A top Mineral Resources investor has rejected suggestions that the highly indebted miner will be forced into an equity raising, saying the 40 per cent collapse in the share price over the past month was “excessive”.

L1 Capital co-chief investment officer Mark Landau likened the negative market sentiment to Qantas 12 months ago before a rebound in the airline’s shares. The fund manager told clients on a webinar that the investment team had taken advantage of the sell-off in MinRes to build up the fund’s stake to 9.2 per cent, making L1 the second-largest shareholder behind founder Chris Ellison’s 11.5 per cent.