JSE-listed chrome miner Merafe Resources now expects to report a basic loss a share of between 37.6c and 39c for the six months ended June 30.
This compares to basic earnings a share of 6.6c apiece reported in the six months ended June 30, 2019.
The company notes in an updated trading statement that basic earnings for the period under review include an impairment charge.
Headline earnings a share will be between 0.9c and 1.3c for the six months under review, which is between 81% and 86% lower than the headline earnings a share of 6.6c reported for the prior interim period.
The company initially expected to report a basic loss a share and headline loss a share of between 2.79c and 3.41c, respectively, in the six months under review.
Merafe says the expected decrease in basic earnings and headline earnings a share is primarily driven by lower chrome ore and ferrochrome prices, as well as lower sales volumes.
This was partially offset by a weaker average rand:dollar exchange rate.
Merafe will publish its results on September 8.