Merafe Resources earnings slump despite production increase

Merafe Resources reported a challenging 2024, with revenue decreasing 9% to R8.443 billion. Headline earnings per share fell 29% to 42.9 cents, while basic earnings per share dropped 62% to 26.7 cents. The company attributed the performance to weaker commodity prices and increasing costs, including the full impairment of the Boshoek smelter of R575 million. Despite the downturn, ferrochrome production saw a slight increase of 0.3% to 301kt, and chrome ore sales volumes rose 1% to 475kt, while PGMs sales rose 106% to 13,557oz. The Board declared a final cash dividend of 8 cents per share, bringing the total dividend for the year to R700 million. Merafe anticipates continued market volatility in FY2025 due to geopolitical tensions and focuses on environmental sustainability.