Mineral Resources' (ASX:MIN) plunge in shares following its weak and disappointing fiscal H1 results, production guidance downgrades, and stronger-than-expected capital expenditure guidance is "rational," according to a Thursday filing with the Australian bourse.

The company reported Tuesday a fiscal first half-year loss of AU$4.1042 per diluted share, compared with earnings of AU$2.7844 per diluted share a year earlier.

Revenue for the six months ended Dec. 31, 2024, was AU$2.29 billion, down 9% from AU$2.52 billion in the same period a year earlier.

The mining firm lowered its fiscal year attributable volume guidance at its Onslow iron project between 8.8 million tonnes (mt) to 9.3 mt from its previous guidance of 10.5 mt to 11.7 mt.

Mineral Resources also lowered its mining services-related tonne production volumes to a range of 280 mt to 300 mt from its previous guidance of 295 mt to 315 mt.

Jarden believes MIN's balance sheet displays "signs of short-term stress" and is highly leveraged as the company's current ratio has dropped to 1.19 from 1.55 and highlights its slim margin of safety.

The investment firm questioned whether the company's AU$800 million revolver, crucial for liquidity, can be drawn due to undisclosed financial maintenance covenants.

The investment firm maintained the company's sell rating and price target of AU$20.

Shares of the company rose 7% at market close.