MinRes tips 38% profit growth

Mineral Resources is expecting to defy the mining services downturn, telling shareholders today that it anticipates strong growth in net profit in the current financial year.

Chairman Peter Wade told the company’s annual meeting that the board endorsed the current market consensus forecast for the year to June 2014.

This represents a net profit of between $247.8 million, based on the IRESS survey of brokers, and $252.8 million, based on Bloomberg data.

These numbers would equate to growth of 37 to 39 per cent over the $180.4 million net profit reported in the 2013 financial year.

Mr Wade said the company was assuming iron ore prices would “soften marginally” during 2014.

Mineral Resources was also planning to lift iron ore production, from its mines in the Pilbara and Yilgarn regions, from 5.5 million tonnes to an annualised rate of 8mt in the current year.

The company offers a diverse range of services across several different brands, including mining, crushing, pipeline construction and mine village operations.

It exported a record 5.5 million tonnes of iron ore in the 2013 financial year.