Consolidated Minerals Limited Report for the Third Quarter Ending 30 September 2014
ST HELIER, Jersey, November 14, 2014 /PRNewswire/ -- Consmin, a leading manganese ore producer with mining operations in Australia and Ghana, announces its quarterly results for the period ended 30 September 2014.Commenting on the results, David Slater (CFO of Consmin) said:
"During the third quarter, Consmin delivered steady operational performance. Financial performance for the quarter was substantially lower as a result of the combination of difficult pricing environment, the termination of the TMI contract and its subsequent impact on the sales of Ghana ore.
Manganese C1 cash costs for third quarter were $2.52/dmtu, a slight increase compared to Q3 2013. However, Manganese C1 cash costs year to date in 2014 improved from $2.50/dmtu in 2013 to $2.43/dmtu in 2014 continuing the positive trend seen over the last three years.
In late August, the Company announced the termination of the agreement with TMI as a result of TMI's breaches and non-performance. The agreement provided the Company with the right to draw down on the $50 million standby letter of credit and the right to bring arbitration proceedings for damages arising from TMI's conduct. Following the Company's valid drawdown demand on the standby letter of credit, TMI obtained a temporary injunction, alleging fraud in connection with the LC to prevent payment. The Company regards this allegation as entirely wrong and is actively contesting the decision in the Chinese Courts with the intention of lifting the injunction as soon as practicable. Arbitration proceedings have also commenced against TMI in London in accordance with the terms of the agreement in order to recover losses arising from the situation. We continue to pursue the arbitration proceedings in London and vigorously protest against the standby LC injunction in the Chinese courts."
About Consolidated Minerals Limited
Consmin is a leading manganese ore producer within mining operations in Australia and Ghana. The principal activities of the Company and its subsidiaries (the "Group") are the exploration, mining, processing and sale of manganese products. The Group's operations are primarily conducted through four major operating/trading subsidiaries: Consolidated Minerals Pty Limited (Australia), Ghana Manganese Company Limited (Ghana), Manganese Trading Limited (Jersey) and Pilbara Trading Limited (Jersey).
Consolidated Minerals Ltd. is headquartered in Jersey and the address of its office is Commercial House, 3 Commercial Street, St Helier, Jersey, Channel Islands, JE2 3RU.
For further information, please visit our website http://www.consmin.com
Contact
David Slater Contact number +44(0)1534-513300 investor.relations@consmin.com