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MIN - Mineral Resources

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from MIN's AGM presentation Nov19.

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tinhat said:
Ha! I came here because I was looking at the MIN chart right now and thinking that it is a tasty looking chart! A cup and handle has now formed on the chart with the handle forming since mid-Dec 19. There could be a nice breakout.
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The consolidation over the last month looks good, however the unfilled gap between $17.405 and $17.58 could act as resistance to an increase in the share price at this point in time. Damn, maybe another spilled cuppa!
 
Mineral Resources to acquire Red Hill Iron’s JV interest

Mineral Resources Limited (ASX: MIN) (MRL or the Company) is pleased to announce an agreement with Red Hill Iron Limited (ASX: RHI; Red Hill Iron) to acquire RHI’s 40% participating interest in the Red Hill Iron Ore Joint Venture (RHIOJV) in the West Pilbara region of Western Australia. The proposed acquisition of the RHIOJV interest aligns with MRL’s strategy to expand its resource inventory around the Ashburton Hub to underpin a long-term, sustainable iron ore export business. The RHIOJV was created in 2005 when the Australian Premium Iron Joint Venture (APIJV) farmed into RHI’s mineral tenements, covering some 1,900km2 along the western margin of the Hamersley Province. APIJV retains a 60% interest in RHIOJV. RHI has previously reported that the RHIOJV tenements contain a Mineral Resource of 820Mt grading 56.44% iron – see RHI ASX announcement dated 30 January 2020 Red Hill Iron Ore Joint Venture Mineral Resource Update. The material terms of MRL’s proposed acquisition of RHI’s participating interest in RHIOJV are as follows: • The transaction is conditional on RHI obtaining shareholder approval. • MRL will pay RHI $200m, out of existing cash resources, on completion of the acquisition of the RHIOJV interest and a further $200m cash when the first commercial shipment of iron ore extracted from the RHIOJV tenements departs port. • In addition, MRL will pay RHI a royalty of 0.75% of FOB revenue on all iron ore that is extracted and sold from the RHIOJV tenements and, from MRL’s Bungaroo South tenement, provided Bungaroo South is developed in association with the development of the RHIOJV tenements. MRL expects the acquisition of the RHIOJV interest to complete around early September 2021. The APIJV is held 50-50 by Aquila Steel Pty Ltd (50%) and AMCI (IO) Pty Ltd (50%). Aquila Steel is a wholly owned subsidiary of Aquila Resources Pty Ltd which is owned 85% by Baosteel and 15% by MRL, while AMCI (IO) is owned 51% by AMCI and 49% by POSCO. MRL’s Ashburton Hub project envisages annual iron ore exports of up to 30Mtpa, based on iron ore deposits including Bungaroo South and Kumina. Mineral Resources Managing Director Chris Ellison said: “We are pleased to have reached agreement with Red Hill Iron to acquire its participating interest in RHIOJV. The transaction is in line with our strategy to build own and operate infrastructure assets to unlock stranded iron ore deposits in the Pilbara and build a long-life, sustainable iron ore business exporting out of Onslow.” “The RHIOJV holds a sizeable iron ore Mineral Resource in a strategically significant location in the West Pilbara. MRL’s proposed acquisition of RHI’s participating interest in the RHIOJV will enhance the Company’s iron ore footprint in the West Pilbara as we progress our Ashburton Hub development.” “We look forward to joining the RHIOJV and working constructively with the other partners to deliver value for all stakeholders.”

DYOR

i hold MIN ( 'free-carried' )
 
Mineral Resources completes acquisition of RHIOJV interest
Mineral Resources (ASX: MIN; MRL or the Company) is pleased to announce that it has completed the acquisition of Red Hill Iron Limited’s (ASX: RHI; Red Hill) 40% participating interest in the Red Hill Iron Ore Joint Venture (RHIOJV), in the West Pilbara region of Western Australia. The acquisition of the RHIOJV interest aligns with MRL’s strategy to expand its resource inventory around the Company’s Ashburton Hub to underpin a long-term, sustainable iron ore export business. Completion of the RHIOJV interest acquisition was conditional on Red Hill shareholder approval, which was obtained yesterday. In line with the terms of the transaction MRL has paid Red Hill $200m, out of existing cash resources. The material terms of the transaction are detailed in MRL’s ASX announcement and Red Hill’s ASX announcement, both dated 30 July 2021. The RHIOJV was created in 2005 when the Australian Premium Iron Joint Venture (APIJV) farmed into Red Hill’s mineral tenements, covering some 1,900km2 along the western margin of the Hamersley Province. Following completion of the transaction with Red Hill, MRL now holds a 40% participating interest in RHIOJV with the APIJV holding the remaining 60%. The APIJV is jointly held by AMCI (IO) Pty Ltd (50%) and Aquila Steel Pty Ltd (50%). Aquila Steel Pty Ltd is a wholly owned subsidiary of Aquila Resources Pty Ltd, which is owned 85% by Baosteel and 15% by MRL, while AMCI (IO) Pty Ltd is owned 51% by AMCI and 49% by POSCO. MRL looks forward to working constructively with the APIJV to deliver value for all stakeholders.


DYOR

i hold MIN ( 'free-carried' )
 
waterbottle said:
Any reason for the fall? Are the costs higher to sell lithium?
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@waterbottle
There could be many unknowns why market fell.
However please refer @tech/a published chart giving the trend and quarterly report to confirm, as a guide.
Market price of iron ore.
You may refer to this one https://stockhead.com.au/
Today there could be some recovery due to general market sentiment - who knows.
 

