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Higher sales, weaker rand boosts Merafe year-end earnings

13th February 2014

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JOHANNESBURG (miningweekly.com) – Higher ferrochrome and chrome ore sales volumes and a weakening rand have boosted JSE-listed Merafe Resources’ earnings for the year to December 2013.

Merafe said in a trading statement on Thursday that basic earnings a share were expected to rise to between 7.8c and 8.7c during the year under review, up from the 2c reported during the year to December 2012.

An impairment loss, recognised as a result of Xstrata-Merafe joint venture’s consideration to sell the Horizon mine during the first half of the year, drove headline earnings a share higher to between 10c and 11.4c, compared with the 5.1c reported during the prior year.

Merafe expected to report a net overdraft balance of R10.7-million, R581-million in total debt owing to Absa Capital and the use of R194-million of a short-term inventory facility at closing on December 31.

The company would release its financial results for the year ended December on March 11.

Edited by Creamer Media Reporter

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