Merafe Resources: Earnings double as local output rises

Merafe Resources more than doubled earnings in the year to December last year as local production of ferrochrome grew 2 percent, it said yesterday. The company, whose venture with Glencore Xstrata is the biggest ferrochrome producer, said its 10-year investment chapter was over and it would cut debt, pay dividends and pursue its diversification strategy. “Diversification remains a key part of our strategy and with no immediate major expansionary capital investment planned, we look forward to repaying our debt, paying dividends and pursuing value enhancing opportunities for our shareholders,” chief executive Zanele Matlala said. Merafe has invested in the Bokamoso and Tswelopele pelletising and sintering plants, and the Lion ferrochrome plant, which has been introduced in phases. Headline earnings a share rose 112 percent to 10.8c and revenue increased 38 percent to R3.5 billion. Shares gained 3c to R1.03. – Dineo Faku