Merafe Resources reduces its losses by almost 86%

Sandton – Because the JSE listings requirements, issuers are required to publish a trading statement as soon as they are satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported on will differ by at least 20% from those of the prior comparative period.

Merafe Resources is therefore advising that for the year ended 31 December 2020, the company is expecting to report:

• basic loss per share of between 34.6 cents and 45.4 cents compared to basic loss per share of 54.2 cents for the prior comparative period, which is an improvement of between 16% and 36%; and
• headline loss per share of between 0.5 cents and 1.1 cents compared to headline loss per share of 3.4 cents for the prior comparative period, which is an improvement of between 66% and 86%.

Merafe’s revenue and operating income is primarily generated from the Glencore Merafe Chrome Venture (Venture) which is one of the global market leaders in ferrochrome production, with a total installed capacity of 2.3mt of ferrochrome per annum.

Merafe shares in 20.5% of the earnings before interest, taxation, depreciation and amortisation (EBITDA) from the Venture.

The financial information on which this announcement is based, has not been reviewed or reported on by Merafe`s external auditors. The financial results for the year ended 31 December 2020 are expected to be released on 8 March 2021.