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Details can also be found on the homepage under Asking Audio Questions. Text questions can be submitted at any time and the audio queue is now open. Thank you for standing by and welcome to Mineral Resources FY 2025 Full Year Results Briefing. Your speakers today are Chris Ellison, Managing Director, and Mark Wilson, Chief Financial Officer. A bit of admin before we kick off. This is a sell- side call with analysts able to ask both text and live audio questions. To ask a text question, select the messaging icon. Type your question in the box towards the top of the screen and press the Send button. To ask a live audio question, press the Request to Speak button at the top of the broadcast window. The broadcast will be replaced by the Audio question screen.
Use the dial-in number and access pin provided to ask your question via the phone. Alternatively, for those on a home or personal network, you can ask your question via the web by pressing Join Queue. If prompted, select Allow in the pop-up to grant access to your microphone. If you have any issues using the platform, dial in. Details can also be found on the homepage under Asking audio questions. Text questions can be submitted at any time, and the audio queue is now open. This call is being recorded, with a written transcript being uploaded to the Mineral Resources website later today. I will now hand over to the Mineral Resources team.
Good morning. Welcome everyone and thanks for joining the MinRes Full Year Results. I'm Chris Ellison. I'm the Managing Director. I'm joined today by our Chair Mal Bundey and also by CFO Mark Wilson. Mark will speak on the financials once I get through. I want to start by acknowledging it's been a tough year. We've had Mal on Board for three months and as Chair for two months. In this short time, we've made extraordinary progress on the governance front and I'm confident the changes we made set MinRes up for an incredibly strong future. Our focus is on strengthening Board independence, improving transparency, and reviewing our governance framework while prioritizing and strengthening our balance sheet. I want to thank our workforce, more than 6,800 people. Their focus and commitment never wavered. Thanks to our partners for their support and to our clients over the past 12 months.
From an operational perspective, it's been an extraordinary year. The delivery of Onslow Iron was the most significant achievement in this company's history. We moved from a final investment decision three years ago to first ore on ship in May of 2024 with more than 100 vessels loaded with our transshippers and over 19 million tons have been shipped. As we demonstrated at our investor site visit in May, we've achieved so much in a short period. We constructed a 150 km private haul road to carry 300 ton payload road trains. That's an industry first globally. It's never happened anywhere in the world. We established a complete port marine operation including truck unload, storage, reclaim, transshipper, loadout, and designed, built, and commissioned five transshippers with two more due to arrive in mid 2026. We developed resort style accommodation and facilities at our FIFO workforce.
We want to create a safe environment for our female workforce and address the significant mental health issues that have existed in the mining industry for decades. As with any new project of this size, we faced challenges during commissioning, most notably the haul road. The team acted quickly, making the right investment decisions to future proof and improve the haul road. I'm pleased to confirm the upgrade is on track for full completion in mid-S eptember. Even with roadworks disruption, the entire supply chain performance has been outstanding. Over recent months, Onslow Iron has operated at an annualized run rate of 35 million tons in the four weeks to 26 August. The strong performance is in line with guidance of achieving nameplate capacity in quarter one FY 2026.
While the immediate focus is to achieve our FY 2026 volume guidance of 30 million tons- 33 million tons on 100% basis, we now have a clear pathway to operate above nameplate with minimal additional CapEx. Our sixth transship will arrive by the end of this financial year. Will be set then to increase beyond 35 million tons/ annum. Our mining services business, which deserves credit for the success at Onslow Iron, remains the heartbeat of MinRes. I view it more like an infrastructure business. It's anchored with fixed assets like the crushing plants, port facilities, the haul road. Also, more than 85% of our order book are from life-of-mine contracts beyond 15 years. Mining services earnings grew over 30% last year and volumes will grow over 10% this year. This continues the track record of strong growth over the last 20 years.
