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Stan12@johntaster·
Pro
It will be difficult to compete with chinese producers. To be profitable they should have access to cheap resources but it's not cheap in SA.
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That’s a fair concern. SA’s cost base especially electricity, logistics and regulatory costs makes competin…by @thulangwenya74 on $MRF
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Replying to Stan12 on $MRF“It will be difficult to compete with chinese producers. To be profitable they should have access to cheap resources but it's not cheap in SA…”
LN King@thulangwenya74·Member
That’s a fair concern. SA’s cost base especially electricity, logistics and regulatory costs makes competing purely on price against Chinese producers difficult. But I don’t think the Merafe thesis is simply “be cheaper than China.” The long-term question is whether its access to chrome resources, the Glencore JV, scale, rand-based costs and disciplined capital allocation can generate attractive returns through the cycle.