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Depreciation, restructuring costs to dent Merafe's FY earnings

16th February 2015

By: Natalie Greve

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – JSE-listed Merafe Resources expects its headline earnings a share for the year ended December 31 to drop by between 19% and 26% year-on-year to between 8c and 8.8c.

The decrease in earnings was primarily attributable to the accelerated depreciation arising from the scrapping of certain assets, as well as additional depreciation arising from Project Lion II and an increase in borrowing costs expensed as a result of the project’s completion.

Restructuring costs at Merafe head-office level and standing charges as a result of the mining division and platinum industry strikes also hurt the company’s bottom line.

The ferrochrome producer would release its financial results for the year on March 3.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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