Mineral Resources profit jumps by 28%

Mid-tier iron ore miner Mineral Resources has increased its full-year net profit by 28 per cent, but has missed its mark of about $250 million outlined in its half-yearly report.

Mineral Resorces recorded its net profit at $231 million, which came as the result of a 93 per cent increase in iron ore export volumes.

The company said the second-half result was affected by a 21 per cent decline in the achieved iron ore price and lesser crushed tonnes following the Fortescue Metals Group contract exit, but was assisted by strong performance in other areas of the business.

The company produced record revenues of $1.9 billion for the year, a 73 per cent increase on the previous financal year, which was achieved on iron ore exports of 10.4 million tonnes.

“The company has produced another record result for the year with a 38 per cent improvement in operational earnings, which is in keeping with expectations and achieves the profit guidance confirmed with markets in April,” Mineral Resources said in a statement.

Mineral Resources said it recorded earnings before interest, tax, depreciation and amortisation of $554 million, 45 per cent greater than FY13, and held $260 million in cash.

The company declared a final fully franked dividend of 32 cents per share, which represents a total distribution of about $59.7 million.

“This result represents the resilence of the business model with an outstanding result from each division of the company,” Mineral Resources said.

In June, Mineral Resources was outbid in a fight for control of Aquila Resources, which went to Aurizon and China’s Baosteel.

Mineral Resources’ share price fell by 4.63 per cent to $10.30 per share at 1:45pm.