Consmin, a leading manganese ore producer with mining operations in Australia and Ghana, announces its annual results for the year ended 31 December 2014.

Key highlights
•Total tonnes of manganese ore production for 2014 decreased 7% compared to 2013. Australian manganese ore production increased 4% offset by a 17% decrease in Ghanaian manganese ore production compared to 2013.
•Manganese C1 cash costs for 2014 were $2.46/dmtu compared to $2.52/dmtu in 2013, a decrease of 2% continuing the positive trend seen over the last three years.
•Total manganese sales tonnes decreased 23% in 2014 compared to 2013. Australian manganese tonnes sold were slightly ahead of the prior year but Ghanaian manganese tonnes sold were 41% lower than prior year as a result of the termination of the Tianyuan Manganese Industry Co. Ltd (TMI) contract.
•Average manganese FOB sales price achieved decreased 17% from $4.81 in 2013 to $3.98 in 2014.
•The annual average price for manganese lump (CRU, 44%Mn CIF China) in 2014 was $4.56/dmtu, a decrease of 16% from $5.43/dmtu in 2013. In 2014, prices started the year at $5.25 and ended at $4.35/dmtu.
•Based on the December 2014 resource and reserves statement total Ghanaian reserves have increased 20% and resources have remained the same compared to the June 2013 statement. The equivalent comparison for the Australian business at December 2014 shows a 29% increase in reserves and a 17% increase in resources compared to the December 2013 statement.
•Financial performance in 2014 has been negatively impacted by the combination of lower manganese pricing and the lower sales volumes in Ghana and reduced margin arising from the termination of the TMI contract during the year. As a consequence Adjusted EBITDA2 for 2014 was $127 million, down from $291 million in 2013 and Cash EBITDA for 2014 was $80 million, down from $261 million in 2013.
•The Group recorded a profit for the year of $1 million compared to a profit of $145 million in 2013.
•During the year the group had an operating cash inflow from continuing activities of $32 million compared to an inflow of $254 million in 2013.
•Total capital expenditure for the group in 2014 was $57 million, inclusive of $14 million of assets acquired under hire purchase agreements, which was in line with the planned capital expenditure for the year.
•During the year the Company spent $246 million redeeming all of the outstanding senior secured notes due 2016.
•On 12 May 2014, the Company issued $400 million in principal amount of 8.0% senior secured notes due 2020. Of the net proceeds of the issue $118 million were used in part to repurchase the remaining senior secured notes due 2016. A further $250 million of the proceeds were used to partially repay the shareholder loans treated as equity in the statement of financial position.
•Cash and cash equivalents net of overdraft decreased by $160 million from $220 million at 31 December 2013 to $60 million at 31 December 2014 with net debt increasing by $324 million to $347 million over the same period.
•In July 2013 the Company ceased mining at its Coobina chromite mine and final sales of Chromite ore concluded in Q1 2014. On 2 April 2014 the company transferred the Coobina tenement assets to PMI in part settlement of the liability arising from the termination of the Super Fines agreement generating a non cash gain on disposal of $10 million. As a result Coobina has been reclassified as a discontinued operation in the statement of comprehensive income and statement of cashflows for 2014, 2013 and 2012.
•Following the termination of the TMI agreement in August 2014, as a result of TMI's breaches and non-performance, the Company made a drawdown demand on the $50 million standby letter of credit and commenced arbitration proceedings in London in order to recover its losses. TMI commenced court proceedings in China and obtained a temporary injunction, alleging fraud in order to prevent payment under the standby letter of credit. The Company continues to contest this injunction in the Chinese courts with the intention of lifting it. The Company continues to pursue the arbitration proceedings in London.
 

• [Editor:Sophie]