In the six months to June 30, Merafe reported total ferrochrome production fell 9% to 185 000 tons compared with the same period a year before. Photo Supplied
Merafe Resources’ ferrochrome production fell 21% for the nine months to September 30, the group said in a production report on Friday.
“Merafe's attributable ferrochrome production from the Glencore Merafe Chrome Venture in the third quarter ended 30 September 2023 was 40kt, resulting in a decrease of approximately 21% in production …compared to the prior comparative period,” the group said in a statement.
The reduction was due to planned pullback in production in response to market conditions.
“As previously reported, only the Lion smelter operated over the 3-month high electricity demand winter season, a period of elevated power prices.”
Merafe’s share price fell 0.8% to R1.24 on the JSE on Friday, in line with the price a year before.
In the six months to June 30, Merafe reported total ferrochrome production fell 9% to 185 000 tons compared with the same period a year before. Interim headline earnings per share increased to 42 cents from 37c a year before.
Last month the company said the Glencore Merafe Chrome Venture (JV), a new platinum group metal production plant, constructed at the Kroondal Mine, had been successful and profitable, and the parties intend to replicate this strategy on the JV’s eastern chrome mine operations.
Merafe and Glencore SA had reached an agreement to further contribute to the JV the platinum group metal (PGM) production plant located at the Thorncliffe Mine, which would be improved and expanded.
The capital and costs relating to the improvement and expansion of the Eastern PGM Plant attributable to Merafe was expected to be R117 million.
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