MERAFE RESOURCES LIMITED - Production Report and Trading Statement for the Year Ended 31 December 2015

Production Report and Trading Statement for the Year Ended 31 December 2015

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 2015

Production report

Merafe’s attributable ferrochrome production from the Glencore Merafe Chrome Venture
(the Venture) for the year ended 31 December 2015 increased by 13% compared to the prior
year. This increase was primarily attributable to the additional production from the Project
Lion II furnaces.

The Venture’s operating capacity utilisation for the year ended 31 December 2015 was 87%
(79% of installed capacity).


                                           Quarter       Quarter         Year         Year
                                            ended         ended         ended        ended

                                               31             31           31           31
                                         December       December      December    December
                                             2015           2014          2015        2014
Attributable ferrochrome production
(kt)                                          101             92           377         334



Trading statement

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 next will differ by at least 20% from those of
the prior comparative period.


Shareholders are advised that Merafe is expecting to report the following:

Earnings per share

   -   Basic earnings per share for the year ended 31 December 2015 of between 13.0 cents
       and 15.0 cents compared to 8.6 cents for the year ended 31 December 2014, which is
       an increase of between 51% and 74%.
   -   Headline earnings per share for the year ended 31 December 2015 of between 13.0
       cents and 15.0 cents, compared to 8.4 cents for the year ended 31 December 2014,
       which is an increase of between 55% and 79%.




Expected cash and debt balances – Merafe Resources Limited Group


                                                                  31            31
                                                            December      December
                                                                2015          2014

                                                                  R'm           R'm
Net cash / (overdraft) balance                                    310          (162)

Merafe's 20.5% of the Venture's short term stock facility             -        (189)

Merafe's 20.5% of the Venture's debtors facility                 (411)         (283)
ABSA and Standard Bank debt *                                    (559)         (617)
Total                                                            (660)       (1 251)

* On 4 January 2016, R50m of the R559m ABSA and Standard Bank debt was repaid.


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 2015 are expected to be released on SENS on 8 March 2016.


28 January 2016
Sandton
Sponsor:
Merrill Lynch South Africa Proprietary Limited

Date: 28/01/2016 01:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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