MERAFE RESOURCES LIMITED - Production report and trading statement for the six months ended 30 June 2021

Production report and trading statement for the six months ended 30 June 2021

MERAFE RESOURCES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1987/003452/06)
Share Code: MRF
ISIN: ZAE000060000
(“Merafe” or the “Company”)

PRODUCTION REPORT AND TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2021

1. Production Report

Merafe’s attributable ferrochrome production from the Glencore Merafe Chrome Venture for the six
months ended 30 June 2021 increased by 65.6% compared to the prior comparative period. The
increase was mainly due to current production being less affected by the COVID-19 restrictions coupled
with improved plant efficiencies achieved at our smelters.

                                                                 Six months             Six months
                                                                      ended                  ended
                                                               30 June 2021           30 June 2020

  Attributable ferrochrome production (kt)                              199                    120


2. Trading Statement

Basic earnings and headline earnings per share

In terms of paragraph 3.4(b) 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 for the six months ended 30 June 2021, Merafe is expecting to
report:
     -   basic earnings per share (“EPS”) of between 19.2 cents and 26.8 cents compared to basic loss
         per share of 38.3 cents for the prior comparative period; and
     -   headline earnings per share (“HEPS”) of between 23.1 cents and 23.3 cents compared to HEPS
         of 1.1 cents for the prior comparative period.

The expected increase in EPS and HEPS is primarily driven by higher chrome ore and ferrochrome
prices and higher sales volumes which were partially offset by a stronger average Rand:US$ exchange
rate.

Expected cash and debt balances – Merafe Resources Limited Group

                                                                   30 Jun 2021          31 Dec 2020
                                                                           R’m                  R’m

  Cash and cash equivalents balance                                        797                  278
  Net cash/(debt)                                                          797                  278

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 2021 are expected to be released on SENS on or about 10 August 2021.

Sandton
26 July 2021

Sponsor
One Capital

Date: 26-07-2021 12:00:00
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