As a reminder, our IPO in July of 2006 mining services contributed a little over $20 million EBITDA. Once Onslow Iron is at a 35 million ton run rate, this whole business will contribute over $800 million in EBITDA for our share. This represents a 19% compound annual growth rate since IPO. The business is awarded three new contract wins and six contract renewals during the year. We have an exceptional retention rate which speaks to our ongoing focus on delivering value for our clients. In the past 10 years we've only lost two contracts to competitors, both of which we won back. These contracts give us stability through the cycles. They underpin our earnings and they allow us to take on large scale projects like Onslow Iron. Turning to lithium, I acknowledge we got the pricing wrong when we look back over the last two years.
I've been in the lithium business for over 16 years and I did not expect a return to prices around $600 a ton in my lifetime. Back in 2023 consensus analysts were all forecasting FY 2025 SC6 spod prices of around $1,500 a ton. This year we're focused on reducing costs, lifting performance to protect us through the cycle. We've made good progress and we expect lower costs than FY 2026. After lifting out of care and maintenance three and a half years ago, Wodgina has never performed better. While the market remains volatile, the long term reality hasn't changed. The global energy transition can't happen without an increase in lithium supply. With the support of our great JV partners, we've maintained flexibility to scale up quickly when the market turns in the iron ore business. We've decided to close the Yilgarn Hub and to sell the mines.
This closed the long and productive period in the region. At the Pilbara Hub, we're well advanced and are planning to bring out the next satellite deposit. Lamb Creek will be coming into production. We expect approval shortly with the first ore in the second half of FY 2026. The investment in Lamb Creek will extend the Pilbara Hub life by at least five years. Looking ahead, our immediate priorities are clear. We'll continue to lift governance standards, complete the ramp up of Onslow Iron, strengthen the balance sheet, continue to grow our mining services business, invest with discipline across the lithium to maximize returns against some challenging conditions. We finished the year with plenty of positive momentum, particularly at Onslow Iron, and that has continued into the start of FY 2026.
Onslow Iron is proof of our ability to deliver big ambitious projects quickly and to a standard that creates lasting value to our shareholders. That about wraps that up and I'll hand across to Mark for his commentary on the financials.
Thanks Chris and good morning everyone. Today I'm pleased to run you through MinRes's financial performance for FY 2025. As Chris said, it was another transformative year for MinRes, headlined by the delivery of Onslow Iron and record Mining Services earnings. We strengthened our position as a leader in Mining Services, continued to invest in world-class assets, and we unlocked substantial value from our core operations and infrastructure. This was achieved despite sharply lower commodity. Prices, particularly in lithium and iron ore.
Which inevitably impacted our results. Even so, we delivered a robust financial outcome with revenue of $4.5 billion. Underlying EBITDA of $900 million.
This performance reflects the strength of our diversified business model, cost and capital discipline, and the repositioning of our portfolio to transition to higher quality assets and increasing recurring mining services earnings. Mining Services delivered record underlying EBITDA of $737 million. This was driven by record production volumes and the strong ramp up at Onslow Iron with the first earnings recognized from the Onslow Iron Road Trust in iron ore. Underlying EBITDA was $252 million. In a year of transition, we placed the Yilgarn Hub into care and maintenance from December 24 as Chris noted. The change was more than offset by growth in Onslow Iron, reaffirming our focus on longer life, lower cost assets. In lithium, challenging market conditions saw prices fall to multi-year lows. Yet the division still delivered a positive underlying EBITDA of $23 million.
The key focus was on operational improvements and disciplined cost control, while Bald Hill was placed into care and maintenance to preserve value until conditions recover. A disciplined approach to cost and capital management continues to underpin the business, and this year we reduced corporate outflows through efficiency measures, workforce optimization, IT savings, and the off-hiring of surplus equipment. Given our financial position and ongoing investment commitments, the Board has taken the prudent decision not to declare a final dividend for FY 2025. At June 30, liquidity stood at over $1.1 billion with no near-term maturity pressure. Our first U.S. bond maturity is due in May 2027, nearly two years away, and the potential refinancing rate today is now something like 7.5%. During the year, we unlocked significant liquidity through strategic transactions.
