CEO Commentary on results:
Due to the challenging operational environment characterised by weak demand and lower realised prices, Merafe has produced a subdued set of financial results for the six months ended 30 June 2019. Profit after tax decreased by 61% mainly as a result of lower ferrochrome and chrome ore prices. This effect was offset by a weaker average Rand:US$ exchange rate and higher sales volumes. Working capital, in particular high stock volumes, continues to be a focus area for the Company. No interim dividend has been declared.
2019 half year in review
Regrettably 1 fatality
30% improvement in TRIFR1 to 2.36
(December 2018: 3.39)
61% decrease in HEPS and EPS3 6.6 cents
(June 2018: 16.9 cents)
124% increase in cashflow from operating activities to R197 million
(June 2018: R88 million)
Preparation of this report
The following individuals were responsible for the preparation of this report:
- Masechaba Masemola CA(SA) (Financial Manager)
- Ditabe Chocho CA(SA) (Financial Director)
Merafe’s revenue and operating income are primarily generated from the Glencore-Merafe Chrome Venture (Venture) which is one of the global market leaders in ferrochrome production, with a total installed capacity of 2.3m tonnes of ferrochrome per annum.