Merafe's ferrechrome production climbs 4%

Cape Town - The ferrochrome production from the Glencore Merafe Chrome Venture for the year ended 31 December 2016 increased by 4% in comparison to the previous year, Merafe Resources [JSE:MRF] said in a company note to shareholders on Thursday. 

Merafe, which is the black economic empowerment minority partner of Glencore, recorded basic earnings per share of between 20c and 23.5c in the period until 31 December 2016, compared to 13.7c in the previous year. This is in increase of between 46% and 72%.

Headline earnings per share were between 44% and 69% higher at 20c and 23.5c for the year until December 2016, compared to 13.9c in the previous year. 

The ferrochrome producer's net cash balance was R263m for the year at the end of December 2016, compared to R310m in the previous year.

As at 3 January 2017, R137m of the R363m Absa and Standard Bank debt was repaid which resulted in a balance of R226m.

Shareholders are advised that the financial information on which this trading statement is based, has not been reviewed or reported on by Merafe's external auditors. The official financial results for the year ended 31 December 2016 are expected to be released on 7 March 2017.