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The Limited mineral resources (ASX: MIN) The stock price saw solid gains, up 74% from the same time last year. It comes as the mining services company experienced sky-high prices for iron ore and lithium throughout 2021 until recently.
At Monday’s market close, shares of Mineral Resources ended the day up 0.51% to $ 51.31.
What’s going on with the Mineral Resources share price?
Investors have been relatively bullish on the Mineral Resources share price despite falling sharply 16% over the past week.
The spot price of iron ore and lithium jumped in the first half of 2021, resulting in windfall profits for Mineral Resources.
In its full year results for fiscal year 21, the company reported revenue of $ 3.7 billion, up 76% from the previous corresponding period. The strong performance was driven by growth in mining services and new external contracts, record shipments of raw materials and high spot prices.
This led to underlying earnings before interest, taxes, depreciation and amortization (EBITDA) of $ 1.9 billion, up 148% from FY20.
However, as mentioned above, the Mineral Resources share price has fallen since the time the company revealed its FY21 dashboard.
The spot price of lithium and iron ore was weighed as China reduced its imports from Australia. In addition, the Asian country has intensified its national efforts to become more self-reliant in the production of essential minerals and iron ore.
Since August 13, shares of Mineral Resources have fallen from $ 61.52 to $ 51.31, a decline of 16.6%.
Mineral resource dividend yield
Mineral Resources paid a fully franked interim dividend of $ 1.00 per share to shareholders in March. On top of that, the company rewarded shareholders with a final dividend payment of $ 1.75 this earnings season.
Taking into account the current share price as well as its full year dividend payment, this gives Minerals Resources a dividend yield of 5.35%.
This isn’t a bad return for investors considering the company’s stock price over the past 12 months.