OM (OMH) Q2 2024 TU earnings summary

Executive summary

• Achieved inclusion in the inaugural Fortune Southeast Asia 500 for 2024, ranking 414th by revenue, validating strategic pivots and operational excellence.

• All production assets are operational, with hot commissioning of a new silicon metal furnace underway and full production dependent on strategic review.

• Q2 2024 production totaled 48,268 tonnes FeSi, 84,037 tonnes manganese alloys, and 30,784 tonnes manganese sinter ore.

• Project finance lenders were repaid US$12.3 million on schedule during the quarter.

Financial highlights

• Targeting the highest production volume in five years, with Q2 2024 sales of 50,567 tonnes FeSi and 85,593 tonnes manganese alloys, supporting cost reductions and improved earnings.

• Six-month 2024 average prices for key products are down year-over-year, but recent trends show price recovery.

Outlook and guidance

• Full-year production guidance for FeSi and Mn alloys remains unchanged, with expectations for record output; FY2024 guidance is 140 kmt FeSi and 217 kmt Mn alloys.

• Full commercial production of the silicon metal furnace and UFP restart are contingent on strategic review, with UFP targeted for Q4 2024.

• No formal earnings guidance provided, but operational efficiencies and market conditions are expected to improve results over 2023.