MERAFE RESOURCES LIMITED - Trading statement for the year ended 31 December 2019

Trading statement for the year ended 31 December 2019

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

TRADING STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2019

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 a basic loss per share of between 52.9 cents
and 58.3 cents and a headline loss per share of between 2.3 cents and 2.9 cents for the year ended 31 December
2019, compared to earnings per share and headline earnings per share of 27.2 cents for the previous comparative
period.

The expected significant decrease in headline earnings per share is primarily driven by lower ferrochrome and
chrome ore prices. These were partially offset by a stronger average Rand compared to US Dollar exchange rate.
The expected significant decrease in earnings per share is primarily due to the impairment of property, plant and
equipment. The trigger for the impairment assessment was Merafe’s share price which was trading at a discount to its
net asset value. The impairment loss is a result of the calculated recoverable amount being lower than the net
carrying amount of the business.

Expected cash and debt balances – Merafe Resources Limited Group

                                                                31 December 2019               31 December 2018
                                                                             R’m                            R’m
Cash and cash equivalents                                                    354                            281

The increase in cash and cash equivalents is principally due to a reduction in working capital.

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. The financial results for the year ended 31 December 2019 are
expected to be released on SENS on or about 9 March 2020.


Sandton
17 February 2020

Sponsor
One Capital

Date: 17-02-2020 01:50:00
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