Merafe Resources’ attributable ferrochrome production from the Glencore Merafe Chrome Venture in the third quarter was 76,000 tonnes, taking output for the first nine months to 230,000 tonnes, an increase of 2% from the previous year.
Merafe, which is the junior empowerment partner in the chrome joint venture with Glencore, said in a statement on Monday that the increase was primarily due to all operating smelters being in production throughout the winter months.
Ferrochrome is used in the production of stainless and other speciality steels. Merafe holds 20.5% of the Glencore-Merafe Chrome Venture in SA and derives all its revenue from the partnership.
Business Day reported in August that Merafe achieved a profit of R720m for the six months ended June, down from R1.05bn a year ago.
Ebitda dropped 27% to R1.13bn and headline earnings per share (Heps) fell to 28.2c from 42c a year ago. Revenue was 0.4% lower at R4.74bn.
The group said at the time of the publication of the results that chrome ore prices were high, but ferrochrome prices remained strained and cost increases continued to put pressure on margins. Ferrochrome production declined 17% to 154,000 tonnes at the halfway stage of the financial year.
CEO Zanele Matlala said the company remained focused on sustainability and operational efficiency, adapting to economic uncertainties and technological advancements.
Merafe has previously said it anticipated a softer second half due to downward pressure on chrome ore prices and expected inflationary effects. The company plans to continue ferrochrome production at most smelters, with only the Lydenburg and Rustenburg smelters remaining inactive.
With Nompilo Goba
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