Mangentu doubles revenue compared to previous financial year

Mangentu Mining reported an increase of 31% in gross profit in the six months ended 31 August 2025 and its revenue more than doubled – increasing by 109% –  compared to the same period last year.

HIGHLIGHTS

• Revenue increased to R243.0 million (HY24: R115.9 million)
• Gross profit increased to R69.5 million (HY24: R53.0 million)
• Operating loss increased to R54.6 million (HY24: R24.3 million profit), primarily due to higher operating costs, certain of which were once off in nature
• Comprehensive loss increased to R42.8 million (HY24: R3.0 million profit)
• Loss per share increased to 27 cents per share (HY24: Earnings of 2 cents per share)
• Headline loss per share increased to 27 cents per share (HY24: Headline earnings of 2 cents per share)
• Total assets increased to R1.446 billion (HY24: R574 million)
• Total liabilities increased to R964.1 million (HY24: R438.5 million)
• Total net asset value increased to R482.2 million (HY24: R135.9 million)
• No dividend declared for the interim period (HY24: nil cents per share)

Although Mantengu listed in August 2022, Mantengu had to complete a rights issue (December 2022) and share consolidation (31 March 2023) to correct the legacy issues created because of the reverse takeover. This meant that Mantengu could only actively trade from 1 April 2023 onwards, meaning that the company is effectively 2.5 years old and at the very beginning of its investment journey.

The Group has undergone a massive growth phase which has underpinned the significant growth in the Group’s balance sheet, specifically net asset value. Mantengu has made the following investments over the last 12 months:

• August 2024: Meerust Chrome (Pty) Ltd (100% owned)
• December 2024: Sublime Technologies (Pty) Ltd (100% owned)
• February 2025: Iron Production Plant (100% owned)
• August 2025: Blue Ridge Platinum (70% owned)

The Group’s primary focus is on expediting the develop and build phases of all the investments in order to ramp up each operating asset to steady state.

The significant flooding experienced early in calendar 2025 had a negative impact on revenue and net profit before tax of an estimated R51 million and R40 million respectively because of lower production volumes in our chrome operations. Staff costs and machinery costs remained fixed during this period of lower production. The one positive aspect to arise out of this flooding was that we have collected and stored enormous volumes of water such that our chrome operations have not had to use municipal water for the half year, a notable outcome considering that chrome beneficiation is a water intensive process.

In addition, Langpan’s contracted off taker, RWE Supply and Trading GMBH, exercised an outright purchase option to buy chrome concentrate at a lower price compared to that of the market during the quarter May 2025 to July 2025. This resulted in a negative impact on both revenue and net profit of R29 million. The perfect storm of market conditions prevailed to give rise to this option in chrome prices decreasing and increasing drastically within a very short period. This is not expected to recur in future.

Blue Ridge Platinum was consolidated into the group from 1 August 2025 following the receipt of the Section 11 ministerial approval. The inclusion of Blue Ridge resulted in a negative impact of R8 million on net profit with R3 million relating to operating costs for the month of August 2025 and R5 million relating to consolidation entries because of Blue Ridge being accounted for as an asset acquisition as opposed to a business combination. The group will continue to incur R3 million of operating costs monthly until Blue Ridge commences production which is expected to be in the first half of calendar 2026. Notably, the Company has secured an offtake agreement for the supply of chrome concentrate with Monteagle International (UK) Limited at a minimum of 300 000 dry metric tonnes at a rate of 10 000 dry metric tonnes per month. The product will be a 40% – 42% chrome

concentrate and will be sold on a CIF (Cost, Insurance and Freight) basis using the published market price by FerroAlloyNet.com. Blue Ridge Platinum expects that deliveries will commence during the first half of calendar 2026, after an approximate 4 month capex build of a new chrome plant.