Mineral Resources has posted a net profit after tax of $97 million for 2010, an improvement of 119 per cent on the previous year.
Mineral Resources has posted a net profit after tax of $97 million for 2010, an improvement of 119 per cent on the previous year.
In its annual financial report, Minerals Resources attributed the result to having benefited from a strong contracting and commodity sector and underlying business fundamentals.
The company's normalised profit before tax was up 26 per cent to $62.5 million.
Mineral Resources expects to pay shareholders a fully franked final dividend of 13.6 cents per share.
See Mineral Resources Chairman's letter below:
Directors of Mineral Resources Limited (Company) (ASX:MIN) are pleased to present the 2009/10 Financial Report to the markets.
HIGHLIGHTS:
- Headline net profit after tax of $97.2 million, an improvement of 119.4% on the
previous year.
- Normalised net profit after tax (before one off tax adjustment) of $62.5 million, an improvement of 26% on the previous year
- Final fully franked dividend of 13.6 cents, bringing the full dividend for the year
to 20.0 cents per share.
The Company has produced an outstanding financial result for the year having benefited from a strong contracting and commodity sector and underlying business fundamentals. Normalised net profit after tax (before one-off tax adjustments) of $62.5 million (2009: $49.6 million), is a 26% increase on 2009 and represents a solid measure of initial performance against the Company's strategic growth objectives in all aspects of the business. In addition, a number of positive one-off tax related adjustments have enhanced a record profit performance.
Directors have decided to increase the annual dividend rate from the 2008/09 level and declared today a fully franked final dividend for the 2009/10 year of 13.6 cents per share, payable on 18 November, 2010 for all shareholders of record at 22 September 2010 giving a total fully franked dividend for the year of 20.0 cents per share. This represents an increase in total dividends paid to shareholders of 34.8% over 2008/09, primarily reflecting the significant increase in the number of shares on issue during the period.
This pay-out rate combined with the share price increase during the year (closing price on 30 June 2009, $4.25; closing price 30 June 2010, $8.10) has produced a significant improvement in shareholder value across the 2009/10 year.
Mineral Resources reports its business results as two operating segments being mining services and processing (comprising the traditional MRL operations) and mining (comprising the Polaris operations) operating within the resources sector of the Australian economy.
Concurrent with the achievement of producing an outstanding operating result for the year, the Company continues to pursue its previously nominated high growth strategy focused on volume expansion in both the services and processing/mining activities within the steel making commodities sector.
In addition to increasing the underlying mining services base from the expansion of existing contracts and the acquisition of new work, the Company has increased its export volumes of both iron ore and manganese and has entered into agreements, and is progressing opportunities, for the development of increased production of commodities such as iron ore, manganese and lithium. This has been achieved from a combined growth strategy comprising organic growth, strategic alliances and also mergers and acquisitions.
Directors would like to welcome new shareholders coming onto the register during the year from the acquisition of both Polaris Metals and Mesa Minerals, from an expanded share base assisted by the on-market share placement in December 2009 and also from our strategic partners, Hancock Prospecting, which exercised its first tranche of share options in August 2010. Many of these new shareholders have continued to hold their investment in the Company which is a strong reflection of the positive sentiment towards our business.
Consistent with a heavy focus toward developing growth objectives across all facets of the business, the Company remains focused on the fundamental operational factors of cost control, cash flow and client relationships to optimise the ongoing returns for all stakeholders.
Throughout 2009/10 the Company has continued to establish itself as a significant player in the resource sector and also within the general financial and investing community. Successful generation of expansion in shareholder value has been achieved through the solid management of the existing business and the success in seeking and accessing high value growth opportunities. Success for the 2009/10 year culminated in the Company being elevated to the ASX 200 index in early 2010 and in being successful in the Rio Tinto Iron Ore Supplier Recognition Program with awards as Overall Winner and for Excellence in the provision of Construction and Maintenance Services.
This has been an outstanding year and sets the stage for substantial further growth across all of our business activities. On behalf of the Board and the management team, I would like to take the opportunity to acknowledge the contribution of all customers, employees and contractors of the business and thank them for their assistance in producing continued positive business outcomes for all stakeholders.
