All data is delayed
See More

Merafe earnings jump 70%

Aug 07 2012 09:09

Company Data


Last traded 1
Change 0
% Change -3
Cumulative volume 188353
Market cap 0

Last Updated: 08-10-2015 at 05:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

Merafe anticipates jump in earnings

Shut furnaces help Eskom ease shortages

Merafe/Xstrata JV in talks with Eskom

Merafe earnings disappoint

Merafe output falls

Merafe output down on power deal


Johannesburg - South African ferrochrome producer Merafe Resources [JSE:MRF] reported a 70% rise in first-half profit on Tuesday despite a sharp drop in production following the company’s decision to shut some furnaces to cut power demand.

The country’s largest ferrochrome producer reported first-half diluted headline earnings per share of 5.5 cents, in the middle range of its guidance to the market, compared to 3.4 cents in the same period last year.

Production of the ferrochrome metal used in steel-making f ell 21% i n the six months to the end of June.   

Merafe, which operates a joint venture with London-listed Xstrata, struck a deal with state-owned utility Eskom to shut seven of its furnaces until the end of May and allow the power producer to buy back the electricity the plants would have consumed.

The compensation provided by Eskom was adequate to cover for lost profits from the suspended output, the company has said.

South Africa has been struggling to meet demand for power in Africa’s biggest economy.

Merafe also said its flagship Lion II project to lift production at its Lion ferrochrome plant remained on budget and on track to be completed in the second half of 2013.

Shares in the company are down nearly 12% so far this year, compared with a 10.19% rise in Johannesburg’s All Share [JSE:J203] index.

merafe resources


Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Comments have been closed for this article.

Company Snapshot

We're talking about:


With infrastructure spending having been identified as one of the key focus areas of the National Development Plan, tradesmen will continue to play a critical role in growing the South African economy through their skills..

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

A 30% a month return on investment is:

Previous results · Suggest a vote