Ann: Share Placement to JFE Shoji Corporation, page-43

Since Feb 2020 OM Sarawak has been operating at reduced capacity due to raw material supply problems, then Covid staff problems, furnace conversions and furnace maintenance. The power contract PPA is a take or pay agreement so with the reduction of production means that the power still needs to be paid for.
The power price for 2024 is 0.153RM up 2.5% from 2023 or US$0.033/kWh. Close to a 5 year low.
Each furnace that has been closed has cost approx US$6.5 million/year in power charges. So if an average of 5 x furnaces have been offline for the past 3 years means that US$100 million in power has been paid for that wasn't used and now in inventory to be used at a later date.
Its a shame that OM Holdings management don't explain this clearer. Profits will increase as this power is used to produce more product.
Using the 2024 power cost, the FeSi power component is US$300/tonne, even with lower product prices OM Sarawak is still profitable and will become more profitable now that 15 furnaces are now back in production.