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Merafe

Merafe Dividend messed up analysis to the upside of R2.00What a difference a dividend makes! The payment went out on the 15 April 2024, and because there are derivatives that traders can trade off - the algorithm droped the share price quite significantly. I don't think this company should be providing such high dividends if it wants growth in the share price, but hey I'm just the guy behind a computer. So last time, we saw a Dividend release in September, it took 6 months for the share price to make it's way up and close the gap. Now it is likely for the same thing to happen. This is not a technical analysts haven type market because fundamentals trump the price action. But overall, I guess shareholders are remotely happy for their income distribution and in the long run Merafe will one day hit R2.00 :D
JSE:MRFLong
by Timonrosso
UPDATE: Merafe entered into a sideways Twilight Zone What's nextWe see Merafe has definitely entered into a Rectangle formation. Price is remaining above the 200MA where it could range between the high and low. We definitely need a breakout to the upside, before we see upside. The target potential will be at R1.61 if the price breaks above the Rectangle. Now I wouldn't be that positive and optimistic with this analysis, due to the bad numbers released with ferrochrome. UPDATE: In a strategic move that echoed the prevailing market conditions, Merafe Resources, the South African ferrochrome producer, reported a considerable drop in production for the year. The company's attributable ferrochrome production fell by a substantial 22% from 384 kilotons in the preceding year to 300 kilotons. This planned reduction in output was primarily driven by the high electricity demand during the winter season, characterised by escalated power prices. As a result, the Lion smelter was the only operational facility during this period.
JSE:MRF
by Timonrosso
Merafe upside from the newest C&HCup and Handle formed with Merafe with the previous Breakaway gap that took place. The price has broken above the Brim level and is flirting with the 200MA. Also the price needs to move up to fill the gap. These are all bullish signals including: 7>21 Price<200 RSI>50 Target 1 will be to R1.47 ABOUT THE COMPANY Merafe Resources is a South African mining company that operates in the ferroalloys sector, predominantly in the production of chrome. Partnership with Glencore: Merafe Resources is best known for its partnership with Glencore. Through its subsidiary, Merafe Ferrochrome and Mining (Pty) Ltd., Merafe participates in the earnings of the Glencore-Merafe Chrome Venture. Primary commodity: Merafe's main commodity is ferrochrome, which is a key ingredient in the production of stainless steel. Formation: Merafe was incorporated in 1987 and has been listed on the Johannesburg Stock Exchange (JSE) since 1988. Headquarters: The company is headquartered in Bryanston, Johannesburg, South Africa. Extensive operations: The Glencore-Merafe Chrome Venture operates five ferrochrome smelters, 22 ferrochrome furnaces, and nine mines, making it one of the largest ferrochrome producers in the world. Sustainable mining: Merafe has an Environmental Management Program (EMP) in place, complying with the National Environmental Management Act. Women in leadership: Merafe has made strides in promoting women in leadership positions. The company's CEO, Zanele Matlala, is one of the few female CEOs in the South African mining industry.
JSE:MRFLong
by Timonrosso
Merafe reached the first target at 113c now down to 73c?First, Merafe hit our target at R1.00. This was due to a Box Formation which the price broke below. Also above the Box Range was Buy Side LIquidity, where Smart Monet came up and swept and sold into the levels. This brought the price down and then some. Inv Cup and Handle formed on Merafe. And the price has broken below the brim level. Also the price is testing a crucial support around 100. Below that and it'll come down further. 200>21>7 RSI<50 Mt next target for the ferrochrome giant is to 73c. ABOUT THE COMPANY Merafe Resources Limited, commonly known as Merafe, is a South African mining company primarily focused on the production of ferrochrome. The company was established in 2001 and is headquartered in Johannesburg, South Africa. Merafe operates in partnership with Glencore in a joint venture known as the Glencore-Merafe Chrome Venture. The partnership holds interests in various ferrochrome assets in South Africa. Ferrochrome is a key ingredient in the production of stainless steel and other alloy steels, providing them with corrosion resistance and other desirable properties. Merafe's primary asset is the Glencore-Merafe Chrome Venture, which includes the Wonderkop, Rustenburg, and Lydenburg smelters in South Africa. The Wonderkop smelter, located in the North West province of South Africa, is one of the largest ferrochrome smelters in the world. Merafe's operations involve the mining of chrome ore, which is then processed into ferrochrome through a smelting process. The company also has an interest in chrome ore reserves and resources. The Glencore-Merafe Chrome Venture has a significant market presence and is one of the world's largest ferrochrome producers.
