Eskom’s unreliability is main threat to Merafe
Merafe, whose primary asset is a 20.5% stake in a chrome joint venture with Glencore, reported lower cash flow, profitability and revenue in the year to December
Merafe Resources, the junior empowerment partner in a chrome joint venture with Glencore, says load shedding by Eskom is the main challenge it is facing in 2019. “The electricity situation in the country is concerning given the financial, structural and operational challenges that face Eskom. Eskom's situation exposes the venture, and indeed the entire country, to both tariff and electricity supply risks,” the company said. The company, whose primary asset is a 20.5% stake in a chrome joint venture with Glencore, reported lower cash flow, profitability and revenue in the year to December. Merafe, however, still managed to declare a record full-year dividend payout of R351m, taking it from its cash reserves. It has a dividend policy of 30% of headline earnings. The dividend payout equates to 14c per share, up from 12c in the prior comparative period. The dividend represents some 50% of the company’s headline earnings, well above its target of 30% distribution. Merafe CEO Zanele Matla...
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