Mineral Resources Shares Plunge as Governance Concerns Escalate Amid Director Exits

SYDNEY—Mineral Resources Limited (ASX: MIN) faced a fresh crisis on April 16, 2025, as shares plummeted 7.1% to $16.96 following the abrupt resignations of two non-executive directors, Jacqueline McGill AO and Susie Corlett. The abrupt exits, described by the company as a result of “professional commitments,” have intensified investor anxiety amid a 75% collapse in the stock over the past year and ongoing regulatory scrutiny.

The departures of McGill and Corlett—both pivotal figures in the company’s governance overhaul—highlight deepening instability at Mineral Resources. The pair had been central to efforts to strengthen internal controls after revelations of misconduct by Managing Director Chris Ellison, who admitted to involvement in an alleged tax evasion scheme. Their resignations, effective immediately, leave the board without critical independent oversight at a critical juncture.

Governance Cracks Widen

McGill, a former Australian Public Service Commissioner, joined Mineral Resources in January 2024, while Corlett, a seasoned mining executive, had served since 2021. Their roles were seen as vital to restoring investor trust after Ellison’s admission in October 2024 that he had participated in a tax avoidance strategy involving a Perth-based entity. The Australian Securities and Investments Commission (ASIC) is now formally investigating the matter, and the company faces class-action lawsuits in the Victorian Supreme Court over alleged misleading disclosures.

The timing of the resignations has raised eyebrows. Proxy advisor Ownership Matters had already recommended shareholders vote against Corlett’s re-election as an Iluka Resources director in March 2025, citing concerns about her divided attention between multiple board roles. Her abrupt exit from Mineral Resources, framed by Chair James McClements as a “mutual decision,” leaves open questions about whether governance gaps were exposed internally.

Market Reaction and Investor Sentiment

The stock’s freefall on April 16 compounded a brutal year for Mineral Resources investors. Shares have lost 56.53% year-to-date, with a market capitalization now at $2.23 billion—a fraction of its peak. While TipRanks’ technical analysis had recently labeled MIN a “Buy” based on short-term momentum, the boardroom upheaval underscored broader risks.

Analysts note that the resignations could deter institutional investors already wary of the company’s leadership. “The loss of two directors tasked with improving governance sends a signal that internal fixes are incomplete,” said one Sydney-based equity analyst. “Investors are now questioning whether Mineral Resources can navigate its legal and regulatory challenges without further instability.”

Regulatory and Legal Overhang

ASIC’s investigation into Ellison’s tax dealings remains a key overhang. The managing director’s role in structuring a $1 billion iron ore project through a Singapore-based entity has drawn scrutiny, with critics alleging attempts to minimize Australian tax liabilities. Meanwhile, the Victorian Supreme Court class action, led by law firm Slater & Gordon, alleges Mineral Resources misled shareholders about the project’s financial risks.

The legal battles and regulatory probe have already triggered a leadership shakeup beyond the boardroom. In February 2025, Chief Financial Officer Paul O’Malley resigned, citing personal reasons, further thinning executive ranks.

Conclusion: Governance and Leadership Challenges Cloud Outlook

Mineral Resources’ recent turmoil reflects a perfect storm of regulatory, legal, and governance risks. The resignations of McGill and Corlett, coupled with Ellison’s unresolved legal issues, have eroded investor confidence in the company’s ability to manage its challenges. With shares down 75% annually and a market cap halved since mid-2024, the path to recovery hinges on stabilizing governance, resolving legal disputes, and rebuilding trust.

Until Mineral Resources addresses these systemic issues, its stock is likely to remain volatile. Investors weighing exposure to the company must consider not just its commodity exposure but also the lingering risks of corporate mismanagement. As the saying goes, “past performance is not indicative of future results”—and in this case, the past is a stark warning.