2021 was a year of recovery for the Venture from a market, operational and financial perspective. The global economic recovery in our industry led to robust demand for ferrochrome, which coupled with supply constraints, contributed to higher realised ferrochrome prices. I am pleased to report that Merafe achieved its highest profit after tax since the inception of the Venture. It was also a year when we saw a marked improvement in safety at the operations of the Venture.
Chief Executive Officer
Merafe recorded basic earnings from operations of R1.67 billion (2020: R1.00 billion loss). This represents basic earnings per share of 66.8 cents (2020: 40.0 cents basic loss per share). The headline earnings per share for the year were 67.0 cents (2020: 0.8 cents loss per share). Higher commodity prices and volumes sold were key contributors to this performance.
Due to an increased demand for our product coupled with increasing ferrochrome and chrome prices, Merafe's performance in 2021 was exceptional. This is manifested in a substantial improvement in our financial performance with an increase in our EBITDA and profits after tax from the previous year. In addition to this, I am also pleased to report that the operations of the Venture saw a significant improvement in safety.
|*||Restated (3.89 to 3.91). The 2020 financial year data related to hours worked was corrected to align with reporting definitions.|
Positive performance or occurrence compared to prior year
No change in performance compared to prior year
Negative performance or occurrence compared to prior year
Key statistics for 2021