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 results for the year ended 31 December 2011.

Key highlights for the year ended 31 December 2011

• Consmin achieved a 50% improvement in the Lost Time Injury Frequency Rate (‘LTIFR’) between 2010 and 2011, which is a significant milestone towards our goal of zero injuries
• Manganese production increased by 14% to 3.2 million tonnes
• Consmin grew its imported manganese ore market share into China in 2011 from ~6% to ~17% , helping drive a 47% overall increase in sales to 3.5 million tonnes
• Group C1 manganese cash costs increased by 12%, however after normalising for the strengthening in 2011 of the Australian dollar against the US dollar costs were only 2% higher at $3.27 /dmtu.
• Capex spend was in line with guidance at $73 million in 2011
• The Group average realised manganese price was only 13% lower in 2011¹ compared to the benchmark price that decreased by 19% for the same period
• The Australian dollar strengthened by 12.3% compared to the US dollar compared to the previous year
• The Group recorded a loss for the year of $491 million primarily driven by the non-cash impairment expense of $495 million
• ‘Cash’ EBITDA increased 8% during the year to $168 million
• Exploration activities were positive with Australia increasing mineral inventory and definition of targets at Woodie Woodie. In Ghana the resource definition work at Hill ‘A’ yielded encouraging results
• The owner-operator project at Woodie Woodie, as approved in 2011, is on track to deliver cash cost reductions

Key Performance Indicators

1. ¹The benchmark price for manganese has increased 5% for May 2012
2. ²Average C1 manganese or chromite unit cash cost represents the cash cost incurred at each processing stage from mining through to ship loading, divided by the total manganese dmtu or chromite tonnes produced. Included within the C1 manganese unit cash costs are an allocation of offsite, non-corporate and support services costs. Depreciation, government royalty payments, deferred stripping adjustments and stockpile movements are not included in the calculation.
3. ³Adjusted EBITDA is defined as operating profit before depreciation and amortisation, impairment write-back/expense, net foreign exchange gain/loss and non-cash inventory write-downs. Adjusted EBITDA is not a uniformly or legally defined measure and is not recognised under IFRS or any other generally accepted accounting principles. The Directors use this measure as an indicator of our representative, recurring operations and to reflect how the business is managed and measured. Other companies in the mining industry may calculate this measure differently and consequently, our presentation of Adjusted EBITDA may not be readily comparable to other companies’ figures.
4. ⁴‘Cash’ EBITDA is defined as Adjusted EBITDA after removing the impact of the non-cash items of deferred stripping and movement in inventories.

Commenting on the results, Glenn Baldwin (CEO of Consmin) said:

“I am pleased to report our results for the full year 2011. Notwithstanding low prices for manganese and chrome, we delivered on our plans to differentiate ourselves from competitors and supply high quality products to the market whilst maintaining our position as a leading manganese focussed mining company.

I am particularly pleased with the overall safety performance of Consmin in 2011 with substantial improvements in the health, safety and training of our management, technical and operational employees. These improvements have resulted in noticeable, on-the-ground productivity and efficiency improvements that will be bedded-down further in 2012 and ultimately culminate in the cultural shift that is required for global owner-mining operations in the manganese business.

Production significantly increased during the year despite operational challenges including the continuing mining boom in Western Australia leading to high staff turn-over rates. Key productivity projects designed to reduce the footprint of mining on the environment were substantially progressed including finalising the trial of lighter trays for larger payloads on mining trucks.

We focussed on managing the controllable costs, with a number of efficiency programmes being implemented during the year such as owner-operator production drilling. The bulk of the $0.38/dmtu C1 cash cost increase to $3.60/dmtu was a result of the Australian currency translation costs into US dollars.

The deterioration in the benchmark price in the second half of 2011 combined with a strong Australian dollar (which resulted in comparable Australian dollar equivalent benchmark manganese prices to that of the 2009 global financial crisis), were the main reasons for significant manganese impairment and the Company’s loss before tax of $491 million. These external pricing elements drove a substantially lower Group adjusted EBITDA of $127 million.

A highlight of 2011 was our ability to restructure our balance sheet through a $405 million bond issuance. The two primary uses of funds were repaying shareholder loans and to secure future funding for key capital projects and brownfields exploration programmes. In addition, our 2011 performance has resulted in increased free-cash flow compared to 2010.

Exploration programmes have continued to produce positive results and we have increased our reserves at our manganese operations, while also publishing the inaugural resources and reserves statement for the Coobina chromite mine. This additional knowledge has greatly improved our mine forecasting ability and will assist in delivering on further mine planning efficiencies and cost savings.

Our trading operations were established in Jersey during the year and the team has successfully delivered demand-growth for our ores. We have specifically tailored our products to the needs of our customers to maximise value. In addition, we have established ourselves as a consistent supplier to the EMM market. This trading focus has resulted in Consmin becoming a dominant supplier of manganese ores to China and we were able to regularly achieve prices which were in excess of the benchmark manganese price.

Looking at the year ahead, we have a clear focus on, once again, controlling our costs and improving the efficiency of our operations. The continued development of our people and the transition to owner-operation at our Woodie Woodie mine are key deliverables to achieve this plan.”

Download the full financial results for the year ending 31 December 2011 (PDF – 1.8MB)

About Consolidated Minerals Limited

Consmin is a leading manganese ore producer with 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 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
Glenn Baldwin, CEO
Jackie Callaway, CFO

Conference Call

There will be a conference call for analysts and bondholders on 26 April 2011 at 4pm BST (British Summer time).

To access the annual results conference call, you must first register in advance on:
http://emea.directeventreg.com/registration/event/69859625

The annual results conference call, conference ID 69859625, can then be accessed by dialling:
UK: +44 (0) 1452 580 655