2 Mining Services Stocks You Shouldn’t Ignore: Perenti Limited (ASX: PRN) & Mineral Resources Limited (ASX: MIN)

Australia’s mining sector remains a cornerstone of its economy, providing critical resources to the world while supporting local jobs and innovation. Behind the scenes, mining services companies play a pivotal role, ensuring that operations run efficiently, safely, and profitably. For investors keen to capitalize on a potential resource sector upswing, two ASX-listed stocks stand out: Perenti Limited (ASX: PRN) and Mineral Resources Limited (ASX: MIN). Both companies combine operational expertise with strategic growth initiatives, positioning themselves strongly for the next phase of the mining cycle.

Perenti Limited: Powerhouse in Mining Services and Technology

Perenti Limited is a diversified mining services provider with a global footprint. Its operations span underground and surface mining, drilling services, technology solutions, and consulting, supporting some of the world’s largest mining projects across Africa, Australia, and the Americas.

Financial Highlights
For the fiscal year ending June 30, 2025, Perenti reported revenues of $3.49 billion, representing a 4.4% year-on-year growth. Impressively, the company’s net profit after tax exceeded $120.6 million, reflecting efficiency gains and successful contract wins. This growth underscores Perenti’s ability to deliver value even amid cyclical market conditions.

Growth Drivers

• Global Contract Mining & Drilling: Expanding engagements with top-tier mining operators worldwide.
• Technology Integration: Investments in digital and automation solutions enhance efficiency and reduce operational costs.
• Equipment & Supply Chain Expansion: Broader service offerings allow Perenti to capture additional value from its clients.
• Operational Excellence: Focused cost management and productivity improvements boost margins.

Investors have taken note, with Perenti’s stock climbing nearly 68% over the past three months, highlighting confidence in the company’s operational and financial strategies. With a strong pipeline of global contracts and ongoing technological innovation, Perenti is well-placed to capitalize on a cyclical rebound in commodity demand.

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Mineral Resources Limited: Integrated Mining & Services Strength

Mineral Resources Limited (MinRes) operates a hybrid business model, combining its own mining operations with a robust mining services division. This integrated structure allows the company to capitalize fully on commodity upswings while maintaining diversified revenue streams.

Financial Highlights
In FY25, Mineral Resources recorded revenue of $4.47 billion, underpinned by strong output at its Onslow Iron Joint Venture and record mining services production of 280 million wet metric tonnes. EBITDA reached $857 million, driven by operational efficiencies and new contract wins. The company’s iron ore shipments rose 11%, and lithium operations were optimized despite challenging market conditions. Strategic energy-related investments also broadened the company’s growth avenues.

Growth Catalysts

1. Onslow Iron Ramp-Up: Achieving commercial production by June 30, 2025, strengthened earnings potential.
2. Mining Services Expansion: Record production volumes demonstrate operational capability and market demand.
3. Lithium Cost Optimizations: Improved efficiency safeguards profitability amid market fluctuations.
4. Diversification Through Energy & JVs: New ventures support long-term growth and mitigate commodity-specific risks.

Mineral Resources has built a resilient balance sheet and a diversified earnings profile, making it well-positioned to capture value across the mining sector’s ups and downs.

Why These Stocks Deserve Your Attention

Both Perenti and Mineral Resources offer compelling reasons for investors to consider adding them to their portfolios:

1. Sector Leadership – Each company is a top-tier mining services provider, known for operational reliability and delivery excellence.
2. Strong Financial Performance – Record revenues and net profits underscore their ability to grow profitably even in cyclical industries.
3. Diversified Business Models – Wide-ranging service offerings, coupled with integrated mining operations (for MinRes), help cushion market volatility.
4. Positive Market Sentiment – Recent stock price gains reflect growing investor confidence in both companies’ growth trajectories.
5. Growth Potential – With global commodity demand recovering and new contracts in place, both stocks have strong upside potential for medium- to long-term investors.

Investors seeking exposure to Australia’s mining sector recovery can benefit from the blend of stability, operational excellence, and growth potential offered by Perenti and Mineral Resources. While cyclical risks remain, these companies’ proven track records and strategic positioning make them standout opportunities in the mining services space.

Conclusion

As the global economy leans on critical resources, mining services companies like Perenti (PRN) and Mineral Resources (MIN) are becoming increasingly essential. Both companies combine operational strength, financial resilience, and strategic growth initiatives to capitalize on mining sector recovery.

For investors looking to tap into the next upswing in resource demand, these two ASX stocks are more than just service providers—they are growth engines in their own right. With strong revenues, record operational performance, and a focus on innovation, Perenti and Mineral Resources offer both security and upside potential in a sector poised for a rebound.

Disclaimer:

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