Proactiveinvestors Australia OM Holdings Ltd Proactiveinvestors Australia OM Holdings Ltd RSS feed en Mon, 17 Jun 2019 13:04:12 +1000 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[News - OM Holdings continues as one the ASX’s top performers ]]> OM Holdings Ltd (ASX:OMH) was one of the top performers on the ASX in 2017 and has continued this strong performance into 2018.

The company is a vertically integrated commodity player engaged in the business of mining, smelting, trading, and marketing of ores and ferroalloys.

OMH generated an impress 988.2 million in FY2017 and $186.1 million EBITDA.

The company has smelting operations in Malaysia and China and operating mines in Northern Territory and South Africa.

OMH provides products to steel mills and foundries

OMH takes the raw materials of manganese ore and quartz and turns them into ferromanganese, silicomanganese and ferrosilicon.

These products are then mainly sold on to steel mills and foundries.

Silicomanganese and ferromanganese are known as manganese ferroalloys andare essential to the production of steel with no known substitutes.

Ferrosilicon is also an irreplaceable raw material for all steel making.

It is used in higher concentrations in specialty steel products especially in the automotive industry.

OMH mines manganese from its Bootu Creek mine

OMH mines 36% grade siliceous manganese ore from its Bootu Creek mine in the Northern Territory.

Mining originally commenced at Bootu Creek in late 2005 but recently recommenced in the first quarter of 2017.

OMH also has an effective 13% interest in the Tshipi Borwa manganese mine in South Africa.

It is also developing the Lasah/Lawin quartzite mine in Malaysia.

Marketing and trading business

The company’s third operating segments after mining and smelting is marketing and trading - which fully vertically integrates the company's business.

This involves the trading of manganese ore, manganese ferroalloys, ferrosilicon, sinter ore, chrome ore and iron ore.

Thu, 22 Mar 2018 13:38:00 +1100
<![CDATA[News - OM Holdings sells 5% stake in smelter project for US$18.45 million ]]> OM Holdings (ASX:OMH) has sold a 5% interest in Sarawak smelter project in Malaysia to joint venture partner Samalaju Industries Sdn Bhd for US$18.45 million.

Proceeds from the sale will be used for development of Phase II of the smelter project.

Following transfer of the interest, OM will retain a 75% stake in the project while Samalaju will hold 25%.

Phase one of the smelter project to produce ferrosilicon and ferro-manganese intermediate products commenced production in September 2014.

This will ramp up to full production by the end of 2015.

When completed the ferrosilicon production facility’s capacity of 308,000 tonnes per annum will make it one of the largest ferrosilicon smelters globally.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

Wed, 25 Mar 2015 17:30:00 +1100
<![CDATA[News - OM Holdings forms marketing joint venture for South African manganese ore ]]> OM Holdings (ASX: OMH) has executed a joint venture with Jupiter Mines (ASX: JMS) for the marketing of manganese ore produced by its associate Tshipi é Ntle Manganese Mining.

OMH holds an effective 13% stake in Tshipi through its 26% strategic investment in Tshipi’s controlling shareholder, Ntsimbintle.

The ore will be marketed through a Singapore-based joint venture company which will trade under the name OM Tshipi which OMH, Jupiter and Tshipi will each hold an equal stake.

The Tshipi Borwa open pit manganese mine is located immediately adjacent to BHP Billiton’s (ASX: BHP) Mamatwan mine in South Africa.

Tshipi has sold in excess of 450,000 metric tonnes of product to date since exports started in December 2012.

Tshipi Borwa is located in the Kalahari Manganese field in the Northern Cape of South Africa, which is home to 80% of the world’ manganese resource.

It is expected to have 2.4 million tonnes per annum at 37% manganese production at full capacity.

Despite manganese's low profile, it is the world’s fourth most traded metal and a crucial component in the manufacture of steel, a variety of alloys and is the major component in the production of lithium ion batteries.