We sold a minority interest in the Onslow Iron private haul road to Morgan Stanley and infrastructure partners, validating the quality and longevity of that asset. We also completed a substantial gas and oil transaction with Hancock Prospecting, accelerating cash realization. Capital expenditure was $1.9 billion over the year with the majority directed towards finishing Onslow Iron. Total CapEx was $200 million below guidance, though $100 million of that is a timing difference that will flow into FY 2026. For FY 2026, we expect capital expenditure to reduce to approximately $1.1 billion with roughly half being sustaining capital and the rest directed to Onslow Iron's completion and expansion, Pilbara Hub operations, and targeted exploration.
As the Chair noted in a shareholder letter, with Onslow Iron generating growing cash flows alongside strong liquidity, declining CapEx, and the ability to accelerate deleveraging inorganically, we do not need to raise equity to fund our growth pipeline. We've also been proactive and begun to initiate some iron ore hedging in the near term while we're completing Onslow construction and spending the majority of FY 2026 growth CapEx. With the iron ore price around or slightly over $100 a ton in recent months, and as I flagged at the June quarterly, we've prudently hedged a portion of our remaining calendar year 2025 production across a mix of collars with floors of $107 and fixed prices averaging around $103. As of today, we have about a quarter of our remaining production over the next six months hedged.
In conclusion, FY 2025 demonstrated our ability to operate effectively through challenging conditions while advancing key projects that are central to our future. We've laid the platform for a stronger balance sheet, improved cash generation, and transitioning to long-life, low-cost assets that will sustain earnings for decades to come. We remain committed to disciplined capital allocation, prudent financial management, and the creation of enduring value for our shareholders. Looking ahead, we're reviewing our capital allocation framework to ensure future investment decisions maximize shareholder returns while reinforcing balance sheet resilience. Thank you. We're now happy to take your questions.
Thank you, Mark. If you have not yet submitted your text question or joined the live audio queue, please do so now. I will introduce each caller by name and ask you to go ahead. You will then hear a beep indicating your microphone is live. Our first question comes from Lachlan Shaw at UBS. Lachlan, please go ahead after the beep.
Good morning Chris, Mark and Mal. Thanks for your time today. Just two questions from me. Firstly at Onslow, well done on the 35 million ton per annum run rate. I do wonder if you can just give us a little bit of an update on the latest jumbo truck rollover. I suppose you know the cause, potential remediation measures and any production impacts?
Yeah. Good morning, Lachlan. It was a little disappointing. We did have a truck that lay on its side on Saturday night. Fundamentally, it was just simply driver error. We're not immune to what the rest of the world is with running these highways. The truck driver thought that he was nearing a rest bay and he was about 180 m from it when he took the truck off the side of the road. When he saw where he was, he applied the brakes and the front prime mover and the two trailers just lie on their side. We're straight in touch with the regulator. I think the regulator appreciates that we face the same problem as the rest of the world with these highways. We've in fact traveled since our last accident almost 13 million km accident free. We're running about 600 drivers in the operation up there.
We want to be totally accident free. Of course, these things are going to happen from time to time.
Great, okay, thank you. Just any production impacts to speak of?
No, no, Lachlan, we were down for a couple of hours. We shut everything down to make sure and went back through and spoke to all the drivers. Fortunately, the driver in the truck, there was no injury at all. He was still able to return to work. He was still down pending the investigation. No impact on downtime, a couple of hours last time. The trans shippers were running and plenty of stops in at the port. The focus was on if we thought there was some other issue out there, we would have pulled the operation up because safety is the priority. No, it's no impact on time returns.
Thank you. Our next question comes from Ben Lyons from Jarden Securities. Ben, please go ahead after the beep.
Thank you. Good morning everyone on the call. Chris, intrigued by the comments in the shareholder letter. Not so much about the no present need to raise equity, but more so that you're actively exploring opportunities to accelerate the key leveraging through an inorganic pathway. Obviously you need to get some cash in the door via that path. To me it sort of sounds more like asset recycling. First question I guess is can you please elaborate on any potential opportunities that you're considering to accelerate that inorganic deleveraging? Thank you.
