Merafe warns of lower HEPS amid drop in ferrochrome sales volumes, weaker prices
Chrome miner and ferrochrome producer Merafe Resources expects to report a 19% to 39% decrease in headline earnings per share (HEPS) to between 36.9c and 48.9c for the year ended December 31, compared with the HEPS of 60.1c reported for the prior financial year.
It attributes the expected decrease to weaker ferrochrome prices, lower ferrochrome sales volumes and a slightly stronger rand against the dollar.
Further, earnings per share (EPS) for the 2024 financial year are likely to be between 52% and 72% lower year-on-year at between 19.7c and 33.7c.
Merafe attributes the expected decrease in EPS to the impairment of property plant and equipment, with the key trigger for the impairment being revised ferrochrome price forecasts.
The company will publish its results for the 2024 financial year on March 10.
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