1
OM HOLDINGS LIMITED
Australia • China • Japan • Malaysia • Singapore • South Africa
February 2025 • Investor Presentation • ASX:OMH | Bursa:OMH (5298)
3
Q4 KEY UPDATES AND FY25 PRODUCTION GUIDANCE
OM Sarawak was awarded the champion for the prestigious Diamond Award under the Large enterprise category at the Bintulu Sustainability Awards 2024 ceremony
FY24 production volumes marginally exceeded upper guidance by 3%
Full commercial production of silicon metal contingent on strategic view. Both silicon metal furnaces converted to FeSi production
Repaid US$12.4m to Project Finance Lenders
FeSi Production Volume (kmt)
170-190
190 | |||||||||||||||
167 | 140 | ||||||||||||||
131 | 140 | ||||||||||||||
FY2020 | FY2021 | FY2022 | FY2023 | FY2024 | FY2025F |
Mn Alloy Production Volume(1) (kmt)
270 - 300
318
238 | 264 | 217 | 294 |
FY2020 FY2021 FY2022 FY2023 FY2024 FY2025F
Exploration and Mining (Mn Ore)
- Mine remains under care and maintenance with rehabilitation works progressed as planned, with a focus on repairing damaged landforms caused by higher-than-expected rainfall.
- Planned trial production progressing well, with a second trial planned in early Q1 2025 to achieve desire feed throughputs and grades following further optimization works.
Smelting (FeSi and Mn Alloy)
- 14 out of 16 furnaces have completed major maintenance. Remaining 2 FeSi furnaces to undergo major maintenance works in 2025.
- Preliminary FY25 production guidance of 435-450 ktpa.
- Both silicon metal furnaces have been switched to produce FeSi to ensure optimal returns and maximize furnace utilization.
- FY2019 - FY2021 OMQ + OM Sarawak production volume. FY2022 onwards purely OM Sarawak production volume.
4
FERROSILICON MARKET REVIEW
Prices range bound given Chinese cost, with potential catalysts from Russian output
Relatively fixed input costs, earnings correlate well with absolute prices
Prices follow typical commodity price cycles
China remains as marginal suppliers to the market, but 2024 may be influenced by the outcome of the attempt to nationalize Russia's largest ferrosilicon producer. FeSi prices rangebound with prices closed at $1,185/mt CIF Japan at the end of December 2024.YoY FesSi prices declined by 11.5%.
Outlook: Continued near term pressure, absence of Russian ferrosilicon from markets will eventually catalyze price recovery.
$4,500 | FeSi | Production | 600 | ||||||||||
('000s mt) | |||||||||||||
USD/mt | |||||||||||||
$4,000 | 500 | ||||||||||||
$3,500 | |||||||||||||
$3,000 | Chinese FeSi Production | 400 | |||||||||||
$2,500 | 300 | ||||||||||||
$2,000 | 200 | ||||||||||||
$1,500 | |||||||||||||
$1,000 | 100 | ||||||||||||
12M 2024 Avg FeSi: $1,271.58 / mt (-11.5%YoY) | |||||||||||||
$500 | 0 | ||||||||||||
Jan-13 | Jan-14 | Jan-15 | Jan-16 | Jan-17 | Jan-18 | Jan-19 | Jan-20 | Jan-21 | Jan-22 | Jan-23 | Jan-24 |
Source: S&P Global Platts, CNFEOL
5
MANGANESE ORE AND ALLOY MARKET REVIEW
Mn alloy prices restabilizing after volatility from upstream ore prices
Strong monthly contemporaneous correlation between Mn Ore and Mn alloys
"Conversion" margin between ore and alloy prices mean-revert, creating resilience
Mn Ore prices closed at US$4.08/dmtu as of end December, a continuous price correction following the surge in April due to a force majeure of a key global supplier. SiMn price increased slightly to close at $885/mt CIF Japan in December with higher quoted ore prices towards the end of Q4.
Outlook: Prices normalizing after brief increase catalyzed by manganese ore, before sharply declining. Normalization expected for both ore and alloys.
$2,500 | SiMn | Ore Inventory | 8.0 | ||||||||||
USD/mt | (millions mt) | ||||||||||||
Manganese Ore Index | 7.0 | ||||||||||||
$2,000 | US$9.07 / dmtu | 6.0 | |||||||||||
$1,500 | 5.0 | ||||||||||||
Japan SiMn Index | 4.0 | ||||||||||||
$1,000 | 3.0 | ||||||||||||
$500 | 2.0 | ||||||||||||
US$4.76 / dmtu | |||||||||||||
12M 2024 Avg Mn Ore : $5.55 / dmtu (+16.8% YoY) | 1.0 | ||||||||||||
$0 | 12M 2024 Avg SiMn : $979 / mt (+1.9%YoY) | Chinese Ports Ore Inventory | 0.0 | ||||||||||
Jan-13 | Jan-14 | Jan-15 | Jan-16 | Jan-17 | Jan-18 | Jan-19 | Jan-20 | Jan-21 | Jan-22 | Jan-23 | Jan-24 |
Source: Fastmarkets MB, S&P Global Platts, the IMnI, and CNFEOL | *High Carbon Ferromanganese (HCFeMn) not included due to relatively low |
liquidity and absence of representative non-Chinese Asian benchmark | |
OM HOLDINGS LIMITED
AUSTRALIA • CHINA • JAPAN • MALAYSIA • SINGAPORE • SOUTH AFRICA
| Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |