Mineral Commodities reveals improved financials

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Mineral Commodities’ Tormin heavy mineral sands operation in South Africa. Credit: File

ASX-listed Mineral Commodities has revealed dual improvements in the underlying values of EBITDA and profit performance with increases of 182 per cent and 37 per cent respectively when compared to 2021.

The company’s half yearly report says the improvements reflect stabilised operating performance at its Skaland graphite project in Norway and improved operating performance at its Tormin heavy mineral sands project in South Africa.

Management is seeking to improve the profitability at Tormin through the reintroduction of the Inland Strands deposits to the mining schedule in addition to a plant upgrade in order to increase processing capacity to 2.7 million tonnes per annum from 2.4 million tonnes per annum.

The company is also assessing the addition of mineral separation plants at its South African project to transition the company from a concentrate only business to a producer of higher value garnet and ilmenite finished products by the final quarter of 2023.

On the company’s graphite front it plans to improve the profitability of Skaland through revenue and cost optimisation strategies.

The first half of 2022 has seen MRC finalising resetting the foundations of the Company.

With strong foundations in place the Company will now transition into the first phase of its growth strategy

Mineral Commodities Chief Executive Officer, Jacob Deysel

In April Mineral Commodities unveiled its Five-Year Strategic Plan that outlined a new vision, values and goals for the company as it looks to develop a downstream graphite business with a solid sand mining operation as its base.

The first phase of its growth strategy involves aligning the company with a strong ESG focus whilst also strengthening its balance sheet.

The second and third phases will see the sands miner vertically integrate into the battery and heavy minerals industries.

With a unique twist of sustainability, the placer beach deposits of heavy mineral sands at the company’s Tormin operation self-replenish.

The deposits heavy minerals are replenished as fresh sediment – derived from the erosion of the regions elevated historic beach terraces – is washed back onto the shore. The material is delivered washed, sorted and milled on arrival – courtesy of the district’s strong tides and currents.

With the ocean as its ally and a strengthening balance sheet the miner appears well positioned to focus on the growth of the graphite side of its business to supply Europe’s burgeoning battery industry.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au

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