MERAFE RESOURCES LIMITED - Production report and trading statement for the year ended 31 December 2016

Production report and trading statement for the year ended 31 December 2016

Merafe Resources Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1987/003452/06)
JSE share code: MRF
ISIN: ZAE000060000
(“Merafe”)

Production report and trading statement for the year ended 31 December 2016

Production report

Merafe’s attributable ferrochrome production from the Glencore Merafe
Chrome Venture for the year ended 31 December 2016 increased by 4% compared
to the prior year. Production volumes were managed across the quarters of
the year through timing of furnace refurbishments to optimise stock levels.


                                                                Year        Year
                                                            ended 31    ended 31
                                Quarter 4     Quarter 4     December    December
                                     2016          2015         2016        2015
Attributable ferrochrome
production (kt)                       107           101          393         377



Trading statement

Basic and headline earnings per share

In terms of the JSE Limited Listings Requirements, issuers are required to
publish a trading statement as soon as they are satisfied that a reasonable
degree of certainty exists that the financial results for the period to be
reported on will differ by at least 20% from those of the prior comparative
period.

Shareholders are therefore advised that Merafe is expecting to report the
following for the year ended 31 December 2016:

•   Basic earnings per share of between 20.0 cents and 23.5 cents,
    compared to 13.7 cents for the prior year, which is an increase of
    between 46% and 72%;

•   Headline earnings per share of between 20.0 cents and 23.5 cents
    compared to 13.9 cents for the prior year, which is an increase of
    between 44% and 69%.

Expected cash and debt balances – Merafe Resources Limited Group


                                                    31-Dec             31-Dec
                                                      2016               2015
                                                       R'm                R'm

Net cash balance                                       263                310
Merafe's 20,5% of the Venture's debtors
facility                                              (309)              (411)
ABSA and Standard Bank debt*                          (363)              (559)
Total                                                 (409)              (660)

*On 3 January 2017, R137m of the R363m ABSA and Standard Bank debt was
repaid resulting in a balance of R226m.

Shareholders are advised that the financial information on which this
trading statement is based, has not been reviewed or reported on by
Merafe`s external auditors and is provided in terms of paragraph 3.4(b) of
the JSE Limited Listings Requirements. The financial results for the year
ended 31 December 2016 are expected to be released on SENS on 7 March 2017.

26 January 2017
Sandton

Sponsor:
Merrill Lynch South Africa Proprietary Limited

Date: 26/01/2017 09:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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