News from American Manganese on CBS Marketwatch

Big Al
September 26, 2012

Here is recent information from American Manganese.

I told you that Larry is certainly not a quitter.

Please remember that I own shares in American Manganese and that this is not investment advice.

press release

Sept. 25, 2012, 7:01 a.m. EDT

American Manganese EMD/EMM Strategy Review

VANCOUVER, BRITISH COLUMBIA, Sep 25, 2012 (MARKETWIRE via COMTEX) — Larry W. Reaugh, President and Chief Executive Officer of American Manganese Inc. (CVE:CA:AMY) (pinksheets:AMYZF)(frankfurt:2AM) (“American Manganese” or the “Company”) is pleased to report that management has been reviewing the option of making Electrolytic Manganese Dioxide (EMD) separately or in conjunction with Electrolytic Manganese Metal (EMM).

The Company engaged Kemetco Research Inc. in April, 2011 to initiate studies on the EMD and Lithium Manganese Oxide for the battery industries. Kemetco has produced both EMD and CMD product and are currently preparing to produce button batteries for testing for the Company and interested parties in the battery industry.

Electrolytic Manganese Dioxide

The recent successful Pilot Plant work generated high purity manganese carbonate which may be used to produce either EMM or EMD.

Electricity consumption for EMD is 20% of the power required for the production of EMM which is a significant reduction in operating cost.

EMD product contains on a per pound basis 60% of the manganese contained in a pound of EMM. Based on two separate operations on a 50,000 tonne per year basis the manganese required to produce 50,000 tonnes of EMD would be 30,000 tonnes of metal as compared to EMM at 50,000 tonnes of metal per year. The effect of EMD production versus EMM production is a significant reduction in the size of the footprint in both plant size and pit production.

The western current average price for EMD is approximately $1.11/lb.

Sales forecasts for electric vehicle (EV) and hybrid-electric vehicle (HEV) in the short term remain strong. The medium to long term forecasts indicate higher product adoption rates leading to a growing EV/HEV market share.

Mr. Reaugh says, “The patent pending manganese extraction process we develop is amenable to the production of any combination of electrolytic products: EMD, EMM or both concurrently. Furthermore, depending on the product mix it may possible to decrease the size of the processing facilities thereby reducing the capital cost of the project. Our challenge is to find the product mix that generates the best return for our shareholders. If the EMM market remains sluggish, the production of EMD could present a stronger market opportunity both now and in the future.”

About American Manganese Inc.

American Manganese Inc. is a diversified specialty and critical metal Company focusing on potentially becoming a producer of electrolytic manganese metal, electrolytic manganese dioxide and chemical manganese dioxide from its Arizona Manganese Project.

This release has been reviewed by John W. Fisher, P. Eng., a qualified person pursuant to National Instrument 43-101.

On behalf of Management


Larry W. Reaugh, President and Chief Executive Officer

This news release may contain certain “Forward-Looking Statements” within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations are disclosed in the Company’s documents filed from time to time with the TSX-Venture Exchange, the British Columbia Securities Commission and the US Securities and Exchange Commission.

The TSX-Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

    Sep 26, 2012 26:30 PM

    Hi Al.

    The interesting part about this release is the quoted price for EMD. I believe this price would be for alkaline grade EMD and not the better quality product that AMY is seeking to produce.

    With a little upstream betterment in the process, the end product could be of a quality that commands a premium to the average price of the day.

    The reduced costs involved with EMD production and a premium priced end product, this may very well be the way to go until the BCSC can wrap their head around the reality that CPM numbers on EMM will ultimately show to have been spot on.

    Once they stamp out a few button cells and run the tests, a strategic partner from the battery side ought to be a lock.

    AMY was in Vegas this week, maybe you can get Larry to come on and speak about Norman Chows recent presentation at the Battery 2012 conference and also the attention they were getting at the Vegas mining expo this week.


      Sep 27, 2012 27:10 AM

      Morning Trevor,

      I have sent this to Larry.

      Thanks much,

      Big Al

    Sep 26, 2012 26:07 PM

    Tesla had lower earnings…not because of end demand, but because they are having supply problems with demand. (got to see a couple of sedans at a Scottsdale mall not too long ago…would love this to be my next car!)

    Investments move slowly. Perhaps AMY won’t make it, but I’m thinking it will. 6.5 cents per share? I think it’s worth owning something….yes, it’s come way off. There’s risk. The reward from this price could be phenomenal though. But it will take some time for end demand to continue ramping, much like FIOS, or cell phones in their very early stages in the early 80’s.

    Sep 27, 2012 27:57 AM

    I own shares in AMY and I’m holding them at a loss.
    I bought them before June of this year when a large amount of options were issued to the board of directors. I would not have bought AMY after that grant of options, because that, to me, is an example of a company working for insiders not shareholders.

      Sep 27, 2012 27:01 AM

      Was that particular grant of options a departure from prior year grants? Hard to be critical if it wasn’t as it would have been an under-sight on your part going in.

      Sep 27, 2012 27:53 AM

      My price, for what is it worth, happens to be $0.30 per share.

      Big Al

    Sep 27, 2012 27:18 AM

    Alas mine is US$.43