MERAFE Resources, the Johannesburg-listed ferrochrome company, said production from its Glencore Merafe Chrome Venture was 20% higher year-on-year owing to less planned maintenance during the period.
Third quarter production would come in at 84,000 tonnes compared to the 70,000 tonnes that was produced in the third quarter of the 2017 financial year.
The increase in production comes amid much improved conditions in the ferrochrome market. The company said in August that growth in ferrochrome supply had not matched the rise in demand so far this year. Ferrochrome is used in the manufacture of stainless steel demand for which was expected to be 50.8 million tonnes, 4.9% up on 2017 levels.
As a result of improved market conditions, Merafe Resources was able to declare a record interim dividend for the six months to end-June totalling R200m which compares to a payout of R75m in the previous year, and followed a record final dividend payout of R226m for the year to end-December.
