OM (OMH) Q3 2024 TU earnings summary

Executive summary

• Q3 2024 production: 44,627 tonnes FeSi, 86,133 tonnes Mn alloys, 29,741 tonnes Mn sinter ore; 471,265 tonnes of ores and alloys transacted, up 12.7% quarter-on-quarter.

• Production guidance for both ferrosilicon and manganese alloys has remained on track for the year, with total output expected to meet initial targets despite some variation between product lines.

• $12.3 million was repaid to PF lenders in Q3, with ongoing efforts to optimize the capital structure and explore refinancing opportunities.

• Trial production for the upgraded UFP will commence at the end of the month, with commercial production scheduled for Q1 2025.

• A 10th anniversary was celebrated at OM Sarawak, marking a decade since the first ferrosilicon production.

Significant events and developments

• Signed an MoU with South32 to collaborate on ESG initiatives, specifically to repurpose silicomanganese slag, aiming to increase waste repurposing to 100% in coming years.

• Implementation of a heat recovery system to reduce Scope 2 emissions and operational costs, with further sustainability projects under consideration depending on carbon pricing.

• Exploring biochar as a means to lower Scope 1 emissions.

• 14 of 16 Sarawak plant furnaces completed major maintenance; further maintenance scheduled for 2025.

• Environmental rehabilitation and weed management continued at Bootu Creek mine.

Segment performance

• All ferrosilicon furnaces are currently profitable, with prices remaining range-bound and cost structures stable.

• Manganese alloy operations remain profitable, with effective cost control mitigating ore price volatility.

• FeSi production down 7.5% and Mn alloys up 2.5% compared to previous quarter; FeSi and Mn alloys sales volumes down 15.0% and 18.1% respectively due to shipment delays.

• All 16 furnaces operational; 14 completed major maintenance, with 13 passing hot commissioning.

• Bootu Creek Manganese mine remains under care and maintenance; Ultra Fines Plant restart pushed to Q1 2025.