OM (OMH) Investor update summary

Financial performance highlights

• Revenue for H1 2026 was US $265.2 million, down 14% year-on-year, mainly due to lower sales volumes despite higher average selling prices.

• EBITDA rose to US $87.0 million from US $19.1 million in H1 2025, driven by the Tshipi asset disposal and improved profitability.

• Profit after tax was US $26.2 million, reversing a US $9.5 million loss in H1 2025, mainly due to the Tshipi Mine sale.

• Gross profit margin improved to 11% from 7% in H1 2025, supported by higher average selling prices.

• Cash and cash equivalents increased to US $38.2 million, with a special dividend of one Australian cent per share paid in May 2026.

Market and operational updates

• Ferrosilicon prices increased 6.2% year-on-year to $1,198/mt, while silicomanganese prices declined 2% to $933/mt; manganese ore prices rose due to higher fuel and freight costs.

• Produced 80,194 tonnes of FeSi and 168,624 tonnes of Mn alloys in H1 2026, with 14 furnaces in operation; production guidance for FY2026 is 70,000–80,000 tons of FeSi and 160,000–170,000 tons of Mn alloys.

• Inventory levels increased due to finished goods awaiting shipment and strategic inventory holding for overseas sales; expected to decrease in H2 2026 barring disruptions.

• Two ferrosilicon furnaces remain idled, with ongoing evaluation of restarting idle furnaces and the Bootu Creek Mine, contingent on market improvements.

• Focus remains on Sarawak operations, maximizing asset value and efficiency, while remaining open to new business and investment opportunities.

Cash flow and balance sheet

• Net cash used in operating activities was US $72.4 million, mainly due to working capital movements.

• Cash inflow from investing activities totaled US $145.1 million, primarily from the disposal of a 13% interest in the Tshipi mine.

• Cash outflow from financing activities was US $47.6 million, reflecting ongoing debt repayments.

• Gearing ratio reduced from 0.5x to 0.4x, reflecting disciplined capital management and debt repayment using proceeds from the Tshipi sale.

• Proceeds from the Tshipi Mine sale were used to pay down debt, including early bond redemption and loan repayments.