Our opinion on the current state of MANTENGU(MTU)

Previously known as Mine Restoration, this company invests in mining resources. It owns the Langpan Project, which mines and processes chrome with a high concentration of platinum group metals (PGM). The Langpan orebody consists of 3.1 million tonnes of open cast resource and over 4.9 million tonnes of underground resource, as confirmed by the MSA Competent Persons report.

In its results for the year to 29th February 2024, the company reported revenue of R109.9m compared with R4.5m in the previous year. Headline earnings per share (HEPS) was 1c compared with a loss of 12c in the previous year. The company said, "The most pleasing aspect is the fact that these results were achieved with the Langpan LG plant only operating at a steady state level from January 2024, and for the last two months of the financial year. Approximately R60.1 million of revenue was generated during these two months."

The share trades an average of R141,000 each day, and the price has been rising. It remains a risky commodity share due to the volatility inherent in the mining sector and the reliance on commodity prices. However, the recent operational success and revenue growth indicate potential for future performance.