PERTH (miningweekly.com) – ASX-listed Mineral Resources has reported record earnings for the full year ended June, driven by the sale of its 60% interest in the Wodgina lithium project during 2019, and increased production.

Mineral Resources on Wednesday announced record statutory earnings before interest, taxes, depreciation and amortisation (Ebitda) of $2.01-billion, with underlying Ebitda increasing from A$433-million to A$765-million.

Net profits after tax for the full year increased from A$205-million to A$334-million, as revenue increased from A$1.51-billion to A$2.12-billion.

The company told shareholders that the increased revenue and Ebitda were driven by record mining services growth from the Koolyanobbing ramp-up, as well as record iron-ore sales of 14.1-million tonnes with the ramp-up of Koolyanobbing.

The higher iron-ore prices achieved in the 2020 financial year also contributed to the results, but this was partially offset by lower lithium revenues from adverse pricing for spodumene concentrate.

“This has been the most extraordinary year in the company’s history. It is a credit to the entire Mineral Resources family that we have been able to withstand the impact of Covid-19 to keep our people safe and employed,” said MD Chris Ellison.

“Notwithstanding the fact that the impact of Covid-19 dominated much of the past financial year, Mineral Resources has delivered record production and record profitability. We expanded our blue-chip client base for the mining services division and advanced our commodities division’s strategy to develop long-life projects that provide predictable volume and income streams for the mining services division.”

Ellison said that the company has entered the 2021 financial year with a strong balance sheet and positive momentum to its operations.

“We remain vigilant to the ongoing threat posed by Covid-19, as well as opportunities for which we can quickly and efficiently deploy the mining services capabilities that are the hallmark of our company.”