In South Africa’s volatile junior mining landscape, Mantengu Mining Limited (JSE: MTU) has emerged as a compelling case study in strategic resilience and operational progress. Under the leadership of CEO Mike Miller, the company has transitioned from a modest chrome producer to a diversified player with promising assets in platinum group metals (PGMs). This evolution comes at a time when small-cap miners face acute challenges, including liquidity constraints and regulatory scrutiny. Yet Mantengu’s recent achievements, such as its first profitable period and the acquisition of the Blue Ridge Platinum Mine, underscore a potential for significant value creation. While controversies surrounding alleged share price irregularities have drawn attention, they also highlight the complexities of navigating the Johannesburg Stock Exchange (JSE) environment for emerging firms like Mantengu.
Founded through a reverse takeover in 2021, Mantengu has focused on acquiring undervalued assets and leveraging tailings retreatment, a model that minimizes risk while generating near-term cash flows. The company’s name, derived from the Tsonga word for the fork-tailed drongo bird, symbolizes adaptability and resourcefulness, qualities that have defined its trajectory. By August 2022, following its JSE relisting, Mantengu held a market capitalization of approximately R857 million. Initial operations centered on chrome projects at Langpan in Limpopo and Meerust in North West Province, where production ramped up steadily.
A key milestone arrived in the six months to August 2024, when Mantengu reported its inaugural net profit of R2.96 million on 33,000 tons of chrome concentrate. This marked a shift from startup losses to operational viability, with output nearly doubling in the subsequent two months. Miller, who assumed the CEO role in March 2023 after serving as financial director, has emphasized efficiency and expansion. “Our focus is on sustainable growth through innovative models,” he noted in recent updates, pointing to new processing facilities that have boosted capacity.
The standout development has been the October 2024 acquisition of Blue Ridge Platinum from Sibanye-Stillwater. This dormant PGM mine includes substantial surface tailings estimated at 375,000 to 400,000 tons, rich in chrome and PGMs. Mantengu projects R1.5 billion in free cash flow from retreatment alone, without immediate need for underground mining. The deal also carries R3.2 billion in assessed tax losses, offering fiscal advantages, offset by a R95 million environmental rehabilitation liability. Analysts have described this as a transformative step, positioning Mantengu alongside established tailings specialists like DRDGold and Jubilee Metals.
Supporting this momentum is a R500 million equity funding facility secured from GEM Global Yield in 2022. As a flexible drawdown option from a $3.4 billion alternative investment group, it provides Mantengu with capital agility in a market where foreign investment in JSE small-caps remains scarce. This backing reflects confidence in the company’s strategy, even as broader sector headwinds persist.
However, Mantengu’s journey has not been without hurdles. The share price has experienced significant volatility, declining sharply from post-relisting highs. In response, the company has raised concerns about unusual trading patterns, leading to an internal investigation and a formal complaint filed with the Hawks in May 2025. Mantengu alleges coordinated efforts to depress its valuation, potentially linked to the Blue Ridge transaction. The complaint references entities such as Liberty Coal and Sable Exploration and Mining, suggesting attempts to exploit regulatory thresholds under JSE rules.
Central to these claims is Ulrich Bester, Mantengu’s former CFO, who is accused of facilitating irregular activities before departing. Connections to Liberty Coal, which owns assets like the Optimum Coal Mine, and figures such as Daniel McGowan and Zunaid Moti have been highlighted in public statements. Liberty Coal has strongly denied involvement, labeling the accusations as unfounded and threatening legal action. Similarly, the JSE has rejected any complicity, asserting that its processes are robust and transparent. The Financial Sector Conduct Authority (FSCA) is reviewing related matters, which could clarify the situation.
Amid these disputes, Mantengu reports incidents of intimidation, including surveillance and threats directed at executives. Miller has publicly addressed these, framing them as attempts to undermine the company’s progress. Such challenges are not uncommon in South Africa’s mining sector, where competitive pressures and historical ties can complicate operations. Yet Mantengu’s response has been measured, focusing on compliance and stakeholder communication.
The board, chaired by Vincent Madlela and including directors like Alistair Collins, Magen Naidoo, and Jonas Tshikundamalema, brings a blend of financial, technical, and empowerment expertise. This governance structure supports Mantengu’s commitment to progressive models, emphasizing community involvement and job creation. With around 1,200 employees, the company contributes to local economies in Limpopo and North West.
Looking ahead, Mantengu’s FY2025 earnings forecast of 148 cents per share represents a dramatic increase, potentially yielding a price-to-earnings ratio below 1 at current levels. This optimism stems from expanded chrome output and Blue Ridge’s contributions. If realized, it could validate the company’s low market valuation relative to its asset base, including the Sublime Technologies silicon carbide business.
Investors monitoring JSE small-caps may find Mantengu’s profile intriguing. While the ongoing investigations introduce uncertainty, the underlying operational metrics suggest untapped potential. As the FSCA and Hawks probes unfold, clarity could emerge, benefiting transparent players. In a sector often dominated by majors, Mantengu’s approach offers a fresh perspective on value extraction from overlooked resources.
For now, Mantengu continues to advance its projects, undeterred by external noise. Regulatory approvals for Blue Ridge are pending, and production updates are anticipated. As Miller has stated, the focus remains on delivering results that speak for themselves. In an industry ripe for innovation, companies like Mantengu could pave the way for more equitable growth.
