Merafe warns of potential force majeure declaration

2nd April 2020 By: Marleny Arnoldi - Deputy Editor Online

JSE-listed ferrochrome producer Merafe Resources has warned that it might need to declare force majeure should it be unable to perform under contracted obligations, given that its operations have had to be placed on care and maintenance during South Africa's 21-day lockdown.

Merafe confirms that it will continue monitoring the impact of Covid-19 on its operations and continue communicating with its suppliers and customers to ensure they remain informed about these matters.

The company is now focusing on cash flow management, closely monitoring costs and capital expenditure.

In the event that Merafe requires additional funding for its operations, it will access existing undrawn debt funding facilities.

Meanwhile, the company says the determination of the European benchmark ferrochrome price for the second quarter of this year has not been finalised and is still under review.