Mantengu Mining’s share price surged nearly 17% yesterday after the resources company reported that interim gross profits and earnings in soared as it bumped up revenues for the half-year to August 2024.
However, Mantengu Mining - which has been beefing up its South African portfolio through acquisitions - did not declare an interim dividend.
Revenues in Mantengu for the six month period under review grew to R115.9 million 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.
Although Mantengu has swung from a headline loss per share of 10 cents in the prior year to a 2 cents per share in the latest interim period to August, the company yesterday did not declare an interim dividend.
Despite this, Mantengu said its financial performance for the half-year reflected consistent ramp in its production as output for the period amounted to 37 334 tons of chrome compared to 4 757 tons.
“The operating profit turnaround of R39.7m, despite operations not yet being at full capacity while still in a significant expansionary capex phase, demonstrates the group’s commitment to operating at the lowest end of the production cost curve,” said the company.
The higher operating profit had been boosted by lower costs attained for the period.
Mantengu said significant reduction in production costs emanated from “performance of the mining function internally within the group as well as a move towards owning, rather than renting, our own mining fleet” of machinery.
Despite the stronger financial performance for the period, the board of directors of Mantengu identified further elements of production costs that have been earmarked for reduction over the next few months.
In the 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.
The Langpan MG plant is expected to be commissioned in the next few weeks. It is expected that the plant will add up approximately 18 000 tons of monthly production capacity while monthly production capacity at Meerust is expected to increase by approximately 10 000 tons due to the resultant investment in capex.
Post the reporting period, revenue for Mantengu in September and October amounted to a total of R75.6m.
Recently, Mantengu Mining 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 R29.9 million.
“Subsequent to the acquisitions of Blue Ridge Platinum Proprietary Limited and Sublime Technologies Proprietary Limited on 28 October 2024, the group is on track in respect of fulfilment of the condition’s precedent in order for both acquisitions to become unconditional,” said the company.
BUSINESS REPORT