MERAFE RESOURCES LIMITED - Trading Statement and Production Report for the Six Months Ended 30 June 2015

Trading Statement and Production Report for the Six Months Ended 30 June 2015

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

Trading statement and production report for the six months ended 30
June 2015

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 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 six months ended 30 June 2015:

•    Basic earnings per share of between 4.7 cents and 5.3 cents,
     compared to 9.0 cents for the comparative period, which is a
     decrease of between 41% and 48%;

•    Headline earnings per share of between 4.7 cents and 5.3 cents
     compared to 8.9 cents for the comparative period, which is a
     decrease of between 40% and 47%.

The decrease in headline earnings period on period is primarily
attributable to the decrease in net ferrochrome prices and an increase
in expenses (cost of goods sold, depreciation and net financing
costs), which was partially offset by the increase in ferrochrome and
chrome ore sales volumes and the weakening of the Rand against the US
Dollar.

Update on cash balance and debt
Merafe is expected to close at 30 June 2015 with the following
balances:

•    Net overdraft balance of R70m (31 December 2014: net overdraft
     balance of R162m),

•    Total debt owing to ABSA and Standard Bank of R609m (31 December
     2014: R617m)

•    Nil (31 December 2014:   R189m) utilisation of the short term
     inventory facility.

    R50m of the R609m owing to ABSA and Standard Bank was repaid on 1
    July 2015.

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 period ended 30 June 2015 are expected
to be released on SENS on 4 August 2015.


Production report

Merafe’s attributable ferrochrome production from the Glencore Merafe
Chrome Venture (the “Venture”) increased by 16% compared to the six
month period ended 30 June 2014 . This increase was primarily
attributable to the additional production from the Project Lion II
furnaces which ramped up to full capacity in the second quarter of
2015.

The Venture’s operating capacity utilisation for the six month period
ended 30 June 2015 was 92%.



                                              Six months       Six months
                                                ended 30         ended 30
                                               June 2015        June 2014
Attributable ferrochrome production (kt)             195              168


20 July 2015

Sponsor:
Merrill Lynch South Africa Proprietary Limited

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