Financial Data and Key Metrics Changes - The company reported a revenue driven by higher traded volumes and average selling prices, but faced a loss after tax due to industry-wide margin compression, particularly in ferrosilicon prices [7][8] - EBITDA for the first half of 2025 was approximately USD 19.1 million, a significant decrease from USD 46.6 million in the same period of 2024 [7][12] - The loss per share for 2025 was recorded at 1.25 US cents [8] Business Line Data and Key Metrics Changes - Manganese ore remains a core product, with the company procuring for internal consumption and external sales, primarily to China [5] - Ferrosilicon prices have been on a downward trend since December 2024, with a year-on-year decrease of approximately 10.4% [9] - Silicon manganese prices have remained stable, supported by stable manganese ore prices [10] Market Data and Key Metrics Changes - The ferrosilicon market is under pressure due to increased competition from Russian materials and weaker downstream demand [8][9] - The company expects manganese alloy prices to remain firm throughout the rest of 2025 and into early 2026 [10] Company Strategy and Development Direction - The company focuses on sustainability initiatives, including repurposing byproducts to support a circular economy [14] - The company aims to maintain its position as a low-cost producer and leverage its access to renewable energy [16][17] - Strategic initiatives include continuous assessment of production returns and securing supply well in advance [17] Management's Comments on Operating Environment and Future Outlook - Management noted that operational stability and cash flow reflect the company's ability to sustain during cyclical lows [12] - The company is awaiting further details on the upcoming carbon tax in Malaysia, which may impact the ferroalloy sector [18] Other Important Information - The Butu Creek manganese mine in Australia remains under care and maintenance, focusing on rehabilitation [10] - The company has successfully refinanced its project finance loans, contributing to a decline in the gearing ratio [12] Q&A Session Summary Question: Will the carbon tax in Malaysia impact the ferroalloy sector? - Management indicated that the carbon tax will be introduced in 2026, and further details are awaited to assess its impact on operations [18] Question: What are the tariffs on exports of ferrosilicon and manganese alloys to the US? - The US does not apply reciprocal tariffs on manganese alloys, while ferrosilicon is subject to a 19% tariff for Malaysia, compared to 50% for Brazil and India [20][21] Question: Has the company implemented any hedging policy on ferroalloy prices? - Currently, the company does not have any hedging policies on ferroalloy prices due to the lack of an international futures market [24] Question: How much does the manganese supply from Chippy and Briar contribute? - Chippy's manganese ore supply is primarily traded and exported to China, with an annual traded volume of approximately 420,000 to 460,000 tons, while Briar is still under exploration with no current production [26][28]

Financial Data and Key Metrics Changes - The company reported a revenue driven by higher traded volumes and average selling prices, although offset by lower alloy volumes and weaker prices, particularly in ferrosilicon [7] - EBITDA for 2025 was approximately USD 19.1 million, a significant decrease from USD 46.6 million in 2024 [7][13] - The company recorded a loss per share of 1.25 US cents for 2025 [8] Business Line Data and Key Metrics Changes - Manganese ore remains a core product, with procurement for internal consumption and sales to third parties, primarily exporting to China [5] - The Sarawak plant produces manganese and silicon alloys, which are critical in steelmaking, with a focus on maintaining higher average selling prices for manganese alloys [12] - The Butu Creek manganese mine in Australia has ceased production since December 2021 and is currently under care and maintenance [4][11] Market Data and Key Metrics Changes - Ferrosilicon prices have decreased by approximately 10.4% year-on-year compared to 2024, with a downward trend observed since December 2024 [10] - Silicon manganese prices have remained stable, indicating strong support from stable manganese ore prices [10] - The company expects manganese alloy prices to remain firm throughout the rest of 2025 and into early 2026 [11] Company Strategy and Development Direction - The company focuses on sustainability initiatives, including repurposing byproducts to support a circular economy and maintaining ISO certifications [15][16] - The company aims to lower its debt profile, with a declining gearing ratio and successful refinancing of project finance loans [13][14] - The competitive edge is supported by access to affordable renewable energy and a strong customer base [17][18] Management Comments on Operating Environment and Future Outlook - Management acknowledges the challenges in the ferrosilicon market due to increased competition and weaker downstream demand [9] - The company is actively monitoring the implementation of a carbon tax in Malaysia, which may impact production costs in the ferroalloy sector [20] - The operational stability and cash flow reflect the company's resilience during cyclical lows [14] Other Important Information - The company has repurposed silica manganese slag for road pavements and ground leveling work within the smelter complex [15] - The Sarawak operations remain strong, with two ferrosilicon furnaces completing major maintenance [12] Q&A Session Summary Question: Impact of carbon levy on ferroalloy sector - Management is awaiting further details on the carbon tax framework and its potential impact on operations in Sarawak [20] Question: Tariffs on export of ferrosilicon and manganese alloys - The US does not apply reciprocal tariffs on manganese alloys, while ferrosilicon is subject to tariffs, with Malaysia having a 19% rate compared to 50% for Brazil and India [21][22] Question: Hedging policy on ferroalloy prices - The company does not have any hedging policies on ferroalloy prices due to the lack of an international futures market [25] Question: Contribution of manganese supply from Chippy and Briar - Chippy's manganese ore supply is primarily traded to China, with limited logistical efficiency for Sarawak production, while Briar is still under exploration with no current production [27][28]