Mineral Resources Limited

Thank you for standing by and welcome to Mineral Resources Call covering today's release of its September 2026 Exploration and Mining Activity Report. Your speakers today are Mel Bundy, Independent Non-Executive Chair, Mark Wilson, Chief Financial Officer, Darren Killeen, Chief Operating Officer, and Chris Chong, General Manager, Investor Relations. A little bit of admin before we kick off. Participants will be able to ask both text and live audio questions. To ask a text question, select the messaging icon, type your question in the box towards the top of the screen, and press the send button. To ask a live audio question, press the request to speak button at the top of the broadcast window. The broadcast will be replaced by the audio question screen. Use the dial-in number and access pin provided to ask your question via the phone. Alternatively, for those on a home or personal network, you can ask your question via the web by pressing Join Queue. If prompted, select Allow in the pop-up to grant access to your microphone. If you have any issues using the platform, dial-in details can also be found on the homepage under Asking Audio Questions. Text questions can be submitted at any time and the audio queue is now open. This call is being recorded with a written transcript being uploaded to the MinRES website later today. I will now hand over to the MinRES team.

Thanks, David, and good morning, everyone. Thanks for joining us. My name is Mark Wilson. I'm the CFO of Mineral Resources and joining me today is Mel Bundy, Chair, Darren Colleen, Chief Operating Officer, and Chris Chong, General Manager, Investor Relations. I'll start this morning with a few opening remarks on the quarter before we move to questions. The September quarter again demonstrated the strength of our diversified business model. We posted record quarterly mining services volumes of 103 million tonnes. We achieved record production across Underflow Iron and the Pilbara Hub. And we delivered record lithium sales. Our cost control by our teams on site over the quarter was outstanding. Our focus remains on what we can control, operational delivery, cost discipline and a strong balance sheet, allocating capital only where the returns justify it. On the governance front in September, ASIC advised it had concluded its investigation would take no enforcement action. We're pleased to have that matter closed, noting it does not change our focus on governance, which remains a priority. Moving to the balance sheet, which continues to strengthen despite softer iron ore and lithium prices. Liquidity improved to $2.5 billion at 30 September, comprising $1.7 billion of cash. and a fully undrawn $800 million revolving credit facility. In September, Fitch upgraded our credit rating to BB with a stable outlook. Over the quarter, net debt reduced to approximately $4.1 billion, largely reflecting a $170 million increase in cash. And that cash increase was after capital expenditure of $310 million and the payment of the FY26 four-year dividend of $160 million. FX movements on our US dollar liabilities, other working capital movements and net interest paid were minimal in the quarter. We still expect the POSCO lithium transaction to complete in the first half of FY27, subject to conditions precedent. Just a note on diesel before we turn to the operations. Again, we experienced no disruption to fuel supply. Average diesel prices for the quarter were in line with $1.25 per litre in our cost guidance. However, prices rose to around $1.60 per litre in September and with a one-month pricing lag, we expect that increase to flow through to FOB costs from October. On a run rate basis, just to give you some guidance, that $0.35 increase equates to about $1 per tonne at Onflow Iron, $2 per tonne at the Pilbara Hub, and about $20 per tonne SE6 at our lithium sites. Regardless if diesel prices stay at this level, we still expect FY27 FOB costs to remain within guidance at every operation, with Mount Marion at the upper end of its range. More on this shortly. As a reminder, mining services margins are not affected by diesel prices and this is because fuel cost is generally passed through to or supplied by the client. Turning to mining services, quarterly production volumes were up 10% from the prior quarter, with a record 103 million tonnes. This was driven by the ramp-up of Bald Hill and the Pilbara Hub, as well as increased strip activity at Mount Marion. We also commenced a new external contract for ore sorting, renewed two existing crushing contracts and completed two contracts in the quarter. And we remain on track for FY27 guidance between 370 to 390 million tonnes. In the iron ore division, Onslow Iron produced a record 10.7 million tonnes in the quarter, up 17% on the prior quarter on a 100% basis. We saw shipments from Onslaught Line at 9.2 million tonnes on a 100% basis, which is an annualised run rate of approximately 36.9 