CEO COMMENTARY ON RESULTS
The COVID-19 pandemic has destabilised the global health systems and disrupted economies. This pandemic coupled with an already fragile operating environment have resulted in a loss after tax for the 2020 financial year mainly due to a significant impairment loss on property, plant and equipment in the first half of the year. A slow-down in global economic activity has contributed to not only reduced volumes of commodities sold, but also to lower realised cost, insurance and freight (“CIF”) ferrochrome and chrome ore prices with a weaker Rand:US$ exchange rate that provided some cushion to the loss. Due to this, the board of directors (“Board”) has resolved not to declare a dividend for the year ended 31 December 2020.
2020 year in review
production to 265kt
share to 0.8 cents
(2019: 3.4* cents)
share to 40.0 cents
(2019: 54.2 cents)
VIEW FULL KEY FEATURES
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 is primarily generated from the Glencore-Merafe Chrome Venture (“Venture”) which is one of the global market leaders in ferrochrome production...