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Audited Consolidated and Separate Financial Statements For The Year Ended 28 February 2025
MANTENGU MINING LIMITED
Incorporated in the Republic of South Africa
(Registration number: 1987/004821/06)
Share code: MTU ISIN: ZAE000320347
("Mantengu" or "the Company" or "the Group")
AUDITED CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS FOR THE YEAR ENDED
28 FEBRUARY 2025
HIGHLIGHTS FOR THE PERIOD
• Revenue increased to R317.5 million (FY24: R109.9 million)
• Gross profit increased to R106.4 million (FY24: R52.6 million)
• Total comprehensive income increased to R303.3 million (FY24: R1.2 million)
• Earnings per share improved to 148 cents per share (FY24: 1 cent per share)
• Headline earnings per share decreased to a loss of 23 cents per share (FY24: 1 cent per share)
• No dividend declared for the period (FY24: nil cents per share)
COMMENTARY
Fiscal year 2025 was characterised by many positives and firsts for the Group as well as challenges. The
Group barrelled towards record production month after month after taking the decision to perform the
mining function in house rather than to outsource to contractors and move towards owning, rather than
renting, our own mining fleet of machinery. Mining costs per tonne were reduced by more than 50% as a
result.
The decrease in price per tonne of a 40/42 chrome concentrate from $275 to approximately $202 in early
December 2024 resulted in a negative impact of R28 million on both revenue and net profit as mine to
port and freight logistics costs remained the same. Prices have however recovered and are now
approximately $290. Our chrome operations were not immune to the significant flooding in South Africa
during the first quarter of calendar 2025. Langpan situated close to Thabazimbi, in the Limpopo province,
was severely affected as we needed to evacuate all employees due to safety. Lower production volumes
due to flooding had a negative impact on revenue and net profit of R38 million and R30 million respectively
because staff costs and mining machinery costs remained fixed.
Expenditure for the year included a once off commitment fee of R10 million to GEM Yield Bahamas Limited
in respect of the company's R500 million share subscription facility. Expenditure for the year also included
a write off of R30 million that was invested in the Group's chrome operation in Zeerust in fiscal year 2025.
International Financial Reporting Standards precluded carrying this investment as an asset on the balance
sheet. It is however important to note that the Group's chrome operation in Zeerust (Meerust Chrome)
contributed R42 million to Group revenue. A competent persons report on reserves at Meerust is in
progress and we will report to the market once completed and approved. The entire Meerust plant, apart
from the steel structure, was replaced in February this year. We are pleased that this investment is starting
to deliver increased production, such that the month of May 2025 is on track to be a production record in
respect of the highest chrome concentrate tonnage since Meerust was incorporated. These once offs
negatively impacted net profit for the year by R40 million.
Silicon carbide production was at steady state levels for January and February with the Group having
achieved control of Sublime Technologies Proprietary Limited (Sublime) at the beginning of December
2024. This acquisition resulted in a gain on bargain purchase of R350 million being reflected in our audited
net profit. The Board engaged PricewaterhouseCoopers Corporate Finance (Pty) Ltd to perform the
purchase price allocation (PPA) in respect of this acquisition.
Notable achievements for FY 2025, other than those highlighted above, were as follows:
• Langpan achieving record monthly production in November 2024.
• Complete upgrade of Meerust Plant (apart from the steel structure) in February 2025.
• Acquisition of Blue Ridge (still to become unconditional).
• Acquisition of Sublime on 4 December 2024.
• Acquisition of Iron Beneficiation Plant in February 2025.
• Establishment of Mantengu Mining Equipment in September 2024.
• Net asset value per share of R1.78 at 28 Feb 2025 (28 Feb 2024: R0.58)
Mantengu is well positioned to continue its growth journey and to strategically add assets to its portfolio
that enhance long term shareholder returns.
OUTLOOK FOR FY 2026
The Group expects to continue its journey towards operational efficiency and excellence while further
ramping up production. Although we have achieved a lot in a short period of time, we feel that we can
operate further down the cost curve. The completion of Langpan's second chrome processing plant will
contribute significantly to increased chrome concentrate production. Commissioning is expected soon.
It is a top priority for the Board to implement a long-lasting renewable energy solution at our silicon carbide
manufacturing operation. This will decrease the cost of energy and Sublime's reliance on Eskom. We
expect that this will decrease our production costs per tonne by at least 25%.
The Group is busy refinancing expensive debt at much cheaper finance costs. This will significantly reduce
finance costs. However, it should be noted that purchasing and financing our own mining machinery does
contribute to higher finance costs but reduces operating expenditure by a larger number.
The Board also looks forward to operationalising both Blue Ridge Platinum (once it becomes
unconditional) and its recently purchased Iron Beneficiation Plant later this calendar year. We will report
to our shareholders and to the market as we near production.
This results announcement is the responsibility of the directors of Mantengu. This results announcement
does not include full or complete details of the audited consolidated and separate financial statements for
the year ended 28 February 2025 ("2025 AFS") released on SENS on 30 May 2025. Any investment
decision should be based on the 2025 AFS as a whole. This announcement is unaudited and therefore
not covered by the audit report.
The 2025 AFS have been audited by the Company's auditor, HLB CMA (South Africa) Inc., who expressed
an unmodified opinion thereon. The audit opinion, which is included in the 2025 AFS, is available on the
Company's website at: https://www.mantengu.com/investor-relations and on the JSE's cloudlink at:
https://senspdf.jse.co.za/documents/2025/jse/isse/mtue/YE25.pdf
The auditors identified a reportable irregularity during the reporting period and reported this to the
Independent Regulatory Board for Auditors. The reportable irregularity was the fact that the payment of
a VAT liability of R9.9 million was overdue. This has no impact on the Group because the Group is owed
VAT of R16.7 million. The net VAT receivable at year end was R6.8 million from SARS.
CORPORATE INFORMATION
Postal address: Postnet Suite 446, Private Bag X21, Bryanston, 2021
Registered and Physical address: 5 Saint Michaels Lane, Bryanston, 2021
Tel no: +27 (0) 11 036 3100
Web: www.mantengu.com
Board of Directors: MJ Miller, M Naidoo, J Tshikundamalema* (Chairman),
V Madlela#, W Geyer*
(*Independent Non-Executive) (#Lead Independent Non-executive)
Company Secretary: Neil Esterhuysen & Associates Inc
Transfer Secretaries: Computershare Investor Services Proprietary Limited
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196
Private Bay X9000, Saxonwold, 2132
Auditor: HLB CMA South Africa Inc.
Johannesburg
30 May 2025
Designated Adviser
Merchantec Capital
Date: 30-05-2025 05:06:00
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