MRF - Merafe Resources Limited - First quarter 2012 ferrochrome production
MRF
MRF
MRF - Merafe Resources Limited - First quarter 2012 ferrochrome production
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 2012 ferrochrome production
Shareholders of the Company are advised that ferrochrome production volumes in
the first quarter of 2012 were 21% lower than the 2011 comparative period,
mainly due to the re-scheduling of maintenance programmes and power buy-back
deals with Eskom, the South African national electricity supplier, in a rather
soft market. As per SENS announcement dated 30 March 2012, a total of seven
furnaces were impacted by Eskom`s requirements for consumption reductions to
support their maintenance programmes.
Ferrochrome producers achieved a 17% increase in the European benchmark
ferrochrome price from $1.15 per pound in the first quarter of 2012 to $1.35 per
pound in the second quarter of 2012, driven by reduced supply in the market.
Margins, however, remain under pressure as a result of continued higher mining
inflation, increased standing charges and a relatively strong Rand compared to
the US Dollar.
Three months Three months Year ended 31
ended ended December 2011
31 March 2012 31 March 2011
Attributable production (kt) 65 82
263
Indicative average published 115.0 125.0 125.0
ferrochrome price (USc/lb)
(Metal Bulletin)
Sandton
2 May 2012
Sponsor: Merrill Lynch South Africa Proprietary Limited
Date: 02/05/2012 08:30:01 Produced by the JSE SENS Department.
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