JSE-listed Mantengu Mining has reported a R102.8-million year-on-year increase in revenue from R13.1-million for the six months ended August 2023 to R115.9-million for the equivalent period this year.

Half-year gross profits also increased significantly year-on-year to R53-million for the six months under review, from R1.5-million for the same period in 2023, while operating profit increased to R24.3-million from a R15.4-million loss in the prior comparable period.

This has resulted in earnings a share improving to 2c from a loss of 10c a share in 2023. Similarly, headline earnings a share improved to 2c from a previous loss of 10c a share.

The group’s interim results reflected a consistent ramp-up in production at the Langpan chrome mine. Actual production for the half-year reached 37 334 t, compared to 4 757 t for the same period in 2023.

Of the R115.9-million half-year revenue, R56.2-million was achieved in July and August.

The operating profit turnaround of R39.7-million, despite operations not yet being at full capacity and still in a significant expansionary capital expenditure (capex) phase, showed the company’s ability to operate at the low end of the production cost curve.

The company said key contributors to the reduction in production costs included the enhanced performance of its internal mining function and a strategic shift towards owning rather than renting mining machinery.

Although there was evidence of positive performance, the board of directors said it had identified additional areas in production costs that could still be reduced, which the executive committee will address in the coming months.

Following the recent acquisitions of Blue Ridge Platinum, announced on October 10, and Sublime Technologies, announced on October 28, Mantengu said it was on track with regard to the fulfilment of the conditions precedent for both acquisitions to become unconditional. The board said it would notify the market once each acquisition reached this status.

The Mantengu board said it projected significantly improved results for the financial year ending February 28, 2025, compared with the financial year ended February 29, this year.

Production continues to increase owing to the investment in expansionary capex aimed at enhancing production capacity at both the company’s Langpan and Meerust chrome mining operations.

The Langpan MG plant is expected to be commissioned later in the 2024 calendar year and is anticipated to add about 18 000 t of monthly production capacity. Monthly production capacity at Meerust is projected to rise by about 10 000 t owing to the corresponding capex investment.

From March to August, average monthly production stood at 6 222 t. Actual production for September reached 14 335 t, while October production was slightly higher at 14 352 t.

Revenue for September and October totalled R75.6-million.

The Mantengu board said it would continue to explore opportunities in the mining, mining services and energy sectors for strategic acquisitions to enhance its asset portfolio, which it believes will contribute to long-term shareholder returns.