MOIL has been posting some really good production numbers for the past 2 months. Any idea what is happening? From where is the production ramp up happening and is this sustainable?
OT, this made me laugh for the explanation given. Rules are rules, people. from the latest concall transcript
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Oh you should see the video of that investor meet, some of us sitting there could simply not stop laughing.
MOIL Limited, a government enterprise, reported a 35% year-on-year increase in manganese ore production in November 2023. The company has also achieved a remarkable growth of 43% year-on-year in the current fiscal year, with production of 10.9 lakh tonnes of manganese ore from April to November 2023. Sales growth for November and April to November 2023 was 18% and 52% respectively. The company has been focusing on exploration, with a significant increase in core drilling activities. The CEO expressed confidence in sustaining the high performance levels.
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I am surprised by lack of discussions in this counter on the recent market developments.
South32’s Groote Eylandt Company (Gemco) has been suspended because of a tropical cyclone - till Jan-March 2025. Gemco contributed 3.5-million wet metric tonnes - or c. 10% of world production.
This loss in production caused the global Manganese ore prices to shoot up, with MOIL increasing prices by 25 to 40%. Moil shares rise 10% after 40% hike in manganese, ferro grade ore prices (upstox.com)
Manganese ore index, 37% Mn, cif Tianjin, $/dmtu (fastmarkets.com)
The stock reacted positively over the last month and is already up more than 50% - but with operating leverage, I expect profits to increase multifold.
Happy to hear thoughts/counterthoughts on this thesis.
Disc: Invested, c.5% of my portfolio. This is not an investment advice.
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Moil rises prices by another 30%-35%.
The international prices are still rising strong due to reduced inventory in ports.
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