[Ferro-Alloys.com]Merafe Resources posted a sharp increase in interim profit, with higher sales of ferrochrome, the feedstock for stainless steel production.

The company said on Aug.12 2014 that revenue was 35% higher at R1.99bn as a result of a 25% increase in ferrochrome sales to 171,000 tonnes in the six months to end-June compared with the year-earlier period. A 16% weakening of the rand contributed to higher revenues.

Profit was R224m compared with R33.5m. Headline earnings per share were (HEPS) 8.9c from 3.8c.The company declared a gross interim dividend of 1.12c.

Merafe, which derives its income from its 20.5% stake in a chrome joint venture with Glencore, said it had decided it would not pursue a diversification strategy and had cut the size of its management and staffing complement. It said it had decided to focus on the ferrochrome operations and maximising cash flows.

"Accordingly, the fact that diversification will no longer be a key focus has necessitated a rethink of the head-office structure and its composition," the company said.

• [Editor:Juan]