Merafe driven by higher ferrochrome prices and higher volumes sold

Merafe Resources has advised that for the year ended 31 December 2021 (“current reporting period”), the company is expecting to report basic earnings per share of between 70.8 cents and 62.8 cents and headline earnings per share of between 67.0 cents and 66.8 cents, compared to basic loss per share of 40.0 cents and headline loss per share of 0.8 cents, respectively, for the prior comparative period.

The expected considerable increase in headline earnings per share is primarily driven by higher ferrochrome and chrome ore prices as well as higher volumes sold. These were partially offset by a stronger average Rand compared to the US Dollar. The expected considerable increase in basic earnings per share is as a result of there being no general impairment adjustments relating to property, plant and equipment during the current reporting period.