MERAFE Resources said third quarter ferrochrome production totalled 76,000 in attributable tons resulting in an increase of two percent in production for the year-to-date.
Merafe, which has a 20.5% stake in the Merafe-Glencore Joint Venture, said production in the stainless steel feed ingredient totalled 230,225 in attributable tons for the nine months ended September.
“This increase in production is primarily attributed to all operating smelters being in production throughout the winter months,” Merafe said in a statement to the Johannesburg Stock Exchange.
Shares in the company increased 0.68% in mid-afternoon trade in Johannesburg.
The announcement shows that Glencore opened up the taps on its ferrochrome production after reporting attributable ferrochrome production of 599,000 tons – some 118,000 tons (16%) below the first half of its 2023 finanical year.
This was because its the Rustenburg smelter “remains idled in response to weak market conditions and pending an improved price/cost environment,” the group said at the time
In August, Merafe reported a profit of R720m for the six months ended June, down from R1.05bn a year ago, said BusinessLive. Ebitda dropped 27% to R1.13bn and headline earnings per share fell to 28.2c from 42c a year ago. Revenue was 0.4% lower at R4.74bn, the newspaper said.
The group said at the time of the publication of the results that chrome ore prices were , high, but ferrochrome prices remained strained and cost increases continued to put pressure on margins. Ferrochrome production declined 17% to 154,000 tons at the halfway stage of the financial year.
