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Aug 04, 2023Ferrochrome producer Merafe achieves half
![Aug 10, 2023](/themes/hestia/images/news-details-icon1.png)
(Kitco News) - Ferrochrome producer Merafe Resources (JSE: MRF) reported today that its attributable HY 2023 production from the Glencore Merafe Chrome Venture decreased by 9% y-o-y to 185 kt compared to HY 2022 (203 kt).
Merafe said the reduction in production is due to planned pullback, adding that only the Lion smelter is scheduled to operate over the 3 month high electricity demand winter season, a period of elevated power prices.
The company reported an 11% increase in revenue to R4,764 million (~$249 million) and a 13% increase in EBITDA to R1,548 million (~$81 million).
Merafe said it achieved a profit of R1,049 million (~$55 million) for the six months ended 30 June 2023, as a result of higher realized chrome ore prices and a weaker ZAR:USD exchange rate.
“These were somewhat offset by lower ferrochrome prices and sales volumes, as well as higher costs of ferrochrome production,” it added.
The company also reported headline earnings per share of 42.0 cents (HY 2022: 37.0 cents), basic earnings per share of 42.0 cents (HY 2022: 37.0 cents), and declared an interim cash dividend of 20 cents per share (HY 2022: 12 cents per share).
However, the company said it expects the second half of 2023 to be softer on a weaker market outlook.
"Given the forecast inflationary pressures, our margins are at risk of being squeezed in H2 2023," it added.
Merafe has a 20.5% interest in the Merafe Ferrochrome and Mining Proprietary Limited. Global mining and metals group Glencore owns the remaining 79.5%.
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