Consmin's Q2 earnings soar on 17% rise in manganese ore prices

Consolidated Minerals (Consmin) almost tripled its earnings in the second quarter of 2013, as manganese ore prices rose 17% and cash costs fell, it said on Thursday August 29.

Consolidated Minerals (Consmin) almost tripled its earnings in the second quarter of 2013, as manganese ore prices rose 17% and cash costs fell, it said on Thursday August 29. 

Consmin reported adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) of $74 million for the quarter, compared with $26.5 million for the same period in 2012.

"Consmin has again delivered exceptional performance in Q2 with a 180% increase in adjusted Ebitda to $74 million resulting from a 17% increase in manganese FOB pricing combined with an 18% reduction in cash costs,” marketing md Peter Allen said.

Average manganese ore prices achieved for fob sales rose to $5.07 per dmtu from $4.35 per dmtu in the second quarter of 2012, the company said.

Consmin’s overall manganese ore production was steady year-on-year. Its Australian production increased 6% and production in Ghana fell 6%.

The company’s total manganese ore production for the first half of 2013 increased 4% year-on-year.

Cash costs were reduced by 18% year-on-year to $2.46 per dmtu.

Manganese ore stocks in Chinese ports stood at 2.6 million tonnes at the end of the second quarter, down 300,000 tonnes compared with the same period in 2012.
Consmin noted that manganese ore prices have been softening in the third quarter of this year.

Metal Bulletin's index price for 44% manganese ore, cif Tianjin, stands at $5.10 per dmtu, compared with $5.72 per dmtu at the end of the second quarter.

Metal Bulletin's index price for 38% manganese ore, fob Port Elizabeth, stands at $3.37 per dmtu, compared with $4.47 per dmtu at the end of the second quarter.

Janie Davies 
jdavies@metalbulletin.com
Twitter: @janiedavies_mb 

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