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.

Fri, 06 Sep 2013 16:00:00 +1000
<![CDATA[News - OM Holdings to tap markets for $72.5m for Sarawak Ferroalloy Project ]]> OM Holdings (ASX: OMH) is to tap markets for $72.5 million for its Sarawak Project in Malaysia that is being developed to produce 575,000 tonnes per annum of ferroalloys for the Asian and global steel markets from the first half of 2014.

The offer is a 3 for 10 non-renounceable pro-rata entitlement offer of new ordinary shares in OMH at A$0.40 per New Share.

The Sarawak Project is owned and is being developed by OM Materials (Sarawak) Sdn Bdn, a joint venture company owned by OMH (80%) and Cahya Mata Sarawak Bhd (20%).

A US$428 million (A$408 million) debt syndication process has commenced and is expected to be completed in the second half of the 2012 calendar year.

The Sarawak Project is expected to be 70% debt financed by a consortium of international and regional banks, with initial indicative funding participation amounts received from 6 major banks to date.

These participation amounts collectively well exceeded the project’s debt funding requirements. However, the Entitlement Offer is not conditional on OM Sarawak successfully obtaining project debt financing.

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Thu, 16 Aug 2012 08:59:00 +1000
<![CDATA[News - Om Holdings: A$26.25m funding injection to develop Sarawak ferroalloy project in Malaysia ]]> Om Holdings (ASX: OMH) has received a major vote of confidence in the company's operations from institutional investors to develop the 80% owned Sarawak ferroalloy project in Malaysia, with a A$26.25 million capital raising.

The funding injection is from a placement of 75 million shares at $0.35, with strategic investor Boustead Singapore accounting for two thirds (50 million shares) of the placement.

Proceeds will finance development activities at Sarawak as well as assisting in the timely financial close of the project, expected to occur in the June quarter of 2012.

Om Holdings added that in addition to facilitating the development of Sarawak, the placement to Boustead represents the formalisation of a strong strategic relationship with one of South-East Asia’s most successful, progressive and experienced engineering services businesses.

For Sarawak, a Binding term sheet is in place with JFE Shoji Trade Corporation of Japan signed for an off-take of up to 100,000 tonnes per annum of Ferro Silicon product from the project.


Mon, 23 Jan 2012 10:20:00 +1100
<![CDATA[News - OM Holdings foresees no major impact on manganese operation from train derailment ]]> OM Holdings (ASX: OMH) will continue production from the Bootu Creek Manganese Mine as normal, despite a train derailment which could impact the delivery of ore to customers over the next five to six weeks.

A Genesee & Wyoming Australia (GWA) freight train travelling towards Darwin was derailed on the Edith River Bridge north of Katherine on December 27, 2011 due to adverse wet conditions caused by Cyclone Grant.

The train was not carrying any of OM Holdings’ manganese product.

A preliminary assessment indicates that the rail bridge can be repaired without replacing major structural piers and spans.

The recovery and repair program to reopen the track is expected to take about 30 days.

OM Holdings utilises four train services each week from GWA to transport manganese from the Muckaty Rail Siding to the Port of Darwin, where it is shipped to export markets.

The derailment is expected to impact on two of OM Holdings’ scheduled export shipments over the next five to six weeks.

OM Holdings is in discussions with customers to manage any potential impact of the incident, with possibilities including utilising existing manganese product stockpiles at the company’s stockpile and distribution centres in Northern and Southern China.

In addition, the seasonal slow down of ore purchasing activity by Chinese customers between mid-January and early February due to the Chinese New Year holiday season is expected to help mitigate the impact of the incident.

In the meantime, product from Bootu will be stockpiled on the mine and at the Muckaty rail siding, with railing and shipping to resume once the rail line is reopened.

OM Holdings anticipates that about 6 shipments will be made from the Port of Darwin in the first quarter of 2012, in line with the mine’s budgeted shipment schedule and previous first quarter shipments.