Yeah, Ben. Yeah. Look, we're always looking at opportunity, and if you have a look, particularly over the last decade, we've been able to take up a range of different opportunities in recycling capital. We've been able to buy assets very cheaply, develop them using our in-house resources, and be able to go out there and sell them for a fairly reasonable price. At the same time, in doing that, we've collected some incredibly high-class Tier 1 joint venture partners around the world. That partnership that's evolved out of us bringing in capital onto our balance sheet has really turned the business into something that's fairly successful. We're looking at opportunities out there that do present from time to time. Certainly, if we're going to do something, once we've got something binding in hand, we'll let the market know.
Okay, thank you. Maybe just one follow-up on that. I think previously we've chatted about a potential U.S. listing, maybe for a portion of the lithium business, for example, has previously been considered. Just wondering if you've investigated whether you're actually able to issue a prospectus or equity in the U.S. under the SEC jurisdiction whilst the company remains under investigation by ASIC down here. Thanks.
Yeah, look Ben, we kind of got our timing wrong on that. We probably, if we had started six months earlier, we would have put it away. Our timing wasn't right, and I think I said quite a while back that that's not on the cards anymore. We're not going down that path. I mean the lithium is in a fairly significant downturn, as you know, and hopefully on a comeback. That hasn't been on the cards for a couple of years.
Thanks. Our next question comes from Rob Stein from Macquarie. Rob, please go ahead after the beep.
Hi Chris and team, just a quick one on the sustaining investments in the Utah Hub. Can you talk to any sort of return protection strategies that you're putting around that given the CapEx investment in an asset that could be susceptible to losses if iron ore prices were to fall? I've got a follow up. Thank you.
Yeah Rob, we've been operating in that central Pilbara region for, I mean, I started way back at the beginning of 2000 on manganese and through a lot of commodity downturns. We've always made that hub work extremely well. It contributes both on Mining Services and on obviously the Iron Ore value and you know at $100 a ton that thing sort of kicks in combined with services and Iron Ore, it kicks in between about $100 and $130 EBITDA per annum. We also need Lamb Creek to be able to support Iron Valley. We need to be able to do that lending. We just see that hub up there, it's been valuable to us for a long time and it's contributed for a long time and we can manage it. I remember a few years back we went under $40 a ton on Iron Ore and we managed to keep that thing limping along. I don't think I could do it again at $38 a ton but I don't expect Iron Ore over the next five years to get down to anywhere near those levels.
Thanks. Just on the lithium side of the business, noting the CapEx, it was not light on, but the CapEx didn't include any major development at Mount Marion, such as for a float plant or anything like that. Can you give us an update on how you are looking at development options at Mount Marion and Wodgina if the lithium prices were to continue their recovery and against any sort of sustaining needs over the next few years?
Yeah, look again we simply went with the price of lithium dropping below $1,500. We just basically pulled out any capital that we could out of the business. We just simply tore every dollar out of the business that we could in operating and capital spend. Until we see, you know, sustainability up around the $1,500 a ton+ , no real plans on doing anything. Once we repair our balance sheet, I think the priority would be around Mount Marion on getting a float plant in there. It's a fairly small capital spend and about 18 months payback down there. The other thing it does at Mount Marion, it takes us away from two products up until one SC5 product. A lot of common sense in doing it. We need to see two things.
We need to see a better balance sheet and we need to see sustainability in the long-term price.
Our next question comes from Kaan Peker from RBC. Kaan, please go ahead after the beep.
Hi, Chris and Mark. Thanks for the update. In 4Q, I think Mark mentioned that there were some hedges carrying that, and it appears that has continued. I think in 4Q the volumes are around 1 million ton- 1.5 million tons. What's the quantum grown to? Do they mainly link to the Pilbara Hub volumes? I'll circle back with the second question.
Morning Kaan. Hi. It's to touch under 3 million tons now, and the combination of forward sales at around $103 and zero cost collars between a ceiling of $107 and a floor of $100. We're not specific in terms of the location from where they get sourced.
Sure. Thank you. Recently, one of your peers has carried out a low cost RMB denominated debt facility. Just wondering if MinRes has looked into this option.
Yes, I'm familiar with the transaction you're referencing. The headline number looks great. It does. When you swap it back into the equivalent currency, the pricing differential isn't all that great relative to the cost of transacting in the U.S. market. I think if I step back from that particular question, we're constantly evaluating a range of sources of capital for this business, and I think that the debt market understands us well, having been in the U.S. now since 2019. We have a range of options available. We'll continue to assess them as we go.
