Merafe increases ferrochrome production by 0.3%
Merafe Resources has reported that weaker commodity prices and increasing costs made for a challenging year for Merafe. Earnings slumped by 62% to R667 million, after the full impairment of the Boshoek smelter of R575 million. Ferrochrome prices were impacted by surplus supply as a result of new Chinese production capacity.
2024 FINANCIAL YEAR IN REVIEW
- 9% decrease in revenue to R8 443 million (2023: R9 244 million)
- 29% decrease in headline earnings
- 62% decrease in basic earnings
- 7% decrease in net asset value to R4 876 million (2023: R5 259 million)
- 32% decrease in EBITDA(1) to R1 731 million (2023: R2 545 million)
- 5% decrease in net cash from operating activities to R1 777 million (2023: R1 879 million)
- 8% increase in cash to R1 795 million (2023: R1 656 million)
- 1 fatality (2023: 2 fatalities)
- 0.3% increase in ferrochrome production to 301kt (2023: 300kt)
- 1% increase in chrome ore sales volumes to 475kt (2023: 470kt)
- 106% increase in PGMs sales volumes 13 557oz (2023: 6 588oz)
- 2% increase in ferrochrome production cost per tonne (2023: 28% increase)
(1) Earnings before interest, taxation, depreciation and amortisation.
