Moil hits 5-year high on price hike of manganese ore

The hit a fresh 52-week high of Rs 384, soared 50% in past one-month from Rs 255 on October 3.

Moil has rallied to its fresh 52-week high of Rs 384, up 6% on BSE in an otherwise weak market, after the company hiked prices of various grades of manganese ore with effect from November 1, 2016.

“The price have been increased by 30% on all Ferro Grades of ore, while prices have been increased by 25% on all grades of SMGR (Mn 30%) and SMGR Low (Mn 25%) on the existing prices prevailing since October 1, 2016,” Moil said in a statement.

“The prices have been increased by 25% on all grades of Fines and by 30% of all chemical grades ore on the prevailing prices. However, the existing price of Electrolytic Manganese Dioxide (EMD) has remained unchanged,” it added.

The stock soared 50% in past one-month from Rs 255 on October 3, after the country’s top manganese ore producer, has increased prices of various grades of manganese ore effective from October 01, 2016. The S&P BSE Sensex was down 2.2% during the same period.

Last week, on October 27, Moil signed a pact with Madhya Pradesh government to conduct mineral exploration in the state.

Earlier in October, the company announced that the Government of Madhya Pradesh has issued a notification to reserve the area of 372.701 Ha of land in favour of the company.

“Given the company has recently got government approval for land in Balaghat, adjacent to the existing mines, timely execution of the same will help the company to boost production volume,” HDFC Securities said in a Diwali picks reports.

At present MOIL is having a total mining lease over an area of 1613.611 hectares out of which 699.066 hectares are in Maharashtra and 914.545 hectares are in Madhya Pradesh. It is the largest producer of manganese ore with a 50% market share in India and 5th largest globally.

At 09:50 am, the stock was up 5% at Rs 379 on BSE, as compared to 1% decline in the benchmark index. The trading volumes on the counter jumped more than two-fold with a combined 1.6 million shares changed hands on the BSE and NSE.