Shares in Mantengu Mining soared 8.75% to R0.87 yesterday on the JSE after it said the Competition Commission of South Africa has approved its acquisition of Sublime Technologies.
Shareholders were advised that the last remaining suspensive condition to the acquisition is Sintex ensuring that Sublime's bank account is in credit in an amount of at least the Rand equivalent of $1 million (R18.2m).
“This suspensive condition is expected to be addressed imminently,” it said.
Mantengu said the deal was in line with its strategy of unlocking new value in the mining services sector.
Sublime is the only Silicon producer in Africa and currently accounts for approximately 2% of the global market share. Sublime manufactures and distributes SIC. SIC is a hard chemical compound containing silicon and carbon and is produced as a powder and crystal. SIC's primary applications are in the abrasive, refractory, and metallurgical markets because of its high hardness, and excellent thermomechanical characteristics, including high thermal conductivity, it said.
“Shareholders will be advised by way of a further announcement once the Acquisition becomes unconditional,” it added.
The acquisition of Sublime cemented Mantengu’s rapid expansion of its South African portfolio. Recently, Mantengu Mining has acquired the Blue Ridge platinum group metals (PGM) mine, which has been under care and maintenance since 2011, from Sibanye-Stillwater. In May this year, Mantengu finalised the acquisition of Birca Copper and Metals (BCM) for R29.9m.
Last month for the half-year to August 2024 Mantengu Mining’s revenues for the six month period under review grew to R115.9m compared to R13.1m in the previous contrasting period. This boosted the company to uplift gross profits for the period from R1.5m to R53m.
In its outlook, Mantengu has strategised for continued production ramp up due to investments in expansionary capex aimed at boosting production capacity at its Langpan and Meerust operations. = BR Reporter.
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