Mike Miller

ASSISTED by a strong chrome price, Mike Miller has in two years done what previous owners of the business failed to do in 10: make money. The firm produced an interim net profit from its only operating asset, Langpan – a chrome tailings asset south of Thabazimbi in South Africa’s Limpopo province. What’s more impressive is this was achieved with only three months of production. So the signs look good for when the firm reports its full year numbers, especially as it brings the newly acquired Meerust Chrome operations in North West province on stream. 

But Miller is nothing if not ambitious. A second plant is being added at Langpan before Mantengu adds more chrome and platinum group metals production from another acquisition, Blue Ridge – a mine once run by Cluff Mining before it passed through the hands of Aquarius Platinum and Sibanye-Stillwater. Miller contends that Mantengu’s low cost structure will make a success of Blue Ridge’s one million tons of metal-bearing tailings. A study into mining Blue Ridge’s UG2 deposit is also planned. 

In October, Mantengu bought Sublime Technologies, a silicon carbide supplier, as part of its strategy to diversify into mining services. All this would make for fine reading were it not for Mantengu’s poor valuation. At the time of writing the company’s market capitalisation was a third of the net asset value of its recently acquired Sublime Technologies. The finger of blame has fallen on rogue trading activities that Miller is pursuing as a criminal matter. Let’s hope the attention this absorbs isn’t too much of a distraction as Mantengu is showing that small mining startups can thrive in South Africa.