Shares of this small-cap stock gained over 6 percent on Thursday after receiving approval for the expansion of iron ore production at its Ramghad Manganese & Iron Ore Mines. This approval marks a significant milestone for the company, strengthening its position in the mining sector and boosting its production capacity for iron ore, which is expected to drive future growth.
Price Movement
In Thursday’s trading session, Sandur Manganese & Iron Ores Ltd.’s share price reached an intra-day high of Rs.428.40 per share, rising 4.7 percent from the previous close of Rs.404.05 apiece. Since its listing in September 2023, the shares have delivered over 60 percent returns.
What Happened
Sandur Manganese & Iron Ores Ltd has received Environmental Clearance (EC) for its Ramghad Manganese & Iron Ore Mines (ML No. 2679), enabling iron ore production of 0.216 Million Tonnes Per Annum (MTPA) along with handling 0.327 Million Tonnes of incidental iron ore stock within the first two years.
The company has also secured Consent for Establishment-Expansion (CFE-EXP) under The Water (Prevention & Control of Pollution) Act, 1974, and The Air (Prevention & Control of Pollution) Act, 1981, from Karnataka State Pollution Control Board (KSPCB), Bengaluru, with authorization number CTE-346594 dated December 24, 2024. Sandur Manganese will now proceed to obtain Consent for Operation (CFO) from KSPCB and other regulatory approvals.
Capacity Enhancement
Sandur Manganese & Iron Ores Ltd currently operates with a manganese ore capacity of 0.582 MTPA and an iron ore capacity of 3.81 MTPA, with plans to expand this capacity to 4.36 MTPA.
The company extracts manganese and iron ores from two mining leases situated in Sandur, Karnataka. The iron ore mining operations are fully mechanized, leading to higher profit margins, while the manganese ore mining is semi-mechanized and labor-intensive, resulting in comparatively lower margins but offering substantial employment opportunities.
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Financial Overview
Turning towards the financials of the company, Sandur Manganese & Iron Ores Ltd reported Q2 FY25 revenue of Rs.260 crore, rising 41 percent from Rs.185 crore in the same quarter last year. Moreover, net profits also increased 23 percent to Rs.32 crore from Rs.26 crore in the same period.
Company Profile
Sandur Manganese & Iron Ores Ltd. (SMIORE) is a leading player in India’s mining industry, specializing in the extraction of manganese and iron ores. The company operates in the Hosapete-Ballari region of Karnataka and is recognized as one of the largest manganese ore miners in the country.
SMIORE is involved in both fully mechanized iron ore mining, which drives higher margins, and semi-mechanized, labor-intensive manganese ore mining, which provides significant employment opportunities.
Written by – Siddesh S Raskar
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