Mineral Resources (ASX:MIN) (+61%; +1.2%), the Australian-based mining services company, surprised the investment community with stable operating results in its crushing business and lower mining costs. Additionally, higher iron ore prices and a stronger Australian dollar were favorable for the stock. Although ore prices did not benefit Mineral Resources’ crushing and processing business since the company is paid a fixed fee per ton, they did help the mining operation produce higher earnings before interest, taxes, depreciation and amortization (EBITDA) per ton. Management indicated the company is unlikely to move forward with the ambitious elevated transport system without a more attractive long-term iron ore pricing environment. The company began to buy back shares, and founder and managing director, Chris Ellison, purchased more shares personally. We trimmed our position.
From Longleaf Partners' International Fund first quarter 2016 letter.
