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Johannesburg - Shares in Merafe Resources [JSE:MRF] fell more than 1% on Wednesday as the ferrochrome miner said half-year profits are likely to dip by at least 20%.
Merafe, whose biggest asset is a 20.5% interest in a
chrome venture with Glencore International, was down 1.49% at 66 cents.
Merafe said in a trading statement that its financial results for the six months to end-June will differ by at least 20% from those of the prior comparative period.
The miner advised that it is expecting basic earnings per share of between 1.2 cents and 1.4c, compared with 5.5c for the 2012 comparative period; and headline earnings per share of between 3.5c and 4.0c compared with 5.5c for the 2012 comparative period.
The lower earnings are primarily due to an impairment loss, which came as a result of the venture considering the sale of the Horizon mine as part of its on-going asset portfolio review and due to having sufficient ore availability.
The sale of the Horizon mine, if concluded, would not impact on Merafe's participation interest in the venture and the proceeds from such sale would accrue to the venture partners in accordance with their participation interests.
- Fin24
