On 22 August 2019, Mineral Resources Limited (MRL, Company) announced its full year results for the period ended 30 June 2019. Revenues for the period were AUD1.51bn, down 7% on the prior corresponding period (pcp). The Company generated normalised EBITDA of AUD433m for the year, while this was above previous guidance of AUD360m-AUD390m, it was down 14% on FY18 results. MRL also reported a lower EBITDA margin of 29%.
The Company reported a AUD873m increase in its net debt over the year, resulting from the debt funding of its FY19 capex and investment expenditure. As at FYE, MRL had a gross leverage and net leverage ratio of 2.6x and 2.0x, respectively. We continue to expect MRL’s financial leverage will tick up given the Company’s large growth pipeline over the coming years. We also anticipate the Company will generate material negative free cash flow in the near term. MRL’s net free cash flow for FY19 was AUD(589)m.