It was the first line & the overall tone of the announcement on Mn that i was more referring to.
"today announced that mainly due to a rise in the prices of manganese ores and alloys, its EBITDA (Earnings before Interest, Taxes, Depreciation and Amortisation) has increased to A$41.5 million for the six months ended 30 June 2017"
Page 10 / point 6 of OMH report
"In addition, with 4 modified furnaces at the smelter in Sarawak producing manganese alloy (high carbon ferromanganese and silico manganese) in 1H 2017, there was an increase in tonnages of manganese alloys traded of 58,462 tonnes. This resulted in A$79.2 million of revenue generated from manganese alloys in 1H 2017 as compared to only A$2.8 million in 1H 2016."
"Prices of manganese ores and ferro-manganese alloys rebounded in 1H 2017 and this had a positive impact on the Group’s sales revenue and gross profit margins."
There a few types of silicon, one uses manganese ( Mn ) , the other uses Mn and alloy and the last is silicon rich so not much metal is used.
Taken from OMH website:
OM Holdings Limited (ASX Code: OMH) is an independent, internationally diversified minerals group with its primary focus on expanding its fully integrated manganese business. Its international operations currently comprise a successful Singapore based metals marketing business supported by a manganese mine in Australia and a ferro alloy processing facility in China.
The key objectives underpinning OMH’s fully integrated international manganese business incorporate contributions by the following three business segments:
- the mining of manganese at the 100% owned Bootu Creek Project, located in the Northern Territory of Australia. It has high value in use for siliceous and sinter feed grade ore and is uniformly low in contaminant phosphorous and the operation has no logistical constraints being in close proximity to rail and road links to the Port of Darwin. It has a 1 Mtpa production capacity and a mine life of 13 years, based on mineral resources.
- the production of manganese ferro alloys at a furnace complex located at Qinzhou in Guangxi Province, south west China. This is a pivotal region for ferro alloy smelters and ore distribution at Qinzhou. This site, adjacent to a port development, was chosen for its excellent transport logistics and competitive power costs. It has a 50 Ktpa High Carbon Ferro Manganese capacity and a new 300 Ktpa sinter plant with expansion plans to double its capacity; and
- the trading of manganese ore and alloys. OMH through its trading division OM Materials has a highly experienced China focused marketing and trading team based in Singapore and has developed a profitable Manganese ore and alloy trading business. It has developed a China specific logistics and distribution capabilities and enjoyed a more than 10% market share of Manganese ore import into China. The sale of its equity production to the global steel industry includes third party trading of Manganese and Chrome Ore/ Alloys and Iron Ore.
Given the above info, to me, it clearly suggests that the silicon manganese is where OMH are making the most money. I'm waiting on call back from OMH to clarify so will post when i get in contact with them.
Here is a link that explains the silicons and break down of elements used to make it
http://www.apratiminternational.com/ferro-alloys.html
Adam Eve pattern on spot price which is a bullish pattern, especially once it goes past resistance.
