MERAFE RESOURCES LIMITED - Report for the third quarter of 2014

Report for the third quarter of 2014

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

Report for the third quarter of 2014

1. Key production and sales indicators


Merafe's attributable ferrochrome production from the Glencore Merafe Chrome Venture (“the
Venture”) for the third quarter of 2014 was 14% lower than the 2013 corresponding period, with
production levels at 69% of the Venture’s operating capacity. This lower production was due to
planned maintenance taking place during the high electricity tariff winter months of July and August,
as opposed to prior year where maintenance was performed in the first half of the year, due to the
Eskom buy back agreements.
The ramp-up of Lion II is on track and is expected to reach full capacity by mid-2015.
Merafe's attributable ferrochrome sales volumes were 18% lower in the third quarter of 2014,
compared to the 2013 corresponding period as a result of weaker demand and pricing.



                                                                  Nine months     Nine months
                                              Q3          Q3               to              to
                                             2014       2013       30/09/2014      30/09/2013
Attributable ferrochrome
production (kt)                               74,0       85,6            242,1           230,4
Attributable ferrochrome sales (kt)           60,2       73,1            231,6           210,3
Average European benchmark
ferrochrome price (USc/lb)
(Metal Bulletin)                            119,0       112,5            119,7           117,3
Average Rand / Dollar Exchange
rate                                        10,77        9,99            10,72            9,47


2. Employee relations

The Venture's wage negotiations were successfully concluded at its eastern mines, eastern smelters
and western smelters. Unfortunately an agreement could not be reached with the western mining
employees and union representatives, as a result of which the affected employees have embarked on
industrial action. Although the western mines are not operating as a result of the protected strike
action, this has no impact on current ferrochrome production or sales obligations.


3. Safety
The Venture’s total recordable injury frequency rate (TRIFR) increased to 4.30 due to five additional
injuries in the first nine months of 2014, compared to the 2013 corresponding period. The Venture
continues to make every effort to ensure the highest standards of safety are in place at all its
operations.
17 October 2014
Sandton

Sponsor:
Merrill Lynch South Africa Proprietary Limited

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