South32's GEMCO Shutdown Sparks Manganese Price Rally: Market Faces Prolonged Supply Constraint
Portfolio Pulse from Stjepan Kalinic
South32's GEMCO shutdown due to cyclone damage has caused a significant supply shock in the manganese market, leading to a 33% price rally. The shutdown is expected to last until January 2025, affecting global supply and benefiting smaller miners like Jupiter Mines.
June 13, 2024 | 2:57 pm
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NEGATIVE IMPACT
Anglo American, holding a 40% stake in GEMCO, is affected by the shutdown due to cyclone damage. The supply shock has led to a 33% price rally in manganese, but the prolonged shutdown impacts Anglo American's revenues.
Anglo American's stake in GEMCO means it will also face revenue impacts due to the shutdown. The supply shock has led to a price rally, but the prolonged shutdown is a negative factor for Anglo American.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 80
NEGATIVE IMPACT
South32's GEMCO operation shutdown due to cyclone damage has caused a significant supply shock in the manganese market, leading to a 33% price rally. The shutdown is expected to last until January 2025.
The shutdown of GEMCO, a major manganese supplier, will negatively impact South32's revenues and operations until at least January 2025. The supply shock has led to a significant price rally in manganese, but the prolonged shutdown is a negative factor for South32.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Jupiter Mines, a pure-play manganese junior miner, has benefited from the GEMCO shutdown, doubling its price from A$ 0.18 to A$ 0.37 between March and May.
Jupiter Mines has benefited from the supply shock caused by the GEMCO shutdown, leading to a significant price increase. The company is well-positioned to capitalize on the high manganese prices.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70