Our next question comes from Matthew Frydman from MST Financial. Matthew, please go ahead after the beep.
Sure. Thanks. Morning, Chris, Mal, and Mark. First question for me. Can you maybe expand on exactly what's been considered as part of that capital allocation review that you've alluded to? I guess what's within the scope of what you're working towards there? Are you talking about putting guardrails or targets on the leverage ratios in the business and so on? If so, how do you think about the leverage that the business can sustain when you compare the commodity exposures across the business versus compared to maybe the cyclical but arguably more repeatable services earnings? Thanks.
Morning, Matt. I'll take that. The capital allocation framework's a key priority of the Board, and it's something we're discussing regularly. The intention is to come back to the market with an update in the coming months. Broadly speaking, it will include a consideration of financial policies of the group, and it will consider how we think about allocating free cash in the group.
Okay, understood. Thank you, Mark. Secondly, noting your comments on the run rate that Onslow Iron has been able to achieve in August and the fact that you're aiming to finish up all of the remediation works on the haul road in September, just with reference to the $200 million deferred consideration. Is there a window that could be achieved in, say, the August to November sort of window before cyclone season really ramps up? Is that the aim of the business or how are you thinking about the windows to achieving that deferred consideration? Thanks.
Yeah, look, our focus basically at Onslow, I mean yes, we want the $200 million, no doubt about that. Look, our real focus out there is just to get sustainable operation. That's what we've been working through from May back in 2024 when we wanted to get early cash flow in. Now we've got all parts of the project operating. The whole road will come off that in mid September as we said. August has been just an evolution of where we've been heading, getting everything commissioned from on the mine site right through to the trans shippers. It's a challenge on any of these major projects. If you have a look over the last 15 or 20 years on large commodities that have come online, I mean this thing has got a ramp rate in terms of the build time and the time we're able to turn it on.
It's been awfully quick. I expect that the run rate that we're getting in August will carry through in September, October, and it'll be a continuous operation, save for any weather events that we get out there or things that are out of our control. Weather or swell, that's the things that we look out for. We've had a lot of years in the Pilbara where we've had no cyclones. The opportunity for us to pick up that $200 million is, I mean it's real all the way through. I don't expect very unusual. For November and December cyclones.
Yeah, we've got another four or five months run to do that, and then March, April, May, June beyond. I expect that we'll do it. The focus is on just consistent operation, consistent safe operation.
Our next question comes from Glyn Lawcock from Barrenjoey. Glyn, please go ahead after the beep.
Good morning, Chris. Chris, could I just tackle you a little bit on Wodgina and then your overall guidance? I mean, Wodgina's three trains operational, always running two of the three, and I was always thinking, you know, 250,000 a train, and then, of course, you can swap. Is the guidance just conservative across the board? It just feels like that. Just any comments you could make. Thanks.
No, Glyn, I mean, look, under the c ircumstances of where we are, I mean, we're running two out of three trains at any given time. We're alternating them. We're not really going flat out trying to push a lot of product into the market. We're trying to make sure we're conservative on the product we sell when we're not making a lot out of it. At the same time, we want to make sure that the budgets that we put out in the market are achievable. I wouldn't say that the budgets we got out there about what we're going to achieve, there may be a bit of upside with them, but, you know, we're operating with a commodity and we're operating in the northwest of WA. We used our experience up there to be able to make sure we've got a budget that's pretty much on the money. The same with. Same with Mount Marion.
Okay, thanks, Chris. Just staying on Wodgina, I think it was Pilbara last week talked about maybe getting floor pricing to restart Ngungaju. I mean, is there an opportunity? I think Wodgina is still fully uncontracted. For selling spot, have you entertained the idea of floor pricing for Wodgina, floor pricing to maybe get Bald Hill back up, given you've already hedged your iron ore a little bit? Is that considerable or just not even in your thinking? Thanks.
Now, I mean, Glyn, we've been doing this a long, long time. If you're going to go and put floor pricing in, what you're actually doing is you're giving a discount on your product for surety of sale, and we've never needed that. We've got some really good clients out there, and I've always kept all of the lithium business floating. We've had some. Some of the p rices.
