On August 30, 2017 By alanpatrickryanLeave a comment
One reader was very bullish on OMH. I am attaching his comment:
The most interesting comment in the OMH media report was
“For the month of June 2017 itself, with the mine running at almost full capacity and the smelter running 12 furnaces, the Group recorded an after tax profit of A$12.2 million. ”
Mr Low Ngee Tong,Executive Chairman, OM Holdings Limited said, “I am pleased with the significant improvement in our financial performance. For the period under review, our Bootu Creek mine manganese ore production and sales, and Sarawak smelter manganese alloy production and sales were operating at approximately only 60% and 40% nameplate capacity respectively. As we steadily ramp up production, I expect further improvement in financial performance.”
Obviously the first few months when production and sales were low dragged on the result. However if during the month of June itself OMH made an after tax profit of A$12.2 million then its a sign of great things to come. With 12 furnaces operating, OM Sarawak is still only running at 75%.
The next Half Year Financial Report with the 16 furnaces running at 100% capacity at the current Ferro-silicon prices I’d expect A$300-million sales with a minimum of A$80-million profit.
OMH Price at posting:
38.5¢ Sentiment: Buy Disclosure: Held
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