South Africa's Merafe reports 25% profit drop for 2018 amid lower ferro-chrome prices

South African ferro-chrome producer Merafe Resources has reported a 25% fall in after-tax profit for the 12 months to December 31, 2018, resulting from lower prices for ferro-chrome caused by factors including the uncertainty around the UK’s departure from the European Union (“Brexit”).

Merafe, which operates a chrome venture in South Africa with trader-miner Glencore, reported after-tax profit of 683.4 million rand ($47.18 million) for 2018, compared with 914.1 million rand in 2017. “The uncertainty created by geopolitical events such as Brexit and trade wars [between other nations] resulted in lower realized ferro-chrome prices [on a cif basis],” chief executive officer Zanele Matlala said. “Profit after tax decreased by 25% mainly as a result of lower ferro-chrome sales volumes, a lower-than-average net cif ferro-chrome price and a marginally stronger average rand-dollar exchange rate,” Matlala added. South Africa’s currency...


Janie Davies

March 15, 2019

19:12 GMT