Merafe Resources Limited

(Incorporated in the Republic of South Africa)(Reqistration number: 1987/003452/06) JSE share code: MRE ISIN:ZAE000060000

("Merafe" or the "Company" or the"Group")

 

SIMMARTSEN CONSOTTDATED FTNANCTAL, STATEMENTS AND CASH DIVTDEND DECTARATTON

FOR THE YEAR ENDED 31 DECEMBER 2021

2021 YEAR IN REVIEW Key features

=306 decrease in TRIFR(1) to 2.75(2020:3.91(2))

-438 increase in ferrochrome production to 379kt(2020: 265kt) - 698 increase in revenue to r8 063 million (2020: R4 780 millionl= Decrease in production cost per tonne by 58 (2020:88 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 volumas sold, however. the imnact on revanue was somewhat damnened hy a stronger rand.fisn exchange rate Marafe 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 vear to r724.7 million.

 

Outlook

The strong growth in stainless steel production as well as developments in china have been key to the buovancy 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 proaramme which isnecessary 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 damacing 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 congolidated 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 fu11 announcement were derived from have heen audited hy the groun's anditore, neloittes, Touche Their unmadified and it