You've seen lithium spiking out over the last month. I mean, we've been right up there and achieving that. Say no. Look, we just don't get any value out of putting a long-term contract away with some client. The only thing I want to talk about is discount.
Our next question comes from Kate McCutcheon from Citi. Kate, please go ahead after the beep.
Hi, morning, Chris and Mark. Just at Onslow, what is the timing on that $200 million contingent payment? Does it come in on the 1st of November if you have another two months above 35 million tons, or is it a month later? Secondly, just the Northern Gateway Trust sale, is that still happening, and any comments on the magnitude? We could expect some timing.
Do you want to answer that, Mark?
In terms of the $200 million, Kate, the test is $35 million run rate over three consecutive months. The payment, assuming that trigger is met, will be within a month or so afterwards. The Northern Gateway update process is well progressed. Trustee is running that process. There are conditional contracts in place over a couple of the assets, and I'm comfortable that our book value will be met or exceeded.
Okay, thank you. Just following up on Wodgina. Train three is built and turning periodically as you just said. Is there a lithium price that the JV would need to see to look to utilize that third train? What is the ramp up timeline? I assume you have to ramp up the tons that you're mining out of the pit. Is it something that you can make a decision on and more tons could come in six months or how do I think about that?
No, look, basically we're running two of any three trains, so all of the trains are operational. It's immediate to turn a train on. We just simply don't want to put m ore tons in the market.
We're giving the future away on the business, and we want to be able to conserve those. We're running the mine as well at what we consider the optimum, so the lowest operating costs and trying to maximize the best bottom line we can out of Wodgina. You probably notice from the beginning of this calendar year a lot of changes were made in the plant. We've optimized, and we've made some pretty good changes where we've increased the recoveries quite significantly. That's really been our focus. Keeping it at optimal operating costs is sort of where we're sitting at the moment.
Our next question comes from Lachlan Shaw from UBS. Lachlan, please go ahead after the beep.
Yeah, thanks for my follow up team. I just wanted to pick up on lithium again. Chris, you comment that you'd be looking for sort of $1,500 sustainable. That's really helpful. I wanted to sort of follow on then. What do you think would be realistic in terms of mobilization time? Obviously, you know, Wodgina probably have to mobilize. You have more kit to get the feed rate up to the plants, up to three trains. Then Bald Hill is sort of a potential complete remobilization. How should we think about that in terms of timing of when they could come back in?
Okay, so look, Wodgina, in terms of timing, I mean, we've got most of the kit on site. It's just parked up. Realistically, six to eight weeks at Wodgina to get the right mine planning happening, then from two to three, and that's about all it would take. Bald Hill, again, we've got most of the equipment sitting on site and it's under care and maintenance. If you thought about Bald Hill, three to four months to be able to remobilize down there and then gradually start up, two more months beyond that to have everything operating well.
Okay, great. Thank you. I might just pop back with one more as well. Mining Services margins, you know, solid performance in the year. I wanted to ask about looking forward to 2026 and maybe even beyond. How do you think about that? How should we think about Mining Services margins in the next sort of year, two, three years out? Thank you.
I'll take that. I think the best way to think. About it is we've regularly said for quite a while now, $2 a ton is a reasonable indication of the performance. Obviously, there were a little bit ups and downs this year with the ramp up rates that Mining Services was able to achieve through Onslow and also the impact of additional haulage costs in the second half. In particular, we have coming into this first quarter, and I think I might have touched on some of this in the quarterly, just a little bit. We have some haulage carrying over into that first quarter, but we also have some higher rates in the schedule for the first quarter. As a general rule, I'd stick with the $2 a ton thereabouts.
A quick reminder on the instructions before we continue. To ask a text question, select the messaging icon, type your question in the box towards the top of the screen, and press the send button. To ask a live audio question, press the request to speak button at the top of the broadcast window. The broadcast will be replaced by the audio question screen. Use the dial-in number and access pin provided to ask your question via the phone. If you're already on the phone line and wish to ask further questions, you can dial star at any time to rejoin the queue. The next question we have is Ben Lyons from Jarden Securities. Ben, please go ahead after the beep.
