The share price of Merafe Resources slid on the JSE today after the company announced that production for the third quarter of 2014 was 14 % lower than the 2013 corresponding period.
This lower production was due to planned maintenance taking place during the high electricity tariff winter months of July and August, as opposed to prior year where maintenance was performed in the first half of the year, due to the Eskom buy back agreements.
Ferrochrome output for the three months ended September 30 decreased to 74 000 metric tons from 85 600 tons a year earlier as sales declined 18% to 60 200 tons, the company said in a statement today.
The share price this morning was R 1,05 after closing at R 1,13 yesterday evening.
Merafe’s attributable ferrochrome sales volumes were 18% lower in the third quarter of 2014, compared to the 2013 corresponding period as a result of weaker demand and pricing.
The JSE was trading slightly higher this morning after a major sell off over the past few weeks.