Mineral Resources Ltd

This report is an updated version of the report published on 26 July 2023 at 2:31­ PM GMT.

Section 1: Company Overview and Fundamentals Insights

Mineral Resources Ltd (ASX: MIN) is an Australian listed diversified resources entity that owns a portfolio of mining operations across multiple commodities, including iron ore and lithium. The Company operates through five segments: Mining services and processing, iron ore, lithium, other commodities, and central. Kalkine’s Resources Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

1.2 The Key Positives, Negatives, Investment Highlights, and Management Insights

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~28.56% of the total shareholding. Ellison (Christopher James) and Norges Bank Investment Management (NBIM) and are holding maximum stakes of 11.46% and 2.83%, respectively.

1.4 Key Metrics: During H1 FY23, net profit after tax and diluted earnings per share (EPS) jumped 1,890% and 1,888%, respectively. Below is captured other metrics for the past 4 years:

Section 2: Business Updates, Financial Highlights, and Historical Financial Trend

2.1 Recent Business Updates:

2.2 H1 FY23 Results Highlights: Below mentioned are some key financial highlights:  

2.3 Historical Financial Trend

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

The stock price has increased by 3.66% in last 1 month and over the last 1 year, it has shown a rally of 46.20%. The stock has a 52-week low and 52-week high of AUD 47.980 and AUD 96.970, respectively, and is currently trading around the 52-week high-low average. MIN was previously covered in a report dated ‘13 June 2023’.

   (Source: REFINITIV, Analysis by Kalkine Group)

4.2 Fundamental Valuation

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 26 July 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Disclaimer

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