Revenue declined to R1.2 billion (R1.3 billion). EBITDA increased to R262.9 million (R206 million). Net attributable profit rose to R138.1 million (R86 million). In addition, headline earnings per share grew to 5.5c (3.5cps).
Despite the challenges, Merafe continues to remain optimistic about the future of the business. Going forward Merafe has the advantage of a strong balance sheet, low gearing, a healthy cashflow and partnering with Xstrata, one of the world's largest diversified mining companies with a reputation for running responsible and efficient operations. The venture has the advantage of being one of the lowest-cost and most energy efficient producers of ferrochrome. The significant investment in improving the Venture's energy efficiency gives Merafe a competitive advantage and contributes to its future sustainability. The Merafe board continues to recognise the importance of diversification and this will be a major focus for the management team.