Masan High-Tech Materials reports year full of advances

Masan High-Tech Materials reports year full of advances(source: masanresources.com)

In his opening speech, Craig Richard Bradshaw, general director of Masan High-Tech Materials, shared: “In 2020, Masan High-Tech Materials completed the acquisition of H.C. Starck Tungsten Powders and forged a strategic alliance with Mitsubishi Materials Corporation through an investment of $90 million from a Japanese group, equivalent to a 10 per cent stake in MHT. The transactions have validated the transformation of Masan High-Tech Materials into a vertically integrated high-tech tungsten platform and asserted its position as a global-scale high-tech materials producer. Having overcome all the challenges and fluctuations from COVID-19, Masan High-Tech Materials has promptly responded and tirelessly expanded its portfolio, flexibly meeting customer needs and managing cash flows efficiently.”

In 2020, net revenues were up 55 per cent on-year at VND7.291 trillion ($317 million), mainly attributable to the consolidation of H.C. Starck Tungsten Powders. Thanks to the copper concentrate export permit, copper product revenue in 2020 increased against 2019, with a total of 82,000 tonnes of copper concentrate have been exported under the export permit granted to the company.

Masan High-Tech Materials sustained its throughput in the Nui Phao Processing plant at 3.87 million tonnes, up 2.3 per cent against 2019. The processing plant had an overall availability of 95.4 per cent, up 1.3 per cent against 2019. In a production sense, contained copper production was up 13 per cent against prior years while tungsten equivalent production was up 68 per cent, thanks to the integration of the H.C. Starck Tungsten Powders. From a cost perspective, the focus and drive on lowest cost production continued in 2020 with the team delivering an overall cash cost reduction in operating costs of $16.5 million compared with 2019. Of particular note was a 14.7 per cent improvement on-year in the unit cost per tonne milled in the Nui Phao Mining operation.

Danny Le, chairman of the Board of Directors of Masan High-Tech Materials shared the strategic vision for 2021-2025: “In 2021, we shall continue to work with customers to relentlessly develop the platform for tungsten high-tech materials. In parallel to seeking the opportunities to further develop the tungsten recycling platform, Masan High-Tech Materials shall focus on expanding the recycling of other materials such as cobalt, tantalum, and molybdenum. Recently, H.C. Starck Tungsten Powders – a subsidiary of Masan High-Tech Materials – has received a funding of €800,000 from the German government to develop a new cobalt recycling technology.”

Masan High-Tech Materials aims to become a partner of choice to high-tech industries where its products are a key component in evolving and shaping the future of the world. Through the application of its materials, the company will create unparalleled solutions to drive innovation and productivity which will deliver superior outcomes for all partners and stakeholders.

In early 2021, Masan High-Tech Materials has seen positive signs from customers with steadily increasing volumes and certainly higher metal prices. With ongoing investment in infrastructure projects and renewal projects by respective world governments, increasing spending on renewables, electric vehicles, fuel cell technologies, return of automotive manufacturing demand, and general engineering, the demand outlook for Masan High-Tech Materials’ suite of products looks strong.

The company has set a net revenue growth target of over 50 per cent in 2021, attributing to the H.C. Starck integration for the whole year, higher sales revenue and selling prices on the market. The better price and bigger revenue shall enable Masan High-Tech Materials to achieve EBITDA growth more than 100 per cent against the same period, strongly backed by strict cost control in lean production activities. The attributable after-tax net profit in 2021 at Masan High-Tech Materials is expected to be at appropriately VND200-400 billion ($8.7-17.4 million).