Chrome venture’s ferrochrome production increases by 65.6%

Merafe’s attributable ferrochrome production from the Glencore Merafe Chrome Venture for the six months ended 30 June 2021 increased by 65.6% compared to the prior comparative period. The increase was mainly due to current production being less affected by the COVID-19 restrictions coupled with improved plant efficiencies achieved at their smelters.

• Attributable ferrochrome production for six months ended by 30 June 2021 was 199 kt
• Attributable ferrochrome production for six months ended by 30 June 2020 was 120 kt

Merafe is expecting to report:

• basic earnings per share (“EPS”) of between 19.2 cents and 26.8 cents compared to basic loss per share of 38.3 cents for the prior comparative period; and
• headline earnings per share (“HEPS”) of between 23.1 cents and 23.3 cents compared to HEPS of 1.1 cents for the prior comparative period.

The expected increase in EPS and HEPS is primarily driven by higher chrome ore and ferrochrome prices and higher sales volumes which were partially offset by a stronger average Rand:US$ exchange rate.

Merafe Resources Limited are listed on the JSE Limited in the General Mining sector under the share code MRF. Currently, the main focus of our business is on the 20.5% participation of its wholly owned subsidiary, Merafe Ferrochrome and Mining Proprietary Limited, in the earnings before tax, depreciation and amortisation (EBITDA) of the Glencore-Merafe venture (the Venture), in which Glencore has a 79.5% participation.