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MERAFE RESOURCES LIMITED - Production report and trading statement

Release Date: 31/01/2019 09:00
Code(s): MRF     PDF:  
Wrap Text
Production report and trading statement

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

1. Production Report

    Merafe’s attributable ferrochrome production from the Glencore Merafe Chrome Venture (“Venture
    Production”) for the quarter ended 31 December 2018 increased marginally by 2.6% compared to the
    previous comparative period. The Venture Production for the year ended 31 December 2018 increased
    by 3.2% compared to the previous comparative period. Full year production represents 85% of installed
    capacity.

                                                        2018           2017           2018          2017
                                                       Fourth         Fourth          Full          Full
                                                       quarter        quarter         year          year

    Attributable ferrochrome production (kt)             112            109            407           395


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 24.7 cents and 30.1 cents for the year ended
    31 December 2018, compared to EPS and HEPS of 36.4 cents for the previous comparative period,
    which is a decrease of between 17% and 32%.

    The expected significant decrease in EPS is primarily driven by lower ferrochrome prices as well as
    lower volumes of chrome ore and ferrochrome sold. These were partially offset by a stronger average
    Rand compared to US Dollar exchange rate.

    Expected cash and debt balances – Merafe Resources Limited Group

                                                                              31 Dec 2018       31 Dec 2017
                                                                                      R'm               R'm
    Cash and cash equivalents balance                                                 249               672
    Merafe's 20.5% of the Venture's debtor facility                                     -              (72)
    Net cash                                                                          249               600


    The decrease in cash and cash equivalents at year end is mainly due to an increase in finished goods
    inventory.


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. The financial results for the year ended
31 December 2018 are expected to be released on SENS on or about 11 March 2019.


Sandton
31 January 2019

Sponsor
One Capital

Date: 31/01/2019 09:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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