On Friday, Mineral Resources Limited (MIN:AU) (OTC:MALRF) was upgraded by Jefferies from an ‘underperform’ rating to a ‘hold’ rating and a new price target of A$40.00. Ta. The revisions reflect recent developments, including the completion of a major gas sale and an ongoing external review of the company’s corporate governance.
An external investigation into Mineral Resources’ reported corporate governance failures is expected to conclude by November 4. This follows the company’s production levels meeting expectations, with the Onslow project being a particular highlight. The company’s recent gas transactions, which involved $803 million in sales and a further $327 million in deferrals, were noted to have exceeded expectations and are expected to strengthen the company’s liquidity. There is.
Despite the upgrades, Jeffries pointed to several challenges Mineral Resources continues to face. The company is dealing with the impact of high debt service costs, exacerbated by falling iron ore prices and a weak lithium market. However, the company acknowledged its efforts in iron ore earnings and balance sheet deleveraging.
A Jefferies analyst statement summarized Mineral Resources’ complex financial picture, saying, “Gas sales of $803 million (plus $327 million deferred) exceeded expectations and supported liquidity. “We continue to face headwinds from high prices due to gradual changes in iron ore earnings and declining leverage in BS.” Upgraded to Hold due to debt repayments, decline in iron ore and soft lithium markets, PT AUD40.00. ”
Investors and market watchers will be closely watching the company’s progress, especially in light of the impending results of the corporate governance investigation and the potential impact on the company’s future operations and financial health.
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