Perth-based miner Mineral Resources (MinRes) on Thursday reported a near A$900-million loss in a 12-month period marked by softer commodity prices, writedowns and governance turmoil.

Revenue fell 15% to A$4.5-billion, weighed by weaker iron-ore and lithium prices, while statutory net profit after tax slumped to a loss of A$896-million in the financial year ended June 30. That figure included A$632-million in previously flagged impairments.

Underlying net profit came in at a loss of A$112-million, though the company returned to profitability in the second half with A$84-million.

No final dividend was declared as the board prioritised balance sheet repair.

In a letter to shareholders, new chairperson Malcolm Bundey sought to reassure investors that the company was on a firmer footing following a year that had tested the company’s reputation. “Expectations were not met in crucial areas and, as a result, MinRes’ reputation was impacted,” he said.

Bundey, who stepped in as nonexecutive chairperson on July 1, said that his initial focus was on robust governance, board renewal and the orderly succession of founder and MD Chris Ellison, as well as a strengthened balance sheet and the full delivery of the Onslow Iron operation to nameplate capacity.

His vision, he said, was to establish a “blue-chip, blue-collar board”. MinRes addressed its need for deeper financial and governance board expertise by appointing Lawrie Tremaine and Ross Carroll as nonexecutive directors. Last month, Justin Langer resigned from the board due to his expanding commitments in senior cricket coaching roles.

The board is also working with Elizabeth Broderick & Co on various leadership, governance and culture fronts. In addition, King & Wood Malleson is reviewing MinRes’ overarching governance framework. An action plan will be forthcoming from the review, said Bundey.

“In my experience, strong governance is an accelerator – not a barrier – to entrepreneurialism and high performance – driving alignment, empowerment and accountability,” he stated.

Turning to the succession planning for the MD, he confirmed that Ellison was on his way out of the company that he founded, but stressed that it was “a process, not an event”.  

“Chris remains integral to this process, working closely with the board and myself to ensure it is conducted in an orderly, professional manner with Chris’ support.”

Despite the financial and governance strain, operational performance was underpinned by the ramp-up of the flagship Onslow Iron project, which reached an annualised run rate of 35-million tonnes in August.

Mining Services also delivered record production of 280-million wet metric tonnes and a 34% increase in underlying earnings to A$737-million.