No long-term impacts to the company’s revenue or take-or-pay obligations are expected from the incident.

Tue, 03 Jan 2012 11:58:00 +1100
<![CDATA[News - OM Holdings reflects on “outstanding quarter” ]]> OM HOLDINGS LIMITED (ASX Code: OMH) has posted an outstanding quarterly result featuring record production and sharply lower costs as it reaps the benefits of the new operating strategy implemented earlier this year.

The global mining and metals marketing group revealed today that production at its Bootu Creek project in the Northern Territory hit a record 205,372 tonnes at 39.4% Mn in the September quarter.

July production set a record monthly total of 77,398 tonnes at 39.2% Mn.

Bootu Creek, located 110 km north of Tennant Creek in the Northern Territory, has the capacity to produce over 800,000 tonnes of manganese product annually.

The project has further exploration potential given that its tenement holdings extend over 3,326 km2.

The news comes less than a month after unveiling its plan to become one of the world’s largest manganese companies through the A$294 million proposed acquisition of a major interest in a South African project.

The latest quarterly production result was up 25% compared with the previous three months, highlighting the gains generated by the implementation of OMH’s revised production and marketing strategy which has delivered improvements in the mine’s capacity, yield, recovery and cost performance.

And the news is set to get even better, with the Company foreshadowing further rises in production to 70,000 tonnes a month at 38% Mn in the current quarter.

It said OMM shipping and sales were also expected to reach 240,000 tonnes this quarter, up from 185,385 tonnes in the September quarter.

The operational achievements were contained in OMH’s September Quarterly Report, which was released to the ASX.

In the report, OMM’s C1 costs fell to $A3.80/dmtu in the September quarter, a fall of 20% from the June quarter and a 44% fall from the March quarter.

In July, the C1 monthly cost fell to A$3.20/dmtu, the lowest in the recent history of Bootu Creek.

OMH chief executive Peter Toth said the outstanding results reflected the successful implementation of OMH’s previously announced production and marketing strategy.

“The production and cost performance of OMM during the quarter continues to confirm that we are on the right track with our revised production and marketing strategy,” Mr Toth said.

“Bootu Creek continues to achieve improvements in the mine’s capacity, yield, recovery and cost performance.”

OMH said commissioning of the Bootu Creek Secondary Processing Plant was on target to be completed this quarter.

This will enable total manganese ore production to reach close to 1 million tonnes heading into 2010.OMH also reported today its 100% owned Qinzhou smelter in China recorded sales of 10,527 tonnes of High Carbon.

The construction of a new sinter ore plant is on budget and scheduled to be commissioned at the end of this calendar year.

The smelter benefited during the quarter from rising prices and growing demand, enabling it to record a solid operating profit and cash flow.

In addition to the 185,385 tonnes shipped and sold from the Bootu Creek operation, the Singapore based marketing operation also sold 55,501 tonnes of third party product.

The marketing division reported higher ore prices of up to A$6.50/dmtu CFR China in the quarter. It noted that prices for the rest of 2009 were expected to stay around the A$6/dmtu CFR China level due to continued strong ore and alloy demand from China.

OMH noted that an important change in pricing dynamics had occurred in the market during the quarter, with major high grade producers switching from a quarterly to a monthly pricing approach.

OMH said this would create a more accurate pricing mechanism reflecting the prevailing supply and demand situation.

“The strong operating profit contribution from our Qinzhou smelter during the quarter demonstrated the benefits of the relentless focus on costs, efficiencies and customer relationships,” Mr Toth said.

“Both of our organic growth projects, the Bootu Creek Secondary Processing Plant and the Qinzhou sinter ore plant, are on track for Q4 2009 commissioning.

“I have no doubt 2010 will be an exciting year in terms of our fully optimised production capability from Bootu Creek together with the introduction of high-grade sinter ore into our product suite.”

