Consmin’s new team delivers $37m turnaround

Consolidated Minerals Ltd has announced an unaudited net profit after tax (NPAT...

  Consolidated Minerals Ltd has announced an unaudited net profit after tax (NPAT) in a range of $30 to $31 million for the 12 months to 30 June 2007, highlighting a strong operational turnaround across the company, as detailed in its June Quarter 2007 activities report.The solid profit was posted on a 27 percent increase in revenue to $271.4 million and compared with a loss of $6.5 million in the previous year. Reflecting the much improved performance, unuaudited Group EBITDA increased 179 percent to $78.9 million.A final fully franked dividend of 4.5 cents per share was announced on 25 June 2007, increasing the total dividend payout for FY2007 to 6.25 cents per share. The final dividend payment of 4.5 cents per share compares with a nil final dividend in the previous year.“Our result represents a $37 million profit increase compared with last year’s $6.5 million loss. We have turned the business around despite constrained manganese prices in the year just completed and in an environment of significant cost pressures,” commented Consolidated’s Managing Director, Rod Baxter.“The outlook for our core businesses is strong, particularly in light of the recent record manganese price contracts achieved in June for sales of manganese lump ore shipments to China between August and October,” Mr Baxter said.“The implementation of the business optimisation strategies is delivering positive results for the company. I am confident these initiatives will position Consolidated to take advantage of the strong demand outlook for our commodities.”“This represents a strong performance by our operational teams. We have continued to invest in business enhancement initiatives, with improved operating procedures and an uncompromising approach to building our safety culture.”The Manganese Division delivered increased full-year production of 902,052 tonnes (FY2006: 888,432 tonnes) and recorded unaudited operating EBITDA of $36.7 million on a 12 percent increase in revenue to $134.5 million. The Chromite Division recorded unaudited operating EBITDA of $23.3 million on a 31 percent increase in revenue to $55.1 million.The Nickel Division recorded unaudited operating EBITDA of $41.6 million on a 58 percent increase in revenue to $81.8 million. In the second half year the operating EBITDA for the Nickel Division increased by 163 percent to $30.2 million.