Merafe jumps 14% on news of 13% bounce for European chrome

JOHANNESBURG – Merafe Resources, which operates a chrome joint venture with global trader-miner giant Glencore, jumped 14percent yesterday to R0.32 a share on news of a 13percent bounce in European benchmark chrome prices.

The company informed shareholders that the European benchmark ferrochrome prices had jumped 13cents to $1.14 (R21.58) a pound (lb) in the second quarter of 2020. The first quarter benchmark settled at $1.01/lb.

Merafe chief financial officer Ditabe Chocho said a higher benchmark price environment would help cushion the blow of the coronavirus pandemic outbreak.

Earlier this month, South African ferrochrome producers, including the Glencore-Merafe Resources joint venture, declared force majeure on most contracts following the national 21-day lockdown on March 26.

Merafe said earlier this month that its operations were not considered essential services and have been completely shut down over the lockdown, with no production over the lockdown period.