Merafe jumps more than 10% after saying it expects huge earnings growth
Merafe said it benefited from substantially higher chrome ore and ferrochrome prices during the reporting period
Merafe’s share price jumped 11.3% to R1.68 on Monday after it said it expected to report earnings growth of up to 82%.The group, which operates chrome smelters in partnership with Glencore, said it expected to report on March 5 that basic and headline earnings per share (HEPS) for the year to end-December would be between 34.5c and 38.5c, representing a 63%-82% rise on the prior year’s 21.2c.Merafe said it benefited from substantially higher chrome ore and ferrochrome prices during the reporting period.It achieved the jump in profit despite lower sales volumes, a stronger rand and increased production costs.The trading statement also said that Merafe ended 2017 with a net cash balance of R600m, a turnaround from 2016’s R409m debt.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.