South Manganese Flags Rising Costs, Mine Suspension and Losses at Key Units

South Manganese Investment Limited ( (HK:1091) ) just unveiled an announcement.

South Manganese Investment Limited has responded to recent online reports about its operating conditions by highlighting rising costs for key raw materials used in its electrolytic manganese products and confirming that it has been reviewing and adjusting its cost structure to control and reduce production expenses. The company also disclosed that the mining right for its wholly owned Tiandeng manganese mine branch expired in December 2024 and remains under application, forcing a partial suspension of mining activities and leading to significant losses, while weak demand and high labour costs have pushed its non-wholly owned Zunyi ferroalloy subsidiary into substantial losses as well; the board is assessing remedies for these challenges and has urged shareholders and potential investors to exercise caution when trading its shares.

The most recent analyst rating on (HK:1091) stock is a Hold with a HK$0.59 price target. To see the full list of analyst forecasts on South Manganese Investment Limited stock, see the HK:1091 Stock Forecast page.

More about South Manganese Investment Limited

South Manganese Investment Limited is a Bermuda-incorporated company listed in Hong Kong that operates in the manganese sector, producing core products such as electrolytic manganese metal and electrolytic manganese dioxide. Its operations span mining and processing activities, with exposure to regional manganese ore markets in mainland China, including assets such as the Tiandeng manganese mine and the Guizhou Zunyi Hui Xing Ferroalloy operation.

Average Trading Volume: 12,783,789

Technical Sentiment Signal: Strong Buy

Current Market Cap: HK$2.81B

For detailed information about 1091 stock, go to TipRanks’ Stock Analysis page.