Mineral Resources holds guidance amidst looming coronavirus impacts


In a note about the virus, Moody’s investors service said China was a key consumer and importer of various commodities, and long-lasting production halts would lead to a drop in demand and depress their prices.

“The impact will trickle down to banks via their exposures to commodity-related companies in the energy, metals and agriculture industries,” the agency said.

Mr Ellison said that while he was unsure of the extent of the impact the virus would have on parts of the supply chain such as shipping, it was inevitable it was going to have an effect.

However, the company did not want to overreact.

“If we get down the track to March, April and we can see a different result coming out with the guidance we’ve given, we’ll flag it then, but I think if we tried to increase the result now, I think we’d be a little bit foolish because we can see some headwinds out there,” he said.

Mineral Resources reported a first-half EBITDA of $1.575 billion, propped by the $1.29 billion sale of a 60 per cent stake in WA’s Wodgina lithium operations to US-based lithium giant Albemarle.

The company’s revenue jumped 78 per cent to $987 million and net profit after tax hit $884 million, despite slashing $114 million off the value of its lithium assets following a tough six months of oversupply for the battery metal.

Shareholders will receive a fully-franked interim dividend of 23¢ a share.

Mineral Resources’ share price ended the day 2.68 per cent up to $17.60.



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