Merafe’s shares slide on lower ferrochrome production

Merafe Resources’s share price slid after it said yesterday that its attributable ferrochrome production from the Glencore Merafe Chrome Venture decreased by approximately 5% for the quarter that ended December 31, 2022. It increased by approximately 1.3% for the full year, compared to the year ended December 31, 2021. In afternoon trade the share was nearly 3% lower at R1.39 yesterday. According to the group, the production levels were achieved in spite of the Eskom load curtailments that affected operations. The Glencore-Merafe Chrome Venture operates five ferrochrome smelters and eight mines. Merafe owns 20.5% of the joint venture.In its latest results released in August, the mining firm, whose primary source of income is the joint venture, announced an increase in its half-year profit and declared a 12c dividend – a 70% increase compared to the previous comparative period. However, the ferrochrome producer warned that for the remainder of the financial year, it expected trouble in logistical and supply chain constraints and would take a cautious approach.