MERAFE RESOURCES LIMITED - Production report and trading statement for the six months ended 30 June 2019

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

PRODUCTION REPORT AND TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2019

1.    Production Report

      Merafe’s attributable ferrochrome production from the Glencore Merafe Chrome Venture for the six months
      ended 30 June 2019 decreased marginally by 2.3% compared to the six months ended 30 June 2018
      (“Previous Corresponding Period”).

                                                                 Six months ended                Six months ended
                                                                      30 June 2019                   30 June 2018

     Attributable ferrochrome production (kt)                                  206                            211


2.    Trading Statement

      Basic 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 therefore advised that Merafe is expecting to report basic earnings per share (“EPS”) and
      headline earnings per share (“HEPS”) of between 5.92 cents and 7.24 cents for the six months ended
      30 June 2019, compared to 16.9 cents for the Previous Corresponding Period, which is a decrease of
      between 57% and 65%.

      The significant decrease in EPS and HEPS is primarily driven by substantially lower chrome ore and
      ferrochrome prices which were partially offset by:

      -    a weaker average Rand:US$ exchange rate; and
      -    higher chrome ore and ferrochrome sales volumes.


      Expected cash and debt balances – Merafe Resources Limited Group

                                                                      30 June 2019            31 December 2018
     Cash and cash equivalents balance                                         205                          281
     Net cash/(debt)                                                           205                          281


Shareholders are advised that the financial information contained in this announcement, has not been reviewed
or reported on by Merafe`s external auditors.

The financial results for the six months ended 30 June 2019 are expected to be released on SENS on or about
5 August 2019.



Sandton
19 July 2019

Sponsor
One Capital

Date: 19/07/2019 09:01:00
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