Mantengu's share price rockets 34% after it reports sharp growth in the business

Mantengu Mining's share price rocketed 34.15% on Friday afternoon after the junior miner reported that it had been in a "massive growth phase."

This had underpinned significant growth in the group's balance sheet for the six months to August 31, 2025, specifically net asset value, which increased to R482.2m by the end of the interim period from R135.9m at the end of the interim period in 2024.

The group has, effectively, only been able to actively trade for 2.5 years. Mantengu's investments over the last 12 months include the 100%-owned Meerust Chrome in August 2024, 100%-owned Sublime Technologies in December 2024, 100%-owned Iron Production Plant in February 2025 and 70%-owned Blue Ridge Platinum in August 2025.

The share price of the junior chrome and platinum mining group was trading at 55 cents in the afternoon. On the balance sheet, total assets increased to R1.45bn by the end of the six months from R574 million a year before. Total liabilities also increased to R964.1m from R438.5m. No dividend was declared.

The interim headline loss per share increased to 27 cents when compared with headline earnings of 2 cents a share at the same time in 2024.

The financial results however showed revenue at R243m from R115.9m, an increase of 109%. Gross profit increased by 31% to R69.5m from R53m. The operating loss increased to R54.6m from a R24.3m profit in 2024, primarily due to higher operating costs, certain of which were once off in nature.

The comprehensive loss increased to R42.8m from R3m profit at the end of the half year stage in 2024.

"The primary focus is on expediting the development and build phases of all the investments as it continues to ramp up each operating asset to steady state," Mantengu's directors said.

The results were impacted by flooding early in calendar 2025, which had a negative impact on revenue and net profit before tax of an estimated R51m and R40m respectively, because of lower production volumes in the chrome operations.

Staff costs and machinery costs had remained fixed during the period of lower production. The one positive aspect was that "enormous volumes of water" had been collected and stored so that the chrome operations did not have to use municipal water for the half year, a notable outcome considering chrome beneficiation is a water intensive process.

In addition, Langpan's contracted off taker, RWE Supply and Trading, exercised a 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 R29m negative impact on revenue and net profit.

"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," Mantengu's directors said.

Blue Ridge Platinum was consolidated into the group from August 1, 2025. The inclusion of Blue Ridge resulted in a negative impact of R8m on net profit with R3m relating to operating costs for August 2025 and R5m of consolidation entries because of Blue Ridge being accounted for as an asset acquisition as opposed to a business combination.

An offtake agreement had been secured for the supply of chrome concentrate with Monteagle International (UK). Blue Ridge Platinum expected that deliveries would commence during the first half of calendar 2026, after an approximate 4-month capex build of a new chrome plant.

Langpan had returned to a steady state of production. The commissioning of Langpan's second chrome wash plant had started. Once commissioned, production would be "significantly bolstered. Meerust's production continued to increase, and a second chrome wash plant was being introduced.

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