JSE-listed Merafe Resources has reported that its share of ferrochrome production from the Glencore Merafe Chrome Venture, in South Africa, amounted to 28 000 t for the six months ended June 30 – a 75% year-on-year decrease.

The company says the decline in production is primarily attributable to the suspension of production at the venture’s Wonderkop and Boshoek smelters, as well as the partial suspension at the Lion smelter during the period under review.

The company’s attributable chrome ore production from the venture during the period amounted to 425 000 t, representing a marginal decrease of about 4% compared with the prior comparative period.

The company’s attributable platinum group metals (PGMs) concentrate production from the venture during the period amounted to 6 700 oz, representing a decrease of about 5% compared with the prior comparative period. The company says this decrease in PGM production is largely owing to lower primary mine production and feed mix.

Merafe has, meanwhile, also advised shareholders that it expects to report basic earnings per share (EPS) of between 19.5c and 21.4c for the six months ended June 30, compared with EPS of 9.3c for the prior comparative period, being an increase of between 110% and 130%.

The company also expects to report headline earnings per share (HEPS) of between 19.5c and 22c for the period, compared with HEPS of 12.6c for the prior comparative period, being an increase of between 55% and 75%.

Merafe explains that the expected increase in EPS and HEPS is primarily driven by higher commodity prices and higher volumes sold over the period.

Additionally, Merafe notes that cash and cash equivalents for the period comprised cash held by Merafe of about R871-million, and Merafe’s share of balances held with Central Treasury, being about R721-million.

These balances exclude the venture’s 120-day notice deposit held by Central Treasury, which has been set aside to fund future environmental rehabilitation obligations. Merafe’s share of this deposit is R410-million.

The financial results for the six months ended June 30 are expected to be released on or about August 11.