[miningmx.com] – MERAFE Resources paid a R25m interim dividend and cutting debt owned to banks by R50m despite booking a near halving in headline share earnings to 5 cents from 8.9 cents at the interim stage in 2014.
The company, which operates ferrochrome production facilities in joint venture with Glencore, has total debt owing to Absa and Standard Bank of R609.3m as well as some
R190.7m in unutilised debt facilities as of June 30.
Profit for the six months came in at R124.3m compared to R224.7m previously largely as a result of higher depreciation costs at the Lion II expansion came into production. Higher production and a weaker rand was partially offset by an 11% all in ferrochrome.
Commenting on prospects, Zanele Matlala, CEO of Merafe, said the company was well positioned in the market as a low cost producer which would help it withstand current weak market forces.
