Merafe Resources said its ferrochrome production from the Glencore Merafe Chrome Venture for the third quarter increased by 20 percent. File Image: IOL

JOHANNESBURG - Mining company Merafe Resources said on Friday its ferrochrome production from the Glencore Merafe Chrome Venture for the third quarter ended 30 September 2018 increased by 20 percent to 84kt compared with the same period in 2017.

Merafe said the increase was as a result of less planned maintenance during the third quarter.

Merafe and Glencore South Africa formed the joint venture in July 2004 when the companies pooled their chrome operations to create the largest ferrochrome producer in the world.

RISING COSTS IN AUGUST

In August, Merafe said that production of ferrochrome was hit hard by rising costs. 

Merafe said that ferrochrome production from its Glencore-Merafe chrome venture fell 2.3 percent in the six months to end June 2018.

The company said that 211 000 tons as costs per ton increased 4.8 percent from December.

It said this was a result of increased electricity prices and redundant costs arising from a change in mix due to availability.

The group said the decreased production equalled an 88 percent installed capacity utilisation.

It said its revenue rose to R2.72 billion, up from R2.58bn, while earnings before interest, taxation, depreciation and amortisation decreased to R796.3million, down from R865.4m as compared to last year.

Merafe said its profit also dropped 12.62 percent to R425.1m, down from R486.5m, while headline earnings per share declined to 16.9cents a share, down from 19.4c.

The board declared a gross interim dividend of 7.97c a share and the dividend will be paid out of income reserves, at the time.

- African News Agency (ANA)