Merafe Resources’ attributable ferrochrome production, the Glencore Merafe Chrome Venture, fell about 17% to 154kt in the six months to June 30 compared to the same period a year before.
Merafe said yesterday in a production and trading statement for the period that the lower production was due to the Rustenburg smelter, which had not been operational in 2024 due to prevailing market conditions.
Merafe’s basic earnings per share was expected to be between 24.6 cents and 33 cents for the six months, between 21% and 41% lower than the 42 cents for the prior comparative period.
Headline earnings per share (HEPS) was expected to be between 24 cents and 32.4 cents, a decline of between 23% and 43% compared to HEPS of 42 cents per share for the prior comparative period.
The expected decrease in earnings per share and HEPS was primarily driven by softer commodity prices over the reporting period, Merafe’s directors reported.
The expected cash balance at the end of the period was R1.72 billion compared with R1.66bn at the end of the interim period in 2023. This comprised cash held by Merafe of R550 million and R1.17bn, being Merafe’s share of the cash balance in the Venture.
Included in the cash held by the Venture was that set aside to fund future environmental rehabilitation obligations, with Merafe’s share of this being R344m. The interim results are expected to be released around August 12.
BUSINESS REPORT