Is Mineral Resources (ASX:MIN) A Risky Investment?​


simplywall.st

Is Mineral Resources (ASX:MIN) A Risky Investment?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
simplywall.st simplywall.st

spotted this article this evening

DYOR

i hold MIN ( 'free-carried' )

until this drops to somewhere around $15 i have no plans to add more , the train has already left the station for me , but i did grab a handful
 
' collapse in iron ore prices ' ??

are they freaking serious ??

several iron ore miners have been going great guns , several are making profits @ $40 a tonne
 
divs4ever said:
' collapse in iron ore prices ' ??

are they freaking serious ??

several iron ore miners have been going great guns , several are making profits @ $40 a tonne
Click to expand...

Yep, there was a company with a small iron operation in Tassie that had to shut down once the price went under $100... Forgotten who it was.
 
Sean K said:
Yep, there was a company with a small iron operation in Tassie that had to shut down once the price went under $100... Forgotten who it was.
Click to expand...
TMM was taken private by the top shareholders ( so was always anxious GRR would suffer the same fate ) , and ARI was struggling in South Australia to mine at a profit , but the iron prices are way above what they would normally be at this stage of the mining cycle
 
the purpose of the post what that line in the sand, sorry for no real explanations, but here's what I note:

firstly, that's a Daily chart too, I'd typically get a "feel" off the Weekly

  • the red downtrend slither has crossed below the two orange ma lines (think of that as two longer term mas forming a Path)
  • the red downward slither has turned back up over the last few days
  • that turn up in prices now has stopped short of the Nov / Dec downturn level
  • even though the shape of the current red slither is forming an up direction, sentiment (the background colour of the chart) is still red because it hasn't yet turned to cross back above the orange ma Paths
  • if the price actions repeats what it did there in December a green signal alert will show
  • if the price action continues we'll see a green sentiment (background) and that blue area under the short term trend slither and the orange ma Paths will be highlighted in blue. I think of that blue as "blue skies"
  • the horizontal purple "stripes" show the within 5% of Highs and Lows to help with where current price is in context to those, and also whether rolling higher highs and higher lows channels are being set or not

In summary the price is looking like it's trying to turn back up after an extended 1 month sell off, if it does the pattern will be a very similar setup as December was.

Of Course charts don't predict the future, but they help understand what price is doing in terms of following the trends.

On the flip side to the chart, a number of panelists and commentators have been backing MIN as much for the sell down being overdone and the possibilty of China reducing interest rates to stimulate their economy and hence create demand in that sector.

As it stands, they're only opinions of some commentators and panelists, until that plays out with price action beaing supported on the charts as in actual people buying more than those that are selling, the panelists just have a theory atthe moment.

Hence the chart is a line in the sand in that context.

Both charts and fundamentals have a place in investment decision in my opinion.

This format that I'm using with the red / green / blue (skies) sentiment just helps me assess a chart wihtin a few seconds, and its underlying premise is price compared to moving averages of the price trends, normal simple stuff with regards to "seeing" where the momentum in the stock is at the moment.

For the benefit of a comparison and context of the above response / explanation, here's the current chart at end of day - 3rd March 2022

1646319117417.png
 
MIN doesn't seems to get a lot of shareholder love on the chat boards.
Nevertheless, as a lithium play it's been on the rise of late and up a further 10% on speculation that it will list its lithium assets in USA. Early stages yet tho.
 
Hi rabbit,

Spent some time doing FA & TA for MIN - so here we go -

As you know, I feel the Lithium industry will run out of steam in the Medium Term (5 to 10 years) – suggest that you do a Google search for “Alternatives to Rare Earth Elements”.

Financials: -
Don’t like the look of MIN’s Financials – too many overinflated Guesstimates IMO.

Forward EPS figures are way too high – Cash Flow is Down – Current EPS is Down - Dividends will gradually decrease over the next 5 years (so I immediately wonder why MIN would insinuate that, do they know something we don't).


Maybe MIN had to issue inflated EPS & scaled down Dividend figures to justify the huge increase in Debt.

ROE has decreased from 40.80 to 11.30 & ROC has decreased from 32.00 to 7.00.

EBIT is down from 1916 to 616, NPAA and EBITDA are also down – WTF ?????


Technicals:-

Most Analysts have a 12mth Target of $72.00 to $80.00 – My IV would be well below those figures, as MIN’s Financials are not conducive to a Buffett Style IV Calculation.

The Gap Up on 9/9/22 is a worry as it shows "Loss of Momentum", and that punters are wary of sustainable higher prices.

The 10 candles from 9/9/22 to 23/9/22 (incl) are 6 Red & 4 Green, and most of them show that Sellers are in control (page 5).

The last obvious Buy Signals were given late Feb 22, Mid March 22, and then Mid July 22.

SP has rattled around within a “100 Day Linear Regression” (pages139–142)

CCI gave its Sell Signal after the Gap Up on 9/9/22 – The MFI gave it’s Sell Signal after COB 13/9/22.

TA does not support a Higher SP.
20220923 MIN Chart.jpg



Summary:-

Certainly NOT a Buffett Style Stock.

IMO MIN appears 2B driven by “Ramping, Innuendo, Irrational Announcements, and Sheep Punters”, they are the only events keeping MIN’s SP at current levels.

FA & TA Do NOT support any great SP hikes in the ST.

In fact, both FA & TA Suggest ST Downtrend.

Cheers M8
 
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