Chrometco and the rest of the mining industry were faced with numerous challenges during the past year. Despite all the challenges the Group faced, we still managed to make significant strategic headway.
The final phase of the chrome processing plant was commissioned during the latter part of the period, which resulted in the Group becoming a primary chrome concentrate producer. Management is in the process of improving the efficiencies of the chrome processing plant.
The Group’s revenue increased by 25% to R1,42 billion and generated cash from operating activities of R111.0m (2020: R223.2m).
The Group’s results were impacted by the COVID-19 lockdown, significant increase in logistics rates and a drop in the average chrome price for the year, leading to a gross loss of R110.3m (2020: gross profit of R208.1m).
Subsequent to year-end, the Group secured a life of mine offtake agreement with a reputable PGM producer for its intermediate product produced by the chrome processing plant.