Shares in junior miner, Mantengu Mining, soared 26.25% in afternoon trade on the JSE yesterday after the company disclosed that its Meerust Chrome subsidiary had entered into a lease agreement to operate from the Goudini mine for a period of nearly 10 years.
Meerust Chrome was already actively hiring employees “to ensure that the job creation” is maintained.
“Operations have recommenced, with first deliveries of chrome concentrate having already started,” the company said.
This drove up shares in Mantengu by 26.25% to R1.01 in afternoon trade on the JSE, although the company’s stock is weaker by 42.86% in the last 30 days.
Investment analyst, Dave Hazelwood wrote on X yesterday that shares in Mantengu rallied “after releasing good trading update” including a recent acquisition.
“If momentum from the last 2 months of prior year carried into new financial year, interims should produce at least 30 cents in headline earnings per share (60 cents annualised),” he said.
The company’s lease agreement to operate on the Goudini Farm dated August 5 is subject to the securing of mining rights for period of 9 years and 364 days expiring on 4 August 2033.
“Having entered into both the mining right agreement, sale and contractorship agreement, surface rights lease, and the wash plant lease, Meerust Chrome is now able to legally and commercially operate under the Mining Right. Meerust Chrome now has complete operational control of the mining and processing environment,” said Mantengu Mining.
In May this year, Mantengu Mining finalised the acquisition of Birca Copper and Metals (BCM), which mines and processes high-grade chrome ore in the North West province, for R29.9 million. The acquisition positioned Mantengu to double its chrome operations, enhancing its market presence and reinforcing its commitment to sustainable growth, it said at the time.
Prior to the acquisition, BCM had entered into a deed of sale and lease to acquire the portion of the Goudini Farm located on the respective mining area from the Wandre Familie Trust.
However, the Wandre Familie Trust cancelled the farm acquisition deed of sale. Nonetheless, Meerust Chrome entered into a lease agreement dated 5 August 2024 with the Wandre Familie Trust for the lease of the part of Goudini Farm.
BCM owns a chrome wash plant on Goudini Farm that Meerust Chrome now intends to upgrade and operate. Meerrust Chrome on August 5 . 2.1.4 Meerust Chrome entered into an agreement with BCM to lease the Wash Plant.
BCM has however been placed under business rescue as of this month to facilitate rehabilitation processes. Thomas Samons was appointed as the Business Rescue Practitioner (BRP).
Mantengu said the business rescue process “is being overseen by an independent and highly skilled BRP to deal with the historical issues of BCM including undisclosed liabilities that were recently” discovered.
“The BRP held the first creditor meeting on 19 August 2024 and conducted a site visit to the Wash Plant on 20 August 2024. The BRP is currently engaging all creditors and assessing their claims,” the company said.
Both Mantengu and BCM are supportive of the business rescue process, it added.
BUSINESS REPORT