of the Haul Road in October 2024 and remains on track to reach its nameplate 35Mtpa run rate from June 2025.
At current iron ore prices and while still ramping up, MinRes’ operations at Onslow Iron will be cash flow positive from October 2024.
As outlined in the FY24 full year result, Onslow Iron remains on time and fully funded to completion.
As production volumes rise, cash inflows will increase significantly, facilitating a rapid deleveraging of the balance sheet.
Cash inflows include mining services and Haul Road income, neither of which are correlated to the iron ore price. In addition, MinRes will receive 80% of its project joint venture partners’ share of free cash flows from Onslow Iron operations as repayment of the carried expenditure loan.
Capital and operating cost reductions MinRes continues to monitor commodity markets and manage its balance sheet accordingly. As foreshadowed at the FY24 full year results, the Company has been exploring measures to reduce capital and operational expenditure across the business.
Approximately $180 million of FY25 capital expenditure savings and $120 million of FY25 operational cost savings have been identified, including in the Lithium division.
Cost savings in Lithium include a reduction to operational headcount by transitioning to a two weeks on, one week off roster (from a two weeks on, two weeks off roster) at the Mt Marion and Wodgina operations.
Employees have been notified and these changes will take effect over the next four to six weeks.
There is no change to the Lithium FY25 production guidance or Mining Services FY25 volume guidance as a result of these operational changes.

MinRes Managing Director Chris Ellison said:“Our partnership with Morgan Stanley Infrastructure Partners will release $1.3 billion of value from the haul road,highlighting the quality of earnings that Onslow Iron is set to achieve.“

Importantly, under this unique partnership, MinRes maintains majority exposure to the stable earnings that the haul road will deliver over the project’s life.“
Onslow Iron is scheduled to be operationally complete next month, with the ramp-up progressing to plan and the project cash flow positive for MinRes from October.“

As foreshadowed in our full year results, MinRes is focused on reducing costs and preserving cash in response to a period of low lithium prices and a softer iron ore price.
“We continue to identify measures to reduce capital and operational expenditure to suit the business environment.“
As the haul road partnership demonstrates, we have many non-dilutionary levers at our disposal across the business to release additional value for shareholders.”

ENDS

i hold MIN ( 'free-carried' )
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Chris did not say yet how he wants to pay off the multi billion dollar debt
DNH
 
Miner said:
Chris did not say yet how he wants to pay off the multi billion dollar debt
DNH
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i am guessing he will nibble away at it via cost-cutting , maybe some solid production results as well

but huge debt is not so uncommon these days

maybe bonds/hybrids offered to the international market seems the way the big players prefer
 
divs4ever said:
i am guessing he will nibble away at it via cost-cutting , maybe some solid production results as well

but huge debt is not so uncommon these days

maybe bonds/hybrids offered to the international market seems the way the big players prefer
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Your assumption may be correct .
However currently both AFR and West media are after him. This in effect does affect market.
 
Miner said:
Your assumption may be correct .
However currently both AFR and West media are after him. This in effect does affect market.
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a friend is about to tip money into MIN, but not FMG. He reckons it's fallen far enough, likes the diversified nature of their activities and thinks the negative comments help drive down sentiment, making risk- reward more attractive
 
Miner said:
Chris did not say yet how he wants to pay off the multi billion dollar debt
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.. "MIN is slashing worker numbers and conditions at its WA mines and businesses as it receives FIRB approval to sell a 49% stake in a dedicated iron ore haul road, pocketing $1.1 billion from US investors."

that's a start
 
Market Matters comment today. Relates the price surge to an upset to expectation of a capital raise after the sale announcement and short covering.
  • Mineral Resources (MIN) had become the new short of choice for many traders on the threat of a capital raise, but it announced the FIRB had approved the sale of 49% of the Onslow Iron haul road, which will give them $1.1bn in the next 15 days, plus some residual performance-related payments. This will take some pressure off the balance sheet, i.e., there are fewer risks of a cap raise in the near future.
Not Held
 
mullokintyre said:
The Australian (aka Evil Murdoch Press) is also on the lets get Ellison bandwagon.
Blokes doomed.
Mick
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not as doomed as the evil Murdoch Empire their industry is dying completely , whether it is televised sports , woke movies , inane advertising or just general narratives
 
finicky said:
Mineral Resources (MIN) had become the new short of choice for many traders on the threat of a capital raise..
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Hedge funds are shorting the pants off the stock. They reckon MinRes is in a world of balance sheet and earnings pain, and have doubled their bets against the company in the past three months.

Short positions raced to 10.6 per cent of MinRes’ issued equity at 13 September , the most recent available data from ASIC, making MinRes the most heavily shorted stock in the top 50.
 
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