Mineral Resources (MIN) – Cutting a deal
November 24, 2025
Mineral Resources offers mining services in Australia, Asia, and internationally, as well as having its own operations in iron ore and lithium.
Mineral Resources (MIN) has formed a joint venture with POSCO Holdings for its lithium assets that sees the giant Korean group pay US$765 million ($1.2 billion) cash for a 30% stake in the JV, with the Australian company holding the other 70%. The purchase price values the Australian company's remaining stakes in the Wodgina and Mt Marion operations at circa $4 billion, versus a consensus valuation of $2.8 billion previously, and implies a long-term spodumene price of circa US$1600 a tonne, comfortably above market expectations centred on US$1240 a tonne. Breaking the $4 billion down equates to around $20 per Mineral Resources share, up from the prior market valuation of $14 a share.
Mineral Resources will still be the operator of Wodgina and Mt Marion as per current deals with US company Albermarle and Hong Kong-based Ganfeng Lithium, neither of which have any pre-emptive rights over the POSCO deal. Post the deal, we make no changes to our FY26 EPS estimate, but our FY27 forecast falls 17.4% to incorporate the effect of the sale and our FY28 number rises 1.1%. We maintain a price target of $55.00 on Mineral Resources and reiterate our Buy recommendation.
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