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General information

Sector: Basic Materials

The company is not available at Interactive Brokers

Merafe Resources Limited (JSE:MRF) is in the business of Ferrochrome production. In 2004 Merafe and Glencore pooled their chrome operations to create the largest ferrochrome producer in the world.

Merafe Ferrochrome and Mining Proprietary Limited is a wholly owned subidiary of Merafe. Merafe retains 20.5% of the earnings before interest, tax depreciation and amortisation (EBITDA) of the Glencore-Merafe Chrome Venture (the Venture) with Glencore receiving the remaining 79.5%.

Ferrochrome

Merafe's strategy is to ensure that its ferrochrome interests are profitable and sustainable and that they add value to all stakeholders. The company aims to achieve this by:


  • extracting chrome ore from the Venture’s mines and beneficiating it in its smelters in a safe and cost-efficient manner;
  • investing in projects such as the Bokamoso and Tswelopele pelletising and sintering plants and the Lion ferrochrome plant Phases I and II that improve the energy and cost efficiency of the Venture's ferrochrome operations;
  • employing the Venture’s proprietary Premus technology to ensure that it is the lowest-cost producer of ferrochrome in South Africa and, despite rising energy costs in South Africa, remains in the lowest quartile of the global ferrochrome production cost curve;
  • using the flexibility provided by the Venture’s variety of technologies to meet changing operating circumstances and customer requirements; and
  • focusing on reducing costs at the operations and head office.


 

The Company may also consider acquisitions outside of ferrochrome on an opportunistic basis.



  • Dividend yield for the last twelve months 0.0%
  • Free cash flow yield 40.8% (LTM), projected 40.8%
  • Share price is 110.2% higher than minimum and 35.4% lower than maximum for the last 3 years
  • The company is overvalued by EV / LTM EBITDA multiple compared to target level (0.7x vs
    )
  • The company is undervalued by EV / projected EBITDA multiple compared to target level (0.2x vs
    )
  • Fundamental value created in LTM (estimate)

Key Financials

Share price, ZAR:  (0.0%)1.2400
Share price, USD: 0.067035
Common stocks: 2 500 000 000

Dividend Yield:  0.0%
FCF Yield LTM / expected: 40.8% / 40.8%
EV / LTM EBITDA: 0.7x
Last revenue growth (y/y):  -6.1%
Last growth of EBITDA (y/y):  -13.7%
Historical revenue growth:  +8.3%
Historical growth of EBITDA:  +197.7%
EV / expected EBITDA:
Target EV / EBITDA (hist percentile):
EV / LTM EBITDA mutiple calculation
Market Cap ($m): 168
Net Debt ($m): -85
EV (Enterprise Value): 83
EBITDA LTM ($m): 121
EV / LTM EBITDA: 0.7x
Price to Book: 0.62x

Revenue and EBITDA

Semi-Annual values ($m)

Change (y/y)

Cash Flow

FCF ($m)

Net Debt / Cash and Equivalents ($m)

Share price and dividends (Download history)

Share price

Payment ZAR per share

Multiple and potential

EV / EBITDA

Potential dynamics

Reuters Headlines

South African chrome firms warn of more than 1,200 job cuts

South African chrome firms on Monday warned of more than 1,200 potential job cuts, citing power cuts, rising electricity tariffs and increased competition from overseas.

2020-01-20

JSE:GLN JSE:MRF

Production and reserves

Production

Reserves

More information for subscribed users:
detailed calculation of
Potential and Created Value,
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Releases

2022-08-10
Dealings in securities by a director of Merafe
2022-07-26
Production report and trading statement for the six months ended 30 June 2022
2022-06-30
Ferrochrome price announcement for the third quarter of 2022
2022-05-18
Results of the annual general meeting
2022-04-22
Production report for the quarter ended 31 March 2022
2022-04-07
Posting of summarised consolidated AFS, no change statement, notice of AGM and availability of B-BBEE report
2022-04-04
Dealings in securities by directors of Merafe
2022-03-25
Ferrochrome price announcement for the second quarter of 2022
2022-03-22
Summarised consolidated financial statements and cash dividend declaration for the year ended 31 December 2021
2022-02-23
Trading statement for the year ended 31 December 2021
2022-01-14
Production report for the quarter and year ended 31 December 2021 and contribution of a new PGM production plant
2021-12-10
Ferrochrome price announcement for the first quarter of 2022
2021-11-29
Changes to the board of directors and the remuneration and nomination committee
2021-10-22
Production report for the nine months ended 30 September 2021
2021-10-06
Notice of a disposal of a beneficial interest in Merafe securities
2021-09-21
Ferrochrome price announcement for the fourth quarter of 2021

SENS Announcements

2024-04-22
Production report for the quarter ended 31 March 2024
2024-04-11
Posting of summarised financial statements for the year ended 31 December 2023, notice of AGM & availability of IAR
2024-04-10
Retirement of the chairman of the board and changes to the board and board committees
2024-04-02
Dealings in securities by directors of Merafe
2024-03-25
Ferrochrome price announcement for the second quarter of 2024
2024-03-18
Financial statements for the year ended 31 December 2023, dividend declaration and availability of the B-BBEE report
2024-03-04
Trading statement for the year ended 31 December 2023
2024-01-18
Appointment of an independent non-executive director
2024-01-12
Production report for the quarter and year ended 31 December 2023
2023-12-27
Ferrochrome price announcement for the first quarter of 2024
2023-10-20
Production report for the nine months ended 30 September 2023
2023-10-02
Ferrochrome price announcement for the fourth quarter of 2023
2023-09-07
Contribution of new PGM production plants
2023-08-15
Unaudited condensed consolidated financial statements and dividend declaration for the six months ended 30 June 2023
2023-07-17
Production report for the six months ended 30 June 2023
2023-06-27
Ferrochrome price announcement for the third quarter of 2023
2023-06-13
Secondary listing on A2X
2023-05-17
Results of the annual general meeting
2023-04-21
Production report for the quarter ended 31 March 2023
2023-04-14
Amendment to the form of proxy
2023-04-13
Posting of the summarised consolidated AFS, no change statement, notice of AGM and availability of the B-BBEE report
2023-04-03
Dealings in securities by directors of Merafe
2023-03-20
Summarised consolidated financial statements and cash dividend declaration for the year ended 31 December 2022
2023-03-15
Ferrochrome price announcement for the second quarter of 2023
2023-01-16
Production report for the quarter and year ended 31 December 2022
2022-12-13
Ferrochrome price announcement for the first quarter of 2023
2022-10-14
Production report for the nine months ended 30 September 2022
2022-10-03
Ferrochrome price announcement for the fourth quarter of 2022
2022-08-23
Unaudited consolidated financial statements & cash dividend declaration for the six months ended 30 June 2022
2022-08-10
Dealings in securities by a director of Merafe
2022-07-26
Production report and trading statement for the six months ended 30 June 2022
2022-06-30
Ferrochrome price announcement for the third quarter of 2022
2022-05-18
Results of the annual general meeting