Merafe Resources more than doubled its interim profit and quadrupled its dividend, as higher chrome ore sales and firmer commodity prices offset lower ferrochrome production. The chrome mining and ferrochrome producer on Tuesday reported profit of R512m for the six months to end-June, up from R233m a year earlier, while HEPS rose 64% to 20.7c.Revenue increased 36% to R3.43bn, and earnings before interest, tax, depreciation and amortisation (ebitda) climbed 60% to R774m. The board declared an interim dividend of 16c a share, compared with 4c in the corresponding period last year. The improved financial results came despite weaker ferrochrome output. Ferrochrome production fell 75% to 28,000 tonnes and sales volumes eased 4% to 73,000 tonnes during the period. Chrome ore sales volumes, however, increased 75% to 380,000 tonnes, while platinum group metals sales volumes slipped 4% to 6,800oz.“The increase in profits is supported by significantly higher chrome ore sales volumes and an improvement in commodity prices,” said CEO Zanele Matlala.Net cash generated from operating activities rose to R976m, compared with a cash outflow of R175m in the first half of 2025. Cash and balances increased 38% to R1.59bn, while net asset value rose 7% to R5.03bn. Looking ahead, Merafe said negotiated reductions in electricity tariffs and improved power supply from Eskom should reduce operational risks for its smelters and allow ferrochrome production to recover in the second half of the year.However, it said ferrochrome margins could remain under pressure because of increased supply from China and the possibility of market oversupply, unless global stainless steel demand strengthens. The company said profitability in the second half would depend largely on ferrochrome prices and smelter throughput.At 9.35am, the company’s share price had gained 5.22% to R1.41 on the JSE.Business Day