Sandur Manganese zooms 54% in one month after strong Q3 results

The company reported a 486 per cent year-on-year (YoY) jump in profit after tax (PAT) at Rs 109 crore for the quarter ended December 2021.

Shares of Sandur Manganese & Iron Ores hit a record high of Rs 3,955, up 7 per cent on the BSE in Wednesday’s intra-day trade on expectations of strong earnings.

The stock of the mining company has zoomed 54 per cent in the past one month after it reported a 486 per cent year-on-year (YoY) jump in profit after tax (PAT) at Rs 109 crore for the quarter ended December 2021 (Q3FY21). In comparison, the S&P BSE Sensex shed 2.5 per cent during the same period.

In Q3FY22, revenue from operations grew 320 per cent YoY at Rs 492 crore. Earnings before interest, taxes, depreciation, and amortization (ebitda) margin improved 939 bps at 39 per cent. However, on quarter-on-quarter basis, PAT and revenue declined by 40 per cent and 13 per cent respectively.

At present, Sandur has two mining leases valid up to December 31, 2033, over an area of 1,999 lease area (HA) with estimated reserves of about 14 MT of manganese ore and 110 MT of iron ore.

The management had said realizations across all products improved, except for iron ore, which witnessed some compression in line with the global prices.

The company has filed for an amended Terms of Reference (TOR) document for Environment Clearance in the previous quarter, proposing expansion of production capacity of iron ore mining from 1.6 MTPA to 4.5 MTPA along with a 7.0 MTPA beneficiation unit.

The company also plans to increase its manganese ore production capacity from 0.28 MTPA to 0.43 MTPA for which environment clearance is in place and other necessary approvals are being obtained.

On the metallurgical front, the company plans to operate all three ferroalloy furnaces to increase its capacity from 48,000/66,000 TPA (Silicomanganese/Ferromanganese) to 95,000/125,000 TPA , and will also have the option to produce other ferroalloys such as ferrosilicon or pig iron.