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OM Holdings continues as one the ASX’s top performers

Shares in the company have increased more than 10x over the past 12 months.

flow chart of taking raw materials and turning them into products for steel mills
The company is vertically integrated, it mines, smelts and trades its products

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.

Quick facts: OM Holdings Ltd

Price: 0.5 AUD

ASX:OMH
Market: ASX
Market Cap: $369.31 m
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