Latest news with #OMHoldings
IOL News
14-05-2025
- Business
- IOL News
Exxaro embarks on major manganese acquisition as new CEO refocuses strategy
Under the new deal, Exxaro will take over a portfolio of manganese assets owned by the Saki Macozoma-fronted Ntsimbintle Holdings, as well as those held by OM Holdings. Image: Supplied Tawanda Karombo Eskom coal supplier Exxaro Resources is diversifying its portfolio, sinking R11.6 billion into the acquisition of manganese assets in the Northern Cape in a deal expected to be closed early next year. Exxaro recently appointed Ben Magara as CEO, taking over from Nombasa Tsengwa after a protracted fall-out with the former top executive. Insiders on Tuesday said the company's stalled diversification was among points of disagreement between the company's board and Ndengwa. Magara's appointment appears to have refocused the company on its diversification into manganese. Under the new deal, Exxaro will take over a portfolio of manganese assets owned by the Saki Macozoma-fronted Ntsimbintle Holdings, as well as those held by OM Holdings. 'This acquisition provides Exxaro with a strong entry point into the manganese sector,' said Magara. He explained that manganese had become an essential component in steelmaking and had an additional growing market in the battery and renewable technology supply chains. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ 'The acquisition will see us deploy our operational and commercial expertise in bulk commodities, logistics, and deep knowledge of the South African mining landscape including the regulatory environment, to unlock sustained growth and stakeholder value in the Kalahari Manganese Field,' he added. In cementing the transaction, Exxaro has already entered into binding agreements to acquire shares and claims in the manganese assets held by Ntsimbintle Holdings and OM Holdings. The targeted assets consist of a 74% of Ntsimbintle Mining, a 19.99% stake in Jupiter, 100% of Ntsimbintle Marketing and Trading as well as 51% of Mokala. Additionally, Exxaro has snapped up a 9% interest in Hotazel Manganese Mines. According to Macozoma, chairman of Safika and Ntsimbintle Holdings, the landmark transaction 'is significant to the South African mining' sector. 'We are pleased that these assets will remain in South African hands as Exxaro is an excellent custodian that shares Safika and Ntsimbintle's strong values of safety, sustainability and a social license to operate whilst providing certainty to our valued employees and host communities,' said Macozoma. He added that the sale of the manganese assets to Exxaro was consistent with Safika and Ntsimbintle's 'long-term plan to continue to simplify and strengthen our portfolio' so as to generate shareholder value.' Exxaro expects that the transaction will close by the end of March next year. The transaction is also still subject to regulatory approvals. Executives at Exxaro said during a media briefing on Tuesday that the assets under the transaction 'are well capitalized' with no immediate need for new capital, except stay in business capital. 'We will be looking to optimise what's on the ground for the benefit of all the joint venture partners, and that's work that we will have to start on completion of this transaction and we look forward to that and use our expertise not only in the operation itself,' said an executive from the company. 'I think we know that there's logistics that we could look to see how we optimize all that and our markets are predominantly the same except China.' Analysts said the acquisition positioned Exxaro 'to capitalize on the rising global demand for manganese, a critical component in steel manufacturing and emerging battery' technologies. Exxaro's revenues for the full year to December firmed up by 5% to R40.7bn, although group earnings before interest, tax, depreciation and amortisation (Ebitda) decreased by 22% to R10.4bn. This meant that headline earnings per share for the period of R30.16 per share fell by 36%. Nonetheless, Exxaro declared a final cash dividend of 866 cents per share,and also resolved to embark on a R1.2bn share repurchase programme. Visit:
Reuters
13-05-2025
- Business
- Reuters
South Africa coal miner Exxaro agrees deal to buy manganese assets
JOHANNESBURG, May 13 (Reuters) - Exxaro Resources (EXXJ.J), opens new tab said on Tuesday it has reached an agreement to buy manganese mines in South Africa in a deal worth 11.67 billion rand as it diversifies into green transition minerals. The South African coal miner entered into a binding agreement to buy shares and claims in manganese assets held by Ntsimbintle Holdings and OM Holdings, it said in a statement. The coal miner has been seeking to diversify into green transition minerals including copper. "This acquisition provides Exxaro with a strong entry point into the manganese sector," CEO Ben Magara said in the statement.
