Mineral Resources Ltd (MIN.AU) saw its stock price surge 5.12% in intraday trading, as investors reacted positively to the company's latest quarterly report. The Australian mining and mining services company reported robust iron ore production figures, which appeared to overshadow other potentially concerning announcements.
According to the report, Mineral Resources achieved a total iron ore production of 6.0 million wet metric tonnes across its Onslow Iron and Pilbara Hub operations for the quarter. This strong production performance seems to have bolstered investor confidence, despite the company announcing a reduction of 1,740 roles across its head office and sites since the start of the fiscal year 2025, indicating significant cost-cutting measures.
While the company marginally lowered its FY25 Onslow Iron volume guidance to 8.5-8.7 million tonnes, the market appears to have taken this adjustment in stride. Additionally, Mineral Resources disclosed an expected capital expenditure outflow of A$340 million in the fourth quarter of FY25, suggesting ongoing investment in its operations. The positive stock movement indicates that investors are focusing on the company's production capabilities and potential for future growth, even as it navigates challenges in the mining sector.
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