Reader comments on TMI/OMH speculation

I encourage all blog readers to look at the comments section. Most are very informative. I also highlight some of the best comments, like below


Yes, TMI could be interested in OMH  as a takeover proposition especially now that the OM Sarawak smelters are producing record volumes of FeSi,  FeMn and SiMn.  The OM Sarawak electricity prices are said to be the cheapest in Asia and the since the power cost is up to a 50% cost for producing FeSi then it would be one of the most profitable smelters in the world. TMI already holds 58 million shares ie. 8.01% of OMH.
OMH  has a 26% stake in Ntsimbintle Mining  which owns  a 50.1% Tshipi . Jupiter holds the remaining 49.9%
For a takeover the premium will need to be considerable  as the company is held tightly by the top 20 shareholders ie 94%  and most are underwater at the current share price.

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Have someone an idea about the electricity price in the area ?. In any case 50% of the FeSi cost in electricity seems very much, normally is more around 25%


Cost of power in Sarawak for OM Holdings is 13.8sen/KWH = US$0.03c/KWh Amount of power used to produce one tonne of ferro silicon is 9,000KWh making a total cost of US$270 . In China however the power costs are double at US$0.06c/KWh taking the cost of power to US$500/tonne, which is 50% for the cost of production. The raw materials are cheap its the considerable power that used which is expensive. This is where OM Holdings is the lowest cost producer in Asia. The power sold to OM Holdings is very cheap by world standards, its interesting to see however… Read more »