Merafe Resources, which produces chrome and ferrochrome declared a 20-cent interim dividend per share in the six months that ended on June 30, 2023, compared to 12 cents in January-June 2022.
The dividend, it said, will be paid out of income reserves.
The company reported a profit of R1 billion for the six months due to higher realised chrome ore prices and a weaker rand/dollar exchange rate, which were partially offset by lower ferrochrome prices and sales volumes, as well as higher costs of making ferrochrome.
Ferrochrome production of 185 000 tonnes was 9% less than in the same period the previous year.
Revenue climbed by 11% to about R4.8 billion, while net cash increased by 26% to R1.6 billion.
Merafe anticipates the second half of 2023 to be weaker due to a deteriorating market outlook.
It is anticipated that the downward pressure on chrome ore prices, which has begun to manifest, will result in lower ferrochrome pricing.
Merafe said that, given the anticipated inflationary pressures, its margins may be compressed in the second half of 2023.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
