The strategic focus of the Company, in the short to medium term, continues to be on
safety, ferrochrome production, maximising cash flows and reducing costs.
Chief Executive Officer’s strategic review-
Merafe's results for the 2016 year were exceptional. Despite the significant market
volatility coupled with challenges and cost pressures faced by the South African
ferrochrome industry, Merafe delivered its second highest headline earnings in its
history. It is my pleasure to take you through these results.
Financial Director 
I would like to thank the Merafe team and our partners Glencore for their hard
work during the year, which again resulted in the Company producing an excellent
financial and operational performance. The performance in the second half of 2016
was especially noteworthy.
Chairperson’s report
| 2016 year in review | ||||||||||||||||||||||||||||||||||||||||||
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Revenue R5.7 billion (2015: R4.4 billion) |
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Headline earnings of 21.2c per share (2015: 13.9c) |
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EBITDA of R1.1 billion (2015: R816 million) |
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Ferrochrome sales volumes of 437kt (2015: 372kt) |
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Net profit of R532 million (2015: R343 million) |
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Ferrochrome production of 393kt (2015: 377kt) |
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| About the five capitals model |
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| The five capitals model we have adopted provides a basis for understanding sustainability in terms of the economic concept of wealth creation or ‘capital’. A sustainable organisation will maintain and where possible enhance these stocks of capital assets, rather than deplete or degrade them. The model allows business to broaden its understanding of financial sustainability by allowing business to consider how wider environmental and social issues can affect long-term profitability. |
