JSE-listed Evraz Highveld narrowed its headline losses during the nine months to September, on the back of increased sales, higher vanadium prices, a reduction in costs and the recovery effect of a 2012 four-week strike.
The group's headline losses reached R222-million during the nine months under review, compared with the headline loss of R800-million reported during the comparative period last year.
Highveld registered a basic and headline loss a share of 224c during the first nine months of the year, an improvement on the losses a share of 726.8c and 806.5c, respectively, for the nine months to September 2012.
The company’s earnings before interest, tax, depreciation and amortisation for the period dipped into the black at R93-million, compared to a R485-million loss for the same period last year.
Highveld’s after-tax loss had also improved, registering at R222-million for the nine months to September, compared with a nine-month loss of R721-million the year before.
The operating loss for the period was R145-million, compared with a loss of R571-million for the same period in 2012.
Highveld’s revenue increased from R3.3-billion the prior corresponding period to R4.1-billion in the nine months to September.
Steel sales volumes rose 11% from 342 230 t, in the first three quarters of 2012, to 381 075 t during the corresponding period in 2013.
Domestic steel sales reached 367 893 t for the three quarters under review – a 47% jump compared with the 250 512 t reported in the prior period – while export steel sales volumes decreased to 13 182 t for the nine months to September, from 91 670 t during the corresponding period the year before. Ferrovanadium sales decreased slightly to 3 603 t.
Iron and steel output increased 8% and 18% respectively to 477 709 t and 478 707 t owing to increased iron availability and improved stability in the steel plant.
While the board believed that the company remained a going concern, labour stability, health of the market and production stability were still a threat.
The company’s share price fell 5.84% by 16:45 on Wednesday.