MRF - Merafe Resources Limited - Production report for the year ended 31
MRF
MRF
MRF - Merafe Resources Limited - Production report for the year ended 31
December 2010
MERAFE RESOURCES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/003452/06)
Share code: MRF ISIN: ZAE000060000
("Merafe")
Production report for the year ended 31 December 2010
Ferrochrome production increased by 48% year on year in response to market
recovery and improved demand, following the suspension of up to 80% of
operational capacity in 2009. The average operating capacity utilisation rate
rose to 74% of installed capacity in 2010 compared to 50% in 2009, as the full
impact of restarting previously suspended furnaces was offset by scheduled
maintenance.
Ferrochrome producers achieved a 46% increase in the average European benchmark
ferrochrome price in 2010 compared to 2009, however, margins remained under
pressure due to the continued strengthening of the South African Rand against
the US Dollar. Lower stainless steel demand in the second half of 2010, resulted
in a decrease of 5USc per pound in the European benchmark ferrochrome price for
the first quarter of 2011 to $1.25 per pound, closing the gap between the
contractual and spot prices that existed throughout 2010.
Ferrochrome production attributable to Merafe for 2010 was as follows:
Year Year
ended ended
31.12.10 31.12.09
Ferrochrome production (kt) 300 203
Indicative average published price 124.3 85.0
(USc/lb-Metal Bulletin)
Sandton
1 February 2011
Sponsor
Deutsche Securities SA (Pty) Ltd
Date: 01/02/2011 08:00:03 Produced by the JSE SENS Department.
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