Thank you for the opportunity to ask another couple maybe. Firstly on RDG and the Lucky Bay Garnet Project, I understand the process hasn't been closed out yet. If you're successful in debt facilities and you acquire that project and the associated manganese assets as well, just what strategy will be there, whether you intend on sinking any additional capital into the project to try and make it more economic, and if not, what the possible holding costs would be if you move to more of a care and maintenance style arrangement? Thanks.
Hi Ben, it's Mal. Look, we've got to get through the process first. There are administrators in place and we're following that process. Obviously, it's been reported and it's in the administrators' reports. We've put a via a docker and we'll wait and see how that pans out. Our plans will be formulated as we see the outcomes of that process really. We haven't fully turned our mind because we haven't been in an operating position with any of those assets or the company. We haven't turned our mind to what that looks like yet. We've got people starting to formulate that.
Okay, thank you Mal. Maybe once for Mark, I note the indicative guidance for the carry loan proceeds that should flow to Min over the next 12 months. Haven't had a chance to go through all of the accounts in detail yet, but maybe just a quick steer on the right direction where we can see that coming through both the P&L and the cash flow statement, please, and whether that amount also contributes to the iron ore segment EBITDA. Thank you .
The answer is no, it doesn't contribute to the EBITDA. It's the JV partners' share of free cash that they generate from the operations of the mine, and then they have to pay us 80% of that free cash flow. When we've modeled that, it's about $350 million shown as current. We've assumed about $95 million for the year and production at a touch over 30. To give you a broad sense.
To how it's constructed or how we've assumed it in terms of the financials, it effectively comes in as a receivable and it just comes in as a receivable. I think contra against the receivable. Doesn't go through the P&L.
Thank you. Our next question comes from Rob Stein from Macquarie. Rob, please go ahead after the beep.
Thanks for the follow up. The services volumes guidance, the 3:15 midpoint, if I net out the envoy contribution, what should we expect from the rest of the business? Is it a straight up sort of core times the envoy tons to net off that, or is there some advanced movement in different parts of the mine plan that we should consider in the year going forward?
Rob, I'll take that. I mean for Onslow it is just the four tons of activity. When you think about the guidance, you know what's feeding into that is we've got some external wins and opportunities that we will commence and expect to convert, but we also have tons coming off from prior year. For example, Mount Marion we're going to do less tons of. We've obviously put Yilgarn Hub and Bald Hill on care and maintenance, and so those all feed into that guidance number. I hope that answers the question.
Thank you. It does, and sorry, just to come back to Yilgarn Hub, it's very informative that you've got the Onslow break evens in the deck. I was just wondering if you could speak to the Yilgarn Hub breakeven that you guys see on an all-in sustaining basis.
We're about, I think we've flagged about $75- $80 a ton for the Central Pilbara, and it generally sits around there.
Our next question comes from John Campbell from the Australian Shareholders Association. John, please go ahead after the beep.
Chris, I'd be interested to know what the transshipper maintenance schedule is. I understood that they need to go to Singapore for maintenance, and I guess that takes a while for them to get there and get back again. How frequently do they have to go, and will the number six and seven arrive in time for the first month they have to go?
Yeah, John, they have to go. Into dry dock every five years. Look, we got plenty of time for that and we'll probably rotate just simply one at a time. They get towed up there with the tug, so we'll have six operating at any time, and then we've got the seventh transshipper arriving about August next year, and that's to take care of any redundancy.
Okay, thank you. In terms of what happened during the year with the three non-executive directors who resigned from the Ethics and Ethics Committee, can you tell us what the reason was for that resignation?
Hi, John, it's Mal. I'm not going to speak on behalf of the other directors. I think recently Justin Langer resigned from the board and he gave his reasons for that. We're still progressing to refresh the board, which was my intent when I came on board. I think you've seen two very strong candidates. We're continuing to progress that activity going forward.
Thank you. There are no further questions. That concludes today's call. Thanks for your time and have a great day. Please reach out to the MinRes team if you have any follow up questions. You may now disconnect.