Mon, 26 Oct 2009 05:40:00 +1100
<![CDATA[News - Om Holdings and Pallinghurst birth pure manganese play ]]> Pallinghurst's quest to become a major player in the manganese market took a major step forward Monday, with the announcement that it, and its co-investors, have signed a memorandum of understanding to with OM Holdings.

Under the MOU, the Australian Manganese producer, OM Holdings (ASX: OMH) will acquire a 49.9% equity interest from the Pallinghurst Co-Investors in the Tshipi Kalahari Manganese Project in exchange for 139,906,729 ordinary shares in OMH; and a 20% equity interest in the black empowerment group Ntsimbintle, which owns 50.1% of the project, for A$49,2m in cash, roughly the value of 28m OMH shares.

Speaking on a conference call early this morning Brian Gilbertson, explained that, the existing group of investors (which includes South Korean steelmaker POSCO, Investec and AMCI Capital) in the Tshipi manganese project are extremely bullish about the long term prospects for the steel market, and indeed had been looking for a way to speed up the development of the mine but, chose to do the deal with OMH because its logic was compelling.

"The deal creates a company capable of competing quite vigorously in the international manganese market," Gilbertson said.

"It brings together the expertise of both parties, adds geographic diversification and the ability to blend two types of ore which will better meet customer requirements and it also brings with it OMH's presence in China," he said.

It is this access that Gilbertson was at pains to point out was something the existing co-investors didn't yet have access to and would have had to create from scratch.

OMH CEO, Peter Toth, said that in the Tswana language the world Tshipi beans beautiful and he could not have come up with a better word to describe the project on hand.

He added, "The new company will have operations that span across the value chain of the manganese industry, the business will operate in the most strategically important markets, Australia, South Africa  and China.

"OMH is a skilled marketer of products in this market," he added.

Indeed, many seem impressed by the prospect of a company that will only produces manganese ore in both South Africa and Australia but also beneficiate that ore and market its products to Asia.

OMH Executive Chairman, Mr Low Ngee Tong noted in the press release, "OMH has proven that it can add significant value to the Bootu Creek Mine's Mineral Resource by producing and marketing low cost and high value in use products.

The Tshipi Kalahari Manganese Project, once in production, will allow further opportunities for OMH to use and market a unique suite of complementary ores.

Following shareholder approval of this transaction OMH will aggressively pursue complementary business development opportunities such as the expansion of its Qinzhou smelting and sintering capacity and the feasibility study of smelting options outside China, including Indonesia which is supported by domestic manganese ore, proximity to the Bootu Creek operation and large domestic thermal coal resources supporting competitive power costs."

According to Toth, the deal is a landmark one for the Australian company, and "propels OMH into becoming one of the leading globally-integrated, independent manganese producers in the world".

To put into perspective exactly what OMH will get its hands on through the deal, the Tshipi project situated in the Kalahari Basin, has a total estimated mineral resource of 163.23 million tonnes at 37.1% Mn with significant potential for additional resources beyond the currently defined levels.

According to the MOU, the parties involved will need to spend US$200 million to develop the project but the various interested parties say that "upon reaching a steady state production rate, the project is expected to be a producer in the lowest cost quartile.

"It is anticipated that the development of the mine will commence in 2010 with the aim to be in production no later than early 2013, in line with expected supporting rail and port infrastructure. A fast tracked mine development schedule and the identification of earlier logistics options are under investigation and could result in earlier market entry outcomes."

And, while the project brings both OMH and Pallinghurst (and its co-investors) into the manganese big leagues, Gilbertson made it clear that there was every reason to think this would not be the last deal these parties do together.

"I am very flattered that OMH has asked me to head up an Investment committee. As I mentioned earlier, my co-investors are very enthusiastic about the steel industry and its future prospects and they have deep pockets. I think we will find that the co-investors are willing to support us and we will see further developments in the space."

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Tue, 29 Sep 2009 07:59:00 +1000