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Commodity Swings and Execution Risks Weigh on MIN Outlook

Apr 08, 2026 | Team Kalkine
Commodity Swings and Execution Risks Weigh on MIN Outlook
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  • MIN:ASX
  • Investment Type
    Large-cap
  • Risk Level
  • Action
  • Rec. Price (AU$)

This report is an updated version of the report published on 9 April 2026 at 3:54 PM AEST.

Mineral Resources Ltd (ASX: MIN)

MIN is a diversified resources company with operations in lithium, iron ore, energy and mining services across Western Australia. The principal activities of the Company include mining activities and the integrated supply of goods and services to the resource sectors. It operates in five segments: Mining Services, Iron Ore, Lithium, Energy and Other Commodities.

Recommendation Rationale – SELL at AUD 58.620

  • Technical Standpoint: MIN’s share price has surpassed the R1 level and is approaching the R2 level recommended on 20 March 2026, hence, the stock could face some resistance in the near term.
  • Overvalued Multiples: On a forward 12-month basis – key valuation multiples (EV/EBITDA, Price/Cash Flow, Price/Earnings and Price/Book value) are higher than median of the Metals & Mining industry.
  • Rising Costs & Elevated Debt Levels: In H1FY26, MIN’s net finance costs increased by 28% year-on-year to AUD 233mn. Further, management commentary (e.g., mine sequencing and stripping) suggests costs may increase in H2FY26 as operations transition to higher-cost areas. MIN's net debt remains high at ~AUD 4.9bn at the end of H1FY26, even after a reduction during the half. This continues to pose a balance sheet risk, particularly in a volatile commodity environment.
  • Business Risk: MIN's earnings remain heavily leveraged to iron ore and lithium prices, which have historically been volatile and impacted financial performance. Any downturn in commodity prices could materially impact future revenue, margins, and cash flows.

MIN Daily Chart             


Valuation Methodology: Price/Cash Flow Per Share Approach (FY June'27E) (Illustrative)

 

Stock might trade at a slight premium to its peers, considering the upgraded lithium production guidance and positive outlook for FY26, EBITDA margin expansion in H1FY26, AUD 471mn yoy reduction in net debt in H1FY26.

For conducting valuation, peers such as Nickel Industries Ltd (ASX: NIC), Champion Iron Ltd (ASX: CIA), Capstone Copper Corp (ASX: CSC) and others have been considered.

Given the stock has crossed its R1 level, recent rally in the share price, and risks associated, it is prudent to sell the stock at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current market price of AUD 58.620, as of 9 April 2026, at 3:44 PM AEST.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 9 April 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices


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