Johannesburg, South Africa — MININGREVIEW.COM — 26 January 2010 – South African ferrochrome producer Merafe Resources Limited says it expects to report a full-year headline loss per share of between 6 and 7 cents, pressured by low prices for the metal and a strong rand.
Reuters reports that the global economic downturn saw demand for ferrochrome “’ used in stainless steel to prevent corrosion “’ crash last year, forcing companies in top producer South Africa to cut output.
Merafe revealed last month that the European benchmark ferrochrome price had been settled at US$1.01 per pound for the first quarter of 2010 “’ two cents down from US$1.03 per pound in the fourth quarter of 2009.
The company “’ which operates a joint venture plant with Xstrata “’ said it had closed the year with a cash balance of R425 million, while its long-term debt stood at R350 million by 31 December 2009.
The company will report full year results on 2 March.