Merafe's output down 28% y/y on smelter suspensions
JSE-listed Merafe Resources' attributable ferrochrome production from the Glencore Merafe Chrome Venture decreased by 28% year-on-year to 112 000 t for the six months ended June 30, as a result of the suspension of production at its Boshoek and Wonderkop smelters, in North West province, from May.
The company in April announced that it would suspend production at the two smelters indefinitely in response to ongoing market challenges.
Merafe’s Lion smelter, however, is expected to remain in production for the remainder of this year.
Further, Merafe has also reported that it expects to report a 58% to 78% year-on-year decrease in basic earnings per share (EPS) to between 6.4c and 12.2c for the six months to June 30, while headline earnings per share (HEPS) are expected to be between 9.8c and 15.4c – a 45% to 65% year-on-year decrease.
It attributes the decrease in EPS and HEPS to softer commodity prices, lower volumes sold, a stronger rand against the dollar and impairments.
The company plans to publish its interim results on August 12.
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