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MERAFE RESOURCES LIMITED - Summarised consolidated financial statements and cash dividend declaration for the year ended 31 December 2021

Release Date: 22/03/2022 08:00
Code(s): MRF     PDF:  
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Summarised consolidated financial statements and cash dividend declaration for the year ended 31 December 2021

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" or the "Group")


Key features

- 30% decrease in TRIFR(1) to 2.75 (2020: 3.91(2))
- 43% increase in ferrochrome production to 379kt (2020: 265kt)
- 69% increase in revenue to R8 063 million (2020: R4 780 million)
- Decrease in production cost per tonne by 5% (2020: 8% increase)
- Increase in EBITDA(3) to R2 432 million (2020: R168 million)
- Headline earnings per share of 67 cents (2020: loss of 0.8 cents)
- Basic earnings per share of 66.8 cents (2020: loss of 40.0 cents)
- Net cash generated from operating activities increased to R1 156 million (2020: R495 million)
- Net cash of R972 million (2020: R278 million)
- Cash dividend declared 22 cents per share (2020: Rnil)

(1) Total recordable injury frequency rate  
(2) Restated  
(3) Earnings before interest, taxation, depreciation and amortisation 

CEO Commentary on results 
2021 has been a year of recovery for the Glencore Merafe Pooling and Sharing Venture ("Venture"), both from 
a financial and operational perspective. Improved economic activity contributed to robust demand for ferrochrome, 
which coupled with supply constraints resulted in a marked increase in prices. This activity also led to higher 
volumes sold, however, the impact on revenue was somewhat dampened by a stronger Rand:USD exchange rate. Merafe 
achieved the highest profit after tax since the formation of the Venture in 2004. The Board of Directors of 
Merafe (the "Board") has declared a final cash dividend of R549.8 million on 22 March 2022, bringing the total 
dividends for the year to R724.7 million.

The strong growth in stainless steel production as well as developments in China have been key to the buoyancy 
in the ferrochrome market in 2021. The efficiencies achieved in our operations not only responded to this demand, 
but assured us of the ability to operate at these levels sustainably. Our capital expenditure programme which is 
necessary to enable these performances was resumed in 2021 and will continue in 2022. There is expectation that 
global growth, while still positive, will slow down from the highs experienced in 2021. While the COVID-19 effects 
have been less damaging in recent periods, the pandemic remains a threat which we will continue to monitor. 
We accordingly remain cautious in our approach to the future and will continue to focus on efficient operations, 
cash preservation, cost control and efficient capital allocation. The Platinum Group Metals ("PGM") plant and green 
energy initiatives are some of the important and exciting projects that will receive management's attention in 2022.

In accordance with our strategy, we remain committed to maximising return to our shareholders in the near term and we 
will continue to assess opportunities to deliver shareholder value.

Further information 
This short form announcement is the responsibility of the directors. It is only a summary of the information contained 
in the full announcement and does not contain full or complete details.
While the summarised consolidated financial statements in the full announcement, are not audited, the audited consolidated 
financial statements for the year ended 31 December 2021 from which the summarised consolidated financial statements in the 
full announcement were derived from have been audited by the Group's auditors, Deloitte & Touche. Their unmodified audit 
report, including a key audit matter, along with the audited consolidated financial statements for the year ended 
31 December 2021 are available for inspection at the Company's registered office and also available on Merafe's website 
at annuals-2021/index.php. 

Any investment decisions by investors and/or shareholders should be based on the full announcement which has been published 
on SENS today, 22 March 2022, and is accessible via the JSE link at 
and available on Merafe's website at
The full announcement is available for inspection at the registered offices of Merafe (Building B, Second Floor, 
Ballyoaks Office Park, 35 Ballyclare Drive, Bryanston) and the offices of our sponsor, One Capital (17 Fricker Road, Illovo). 
Such inspection is available at no charge, during business days from 9:00am to 4:00pm.

Declaration of an ordinary cash dividend for the year ended 31 December 2021 
Notice is hereby given that a gross final cash dividend of 22 cents per share (December 2020: Rnil cents per share) has 
been declared payable, by the Board, to holders of ordinary shares. The dividend will be paid out of income reserves.

The ordinary dividend will be subject to a local dividend tax rate of 20%. The net local ordinary dividend, to those 
shareholders who are not exempt from paying dividend tax, is therefore 17.60000 cents per share. Merafe's income tax 
number is 9550 008 602. The number of ordinary shares issued at the date of the declaration is 2 499 126 870. 
The important dates pertaining to the dividend are as follows: 

Declaration date:                                                          Tuesday, 22 March 
Last day for ordinary shares to trade cum ordinary dividend:                Tuesday, 5 April
Ordinary shares commence trading ex-ordinary dividend:                    Wednesday, 6 April 
Record date:                                                                 Friday, 8 April
Payment date:                                                               Monday, 11 April
Shareholders will not be permitted to dematerialise or rematerialise their share certificates between 
Wednesday, 6 April 2022 and Friday, 8 April 2022, both days inclusive.

22 March 2022 

One Capital Sponsor Services (Pty) Ltd

Executive Directors 
Z Matlala (Chief Executive Officer), D Chocho (Financial Director)

Non-executive Directors 
A Mngomezulu (Chairman)*, D McGluwa, M Vuso*, K Tlale*, N Mabusela-Aikhuere*, D Green, J Mclaughlan* 
* Independent

Company Secretary 
CorpStat Governance Services (Pty) Ltd

Registered office 
Building B, 2nd Floor 
Ballyoaks Office Park 
35 Ballyclare Drive 

Transfer secretaries 
JSE Investor Services (Pty) Ltd
Investor relations
Ditabe Chocho
Tel:+27 11 783 4780

Date: 22-03-2022 08:00:00
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