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Consolidated AFS for year ended 31 December 2025, dividend declaration, B-BBEE report, changes to board committees
MERAFE RESOURCES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1987/003452/06)
JSE and A2X share code: MRF
ISIN: ZAE000060000
(Merafe or the Company)
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025,
CASH DIVIDEND DECLARATION, AVAILABILITY OF THE BROAD BASED BLACK ECONOMIC
EMPOWERMENT REPORT AND CHANGES TO BOARD COMMITTEES
2025 financial year in review
- 31% decrease in revenue to R5 835 million (2024: R8 443 million)
- 72% decrease in headline earnings per share to 12.2 cents
(2024: 42.9 cents)
- 79% decrease in basic earnings per share to 5.7 cents
(2024: 26.7 cents)
- No change in the final cash dividend of 8 cents per share
(2024: 8 cents per share)
- 3% decrease in net asset value to R4 719 million
(2024: R4 876 million)
- 69% decrease in earnings before interest, taxation, depreciation
and amortisation (EBITDA) to R533 million (2024: R1 698 million)*
- 65% decrease in net cash generated from operating activities to
R609 million (2024: R1 744 million)*
- 19% decrease in cash and balances held with Central Treasury to
R1 156 million (2024: R1 434 million) *
- No fatalities (2024: 1 fatality)
- 23% improvement in total recordable injury frequency rate (TRIFR)
to 1.79 (2024: 2.31)
- 63% decrease in ferrochrome production to 112kt (2024: 301kt)
- 44% increase in chrome ore sales volumes to 683kt (2024: 475kt)
- 10% increase in Platinum Group Metals (PGM) sales volumes to
14 948oz (2024: 13 557oz)
- 14% increase in ferrochrome production cost per tonne
(2024: 2%)
* Restated (see note 41 of the audited consolidated annual financial
statements for details of the restatement for the year ended
31 December 2025).
Chief Executive Officer commentary on results
Profits declined significantly to R143 million mainly due to lower ferrochrome
sales and a stronger ZAR:USD exchange rate. Following the completion of the
Business Review process in April 2025, production was suspended at all operating
smelters of the Glencore-Merafe Chrome Venture's (Venture). The ferrochrome
industry in South Africa continues to face significant structural challenges,
including high energy costs and increased competition from Chinese producers.
The board of directors of Merafe (Board) has resolved to declare a final cash
dividend of R200 million, bringing the total dividends for the 2025 financial
year to R300 million (2024: R700 million).
Outlook
Our smelting operations took strain in 2025. Overall and in the medium to
long-term, the viability of these operations depends on decisive and
deliberate action to materially lower energy costs for smelters as well as
sustained improvement in global ferrochrome / steel demand and prices.
While the future of the smelting operations remains uncertain, the chrome ore
business has done well in 2025, and the Venture will continue to invest in this
part of our business. As in 2025, we expect both the chrome ore and the PGM
businesses to contribute positively towards our financial performance in 2026.
We remain cautious in our approach to 2026 and will continue to focus on efficient
operations, cash preservation, cost control and efficient capital allocation.
We are dedicated to creating shared value for our stakeholders.
Further information
This short-form announcement is the responsibility of the directors.
This results announcement has been prepared in compliance with the JSE Listings Requirements.
As the information in this results announcement does not provide all of the details,
any investment decisions should be based on the published audited consolidated annual
financial statements for the year ended 31 December 2025, available through the
JSE cloudlink at https://senspdf.jse.co.za/documents/2026/JSE/ISSE/MRF/AFS_2026.pdf
and on Merafe's website at https://www.meraferesources.co.za/results/annuals-2025/pdf/afs.pdf.
The audited consolidated annual financial statements for the year ended 31 December 2025
have been audited by the Company's auditors, Deloitte & Touche, who expressed an unmodified
audit opinion thereon.
Shareholders of Merafe ("Shareholders") are also referred to the summarised financial statements
for the year ended 31 December 2025, available on the Company's website at
https://www.meraferesources.co.za/results/annuals-2025/index.php, for further detailed information
pertaining to Merafe's business and operations, including detailed results commentary in respect of
the year ended 31 December 2025.
DECLARATION OF AN ORDINARY CASH DIVIDEND FOR THE YEAR ENDED 31 DECEMBER 2025
Notice is hereby given that, on 6 March 2026, the Board resolved to declare a gross
final cash dividend of 8 cents per share (2024: 8 cents per share) 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 6.4 cents per share. Merafe's income tax number is 9 550 008 602. The number
of ordinary shares issued at the declaration date is 2 499 126 870.
The important dates pertaining to the dividend are as follows:
2026
Last day for ordinary shares to trade cum ordinary dividend: Monday, 30 March
Ordinary shares commence trading ex-ordinary dividend: Tuesday, 31 March
Record date: Thursday, 2 April
Payment date: Tuesday, 7 April
Shareholders will not be permitted to dematerialise or rematerialise their ordinary shares
between Tuesday, 31 March 2026 and Thursday, 2 April 2026, both days inclusive.
AVAILABILITY OF THE BROAD-BASED BLACK ECONOMIC EMPOWERMENT ANNUAL COMPLIANCE REPORT
Shareholders are advised that the Company's latest annual compliance report prepared pursuant
to section 13G(2) of the Broad-Based Black Economic Empowerment Act, No. 53 of 2003, as amended,
is available on the Company's website at
https://www.meraferesources.co.za/pdf/investors/policies/2026/b-bbee-certificate-and-scorecard.pdf.
CHANGES TO BOARD COMMITTEES
In compliance with paragraph 6.71(c) of the JSE Listings Requirements, Shareholders are advised
of the following changes to Merafe's board committees, with effect from 5 March 2026:
- Ms Nonhlanhla Mabusela-Aikhuere, an independent non-executive director of the Company, has
been appointed as a member of the Remuneration and Nomination Committee.
- Mr Katlego Tlale, an independent non-executive director of the Company, has been appointed
as a member of the Remuneration and Nomination Committee; and
- Mr Jeff Mclaughlan, an independent non-executive director of the Company has been appointed
as a member of the Audit and Risk Committee.
Sandton
9 March 2026
Sponsor
One Capital
Executive Directors
Z Matlala (Chief Executive Officer)
D Chocho (Financial Director)
Non-executive Directors
S Phiri# (Chairperson), M Vuso#, K Tlale#, J Mclaughlan#, N Mabusela-Aikhuere#, D McGluwa, D Green
#Independent
Company Secretary
CorpStat Governance Services Proprietary Limited
Registered office
Building B, 2nd Floor, Ballyoaks Office Park, 35 Ballyclare Drive, Bryanston, 2191
Transfer secretaries
JSE Investor Services Proprietary Limited
Investor relations
Ditabe Chocho
Tel: +27 11 783 4780
Email: ditabe@meraferesources.co.za
www.meraferesources.co.za
Date: 09-03-2026 08:00:00
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