All three operating segments of the company recorded lower revenue as the tonnage of ores traded from Bootu Creek manganese mine in Northern Territory, third party ores (including ores from the Tshipi Borwa mine in South Africa) and ferro-manganese alloys decreased 36% from 1,338,525 tonnes in H1 2014 to 857,008t in H1 2015.

The company said that the challenging market environment in manganese ores and ferro-manganese alloys continued to soften prices and impacted sales and gross profit margins.

Gross profit margins across all product groups were impacted, and the group’s overall margin declined from positive 6.2% in H1 2014 to negative 0.5% in H1 2015.

Distribution costs decreased by 51% to $6.6 million in H1 2015 in line with lower sales volume and revenue. Finance costs increased marginally by 2% to $8.5 million.

Administration and other operating costs increased to $19.2 million from $16.4 million mainly due to the higher depreciation and amortisation expenses from the Australian subsidiary as it made its move from a contract miner to an owner operator model. In addition, additional administrative and operating expenses were incurred at the Malaysian Sarawak subsidiary with the start of production in late Q3 2014.

OM had cash reserves of $56.1 million as at June 30, 2015.