MERAFE RESOURCES LIMITED - Production report and trading statement for the six months ended 30 June 2017

Production report and trading statement for the six months ended 30 June 2017

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 six months ended 30 June 2017

1.   Trading statement

     Basic and headline earnings per share

     In terms of the JSE Limited Listings Requirements (“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 to be reported on next will differ by at least 20% from
     those of the prior comparative period.

     Shareholders are therefore advised that Merafe is expecting to report basic earnings per share
     (“EPS”) and headline earnings per share (“HEPS”) of between 17.9 cents and 20.9 cents for the
     six months ended 30 June 2017, compared to 2.3 cents for the comparative period.

     The significant increase in EPS and HEPS period on period is primarily attributable to higher
     ferrochrome and chrome ore prices which was partially offset by lower ferrochrome sales volumes,
     a stronger Rand Dollar exchange rate and an increase in cost of goods sold.

     Update on cash and debt balances – Merafe Resources Limited Group

                                                                      30-Jun-17            31-Dec-16
                                                                            R’m                  R’m
     Net cash balance                                                     122,4                263,3
     Merafe’s 20,5% of the Venture’s debtors facility                   (329,8)              (309,1)
     ABSA and Standard bank Merafe head-office debt                       (0,4)              (363,5)
     Net debt                                                           (207,8)              (409,3)

     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 Listings Requirements.

     The financial results for the six months ended 30 June 2017 are expected to be released on SENS
     on 7 August 2017.

2.   Production report

     Merafe’s attributable ferrochrome production from the Glencore Merafe Chrome Venture for the
     six months ended 30 June 2017 increased by 10% compared to the prior period. This increase is
     primarily attributable to more furnaces being operational period on period, coupled with pleasing
     furnace performances.

                                                                        Six months        Six months
                                                                             ended             ended
                                                                      30 June 2017      30 June 2016
      Attributable ferrochrome production (kt)                                 216               196


14 July 2017
Sandton

Sponsor
One Capital

Date: 14/07/2017 08:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.