Investment Thesis
South Africa has been in a 21-day lock-down since midnight of March 27, which is set to remove two-fifths of manganese ore supply from the market. The lock-down will significantly decrease manganese ore stockpiles and fears about a possible shortage are likely to lead to a meaningful increase in manganese ore prices.
One company which will gain from this change in the market is France's Eramet (ERMAF; ERMAY), as manganese ore accounted for almost half of its revenues in 2019.
Eramet's manganese ore operations
Eramet has been operating