The Minerals Resources Ltd (ASX: MIN) share price has surged approximately 40% in the past month, making it one of the best-performing S&P/ASX 200 Index (ASX: XJO) shares in that time period.

The iron ore and lithium miner is one of the largest positions in fund manager L1 Capital’s portfolio, but the investment team are still confident on further gains from here.

L1 likes to focus on businesses that are good value, with a relatively low price/earnings (P/E) ratio and appealing free cash flow yield, as well as solid earnings per share (EPS) growth. These businesses provide a “compelling medium-term return profile in spite of a slowing macro backdrop”.

Let’s take a look at what L1 still likes about the Mineral Resources share price.

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