2326 GMT - Mineral Resources's net debt rose again in 2Q, but the company could be at a tipping point that allows pressure on its balance sheet to ease over time. MinRes reported net debt of A$5.7 billion in 2Q, up from A$5.0 billion in 1Q. Still, Jefferies notes the Onslow iron-ore mining operation has become cash flow positive. That should help MinRes to bring its debt burden down in coming years. "MinRes is approaching a step-change in iron ore earnings, and with it the ability to de-lever its balance sheet," analyst Mitch Ryan says. "That said, the medium-term risk from elevated debt in a falling iron ore and soft lithium environment prevents us from turning more constructive." Jefferies retains a hold call on the stock. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
January 30, 2025 18:26 ET (23:26 GMT)
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