JSE:MRFShort
by Timonrosso
Merafe in a Range Bounded area - Neutral outlook until breakRange bounded has been the overall trend for Merafe. It seems like there is just a fight between the bulls and the bears. We can only assume the price is most likely to break up due to the previous momentum. I will only wait for a break above or below the range before acting upon. MAs are all close confirming the sideways movement. SMC: There needs to be a break above the Buy Side LIquidity in order for the bulls to really take over. But right now it's a selling zone for Smart Money which goes hand in hand with the range box.
JSE:MRF
by Timonrosso
Merafe showing downside to test R1.00 again read fundamentalsM Formation formed on the daily and we are just waiting for the price to break below the neckline. 21>7- Bearish Price <200 - Bearish RSI <50 lower highs Target R1.08 CONCERNS: Many resource companies are showing downside to come. It seems like smart money knows something the public doesn't. This corresponds to the strengthening dollar. Ever since the US dollar started strengthening in February 2023, Resources markets have been showing volatility with no conviction of upside. Economically speaking for Merafe, the price of ferrochrome (Which is used in the production of stainless steel) is denominated in US dollars, which means that changes in the value of the dollar can impact the price of ferrochrome. This is because a stronger dollar makes it more expensive for buyers in other countries to purchase ferrochrome, as they need to exchange their own currency for US dollars in order to make the purchase. This can lead to a decrease in demand for ferrochrome, which can put downward pressure on the price. Additionally, a stronger dollar can make it less profitable for ferrochrome producers in countries with weaker currencies to sell their products on the global market. This can lead to a drop in supply of ferrochrome, which can also put downward pressure on the price.
JSE:MRFShort
by Timonrosso
Merafe Analysis on track to R1.66 and about the companyThe Cup and handle formed, broke above the Brim Level and now looks like it's heading on up. The price above the 200MA is the first time since Sep 2022... Target 1 at R145. Target 2 R1.66 ABOUT Merafe Resources is a mining giant company that was founded in 2005 and is based in Johannesburg, South Africa. The company's primary focus is on the production of ferrochrome, which is used in the production of stainless steel. Merafe Resources operates in partnership with mining giant Glencore, with the two companies jointly owning and operating the Glencore-Merafe Chrome Venture. The Glencore-Merafe Chrome Venture is one of the world's largest producers of ferrochrome, with operations in South Africa, Kazakhstan, and Australia. It has a market capitalization of over R2 billion as of February 2023. Ferrochrome which is used in the production of stainless steel makes products like: Stainless steel cutlery, Kitchen appliances, Construction materials, Medical instruments (Surgical tools and implants), Jewelry (e.g. watches) Aerospace components (engine parts and turbine equipment), Electronics and the list goes on...
JSE:MRFLong
by Timonrosso
Merafe heading to target 1 and already have Target 2 in mind New Cup and handle has formed on Merafe following the Old one in 2022 Target 1 at R145 and now a new target of R1.66 Price >200MA first time since Sep 2022 Some info on Merafe Merafe Resources is a South African company that is primarily engaged in the mining and production of ferrochrome, which is an alloy of chrome and iron used in the production of stainless steel. Resources is on a nice uptrend in the start of the year including AGL, BHG, ANG, GOLD and JSE:RES. Which I am long pretty much all of them. Now since 2003, I have had a secret with Merafe. I buy at 60 cents and sell at R1.20... I've been doing it ever since and it's worked like an absolute charm. Touch wood though now that you know my secrets!
JSE:MRFLong
by Timonrosso