What is the story about?
What's Happening?
Mineral Resources (MinRes), an Australian iron-ore and lithium miner, is planning a $700 million bond offering to refinance notes maturing in 2027. The company aims to shore up its balance sheet after a year of heavy spending and weak lithium markets. The proposed senior unsecured notes, due 2031, will be sold to qualified institutional buyers and offshore investors. Fitch Ratings has assigned a 'BB-' rating to the notes, indicating that the refinancing will be leverage-neutral.
Why It's Important?
This bond offering is crucial for MinRes as it seeks to stabilize its financial position amid declining lithium earnings and increased leverage. The refinancing is expected to improve debt metrics from the 2026 financial year, driven by the ramp-up of the Onslow iron-ore project. The project is forecast to contribute significantly to the company's earnings, helping to reduce leverage and support future growth.
What's Next?
MinRes is counting on the Onslow project to drive deleveraging, with expected contributions of about A$1 billion in Ebitda in 2026. The company plans to ease growth capital expenditure after peaking in 2025. Fitch has highlighted governance issues as a risk but noted improvements in board oversight and related-party transactions.
AI Generated Content
Do you find this article useful?
