The OM Holdings Limited (ASX: OMH) share price has seen some major gains over the last few months.
During that time, the OM Holdings share price has increased by 34.72%. Yesterday alone it gained almost 16%. However, it is currently down 4.88% on Wednesday's closing price to 98 cents.
So what's been happening internally to make this particular ASX All Ordinaries share soar?
Let's take a closer look…
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What's been going on with OM Holdings?
OM Holdings is a miner that primarily focuses on the production of manganese (Mn) and silicon — two ingredients used to create steel. In addition, it is involved in the production, smelting, and distribution of processed ferroalloys (iron containing a high proportion of one or more other elements).
The company, which operates out of a number of locations including China, Japan, Malaysia, Singapore, South Africa, and Australia, last month released its latest corporate snapshot. Highlights included:
- Cash and equivalents (as of 1H FY21) of $61.5 million
- Debt (total borrowings as of 1H FY21) $398.6 million
- Enterprise value of $1 billion
- Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) (trailing 12 months) of $91.7 million
OM Holdings activities highlights
The company also gave an activities update for the quarter ending 31 December 2021, accounting for its numerous projects.
Overall, the miner transacted 555,904 tonnes of ores and alloys from its sites within the December quarter. This compares to 492,954 tonnes in the previous quarter (1 July to 30 September 2021) — an increase of 13%.
OM Holdings said this was "partially due to recovery in trading volumes and partially due to unshipped material carried forward from the prior quarter's production".
Further, it achieved increased production at its most recent site, Sarawak in Malaysia, with ferrosilicon (FeSi) and manganese alloys up 8% and 5% respectively (against the previous quarter).
The company said 12 out of 16 furnaces at the site were in operation throughout the quarter. As a result, "production in FY 2021 has exceeded production guidance".
However, OM Holdings also said global crude steel production saw an 8.9% decrease against the 2020 prior corresponding period. It said this was due to "a significant reduction in Chinese steel production".
The price of 44% manganese (Mn) increased in the December quarter (against the September quarter), and the FeSi (iron and silicon) price decreased.
OM Holdings employees in China and Malaysia continued to endure COVID-19 restrictions, which the company predicts will lead to a decrease in production. However, it is hoping to experience a rebound later this year.
OM Holdings share price snapshot
During the last 6 months, the OM Holdings share price hit a low of 70 cents in late September and a high of $1.25 in early October.
While no company announcements directly coincided with these movements, the ASX All Ordinaries miner did commence manganese drilling at its joint venture project in Western Australia earlier in September. It also reported a 116% increase in international ferrosilicon prices and gave an investor presentation around these dates.
The OM Holdings share price is also up almost 34% over the past 12 months and almost 8% this year to date.
The company has a market capitalisation of $653.68 million based on its current share price and a price-to-earnings ratio (P/E) of 79.52.
