JSE-listed Merafe Resources says low global demand and lower prices for ferrochrome have dampened its financial performance in the year ended December 31.
The company reported a headline loss a share of 1.8c apiece, compared with headline earnings a share of 27.2c in the year ended December 31, 2018.
The basic loss a share for the year under review amounted to 54.2c apiece, compared with basic earnings a share of 27.2c apiece in the prior year.
Merafe reported a 72% year-on-year decrease in total dividend to R100-million in 2019, compared with a total dividend of R351-million in 2018.
The ferrochrome miner said stainless steel production was expected to grow by 3.2% this year, which should bode well for demand; however, the company anticipated that chrome and ferrochrome prices would remain under pressure owing to oversupply in the market.
Ferrochrome demand and prices might also be impacted on by the spread of Covid-19, should production delays in China continue, as well as load-shedding in South Africa that is expected to be implemented intermittently for the next 18 months.
Merafe said it would continue to manage factors within its control.