Merafe Resources (MRF) H1 2026 earnings summary

Executive summary

• Profit for the six months to June 2026 rose to R512 million, up from R233 million year-over-year, driven by higher chrome ore sales and improved commodity prices despite a significant reduction in ferrochrome production.

• Revenue increased by 36% to R3,433 million, with chrome ore revenue up 78% and ferrochrome revenue up 3% year-over-year.

• No fatalities were recorded, with a 24% decrease in TRIFR, reflecting improved safety.

• Interim gross cash dividend declared at 16 cents per share, a fourfold increase from the prior year.

Financial highlights

• EBITDA increased by 60% to R774 million compared to R483 million in the prior year.

• Headline earnings per share rose 64% to 20.7 cents; basic EPS was 20.5 cents.

• Chrome ore revenue surged 78% to R1.8 billion; ferrochrome revenue increased 3% to R1.4 billion.

• PGMs revenue increased by 63% to R255 million, mainly due to a 96% increase in prices.

• Cash and balances held with Central Treasury increased 38% to R1,591 million.

Outlook and guidance

• Outlook for the remainder of 2026 is cautiously optimistic, with reduced electricity tariffs and improved power supply expected to support a rebound in production.

• Ferrochrome production is expected to increase as Wonderkop and Boshoek smelters ramp up by year-end.

• Production guidance for ferrochrome is 25%-29% of installed capacity for 2026.

• Chrome ore production is expected to be around 5 million tons for the year.

• Cost pressures and market volatility are expected to persist.