Financial Results for the three months and nine months to 30 September 2013

27 Nov 2013
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 30 September 2013.

Key highlights

  • Adjusted EBITDA for Q3 2013 was $92 million, an increase of $77 million compared to Q3 2012.
  • Average manganese FOB sales prices achieved increased from $4.44 in Q3 2012 to $4.84 in Q3 2013.
  • Average manganese ore price for Q3 2013 (CRU, 44%Mn CIF China) was $5.32/dmtu, down 7% from $5.70/dmtu for Q2 2013. The Company’s average price for its Australian 46% Mn lump product, CIF China, was $5.72/dmtu in Q3 2013, down 7% from $6.18/dmtu in Q2 2013.
  • Port stocks at China’s major ports at the end of Q3 2013 were 2.45 million tonnes, down 182k tonnes from the previous quarter.
  • Manganese C1 cash costs have continued to improve from $2.93/dmtu in Q3 2012 to $2.45/dmtu in Q3 2013.
  • Manganese production for Q3 2013 was 2% higher compared to Q3 2012. Australian manganese ore production increased 6% and Ghana manganese ore production decreased 1%.
  • Manganese sales tonnes were 32% higher in Q3 2013 compared to Q3 2012, as a result of strong demand for both Australian and Ghanaian ore (up 35% and 30% respectively).
  • During the quarter the Company sold its entire shareholding in BC Iron Limited recognising net proceeds of $102 million and a gain on sale of $46 million. The proceeds are to be applied in compliance with the Bond indenture which may include capital expenditure or funding of exploration activities in the next year. The gain on the sale of BC Iron is categorised as a profit on disposal of an associated undertaking and is not included in Adjusted EBITDA.
  • During Q3 2013 the Company spent $47 million on the repurchase of its bonds. Subsequent to the quarter end the Company spent an additional $21 million repurchasing further bonds.

Key Performance Indicators

  Quarter ended Nine Months Ended
Unaudited 30 Sept 2013 30 Sept 2012
% change 30 Sept 2013 30 Sept 2012
% change
Manganese ore produced (dry kt) 891.5 873.5 2.1% 2,584.7 2,495.4 3.6%
Manganese ore sales (dry kt) 991.4 748.6 32.4% 2,628.1 2,154.5 22.0%
Average C1 manganese unit cash cost ($/dmtu)1 2.45 2.93 (16.4%) 2.50 3.05 (18.0%)
Average manganese FOB Sales price ($/dmtu) 4.84 4.44 9.0% 4.91 4.27 15.0%
Chromite ore produced (kt)              81.2 109.3 (25.7%) 300.6 331.7 (9.4%)
Chromite sales (kt) 70.1 157.8 (55.6%) 271.9 367.8 (26.1%)
Average C1 chromite unit cash cost ($/t)1 150 212 (29.2%) 161 208 (22.6%)
Average chromite FOB sales price ($/t) 177 198 (10.6%) 204 211 (3.3%)
Revenue ($ million) 186.7 149.7 24.7% 520.2 411.9 26.3%
Adjusted EBITDA ($ million)2 92.4 15.2 507.9% 221.9 51.9 327.6%
‘Cash’ EBITDA ($ million)4 86.0 29.3 193.5% 203.8 47.3 330.9%
Profit / (Loss) for the period 122.1 (5.1) 2494.1% 178.5 (11.0) 1722.7%


  Quarter Ended Year Ended  
Unaudited 30 Sept 2013 31 December 2012 % change
Cash and cash equivalents ($ million) 227.4 86.3 163.5%
Gross debt ($ million) (267.3) (385.6) (30.7%)
Gross debt excluding high yield bonds ($ million) (19.9) (31.0) (35.8%)
Net debt ($ million) (39.9) (299.3) (86.7%)
  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, Peter Allen (Managing Director, Marketing) said:

“Consmin has continued to deliver exceptional performance in Q3 with a $77 million increase in adjusted EBITDA to $92 million resulting from a substantial (32%) increase in manganese sales volumes, due to strong demand for both Australian and Ghanaian ore, along with a 9% increase in manganese FOB pricing and a 16% reduction in cash costs. Manganese production increased by 2% in Q3 2013.

During the quarter the Company sold its shareholding in its associate BC Iron realising a profit of $46 million and net cash proceeds of $102 million. During the quarter the Company also spent an additional $47 million on the buy-back of its bonds and a further $21 million after the quarter end. As a result of these transactions and the continued strong operating cashflows generated by the business the cash position increased to $227 million from $86 million at the start of the year and net debt reduced to $40 million from $299 million over the same period. This strong liquidity position enables the Group to continue to look at strategic investment opportunities.”

Download the full Financial Results for the three months and nine months to 30 September 2013 (PDF – 966KB)

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 or contact:


+44 (0) 1534 513 300

Peter Allen, Managing Director, Marketing
Jurgen Eijgendaal, Managing Director, Ghana
Paul Muller, Managing Director, Australia
David Slater, Group Chief Financial Officer

Conference Call

There will be a conference call for analysts and bondholders on 27 November 2013 at 1pm GMT (Greenwich Mean Time).

To access the quarterly results conference call, you must first register in advance on:

The quarterly results conference call, conference ID 97483629, 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.