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Depreciation, Restructuring Costs to Dent Merafe's FY Earnings

  • Wednesday, February 25, 2015
  • Source:ferro-alloys.com

  • Keywords:ferrochrome,Merafe Resources
[Fellow][Ferro-Alloys.com]JSE-listed Merafe Resources expects its headline earnings a share for the year ended December 31 to drop by between 19% and 26% year-on-year to between 8c and 8.8c.
[Ferro-Alloys.com]JSE-listed Merafe Resources expects its headline earnings a share for the year ended December 31 to drop by between 19% and 26% year-on-year to between 8c and 8.8c.
 
The decrease in earnings was primarily attributable to the accelerated depreciation arising from the scrapping of certain assets, as well as additional depreciation arising from Project Lion II and an increase in borrowing costs expensed as a result of the project’s completion.
Restructuring costs at Merafe head-office level and standing charges as a result of the mining division and platinum industry strikes also hurt the company’s bottom line.
 
The ferrochrome producer would release its financial results for the year on March 3.

 

  • [Editor:sunzhichao]

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