Yahoo
12-05-2025
- Business
- Yahoo
Calculating The Fair Value Of OM Holdings Limited (ASX:OMH)
The projected fair value for OM Holdings is AU$0.38 based on 2 Stage Free Cash Flow to Equity OM Holdings' AU$0.31 share price indicates it is trading at similar levels as its fair value estimate OM Holdings' peers seem to be trading at a higher discount to fair value based onthe industry average of 33% Today we'll do a simple run through of a valuation method used to estimate the attractiveness of OM Holdings Limited (ASX:OMH) as an investment opportunity by taking the forecast future cash flows of the company and discounting them back to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$33.0m US$22.7m US$17.9m US$15.4m US$14.0m US$13.3m US$12.9m US$12.7m US$12.7m US$12.8m Growth Rate Estimate Source Est @ -45.96% Est @ -31.35% Est @ -21.12% Est @ -13.96% Est @ -8.95% Est @ -5.44% Est @ -2.99% Est @ -1.27% Est @ -0.07% Est @ 0.77% Present Value ($, Millions) Discounted @ 9.8% US$30.1 US$18.8 US$13.5 US$10.6 US$8.8 US$7.6 US$6.7 US$6.0 US$5.5 US$5.0 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$113m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.7%. We discount the terminal cash flows to today's value at a cost of equity of 9.8%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$13m× (1 + 2.7%) ÷ (9.8%– 2.7%) = US$186m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$186m÷ ( 1 + 9.8%)10= US$73m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$186m. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of AU$0.3, the company appears about fair value at a 18% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at OM Holdings as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.8%, which is based on a levered beta of 1.628. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for OM Holdings Strength Debt is well covered by cash flow. Weakness Earnings declined over the past year. Interest payments on debt are not well covered. Dividend is low compared to the top 25% of dividend payers in the Metals and Mining market. Opportunity Annual earnings are forecast to grow faster than the Australian market. Current share price is below our estimate of fair value. Threat No apparent threats visible for OMH. Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For OM Holdings, there are three further elements you should explore: Risks: You should be aware of the 1 warning sign for OM Holdings we've uncovered before considering an investment in the company. Future Earnings: How does OMH's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the ASX every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
12-05-2025
- Business
- Yahoo
Calculating The Fair Value Of OM Holdings Limited (ASX:OMH)
The projected fair value for OM Holdings is AU$0.38 based on 2 Stage Free Cash Flow to Equity OM Holdings' AU$0.31 share price indicates it is trading at similar levels as its fair value estimate OM Holdings' peers seem to be trading at a higher discount to fair value based onthe industry average of 33% Today we'll do a simple run through of a valuation method used to estimate the attractiveness of OM Holdings Limited (ASX:OMH) as an investment opportunity by taking the forecast future cash flows of the company and discounting them back to today's value. The Discounted Cash Flow (DCF) model is the tool we will apply to do this. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Seeing as no analyst estimates of free cash flow are available to us, we have extrapolate the previous free cash flow (FCF) from the company's last reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF ($, Millions) US$33.0m US$22.7m US$17.9m US$15.4m US$14.0m US$13.3m US$12.9m US$12.7m US$12.7m US$12.8m Growth Rate Estimate Source Est @ -45.96% Est @ -31.35% Est @ -21.12% Est @ -13.96% Est @ -8.95% Est @ -5.44% Est @ -2.99% Est @ -1.27% Est @ -0.07% Est @ 0.77% Present Value ($, Millions) Discounted @ 9.8% US$30.1 US$18.8 US$13.5 US$10.6 US$8.8 US$7.6 US$6.7 US$6.0 US$5.5 US$5.0 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = US$113m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.7%. We discount the terminal cash flows to today's value at a cost of equity of 9.8%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = US$13m× (1 + 2.7%) ÷ (9.8%– 2.7%) = US$186m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= US$186m÷ ( 1 + 9.8%)10= US$73m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is US$186m. In the final step we divide the equity value by the number of shares outstanding. Compared to the current share price of AU$0.3, the company appears about fair value at a 18% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at OM Holdings as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 9.8%, which is based on a levered beta of 1.628. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for OM Holdings Strength Debt is well covered by cash flow. Weakness Earnings declined over the past year. Interest payments on debt are not well covered. Dividend is low compared to the top 25% of dividend payers in the Metals and Mining market. Opportunity Annual earnings are forecast to grow faster than the Australian market. Current share price is below our estimate of fair value. Threat No apparent threats visible for OMH. Valuation is only one side of the coin in terms of building your investment thesis, and it shouldn't be the only metric you look at when researching a company. It's not possible to obtain a foolproof valuation with a DCF model. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For OM Holdings, there are three further elements you should explore: Risks: You should be aware of the 1 warning sign for OM Holdings we've uncovered before considering an investment in the company. Future Earnings: How does OMH's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the ASX every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-03-2025
- Business
- Yahoo
OM Holdings Full Year 2024 Earnings: EPS: US$0.012 (vs US$0.025 in FY 2023)
Revenue: US$654.3m (up 11% from FY 2023). Net income: US$9.30m (down 49% from FY 2023). Profit margin: 1.4% (down from 3.1% in FY 2023). The decrease in margin was driven by higher expenses. EPS: US$0.012 (down from US$0.025 in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Looking ahead, revenue is forecast to grow 15% p.a. on average during the next 2 years, compared to a 4.6% growth forecast for the Metals and Mining industry in Australia. Performance of the Australian Metals and Mining industry. The company's shares are down 2.9% from a week ago. It is worth noting though that we have found 1 warning sign for OM Holdings that you need to take into consideration. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
