SYDNEY, June 29, 2026, 04:10 AEST
- The ASX cash market was in pre-open in Sydney. Regular trading begins at 09:59:45 local time.
- Mineral Resources ended Friday at A$63.14, down 8.7% from the previous Friday, erasing about A$1.19 billion in market value by calculation.
- Lucky Bay will halt operations on July 1, affecting around 110 jobs and resulting in an estimated A$40 million non-cash impairment.
- Upcoming for the company: quarterly results on July 29 and a preliminary full-year report on Aug. 27.
Mineral Resources Limited ASX:MIN faces a market hit much bigger than its garnet write-down as trading opens Monday. Shares dropped 8.7% last week to A$63.14, leaving the company with a market cap of A$12.48 billion. This wiped about A$1.19 billion off its equity value for the week—almost 30 times the A$40 million non-cash charge signaled for Lucky Bay.
That’s the investor view. Lucky Bay alone is not enough to move the needle for MinRes. The market is focused on cost risk, asset quality, and capital discipline at a company that carried about A$4.5 billion in net debt as of March 31.
The S&P/ASX 200 (INDEXASX:XJO) was yet to open at the time of writing. The index gained 0.18% to 8,764.20 on Friday. Mineral Resources dropped 1.56% to A$63.14.
MinRes said on June 25 it will place the Lucky Bay garnet project in Western Australia on care and maintenance starting July 1. The company cited weaker mine performance due to conflict in the Middle East, a key sales market, along with higher diesel and shipping costs. MinRes said it will review options, including a potential sale.
The shares fell during a tough period for miners. IG analyst Tony Sycamore told AAP that Thursday’s local decline was linked to profit warnings and weaker commodity prices as the U.S. dollar strengthened. AAP reported that the materials and mining sector dropped 2.3% that day, with BHP Group Limited ASX:BHP, Rio Tinto Limited ASX:RIO and Fortescue Ltd ASX:FMG all losing ground.
| Measure | Latest figure | Investor read-through |
|---|---|---|
| MIN close | A$63.14 on June 26 | Shares ended 8.7% lower than last Friday’s A$69.15 close |
| MIN market value | A$12.48 bln | This week’s drop erased about A$1.19 bln in equity value |
| Lucky Bay charge | About A$40 mln | The loss in market cap is roughly 30 times the planned impairment |
| Mt Marion expansion | A$490 mln, 100% basis | Spending on lithium dwarfs the garnet-related hit |
| Balance sheet | A$4.5 bln net debt; A$1.8 bln liquidity | Debt heightens the impact from even small capital setbacks |
The clean-up comes alongside new lithium investment. In May, MinRes and Jiangxi Ganfeng Lithium Co Ltd HKG:1772 approved a A$490 million Mt Marion expansion on a 100% basis, with construction slated to begin in the first quarter of fiscal 2027. MinRes Managing Director Chris Ellison said the project “sets up Mt Marion for decades to come.” Mineral Resources
MinRes plans to reopen its wholly owned Bald Hill lithium mine. The company said activity would begin in late May, with first spodumene output expected in July. It aims to reach full production in the second quarter of fiscal 2027. Ellison said, “the time is right to restart operations at Bald Hill.” Mineral Resources
The balance sheet has strengthened, but it remains key to the trade. MinRes reported in its March quarter update that liquidity increased to A$1.8 billion from A$1.4 billion, while net debt declined to about A$4.5 billion from A$4.9 billion. The company also raised US$1.3 billion in senior notes after the quarter to refinance more expensive debt.
Key dates coming up are July 1 for Lucky Bay care and maintenance, July 29 for the quarterly report, and Aug. 27 for preliminary full-year results. Those updates could clarify the Lucky Bay impact and provide new figures on diesel, shipping, and rising lithium costs.
