MERAFE RESOURCES LIMITED - Production report and trading statement for the six months ended 30 June 2020

Production report and trading statement for the six months ended 30 June 2020

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”)

PRODUCTION REPORT AND TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2020

1. Production Report

Merafe’s attributable ferrochrome production from the Glencore Merafe Chrome Venture for the six
months ended 30 June 2020 decreased by 42% compared to the prior comparative period. The
decrease is as a result of production cutbacks in response to COVID 19, market conditions and
electricity curtailments to a limited extent.

                                                         Six months ended           Six months ended
                                                             30 June 2020               30 June 2019

 Attributable ferrochrome production (kt)                             120                        206

2. Trading Statement

Basic earnings 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 hereby advised that Merafe is expecting to report a basic loss per share and headline
loss per share of between 2.79 cents and 3.41 cents for the six months ended 30 June 2020, compared
to a basic earnings per share and headline earnings per share of 6.6 cents for the prior comparative
period.

The expected decrease in basic earnings and headline earnings per share is primarily driven by
substantially lower chrome ore and ferrochrome prices and lower sales volumes which were partially
offset by a weaker average Rand:US$ exchange rate.

Expected cash and debt balances – Merafe Resources Limited Group

                                                                   30 Jun 2020            31 Dec 2019
                                                                           R’m                    R’m
 Cash and cash equivalents balance                                         262                    354
 Net cash/(debt)                                                           262                    354

Shareholders are advised that the financial information on which this announcement is based, has not
been reviewed or reported on by Merafe`s external auditors. The financial results for the six months
ended 30 June 2020 are expected to be released on SENS on or about 11 August 2020.


Sandton
27 July 2020

Sponsor
One Capital

Date: 27-07-2020 05:05:00
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