Was in Mpumalanga this weekend and when I went past MRF plant at lydenburg the stock piles where the highest I have ever seen them, if they get any higher the winds are going to blow away profits, if they dont move it soon they will be forced to shutdown furnaces again.
Dude, thanks for that. I have sold out of my MRF shares after their results announcement bitterly dissapointed me (see my previous comments for explanations). Been mulling it over a lot given the strength of MRF shareprice, but your observation confirms my suspicion - that these guys are burning those impressive cash reserves at a massive rate
Guys not sure about the high stocks ur talking bout, just for the record ~90% of MRF furnaces is now switched on, the production in their NW operations is on the floor 4 a max of 4days and off to the habours, i.e. stocks level r very minimal.
From an article in today's BD: "Eskom is due to put in an application to Nersa by the end of next month, and is discussing with the government what increases it will seek. It was understood that there was agreement on average increases of about 40% over the next three years, Maroga said. Nersa had indicated it was willing to contemplate tariff increases of up to 60% over the next couple of years. Nersa would also like to see the government put more cash into Eskom." Large scale industrial users and the mines do obtain electricity at discounted rates...but unless the ferrochrome price takes off or the Rand declines significantly, I see a slight problem ahead.
First of all i treat it as a trading share,ignoring its state of health which is very poor.Whilst it ran up it was worth holding,if it hesitates or just starts to fall back i shall sell,but have held at the moment as with METOREX it is ahead of all the small cap resources shares at this stage having gained 40% in just over a month....I have no idea why it gained as although the chrome market is slowly recovering they have cash flow problems,they will probably have to go to the market at some time to refinance,at that stage i would sell.
hey guys just so you'll know i work at the durban harbour and just thought i advise you that there is alot of exporting being done on ferrochrome. we practically handle the product on a daily basis so the high stock piles that you are talking about could just be an order that needs to be delivered.