OM (OMH) Q2 2024 TU earnings summary

Executive summary

• Achieved inclusion in the inaugural Fortune Southeast Asia 500 list for 2024, ranking 414th by revenue, validating strategic pivots and operational excellence.

• All production assets are operational, with commissioning of a new silicon metal furnace underway; full commercial ramp-up depends on strategic review.

• Board approved restart of UFP in November 2023, targeting Q4 2024 for production restart.

• Q2 2024 production totaled 48,268 tonnes FeSi, 84,037 tonnes manganese alloys, and 30,784 tonnes manganese sinter ore.

• Project finance lenders were repaid $12.3 million on schedule during the quarter.

Financial highlights

• Targeting highest production volume in five years, though FY2024 FeSi and Mn alloy guidance is lower than FY2023.

• Six-month 2024 average prices for key products are down year-over-year: FeSi averaged $1,255/mt (down 18.7%), SiMn $1,024/mt (down 11.0%), and Mn ore $5.53/dmtu (down 6.3%).

• Sales volumes for Q2 2024 were 50,567 tonnes FeSi and 85,593 tonnes manganese alloys, driven by efficient vessel scheduling.

Outlook and guidance

• Full-year production guidance for FeSi and Mn alloys is lower for FY2024, but full commercial production of the new silicon metal furnace and UFP restart are targeted for Q4 2024, contingent on strategic review.

• No formal earnings guidance provided, but operational efficiencies and market improvements are expected to support better results over 2023.