What is Manganese: Manganese is a grayish-white, usually hard & brittle metallic element that resembles iron but is not magnetic.
Application of Manganese
- Alloys
- Electrolytic Manganese Dioxide
- Electrolytic Manganese metals
End Use sector: - Industrial
- Construction
- Power storage and electricity: Manganese is one of the key components of lithium-ion batteries. The main use in EV batteries is in the cathode, which is the positive electrode. Nickel + Manganese + Cobalt (NMC) offers high energy density, good thermal stability, and long cycle life.
On the conventional vehicle requires 11.2 Kg of Manganese while for EV vehicle requires 24.5 Kg of Manganese.
Company name: Sandur Manganese and Iron Ores Limited(“SMIOR”) for future ready!!!
The company has expanded beyond mining operations to include the production of Ferro Alloys, Coke, and energy.
SMIOR has 110 MT iron ore reserves, 17 MT Manganese ore reserves, 3rd largest manganese ore mining company in India, and 1999 hectares of mining area.
Mining Manganese and iron ores from two mining leases located in Sandur (Karnataka)
Fully mechanized iron ore mining contributes to higher margins.
The company has set up a hybrid renewable energy plant (42.9MW) in an SPV to cater to the growing energy needs of its ferroalloys.
Two waste heat recovery boilers with a cumulative capacity of 32MW set up to generate clean energy.
Key Milestones for the FY24:
- Received environmental clearance for mining expansion from 1.6MMT to 3.81 MMT of iron ore (which can be further expanded to 4.36MMT) and Manganese 0.462 MMT
- 42.9 MW captive hybrid renewable energy product.
- Commenced exports of iron ore after lifting of export restrictions in May 2022
- SMIOR crosses $1.3 billion in market capitalization.
Financial:
FY23 FY24 Q1FY25
Revenue in Cr 2185.01 1334.80 624.73
EBITDA in Cr 451.62 402.80 214.00
% 20.67% 30.18% 34.26%
PAT in Cr 270.79 239.50 144.49
% 12.39% 19.05% 23.13%
EPS in Rs 101.23 14.80 8.92
Strategic business acquisition of ARJAS STEEL is a real help of SMIOR:
ARJAS Steel is among the top 5 players in this very specialized steel manufacturer in the industry.
The 80% of the company stake has been acquired by SMIOR and 19.12% by BAG Holdings Private Limited in April 2024.
Arjas is valued at an enterprise value (EV) of Rs.3000 crore. After the acquisition, combined value of SMOIR and ARJAS is expected to be Rs. 15000 Crore.
Revenue will be reflected in 6 to 7 months in the account book of SMOIR.
Key highlight of ARJAS:
- A specialty steel company focused on high quality auto grade special Bar quality (SBQ) steel.
- Integrated manufacturer from coke, sinter,hot metal and billets, to value-add bars and bright bars.
- Marquee OEM clientele (direct and via supply chain),PV – Hyundai, Mahindra, Maruti, Ford.CV and off-road – Tata motors, Eicher, Escorts.2W – Royal Enfield, Honda, TVS, Hero, Suzuki.
Snapshot: - 5 LPTA manufacturing capacity with a potential revenue of ~ Rs 5000cr.
- 20 MW captive power capacity (Solar + waste -heat)
- 2 production facilities, one each in Andhra Pradesh and Punjab.
- Sizable land bank and infrastructure to expand up to 1 MTPA in the future.
- Revenue and EBITDA growth and a robust balance sheet.
- Working on product development nonauto like railways, energy EVs, and exports.
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