UPDATE: In a significant move, L1 Capital, a major shareholder behind Chris Ellison, has sold off approximately $71 million worth of Mineral Resources (MinRes) stock following a sharp rebound in share price. This cash-out, which took place over the past week, reflects a strategic decision to capitalize on the recent surge, with shares trading around $34 per share.
L1 Capital initiated the sell-off last week, unloading a substantial portion of its holdings in MinRes. This follows a previous sell-off of around $21 million worth of shares during June and July, indicating a comprehensive exit strategy as the firm’s stake in the company has dipped from a peak of 9.2 percent in March to its current 7.8 percent.
The investment firm initially invested heavily in MinRes in October 2022, shortly after Ellison’s tax scandal broke. They aggressively increased their stake by investing $58 million within a single week during March, when stock prices fluctuated between $21 and $25 due to various challenges including corporate governance concerns and weak lithium prices.
Now, with the Onslow Iron project stabilizing and a recovery in iron ore prices, investor sentiment is shifting positively. MinRes shares have skyrocketed 160 percent since hitting a five-year low in April, although they remain 25 percent lower year-on-year.
L1 Capital has publicly stated that they support Ellison’s continued leadership of MinRes despite the controversies surrounding him. As the market reacts to these developments, analysts will be closely monitoring further movements in MinRes stock and L1 Capital’s investment strategy.
Investors and market watchers are urged to stay tuned for updates as this story develops, given the potential impact on the mining sector and shareholders alike.
