MinRes is a mining and mining services company. It has gone from ~$10 to ~$50 due to the rally in iron ore prices, for one, and the run in lithium prices, for two.

Any excitement over the lithium component should be moderated, as ~80% of the revenue is from iron ore related activities.

And, given the recent fall in iron ore prices, that segment is underwater.

When your cash costs of production are in the order of $100/t, and our long run incentive price target for iron ore is $70-$80/t, it is not clear than MIN survives the cycle in its current state.

Note of course that with iron ore back at (for the moment!) $140-150t, they are once again making profits, however, given our negative outlook on China’s property sector, and commodity demand more broadly, we remain firmly bearish on MIN’s prospects.

Not one for us.

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