All figures in accordance with IFRS and in United States Dollars, unless otherwise stated

Consmin, a leading manganese ore producer with mining operations in Australia and Ghana, announces its quarterly results for the period ended 31 March 2013.

Key highlights

• Manganese sales tonnes increased 38% in Q1 2013, as a result of strong demand for Ghana ore and improved Australian sales due to the absence of adverse weather conditions in Australia compared to Q1 2012 which also contributed to a 47% increase in sales tonnes of chromite ore. In conjunction with higher prices achieved for both Manganese and Chromite ore, this resulted in total revenue increasing by 70% from Q1 2012.
• Average manganese sales prices achieved increased from $3.95 in Q1 2012 to $4.84 in Q1 2013. During Q1 2013, prices for benchmark manganese lump CIF China 45.5% grade material began at $5.30/dmtu for January shipments and gradually continued to increase to $5.60/dmtu for March shipments. Prices for April shipments were $5.90/dmtu with May and June shipments at $5.95/dmtu.
• In line with the mine plans, both Australia and Ghana manganese ore production in tonnes increased by 11% and 9% respectively compared to Q1 2012. Overall, total manganese ore produced in Q1 2013 was 10% higher in tonnes compared to Q1 2012.
• Manganese C1 cash costs have continued to improve from $3.27/dmtu in Q1 2012 to $2.62/dmtu in Q1 2013. The C1 cash costs have continued to maintain a downward trend from a peak of $3.78 in Q2 2011.
• The Group recorded a profit for the period of $23.6 million driven by its strong operational performance and the improved pricing environment.
• Consmin continues to focus on safety and there were no reported LTIs at either Australia or Ghana in the quarter.

Key Performance Indicators

1. ¹Average C1 manganese or chromite unit cash cost represents the cash cost incurred at each processing stage from mining through to shiploading, over the total manganese dmtus or chromite tonnes produced. Included within the C1 manganese and chromite unit cash costs are an allocation of offsite, non-corporate and support services. Depreciation, government royalty payments, deferred stripping adjustments and stockpile movements are not included in the calculation.
2. ²“Adjusted EBITDA” is defined as operating profit before depreciation and amortisation, impairment write-back/expense, net foreign exchange gain/loss, non-cash inventory write-downs and exceptional items3. This is the key profitability measure used across the whole business and reflects the performance in a consistent manner and in line with how the business is managed and measured on a day to day basis. Adjusted EBITDA is not a uniformly or legally defined measure and is not recognised under IFRS or any other generally accepted accounting principles. Other companies in the mining industry may calculate this measure differently and consequently, our presentation of Adjusted EBITDA items may not be readily comparable to other companies’ figures.
3. ³Exceptional items are material and non-recurring items excluded from management’s assessment of profits because by their nature they could distort the Group’s underlying quality of earnings. These are excluded to reflect performance in a consistent manner and in line with how the business is managed and measured on a day to day basis.
4. ⁴‘Cash’ EBITDA is defined as Adjusted EBITDA after removing the impact of the non-cash items of deferred stripping and net movement in inventories.
5. ⁵Balances related to 2012 have been restated to reflect the impact of the adoption of IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine. See note 2a of the interim consolidated financial statements.

Commenting on the results, Jackie Callaway (CFO of Consmin) said:

“During the first quarter, Consmin delivered exceptional performance with a 70% increase in revenues, a 20% decrease in C1 cash costs (compared to the first quarter of 2012) and a profit of $24 million.

Sales volumes were significantly stronger in the quarter as a result of the combination of strong demand for Ghana ore and improved shipments of Australian ore due to the absence of adverse weather conditions. Combined with the improved sales prices for manganese and chromite ore, revenues for the quarter increased to $167 million.

Volumes of manganese ore produced were 10% higher as a result of strong operational performance. Manganese C1 cash costs continued to reduce to $2.62 per dmtu as a result of the successful implementation of cost reduction initiatives.”

ConsMin Quarterly Report – Q1 2013

Download the full First Quarter Report for period ending 31 March 2013 (PDF – 865KB)

About Consolidated Minerals Limited

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.

Company Information

For further information, please visit our website www.consmin.com or contact:

Consmin

+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

Conference Call

There will be a conference call for analysts and bondholders on 30 May 2013 at 1pm BST (British Summer Time).

To access the quarterly results conference call, you must first register in advance on:
http://emea.directeventreg.com/registration/event/64370806

The quarterly results conference call, conference ID 64370806, can then be accessed by dialling:
UK: +44 (0) 1452 322 716

Market, Economic and Industry

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.

Forward looking statements

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.