Commodity Price Strength Counters Impact of Cyclones for Mineral Resources

Mineral Resources grew significantly following listing on the Australian Securities Exchange in 2006. Demand for crushing and screening services grew strongly with iron ore output from the major Western Australian iron ore miners. Cost inflation encouraged large mining companies to outsource capital-intensive, lower-returning processes. The miner also rapidly expanded its own iron ore mining business, though lacking the integrated rail and port infrastructure of major competitors and at a competitive disadvantage, albeit reduced after construction of the lower-cost Onslow mine. More recent diversification into lithium production at Mt Marion and Wodgina delivered earnings momentum.