Ann: 30 June 2018 Quarterly Update, page-15

Hi all, been doing some sums trying to estimate the potential profit for the half year. I've used only figures given in Quarterly reports as well as calculated the margins from previous financial reports. The manganese ore price I've used is an average of Mn ore pricing in the same way that also appears in the financial statements, so I think this will be close to the mark, but with more chance of an increase than decrease.

The key drivers are taken exactly from Quarterly reports, note an increase in volumes of ores and alloys over Dec 2017 1/2 year .

The revenue for mining ie Mn ore at Bootu Creek is down due to much lower shipments than last 1/2 2017 year, but the profit is way up due to much higher average pricing. Smelting volumes are up at OM Sarawak as well as OMQ, I've used basically the same price per tonne as last year, so there might be some more upside there. Marketing, logistics and trading is up due to higher volumes of material moved. The profit does not take into account any finance or interest charges etc.
The one to watch to give a closer picture on OM Sarawak profits is the CMSB report next week.