Merafe Resources’ share of ferrochrome production from its joint venture (JV) partnership with Glencore decreased by 26% over the quarter period to the end of March, it said on Monday.
Glencore has a 29% interest in the joint venture partnership, data from its website shows.
“Merafe's attributable ferrochrome production from the Glencore Merafe Chrome Venture in the first quarter ended 31 March 2024 was 77 000 tonnes, resulting in a decrease of approximately 26% in production compared to the prior comparative period,” Merafe said.
The company has attributed the reduction in production to suspension of operations at the Rustenburg smelter, which has not been in operation this year in response to market conditions.
Glencore has advised its South African shareholders that it will use a rand exchange rate of $1:R19.13 for dividend payments.
In its 2023 preliminary results announcement released earlier this year, Glencore declared a distribution of $0.13 (R2.47) per ordinary share.
However, this will be subject to shareholder approval at the company’s annual general meeting next month.
“The distribution will be made from the capital contribution reserves of the company in two equal tranches of $0.065 (R1,20), payable in the first six months of the 2024 financial year and second six months of the 2024 financial year,” Glencore. said.
It added that the currency exchange rate applicable for the distribution payable to South African shareholders has been determined by reference to the close of business exchange rate applicable to the rand as at April 19
BUSINESS REPORT