Chrome producer Merafe's share price on the JSE rose by more than 15% on February 23 after the company announced it would report higher earnings for the year ended December 31.

In a trading statement, Merafe said it expected to report basic earnings a share of between 62.8c and 70.8c and headline earnings a share of between 66.8c and 67c.

That compares with a basic loss a share of 40c and a headline loss a share of 0.8c reported for 2020.

Merafe attributed the expected increase in headline earnings a share to higher ferrochrome and chrome ore prices, as well as higher volumes sold, but partially offset by a stronger average rand compared with the dollar.

The expected increase in basic earnings a share was a result of there being no general impairment adjustments relating to property, plant and equipment during the current reporting period.

Further, Merafe noted that the higher earnings had contributed to an increase in cash and cash equivalents to R972-million, compared with R189-million in 2020.

The company will report its results on March 22.