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Lower chrome prices drag down Merafe’s headline earnings

17th February 2020

By: Marleny Arnoldi

Deputy Editor Online

     

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JSE-listed Merafe Resources expects to report a basic loss a share of between 52.9c and 58.3c for the year ended December 31.

The company also anticipates a headline loss a share of between 2.3c and 2.9c for the year, compared with headline earnings a share of 27.2c for the year ended December 31, 2018.

Merafe attributed the decrease in headline earnings to lower ferrochrome and chrome ore prices, which were partially offset by a stronger average rand:dollar exchange rate.

Additionally, the decrease in earnings a share was owing to an impairment of property, plant and equipment.

The trigger for the impairment assessment was Merafe’s share price, which was trading at a discount to its net asset value. The impairment loss was a result of the calculated recoverable amount being lower than the net carrying amount of the business.

The company will release its full results on March 9.

 

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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