OM Holdings Limited Posts 65.5% Growth in 1H 2021 Net Profit

Global demand for ores and alloys boosts Company’s financial performance

27 August 2021 – OM Holdings Limited (“OMH” or the “Company”), a vertically integrated manganese ore and ferroalloy producer, today announced that the Company registered a 65.5% rise in profit after tax (“PAT”) to A$23.5 million for the half-year ended 30 June 2021 (“1H 2021”) compared with PAT of A$14.2 million for the half-year ended 30 June 2020 (“1H 2020”).

For 1H 2021, OMH recorded a 19.4% rise in earnings before interest, tax, depreciation, and amortization (“EBITDA”) to A$63.4 million compared with EBITDA of A$53.1 million for 1H 2020. The Company’s basic and diluted earnings per share stood at 2.36 cents for the period under review compared to 1.84 cents for 1H 2020.

Revenue for the period under review grew 16.6% to A$450.6 million compared to A$386.5 million in 1H 2020 due to an increase in demand and significantly higher market prices resulting from the strong global recovery since the beginning of 2021.

As a result, the Company’s gross profit margin increased to 18.9% from 13.8% in 1H 2020. Data from S&P Global Platts showed that ferrosilicon prices continued an upward trend from December 2020 to close at US$1,920 per metric tonne CIF Japan at the end of June 2021 while silicomanganese prices closed at US$1,545 per metric tonne CIF Japan at the end of June 2021 from US$1,280 per metric tonne at the end of March 2021.

Executive Chairman and Chief Executive Officer of OMH, Mr. Low Ngee Tong, said, “Stronger global demand as well as the price rebound of ferrosilicon and silicomanganese helped boost the Company’s financial performance in the first-half of the year. Given that sales in the current market environment are booked months ahead, we are mindful that there will be a delay in prices being reflected in our financial performance”.

“The price of ferrosilicon has been supported by China’s commitment to pivot away from energy intensive industries and setting a target for the reduction of carbon emissions, which had a big impact in major ferroalloy production provinces like Inner Mongolia and Ningxia. With the increase in global infrastructure spending after 2020, there has been stronger global demand for ferrosilicon and silicomanganese, and this has come at a time when supply chains have been disrupted both in India, Malaysia, and other countries due to COVID-19 lockdowns and uncertainties”.

OMH, which has a primary listing on the Australian Securities Exchange since 1998, successfully debuted in a secondary listing on the Main Market of Bursa Securities Malaysia Berhad in late June 2021.

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ABOUT OM HOLDINGS LIMITED

OM Holdings Limited (“OMH” or the “Company”) is a manganese and silicon smelting company, with vertical exposure in mining and trading. We are engaged in the business of trading raw ores, smelting, and marketing of processed ferroalloys. With over 25 years in the industry, OMH is listed on both the ASX and Bursa Malaysia and has operations across Australia, China, Malaysia, Singapore, and South Africa. Today, the Group is one of the region’s largest producers of ferroalloys and seeks to be the main ferroalloy supply partner to major steel mills and other industries.

For more information, visit https://www.omholdingsltd.com/