ASX reporting season: Mineral Resources’ Chris Ellison fronts analysts, media after huge loss shocker

The RBA cannot simply cut rates once prior to an election as this will look politically motivated. Another rate cut will make this change to interest rates look more like a traditional policy adjustment reflecting economic conditions.

That’s the word from Judo Bank chief economist Warren Hogan as he comments on today’s wage growth data.

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Australian superannuation funds have backed up a “tremendous” result in 2024 in the first month of 2025, thanks to strong gains in the share market.

Stats released by Chant West show the median growth fund (61 to 80 per cent in growth assets) is up 2.2 per cent in January, overcoming share market jitters at the end of the month.

Chant West senior investment research manager Mano Mohankumar said January returns were driven by strong growth in both the local and international market, with European stocks outperforming during the first month of the year.

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Wages growth continues to decelerate, falling to 3.2 per cent in 2024 and adding to the case for more interest rate cuts.

While bad news for workers, the Reserve Bank of Australia will be encouraged that the tight labour market does not appear to be contributing to a rise in staffing costs and inflation.

On a quarterly basis, the 0.7 per cent rise in the wage price index, as reported by the Australian Bureau of Statistics on Wednesday, was down from the 0.8 per cent increase in the three months to September.

It was the equal lowest rise in quarterly wages since March 2022, ABS head of prices statistics Michelle Marquardt said.

“At 3.2 per cent, the annual increase in wages was down from 4.2 per cent in December quarter 2023 and is the equal lowest since September quarter 2022,” she said.

Despite delivering mortgage holders a first interest rate cut in more than four years on Tuesday, RBA governor Michele Bullock made clear the board would not rush into more reductions without more certainty that inflation was truly and sustainably descending to target.

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A number of technical issue blighted the call and within less than 20 minutes, there were no more questions and the session was over.

Stay tuned for more reports from what analysts have to say, and what the future might look like for MinRes as it battle fires on several fronts.

One journalist pointed to issues MinRes had raised over the past few months about incorrect information being published on corporate governance issues after Ellison’s tax evasion scandal.

Pressed to say what the media got wrong, Ellison would only say that he was putting the disaster of the past few months behind him and focusing on making sure the company would be around in decades to come.

The first question came from The West Australian’s mining reporter, Adrian Rauso, who asked in what capacity Ellison might remain at the company he founded when he exits as MD.

He hinted it would not be in any major role where he can’t get involved in a substantial capacity.

Would he stay as a strategic adviser?

“I am here to provide support to the board in any way they need for the transition. Obviously I’m going to remain a substantial shareholder, he said.

“When I’m done at MinRes I’m done, I’m not going to start anything new. I’m just simply going to be supportive.

“Let’s get the new chairman on board, let’s go through the process. and just see what they think is necessary.

“Sometimes having an ex-MD hanging around is more interference than good. I don’t think I’d be a very good ex-MD. I think I’d want to be getting my hands in the weeds too much.

“I’m available to support that transition in whatever way.”

Perth mining and civil contractor NRW has ducked into a trading halt.

Scant details have been provided other than to say it’s pending an announcement regarding the SIMEC contract in South Australia.

NRW signed a three-year contract at the miner’s South Australian iron ore operations at the start of 2022.

NRW is also due to post its half-year results ended December 2024 Thursday.

OK, the analysts are now done with their questions and it’s time for the country’s business journos to put a few questions to Ellison.

Stay tuned, he’s up at 11am, WA time.

Chris Ellison has said he intends to retain his shareholding in MinRes and continue to “support the business” as the board sees fit.

Mr Ellison is due to exit the company by the middle of 2026 as penance for poor corporate governance and alleged tax evasion.

“I’ll always be supporitve of MinRes,” he said.

“’I’ve said openly im available to the board to support this business going forward, I’m dedicated to it.”

There have been several further questions regarding the extent and costs of the required repairs to the Onslow Haul Road, which sustained damage during cyclone season.

MD Chris Ellison has seemingly had enough of talking about it.

“This thing is getting legs it doesn’t need to get,” he said.

Mr Ellison indicated analysts had gone from “being extremely worried about transhippers, to trucks...and now the road.”

“We are managing the road well,” he insisted. “I was up there 8 days ago and I drove the entire length of the road.”