Consolidated Minerals Limited, a leading manganese producer, announces its quarterly results for the period ended 31 March 2011.

Key Highlights (comparing Q1 2011 to Q1 2010)

• Excellent safety performance in Australia and Ghana, including no Lost Time Incidents (‘LTI’) in both countries and achieving 4 years LTI free at our chromite mine in Coobina (Australia)
• Strong manganese and chromite production for the quarter, which increased by 18.0% and 64.9%, respectively
• Manganese and chromite sales volumes increased by 25% and 82%, respectively
• New high grade manganese products delivered from Woodie Woodie
• High grade manganese carbonate products delivered from GMC
• Focus on productivity improvement initiatives to target a reduction in the cost base at Woodie Woodie, and to increase operating margin
• Manganese revenues increased by 4% to $151.6 million, despite a decrease of 8% in the average price achieved from $5.80/dmtu FOB in Q1 2010 to $5.33/dmtu FOB in Q1 2011, mainly driven by higher stock levels in China
• EBITDA during the period was adversely impacted by the lower price received and the negative impact on the Company’s cost base from a strengthening Australian dollar
• Strong cash position and relatively conservative debt position at quarter end

Key Performance Indicators

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 unit cash cost are allocation of offsite, non-corporate, support services. Depreciation, government royalty payments, deferred stripping adjustments and stockpile movements are not included in the calculation.
² Adjusted EBITDA is defined as operating profit plus 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. We consider this measure an important indicator of our representative, recurring operations. 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.

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

“We are pleased to publish our inaugural quarterly results for Consmin, which show increased production levels across both our manganese and chromite operations. We introduced a new high grade manganese product at Woodie Woodie during the quarter, which expands Consmin’s premium product range. Manganese sales have increased significantly confirming the value of our products in alloy and manganese metal production. Although the Australian dollar was appreciably stronger against the US dollar, and the benchmark manganese price was weaker, the increased production matched with cost reduction projects resulted in a solid EBITDA margin. The successful $405 million bond financing that we finalised in April 2011 will enable the Company to focus on the extensive exploration potential of our assets in Australia and Ghana.”

The full version of the quarterly results report is available for download here

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
Tel: +44(0)1534 513 300
Glenn Baldwin, CEO
Jackie Callaway, CFO

Pelham Bell Pottinger (Investor and Media Relations)
Tel: 44(0)20 7861 3232
Charles Vivian
Lorna Spears

Conference Call

There will be a conference call for analysts and bondholders on 8 June 2011 at 12:00 pm London time.

The dial-in details are as follows:
Participant dial in number: +44 (0)20 8515 2302