The cost of transporting E25 manganese ore to port is 9c/t/km = A$1.63/dmtu. Cost of loading and unloading not included. The unloading and reloading at the port to store the ore prior to shipping is another cost.
The cost of beneficiating low grade 10% comes at a significant cost, machinery breaks down as seen with new equipment thats only a few months old.
There is absolutely nothing that E25 can do about the price, its a small player and the price is set in stone with OMH for the next 5 years, the price is based on either a MB or Platts price.
The fact is there is so much manganese ore available in Africa and none needs to be beneficiated, a lot in Ghana is 40+% grade and **on is high grade also. As the price goes up the more Africa produces, E25 will always be a price taker. The more Mn ore is produced the lower will be the price.
"China Seaborne high- and low-grade manganese ore prices dropped following intensive trading activity after suppliers cut offer prices for January cargoes amid a weakening alloys market in China. Prices for portside low-grade manganese ore remained steady amid a pick-up of inquiries among consumers - given the widen price gap between high- and low-grade ore prices in the country."
"The price outlook according to Morgan Stanley is for a slip to US$5/dmtu next year and then progressively down to US$4.50/dmtu in 2025 as the global stockpile swells from 500,000t to 1.7Mt."
E25 is a high cost producer and will be the first to go bust.
"It’s an outlook like that which screams survival of the fittest (and lowest costs) in the manganese market, with fingers crossed that demand from battery makers turns out to be as strong as promised.
But given the history of manganese as a metal which routinely flies high before crashing back to earth the current market dynamics point to the potential for a significant downturn."
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)