OMH Provides Quarterly Market Update, Reports 17.5% Drop in Ores and Alloys Transacted

An integrated manganese and silicon metals company, OM Holdings Limited (ASX: OMH) on 29 April 2019 released Q1 FY2019 production and market update for the period ended 31 March 2019. During the March 2019, the production output through its 75% owned smelter in Samalaju, East Malaysia was 56,411 tonnes of ferrosilicon and 59,175 tonnes of manganese alloy that consist of silicomanganese (“SiMn”), high carbon ferromanganese (“HCFeMn”), and low carbon silicomanganese (“LCSiMn”). The total sales of FeSi and manganese alloy were 57,171 tonnes and 50,624 tonnes respectively during the period. The manganese ore production through the exploration and mining of its 100% owned Manganese mine in Bootu Creek, Northern Territory, Australia was 165,162 tonnes. The average grade of manganese produced during the quarter was 35.48% Mn. The shipment of the manganese ore during the quarter was 188,207 tonnes which had an average grade of 34.87% Mn. Also, there were additional 3,133 tonnes which were sold domestically. At the contractor’s site in South Africa, the construction of the Tailings Retreatment Plant is completed now. The disassembled plant got shipped from Durban situated in South Africa in April 2019 and is expected to reach Darwin in late May 2019. The company expects the commissioning at Bootu Creek will get finalized in July 2019. OM Materials (Qinzhou) Co Ltd (“OMQ”) is a fully owned smelter and sinter plant in Qinzhou, Guangxi Province in China. By the end of the Q1 FY2019, OMQ was able to produce 9,705 tonnes of manganese alloy as well as 12,197 tonnes of manganese sinter ore. Around 10,059 tonnes of manganese alloy was sold during the quarter. From 1 January 2019 to 31 March 2019, there were around 416,729 tonnes of ores and alloys that were transacted, down by 17.5% as compared to the previous December 2019 quarter. In December 2019, there were around 504,895 tonnes of ores and alloys transacted. The reason for fall in the ore and alloys transacted was due to a net reduction of third-party ores traded. The statistics state that during January 2019 and February 2019, World crude steel production was 287.6 million tonnes. It means that there was an increase of 3.7% in crude steel production as compared to the same corresponding period in 2018. The announcement also highlighted that the board after the significant sustainable turnaround in the operations of the group followed by surplus cash flow declared a final dividend of A$0.02 per fully paid ordinary share for FY2018. The record date for the dividend is on 3 May 2019, and the payment date will be 31 May 2019. OM (Manganese) Ltd, entered into a binding Farm-In and Joint Venture Agreement with Bryah Resources Limited for the Bryah Basin Manganese Project. Under the Farm-In and Joint Venture Agreement for the Bryah Project, OM (Manganese) Ltd had made a payment of A$0.25 million, and it has been granted an option to acquire an initial 10% interest in the Bryah Project. The announcement also covered the capital structure of the company by the end of the March 2019 quarter where the company had 738,623,337 ordinary shares along with 12,500,000 unsecured convertible notes. In the last five years, the stock has generated a return of 240.98%. The shares of OMH closed the day’s trade at A$1.025 (As on 29 April 2019), down by 1.442% as compared to its previous closing price. OMH holds a market capitalization of A$768.17 million and approximately 738.62 million outstanding shares.

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