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I am pleased to present the 2014 Annual Report to shareholders. 

Business performance was sound during the year with new work being introduced in traditional Build, Own, Operate (BOO) contracting areas as well as in mine development. Divestment opportunities for our plants and operations at Christmas Creek and Woodie Woodie also contributed solid gains. 

This performance produced an outstanding financial outcome for Mineral Resources with record profitability and cash generation placing the balance sheet in the strongest position ever. It is also reflected in Total Shareholder Returns (TSR) which increased by $1.96 per share, or 22%, over the period. Achieving this performance was particularly pleasing as the price achieved for our major product, iron ore, reduced substantially during the second half of the year and continues to decline in real terms. 

Further to the improved TSR, the Company has produced another record result in the underlying result with a 45% (1) increase in Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and a 27% increase in Earnings Per Share. Cash generated from Operating and Investing activities was $686 million (2) , allowing debt to be retired and providing capacity for the Group to seek opportunities to capitalise on its unique ”pit to port” business formula. 

The year was marred by the tragic death of one of our CSI employees, Kurt Williams. While the safety of every employee has always been a key management focus and our systems and processes provided robust results, this event has certainly brought about a renewed focus on managing safety throughout the Group. Safety initiatives implemented, including the alignment with a DuPont safety management style, have assisted us to do even better. The Group’s 12 month rolling Total Recordable Injury Frequency Rate (TRIFR) was reduced to a record low of 7.16 in June 2014, a 51% reduction for the year. 

Mining Services continues its excellent performance with BOO contracts delivering exceptional results for our clients. New work won in FY2014 will increase our crushing capacity in FY2015. Growth of this area is a key management objective and there are a number of opportunities to increase capacity in the short to medium term. Nammuldi Below Water Table EPC project is progressing well, with the programme for delivery of the plant to our customer projected to be on budget and on schedule. 

## Chairman’s Letter 

Mining activities provided a record 10.4 million tonnes export result, an 88% increase over FY2013, with both the Pilbara and Yilgarn regions delivering expected results. Development of the Iron Valley project continues as the next primary source of supply for the Pilbara operations, while recent approvals for J4 will enable the Yilgarn operations to continue at targeted levels. A number of operational and efficiency measures were implemented throughout the mining operations over the year which will reduce the cost base during FY2015. The purchase of MRL’s own rail fleet and on site efficiencies such as in-pit dumping are examples of some of the measures implemented. 

The strong financial performance ensured our ability to meet the ongoing commitment to shareholders, by distributing 50% of FY2014 profits as fully franked dividends. 

To facilitate the future growth and development of the Company, the MRL Board is currently evaluating a number of business opportunities, made possible by the strong balance sheet, available funding facilities and capacity. These opportunities will allow MRL to express its talent for cost effective and efficient development and operation of unique bulk materials handling solutions and create substantial opportunities to generate shareholder value. 

In closing, I would like to once again take the opportunity to acknowledge the contribution of all customers, employees and contractors in supporting our activities and achieving our target of being recognised as the contractor of choice throughout our industry. 

I look forward to your attendance at this year’s annual general meeting in November 2014, where we will take the opportunity to provide shareholders with an update on the business environment. 

 Yours Sincerely 

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