https://www.engineeringnews.co.za

Merafe warns of lower full-year earnings

31st January 2013

By: Creamer Media Reporter

  

Font size: - +

JOHANNESBURG (miningweekly.com) – Ferrochrome producer Merafe Resources on Thursday warned shareholders that its basic earnings a share for the year ended December 2012 would be lower than earnings a share for the previous year owing to an impairment loss.

The company expected its basic earnings a share for 2012 to be between 1.7c and 2c a share, compared with 4.7c a share the year before.

Headline earnings a share would be between 4.6c a share and 5.1c a share, compared with 6.4c a share in 2011.
                                                                           
Merafe noted that the impairment loss had arisen as a result of the Xstrata–Merafe Chrome Venture's sale of certain high-cost mining assets as part of its ongoing cost savings initiatives.

“The sale of these assets, if concluded, would not impact on Merafe's participation interest in the venture and the proceeds from such sale would accrue to the venture partners in accordance with their participation interests,” the producer said in a trading statement.

Meanwhile, ferrochrome production attributable to Merafe for the year was 8% lower at 242 000 t, compared with the 263 000 t produced the year before, primarily as a result of weak demand and participation in Eskom’s power buy-back programme.

The ferrochrome producer stated that the compensation received from Eskom for the electricity not consumed was adequate to cover the costs and lost profits on the associated volumes.

The company’s results would be released on March 5.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

The Steel Tube Export Association of South Africa
Steel Tube Export Association of South Africa

The Steel Tube Export Association of South Africa was established to develop sustainable, internationally competitive carbon steel tube and pipe...

VISIT SHOWROOM 
Rentech
Rentech

Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.053 0.911s - 140pq - 2rq
Subscribe Now