Merafe Resources (JSE:MRF) Gross Margin % : 97.02% (As of Dec. 2023)

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What is Merafe Resources Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Merafe Resources's Gross Profit for the six months ended in Dec. 2023 was R4,344 Mil. Merafe Resources's Revenue for the six months ended in Dec. 2023 was R4,478 Mil. Therefore, Merafe Resources's Gross Margin % for the quarter that ended in Dec. 2023 was 97.02%.

The historical rank and industry rank for Merafe Resources's Gross Margin % or its related term are showing as below:

JSE:MRF' s Gross Margin % Range Over the Past 10 Years
Min: 91.31 Med: 94.09 Max: 98.62
Current: 97.3

During the past 13 years, the highest Gross Margin % of Merafe Resources was 98.62%. The lowest was 91.31%. And the median was 94.09%.

JSE:MRF's Gross Margin % is ranked better than
97.44% of 703 companies
in the Metals & Mining industry
Industry Median: 19.14 vs JSE:MRF: 97.30

Merafe Resources had a gross margin of 97.02% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Merafe Resources was 1.30% per year.

Merafe Resources Gross Margin % Historical Data

The historical data trend for Merafe Resources's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Merafe Resources Gross Margin % Chart

Merafe Resources Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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91.31

96.79

98.62

97.23

97.30

Merafe Resources Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Gross Margin %	Get a 7-Day Free Trial															97.72	97.54	96.87	97.57	97.02

Competitive Comparison of Merafe Resources's Gross Margin %

For the Other Industrial Metals & Mining subindustry, Merafe Resources's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Merafe Resources's Gross Margin % Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Merafe Resources's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Merafe Resources's Gross Margin % falls into.

Merafe Resources Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Merafe Resources's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	8993	/	9242.341
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(9242.341 - 249.319)	/	9242.341
	=	97.30 %

Merafe Resources's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	4344.5	/	4477.924
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4477.924 - 133.426)	/	4477.924
	=	97.02 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Merafe Resources (JSE:MRF) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Merafe Resources had a gross margin of 97.02% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Merafe Resources Gross Margin % Related Terms

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Merafe Resources (JSE:MRF) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » Merafe Resources Ltd (JSE:MRF) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

RZT:Germany

Address

35 Ballyclare Drive, Building B, 2nd floor, Ballyoaks Office Park, Bryanston, ZAF, 2191

Website

https://www.meraferesources.co.za

Merafe Resources Ltd through its wholly-owned subsidiary, Merafe Ferrochrome and Mining Proprietary Limited, participates in chrome mining and the beneficiation of chrome ore into ferrochrome. The Glencore-Merafe Chrome Venture (Venture) operates five ferrochrome smelters, twenty-two ferrochrome furnaces, and nine mines, situated in the North-West, Limpopo, and Mpumalanga provinces of South Africa. The company has operating mines namely, Waterval mine; Marikana West; and Kroondal Gemini. The Group has one reportable segment being the mining and beneficiation of chrome ore into ferrochrome and associated minerals.