MRF - Merafe Resources Limited - Production report for the year ended
MRF
MRF
MRF - Merafe Resources Limited - Production report for the year ended
31 December 2011
Merafe Resources Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1987/003452/06)
JSE share code: MRF
ISIN: ZAE000060000
("Company")
Production report for the year ended 31 December 2011
Shareholders of the Company are advised that in the second half of 2011,
scheduled maintenance during the high electricity tariff winter months and
subsequent weaker market conditions, compounded by industrial action, resulted
in reduced production at our ferrochrome smelters. Installed capacity
utilisation reduced to an average of 65% for 2011 and production volumes were
12% lower compared to 2010.
Ferrochrome production volumes were adversely affected by industrial action
during the second half of the year, resulting in production facilities running
at a reduced capacity for thirty eight days.
The average European benchmark ferrochrome price for 2011 of $1.25 per pound
remained at a similar level compared to 2010. Due to weaker demand for stainless
steel, the European benchmark ferrochrome price for the first quarter of 2012
was settled at $1.15 per pound which was $0.05 per pound lower than the price in
the fourth quarter of 2011, as per the SENS announcement dated 21 December 2011.
Ferrochrome production attributable to Merafe for the year ended 31 December
2011 was as follows:
Year ended 31 Year ended 31
December 2011 December 2010
Ferrochrome production (kt) 263 300
Indicative average published price (USc/lb - 125.0 124.3
Metal Bulletin)
Sandton
31 January 2012
Sponsor
Deutsche Securities (SA) (Proprietary) Limited
Date: 31/01/2012 08:30:01 Produced by the JSE SENS Department.
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