Chrometco expects to benefit from rising chrome prices
A decrease in chrome supply from SA and a weaker rand could benefit the group
AltX-listed chrome miner Chrometco said it looked set to benefit from a rising price of the commodity amid supply disruptions in SA due to Covid-19.
Covid-19 lockdowns meant its underground operations at its Black Chrome Mine in Limpopo was in mothballs in April, while it had operated at 75% capacity in May.
Production has resumed from June, and a shortfall in chrome supply had resulted in the price of 42% grade chrome concentrate to increase from $114 per tone on April 10 to $167.5 per tonne at the end of May, the group said.
A weaker rand over the period had also increased sales, Chrometco said.
The group posted a loss of R89.2m in its year to end-February, from a loss of R153.7m previously.
In afternoon trade on Thursday, Chrometco’s little-traded share was unchanged at 10c, having fallen 16.67% over the past 12 months. The group has a market capitalisation of R254m.
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