Merafe CEO Zanele Matlala.
Photo by: Creamer Media
JOHANNESBURG (miningweekly.com) – Ferrochrome company Merafe Resources on Tuesday reported a profit of R925-million for the six months ended June 30 on higher realised ferrochrome prices and a weaker rand:dollar exchange rate.
Ferrochrome prices have since declined and cost pressures from inflation, higher reductant costs, chrome ore costs and electricity tariffs continue to mount.
Just as the Covid risk was abating, other global and local risks have emerged, the Johannesburg Stock Exchange-listed company stated in a release to Mining Weekly. These risks range from Transnet challenges and Eskom load-shedding to global uncertainty, supply shortages and inflationary pressures in the wake of the Russia/Ukraine conflict.
Merafe said it remained cautious in its approach to the remaining six months of the year, and would continue to focus on efficient operations, cash preservation, cost control and capital allocation.
The company, headed by CEO Zanele Matlala, reported a 2% increase in ferrochrome production to 203 000 t in a fatality-free half-year.
Revenue rose 15% to R4 291-million and earnings before interest, taxes, depreciation and amortisation soared 68% to R1 373-million, compared with R819-million in the corresponding period of 2021.
Net cash flow from operational activities rose by 18% to R748-million and an interim cash dividend of 12c a share has been declared.
Merafe was fatality-free in the period, which saw an 11% injury-frequency improvement.