2020 was again an extremely challenging year from an operational and trading perspective. The impact of COVID-19 and the uncertainty created by the pandemic had a negative impact on all aspects of our business.
Chief Executive Officer's
strategic review
ZANELE MATLALA
Chief Executive Officer
Merafe’s revenue and operating income and primarily generated from the Venture which is one of the global market leaders in ferrochrome production. It has total installed capacity of 2.3mt of ferrochrome per annum. Merafe shares in 20.5% of the earnings before interest, taxation, depreciation and amortisation (EBITDA) from the Venture.
Financial performance
DITABE CHOCHO
Financial Director
Despite the considerable challenges in the year ahead, including the continuing impact of COVID-19, I believe Merafe is resilient enough to navigate the difficult times that lie ahead of us. Importantly, the Venture remains the lowest cost producer in South Africa.
Chairperson's report
ABIEL MNGOMEZULU
Chairperson
2020 year in review
KEY FEATURES
Revenue of
R4.78 billion(2019: R5.38 billion)
EBITDA of
R168 million(2019: R379* million)
Net loss of
R1.00 billion(2019: R1.36 billion)
Fatalities: 1(2019: 1 fatality)
No dividend for 2020 (2019: R100 million/4 cents per share)
Headline loss of
0.8c per share(2019: 3.4* cents per share)
Ferrochrome sales volumes of
305kt(2019: 368kt)
Ferrochrome production of
265kt(2019: 371kt)
TRIFR performance of
3.89(2019: 2.56)
Average ferrochrome CIF price of 72 USc/lb(2019: 79 USc/lb)
* Restated.
View2020 YEAR IN review
