MinRes Shares Catch A Bid In Correction Territory

Mineral Resources shares (ASX:MIN) climbed 1.20% to A$62.88 today, as buyers stepped back in after an almost perfect 10% correction from last week’s attempt above A$69. The stock had been as much as 3.4% higher intraday, before fading some of the rally into the close. After a 30% bounce in the MinRes share price in the four weeks into Aug 24th, a textbook correction that also saw a test of the 50day SMA followed, before today’s bid higher.

The move appears to reflect dip-buying in a stock that has become a favourite vehicle for exposure to both lithium and iron ore. Yesterday’s session saw MinRes fall around 4.4% as ASX lithium names sold off in sympathy with softer Chinese futures, a pattern that has repeatedly whipsawed the sector in recent months. Today’s rebound recovers a chunk of that lost ground and fits a familiar tape: when lithium sentiment stabilises, MinRes tends to bounce harder than most given its diversified earnings base and its leverage to any improvement in commodity prices.

The fundamental backdrop is doing much of the heavy lifting. The FY26 result delivered on 27 August was the strongest in the company’s 20-year listed history, with revenue up 44% to $6.5 billion, underlying EBITDA of $2.6 billion at a 39% margin, and underlying net profit of $822 million. Liquidity doubled to $2.4 billion, net debt to EBITDA fell to about 1.7 times, and the company reinstated a fully franked $0.83 per share dividend. Operationally, Onslow Iron is running at its 35 million tonne per annum nameplate, Mining Services posted record volumes of 341 million tonnes, and the lithium division contributed roughly $771 million of EBITDA from Wodgina and Mt Marion despite a soft pricing environment.

Two overhangs have also faded. ASIC has closed its offshore tax probe into the company and founder Chris Ellison with no enforcement action, removing a governance discount that had hung over the stock. And the binding joint venture with a major Korean steel group, expected to bring in US$765 million of gross proceeds, offers a credible deleveraging path and downstream optionality, even if the deal remains subject to conditions precedent.

The Setup From Here

The Street’s consensus target price sits at A$68.01, implying about 6.6% upside from today’s price, whilst the technical setup also offers a supportive backdrop. MinRes shares sit above its 50-day moving average at A$61.46, which itself sits above the 200-day average at A$59.57, an alignment that points to an intact medium-term uptrend. Shorter-term momentum has also been positive, with the 20-day exponential average at A$64.36 holding above the 50-day at A$63.24. Today’s price sits fractionally below that 20-day line, consistent with a modest pullback and rebound inside a consolidation rather than a clean breakout.