MRF - Merafe - First quarter 2011 production update and winter closures
MRF
MRF
MRF - Merafe - First quarter 2011 production update and winter closures
Merafe Resources Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1987/003452/06)
JSE share code: MRF
ISIN: ZAE000060000
("Merafe" or "the Company")
First quarter 2011 production update and winter closures
Shareholders of the Company are advised that Merafe`s attributable production of
ferrochrome for the first quarter of 2011 is 82 000 tonnes, equivalent to 91% of
operating capacity.
Ferrochrome producers achieved an 8% increase in the European benchmark price
from $1.25 per pound in the first quarter of 2011 to $1.35 per pound for the
second quarter of 2011, offset by the strong rand against the US dollar and
overall cost pressures that are at levels well above inflation.
Various furnaces will undergo routine maintenance during the winter months of
June 2011, July 2011 and August 2011. The Xstrata-Merafe Chrome Venture annually
chooses this period to conduct maintenance at its furnaces to mitigate the
higher than average winter electricity supply tariffs. The Venture will operate
on average at 65% of operating capacity during the winter months.
Q1 2011 Q1 2010
Ferrochrome
Attributable production (kt) 82 79
Indicative average published price 125.0 101.0
(USc/lb) (Metal Bulletin)
Sandton
4 May 2011
Sponsor
Deutsche Securities (SA) (Proprietary) Limited
Date: 04/05/2011 08:30:01 Produced by the JSE SENS Department.
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