Glencore-Merafe chrome refining plant, in Rustenburg
JSE-listed Merafe Resources expects to report basic earnings per share (EPS) and headline earnings per share (HEPS) of between 5.9c and 7.2c for the six months ended June 30.
That would represent a 57% to 65% decrease compared with the EPS and HEPS of 16.9c reported for the six months ended June 30, 2018.
Merafe attributed the lower earnings to a 2.3% decrease in ferrochrome production at the Glencore-Merafe Chrome Venture, on the back of substantially lower chrome ore and ferrochrome prices.
The lower prices were, however, partially offset by a weaker average rand:dollar exchange rate and higher chrome ore and ferrochrome sales volumes.
The company will publish its financial results for the interim period on or around August 5.
Merafe holds a 20.5% interest in the Glencore-Merafe Chrome Venture, which operates a number of ferrochrome plants in the North West, Limpopo and Mpumalanga.