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.