Half Year 2024 Merafe Resources Ltd Earnings Call Transcript
Key Points
- Global stainless-steel production increased by 9%, driving a 10% rise in ferrochrome demand.
- Improvement in electricity supply and logistics, reducing operational disruptions.
- Negotiated pricing agreements with Eskom provide pricing certainty for electricity costs.
- PGM production increased significantly, with feed volumes rising from 69 kt to 290 kt.
- Rand weakness against the US dollar provided a financial cushion, supporting revenue.
- Recorded one fatality and deterioration in the total recordable injury frequency rate.
- Ferrochrome and chrome ore production were lower, impacting overall performance.
- Ferrochrome prices remained under pressure, trading below $1 per pound.
- Total revenue decreased marginally by 0.4% to ZAR4.7 billion, with ferrochrome revenue down by 10%.
- EBITDA from the venture was 26% lower than the 2023 comparative figure, reflecting market challenges.
Good day, ladies and gentlemen, and welcome to the Merafe Resources interim results presentation. (Operator Instructions)
Please note that this call is being recorded. I would now like to turn the conference over to Zanele Matlala. Please go ahead.
Good morning. Thank you for joining us for the interim results presentation. Ditabe and I will take you through the results. And we also have Japie Fullard, the CEO of Glencore Alloys, with us to assist with operational questions. The operating environment continues to be challenging, leading to weaker financial performance.
Slide 4, which gives us the key takeaways from the results, sadly, we recorded one fatality and there has been a deterioration in the total recordable injury frequency rate. Operationally, ferrochrome and chrome ore production were lower. The PSV continued to focus on efficiencies. Cost pressures persisted.
On the positive side though, there was some improvement in electricity supply and
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
