CEO COMMENTARY ON RESULTS
Merafe achieved solid operational and financial results for the first half of 2021. Merafe recorded a profit after tax of R576m compared to a loss of R961m in the prior comparative period. An upswing in ferrochrome demand contributed to increased volumes sold and higher CIF prices realised, which were to some extent offset by a stronger average ZAR:US$ exchange rate. Despite the Lydenburg smelter being on care and maintenance, production volumes increased significantly due to current production being less affected by the COVID-19 restrictions coupled with improved plant efficiencies achieved at our smelters.
2021 half year in review
(June 2020: No fatalities)
(December 2020: 3.912)
(June 2020: Basic loss per share of 38.3 cents)
R2 848 million
(December 2020: R2 277 million)
VIEW FULL KEY FEATURES
Preparation of this report
The report was prepared by Busisiwe Nteyi CA(SA) (Financial Manager) under the supervision of Ditabe Chocho CA(SA) (Financial Director). These condensed consolidated unaudited interim financial statements of Merafe for the six months ended 30 June 2021 have not been reviewed by the Company’s independent auditor, Deloitte & Touche.
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...