Merafe expects increase in basic earnings per share - CNBC Africa

Merafe expects increase in basic earnings per share

Earnings

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Ferrochrome creation process. PHOTO: Getty Images

The company, which will release its results on 11 March, expect basic earnings per share (EPS) to be recorded at between 7.8 cents and 8.7 cents, compared two cents for the 2012 year.

Headline earnings per share (HEPS) are also expected to be between 10 cents and 11.4 cents, compared to 5.1 cents for the 2012 year.

Merafe is a South African mining company specialising in the production of ferrochrome, a mineral essential for the production of stainless steel.

[DATA MRF:Merafe's] current main focus of its business is on the 20.5 per cent participation of our wholly owned subsidiary Merafe Ferrochrome and Mining Proprietary Limited.

In December 2013, the company’s Glencore-Merafe chrome venture reported a 32 per cent increase in output from 242 000 tonnes in 2012 to 319 000 tonnes.  

“The expected increase in EPS and HEPS is primarily due to higher ferrochrome and chrome ore sales volumes and the Rand weakening against the US Dollar which was somewhat offset by the lower average European benchmark ferrochrome price,” Merafe said in a statement.

“HEPS is expected to be higher than EPS primarily as a result of an impairment loss recognised on the Horizon mine in the first half of 2013, as per SENS announcement dated 6 August 2013.”

The company also expects to close at 31 December 2013 with a net overdraft balance of 10.7 million rand, with total debt owing to ABSA Capital at 581million rand and 194 million rand utilisation of the short term inventory facility.

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