OM (OMH) H1 2024 earnings summary

Executive summary

• Revenue for 1H 2024 was US$308.4 million, down 4% from 1H 2023, mainly due to lower ore volumes and average selling prices, despite higher alloy volumes traded.

• EBITDA for 1H 2024 was US$46.6 million, down from US$56.9 million in 1H 2023.

• Net profit after tax attributable to owners was US$12.8 million, with basic and diluted EPS at 1.67 US cents, both down from 1H 2023.

• Cash generation remained strong, with US$69.4 million generated from operations, a significant improvement from negative US$3.6 million in 1H 2023.

• Profitability was impacted by weaker global economic activity, lower alloy prices, and higher interest rates.

Financial highlights

• Gross profit margin for 1H 2024 was 16.1%–19%, down from 19%–21% in 1H 2023, mainly due to lower selling prices.

• Cash and cash equivalents stood at US$57.5–66.5 million as of 30 June 2024.

• Total borrowings reduced to US$213.2 million, with a gearing/borrowings-to-equity ratio of 0.50.

• Loan repayments totaled US$54.4 million in 1H 2024.

• Inventories increased to US$312.7 million, with a US$12.7 million write-back due to higher net realisable values.

Outlook and guidance

• FeSi prices increased due to supply constraints and regulatory actions in China; SiMn prices normalized after a spike.

• FY2024 FeSi production guidance is 53–63 kmt; Mn alloy production guidance is 151–171 kmt.

• Ultra Fines Plant restart at Bootu Creek is on track for Q4 2024.

• Hot commissioning of MetSi furnace began in July 2024; full commercial production depends on strategic review.

• No interim dividend declared for 1H 2024.