million tonnes. The tributal shipments were 5 million tonnes, or 54% of the total, compared to our 57% equity share, and that simply reflects shipment timing. Onflow Iron is tracking to guidance despite some unseasonable weather and a seven day impact due to maintenance of the port in load circuit earlier in the period. Once the circuit returned to service, September was the project's highest export month on record at 3.49 million tonnes, surpassing the previous record set in June. The seventh transshipper was commissioned in August and with seven transshippers now in the fleet, One vessel can rotate through scheduled maintenance while six remain in operation and that gives us the flexibility and redundancy we were targeting. The first part of the dredging campaign at the port of Ashburton is complete. Works will resume in mid-November and they're expected to be complete by the end of the December quarter. We expect only minimal impact on volumes. Realisations in the quarter were solid at 86% of the PLATS 61% index and FOB costs was $53 per tonne, below the lower end of our $54 to $58 per tonne guidance range. Again, we maintain FY27 FOB cost guidance despite current elevated diesel pricing. At the Pilbara hub, production was 3.2 million tonnes, that's up 55% on the prior quarter, and we shipped 2.9 million tonnes. Lamb Creek successfully transitioned from commissioning to full operations with all major construction complete. I just want to point out Lamb Creek is a great demonstration of our in-house engineering and construction capability to deliver at speed. We only broke ground at the site in December 25. Realisations in the quarter were 84% of the PLAT 61% index supported by higher lump weighting. Bob cost us $75 per tonne, in line with guidance of $74 to $79 per tonne. In Lithium, sales were a record 170,000 tonnes SC6, up 8%. The average realised price was US$1,873 per tonne SC6. That's down 23%, impacted by the sharp pull in Lithium prices in September. For context, as most of Minres's lithium sales are made on the spot market, our realised prices move ahead of the lagging indices. That means realisations fall earlier than the indices in a foreign market like September, and we've tended to outperform the indices when prices are rising. In addition, average realised prices would have been 2% higher, excluding prior period adjustments. Discipline and cost control remains a priority, as you've seen across all of our sites as we navigate market conditions through the cycle. At Wojana, sales were 90,000 tonnes SE6 and all three trains operated continuously. That lifted production by 9%. Stage 3 ore became available in the quarter and recoveries improved to 70%. We expect more consistent clean ore supply in the second half. Plob cost was down to $674 per tonne SZ6 within guidance. At Marion, this is a transitional year for Mount Marion with volumes moderating as we open up the northern pits. We expect plob cost to be higher, reflecting lower volumes and recoveries. Stripping activity will be elevated this year before the strip ratio decreases in FY28 as underground feed is incorporated. Construction of the flotation plant has commenced and earthworks are on track. McMahon also mobilised the site in July and blasting of the underground bed plant has commenced. In the quarter, the opening of the northern pitch lifted the strip ratio We also set a higher proportion of lower grade contact ore, which reduced recoveries to 52%. Sales totaled 58,000 dry metric tonnes, SC6 equivalent basis. Fog cost was $1,029 per tonne SC6, marginally above the top of our full year guidance range of $960 to $1,020. Reflecting the Q1 result we expect the FY27 FOBCOS to be at the upper end of guidance as we expect recoveries to improve marginally. At Balls Hill we continue this ramp up in the quarter and is on track to name plate of 140,000 tonnes SE6 this quarter. FOD costs of $1,498 per tonne SE6 reflects a low volume ramp up quarter and we expect the full year to land within the guidance range of $1,150 to $1,250. In closing, this was a strong start to FY27. and it built on our operational performance in FY26. We delivered records across mining services, volumes, iron ore production and lithium sales. FY27 guidance is maintained for every division. Liquidity is higher and net debt lower. The quarter showed the resilience of our diversified model with mining services as its foundation. With our strong liquidity and leveraged positions, we're well positioned to capitalise on the large pipeline of opportunities in front of us. With that, I'll hand back to Loomie to facilitate questions. Thanks.

Thank you, Mark. If you have not yet submitted your text question or joined the live audio queue, please do so now. I will introduce each caller by name and ask you to go ahead. You'll then hear a beep indicating your microphone is live. and our first caller today comes from Matthew Friedman from MST Financial. Please go ahead.