Listed Mining Companies
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JOHANNESBURG (miningweekly.com) – South African ferrochrome producer Merafe Resources on Monday reported that production for the 2009 financial year was down by 30%, compared with the previous year.
Merafe, which produces ferrochrome in a joint venture with Xstrata, recorded an attributable production of 203 000 t in the year ended December 31, compared with the 290 000 t recorded in 2008.
The company said in a statement to shareholders that the decrease was mainly owing to the suspension of around 80% of its production capacity during late 2008, and early 2009, in response to the rapid decline in market conditions.
The production of ferrochrome was progressively increased during the year from 20% of annual capacity in early January to about 85% by year-end, in line with improving demand.
Merafe noted that the strengthening of the rand against the US dollar during 2009 continued to exert pressure on margins and along with improving demand, enabled ferrochrome producers to achieve a 30% increase in the ferrochrome price from $0,79/lb in the first quarter of 2009 to $1,03/lb in the fourth quarter of 2009.
Last week, Merafe warned that it would post a full-year loss, when it releases its financial results on March 2
The company is expecting a headline loss of between 6c and 7c a share, compared with earnings and headline earnings of 42c a share in 2008.
It attributed the loss to low ferrochrome prices and a strong rand.
