Consmin, a leading manganese ore producer with mining operations in Australia and Ghana, announces its annual results for the year ended 31 December 2012.
|31 December 2012||31 December 2011||% change|
|Manganese ore produced (dry kt)||2,971.5||3,165.8||(6.1 %)|
|Manganese ore sales (dry kt)||2,943.1||3,475.1||(15.3%)|
|Average C1 manganese unit cash cost ($/dmtu)¹||3.28||3.60||(8.9%)|
|Average manganese FOB Sales price ($/dmtu)||4.23||4.98||(15.1%)|
|Chromite ore produced (kt)||452.3||323.8||39.7%|
|Chromite sales (kt)||483.1||289.0||67.2%|
|Average C1 chromite unit cash cost ($/t)¹||205||233||(12.0%)|
|Average chromite FOB sales price ($/t)||217||247||(12.1%)|
|Revenue ($ million)||554.1||706.6||(21.6%)|
|Adjusted EBITDA ($ million)²||14.1||126.7||(88.9%)|
|‘Cash’ EBITDA ($ million)4||77.7||167.5||(53.6%)|
|Loss for the period||(44.2)||(491.3)||(91.0%)|
|At 31 December 2012||31 December 2011||% change|
|Cash and cash equivalents ($ million)||86.3||155.2||(44.4%)|
|Gross debt ($ million)||(385.6)||(417.4)||(7.6%)|
|Gross debt excluding high yield bonds ($ million)||(31.0)||(44.0)||(29.5%)|
|Net debt/(cash) ($ million)||(299.3)||(262.2)||14.1%|
“Consmin has produced a solid operational performance in the year. Total volumes produced were broadly flat compared to the prior year with volumes of manganese ore produced declining 6% in response to weakness in the EMM market, offset by a 40% increase in the volume of chromite ore produced.
Manganese C1 cash costs have reduced a further 9% compared to the prior year despite an increase in C1 cash costs in Q4 as a result of a planned stripping programme in Ghana. Prior to Q4 C1 cash costs had continued to reduce each quarter from a peak of $3.78 in Q2 2011 to $2.93 in Q3 2012 as a result of the successful implementation of cost reduction initiatives. C1 cash costs are expected to continue to reduce in 2013 from overall 2012 levels.
2012 was a challenging year from a market perspective; however Consmin is encouraged by transpiring market developments to date in 2013. The recent increase in the alloy tender price was sparked by an upturn in sentiment in the Chinese market after the Chinese government transition which led to an increase in demand for manganese ore. This was evidenced by increases in the benchmark price at the start of 2013 from $5.30/dmtu in December to $5.90/dmtu at the end of March.
The Company signed an important long term sales offtake agreement with China’s leading EMM producer, representing the culmination of 18 months of intense contract negotiation and discussion. Contract pricing is linked to the benchmark manganese ore price and will account for a significant proportion of production in Ghana. The completion of the contract is a significant development for the Company and will underpin the Ghana sales and production strategy going forward.
Both Australian and Ghanaian operations have issued an updated resources and reserves statement during the year. Total Australian resources have increased 22% and reserves have increased 8% compared to the June 2011 resources and reserves statement. Total Ghanaian resources have increased 9% and reserves have decreased 11% compared to the June 2011 resources and reserves statement.”
Consmin is a leading manganese ore producer within mining operations in Australia and Ghana. The principal activities of the Company and its subsidiaries (the “Group”) are the exploration, mining, processing and sale of manganese products. The Group’s operations are primarily conducted through four major operating/trading subsidiaries; Consolidated Minerals Pty Limited (Australia), Ghana Manganese Company Limited (Ghana), Manganese Trading Limited (Jersey) and Pilbara Trading Limited (Jersey).
Consolidated Minerals Limited is headquartered in Jersey and the address of its office is Commercial House, 3 Commercial Street, St Helier, Jersey, Channel Islands, JE2 3RU.
For further information, please visit our website www.consmin.com or contact:
+44(0)1534 513 300
Jackie Callaway, Chief Financial Officer
Peter Allen, Managing Director, Marketing
Paul Muller, Managing Director, Australia
Jurgen Eijgendaal, Managing Director, Ghana
There will be a conference call for analysts and bondholders on 24 April 2013 at 1pm BST (British Summer Time).
To access the results conference call, you must first register in advance on:
The results conference call, conference ID 28586170, can then be accessed by dialling:
UK: +44 (0) 1452 322 716
Market, economic and industry data used throughout this report has been derived from various industry and other independent sources. Industry publications, surveys and forecasts generally state that the information contained therein has been obtained from sources believed to be reliable, but that the accuracy and completeness of such information is not guaranteed and such industry forecasts may not have been updated. Forecasts and other forward-looking information obtained from these sources are subject to the same qualifications and uncertainties as the other forward looking statements contained in this report.
This report includes “forward-looking statements” that express or imply expectations of future events or results. Forward-looking statements are statements that are not historical facts. These statements include, without limitation, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future production, operations, costs, products and services, and statements regarding future performance. Forward-looking statements are generally identified by the words ‘plans,’ ‘expects,’ ‘anticipates,’ ‘believes,’ ‘intends,’ ‘estimates’ and other similar expressions.
All forward-looking statements involve a number of risks, uncertainties and other factors. Although Consmin’s management believes that the expectations reflected in such forward-looking statements are reasonable, investors are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Consmin, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements contained in this report. Factors that could cause or contribute to differences between the actual results, performance and achievements of Consmin include, but are not limited to, political, economic and business conditions, industry trends, competition, commodity prices, changes in regulation, currency fluctuations (including the Australian dollar and US dollar exchange rates), Consmin’s ability to recover its reserves or develop new reserves, including its ability to convert its resources into reserves and its mineral potential into resources or reserves, and to timely and successfully process its mineral reserves which may or may not occur. Consmin is also exposed to the risk of trespass, theft and vandalism, changes in its business strategy, as well as risks and hazards associated with the business of mineral exploration, development, mining and production. Accordingly, investors should not place reliance on forward looking statements contained in this report.
The forward-looking statements in this report reflect information available at the time of preparing this report. Subject to the requirements of the applicable law, Consmin explicitly disclaims any obligation or undertaking publicly to release the result of any revisions to any forward- looking statements in this report that may occur due to any change in Consmin’s expectations or to reflect events or circumstances after the date of this report. No statements made in this report regarding expectations of future profits are profit forecasts or estimates, and no statements made in this report should be interpreted to mean that Consmin’s profits for any future period will necessarily match or exceed the historical published profits of Consmin or any other level.