[Ferro-Alloys.com] Manganese ore sales volumes decreased by 4% to 2.3 million tonnes (1H F2024: 2.4 million tonnes). Export sales volumes decreased by 5% to 1.9 million tonnes (1H F2024: 2.0 million tonnes) and local sales volumes increased by 9% to 399 000 tonnes (1H F2024: 367 000 tonnes). Local sales were higher due to increased offtake from local customers.

Production volumes at Black Rock increased by 13% to 2.0 million tonnes (1H F2024: 1.8 million tonnes), after successfully addressing the critical skills shortage and ore quality issues.

Prices

As previously reported, in F2024 index prices for high-grade manganese ore changed from a 44% index to a 43.5% index, while the low-grade index changed from 37% to 36.5%. The average US dollar index price for high-grade manganese ore (43.5%) and low-grade manganese ore (36.5%) increased by 29% and 13% year on year

Operational performance

Unit costs

Unit cash costs increased by 1% to R865 per tonne (1H F2024: R857 per tonne), driven by inflation and partially offset by higher production volumes.

Unit cost of sales increased by 7% mainly due to higher marketing costs, lower sales volumes and significant net realisable value adjustments on stock.

Capital expenditure and projects

Capital expenditure decreased by 51% to R410 million (1H F2024: R837 million). Various non-critical projects were postponed due to low market prices to preserve cash. 1H F2024 included the procurement of four battery electric vehicles at Black Rock.

Prices

Average high-carbon ferromanganese (HCFeMn) index prices increased by 14% and medium-carbon ferromanganese (MCFeMn) prices increased by 18% year on year.

Volumes

Cato Ridge Works’ production increased by 8% to 52 000 tonnes (1H F2024: 48 000 tonnes), mainly due to improved furnace efficiencies. Cato Ridge Alloys’ production increased by 2% to 26 000 tonnes (1H F2024: 25 000 tonnes) and Sakura’s production (100% basis) increased by 4% to 122 000 tonnes (1H F2024: 117 000 tonnes).

Cato Ridge Works’ export sales increased by 14% to 17 000 tonnes (1H F2024: 15 000 tonnes). Cato Ridge Alloys’ sales decreased by 2% to 23 000 tonnes (1H F2024: 24 000 tonnes). Sakura’s sales increased by 9% to 123 000 tonnes (1H F2024: 113 000 tonnes). The improvement in sales at Cato Ridge Works and Sakura was due to improved manganese alloy market conditions.

Unit costs

Unit cash costs at Cato Ridge Works increased by 6% due to higher electricity costs and a more expensive ore recipe to achieve higher HCFeMn grades, partially offset by better furnace efficiencies. Cato Ridge Alloys unit cash costs increased by 1%. Unit cash costs at Sakura increased by 19% mainly due to higher manganese ore prices.

The ARM Ferrous operations, held through its 50% investment in Assmang Proprietary Limited (Assmang), comprise the iron ore and manganese divisions. Assore South Africa Proprietary Limited, ARM’s partner in Assmang, owns the remaining 50%.

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• [Editor:tianyawei]