MOIL closes over 10% higher as manganese ore prices rise nearly 4% in international markets
Upstox
2 min read • Updated: April 23, 2024, 6:15 PM
Summary
Manganese ore was quoting at 31.75 CNY/mtu on Tuesday. MOIL said in a recent exchange filing that the company has recorded its best ever production of any financial year since inception at 17.56 lakh tonnes, registering a significant growth of 35% year-over-year (y-o-y).
Shares of public sector company MOIL closed over 10% higher on Tuesday following a rise in manganese ore prices after news reports indicated that a major manganese ore miner revealed exports would be stopped for about a year.
Manganese ore was quoting at 31.75 CNY/mtu 1.6% higher on Tuesday. The prices have increased nearly 4.6% in the month, suggesting strong demand scenario for the manganese ore.
MOIL operates its underground and opencast mines located in the Nagpur and Bhandara districts of Maharashtra and Balaghat district of Madhya Pradesh. The Balaghat Mine is the largest mine of the company and has reached a mining depth of about 435 meters from the surface. Dongri Buzurg mine located in the Bhandara district is an opencast mine that produces manganese dioxide ore used by the dry battery industry.
MOIL said in a recent exchange filing that the company has recorded its best ever production of any financial year since inception at 17.56 lakh tonnes, registering a significant growth of 35% year-over-year (y-o-y).
This is 29% higher than the previous best ever production of 13.64 lakh tonnes in FY2008, it said. The company also achieved its best ever sales of 15.36 lakh tonnes in fiscal year 2024 (FY24), registering a growth of 30% y-o-y. This is 10% higher than the previous best ever sales of 13.92 lakh tonnes in FY2008, the company said.
MOIL said it also achieved its best ever production of electrolytic manganese dioxide (EMD) at 1,413 tonnes, higher by 28% y-o-y. EMD is a 100% import substitution product, used mostly for pharmaceuticals and manufacturing of batteries, it stated.
The company said it has carried out its best ever exploratory core drilling of 87,661 metres which is more than double than the previous year. “The same will not only form the basis of enhanced production from its existing mines but will also be the foundation of opening new manganese mines in the country,” MOIL said in the release.
Shares of MOIL have gained over 21% since the beginning of the year. The stock has risen over 152% in the last one year.