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UNAUDITE
CONSOLID
STATEMENTS A
DEC
L I M I T E D
FOR THE SIX MO
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
Further information
This announcement is the responsibility of the directors.
FOR THE YEAR ENDED 31 DECEMBER 2023, CASH DIVIDEND DECLARATION
As the information AND
in this announcement does not
provide all of the details, any investment decisions
AVAILABILITY OF THE BROAD-BASED BLACK ECONOMIC should
EMPOWERMENT REPORT
be based on the full results which
through the JSE cloudlink
are available
https://senspdf.jse.co.za/documents/2023/JSE/ISSE/MRF/Interim23.pdf
and on Merafe’s website at
https://www.meraferesources.co.za/results/interims-2023/index.php.
2023 FINANCIAL YEAR IN REVIEW K
Declaration of an ordinary cash dividend for
3% decrease in TRIFR1 to the six months
22% decrease in ferrochrome production to ended
16% 30inJune
increase 2023
revenue to
2 fatalities Notice is hereby given that, on 10 August 2023, the board
(2022: No fatalities) 2.34 300kt R9 244 million
of directors of Merafe resolved to declare a gross interim
cash dividend of 20 cents (June 2022: 12 cents) per share,
(2022: 2.40) (2022: 384kt) to holders of ordinary shares.
(2022: R7 939 The dividend will be paid out of
million)
income reserves.
28% increase in production cost 19% increase in EBITDA2 to Headline earnings per share ofThe ordinary dividend
Basicwill
earnings perto
be subject share of dividend
a local
per tonne tax rate of 20%. The net local ordinary dividend, to those
(2022: 30% increase)
R2 545 million 60.1 cents 70.1 cents
shareholders who are not exempt from paying dividend tax, is
therefore 16 cents per share. Merafe’s income tax number is
(2022: R2 141 million) (2022: 56.4 cents) 9550 008 602. The number
(2022: 56.4of ordinary shares issued at the
cents)
date of the declaration is 2 499 126 870.
11% increase in net cash generated from Cash balance of Final cash dividend of The important dates pertaining to the dividend are as follows:
operating activities to
R1 656 million 22 cents per share 2023
R1 879 million (2022: R1 269 million)
Last day for ordinary shares to
(2022: 13 cents per share) trade cum ordinary dividend: Tuesday, 05 September
(2022: R1 698 million)
Ordinary shares commence
1
Total recordable injury frequency rate. trading ex-ordinary dividend: Wednesday, 06 September
2
Earnings before interest, taxation, depreciation and amortisation. Record date: Friday, 08 September
Payment date: Monday, 11 September
CEO commentary on results Shareholders will not be permitted to dematerialise or
CEO Commentary on results Shareholders of Merafe (“S Shareholders”) are also referred to
Merafe
the achievedfinancial
summarised a profitstatements
of R1 049 for
million for the
the year ended Merafe Resources
rematerialise Limited
their ordinary shares between Wednesday,
Merafe achieved a record profit of R1 753 million despite a six months ended 30 June 2023, as a result of higher 06 Septemberin2023 and Friday, 08 September 2023,
31 December 2023, available on the company’s website at (Incorporated the Republic of South Africa)
challenging economic environment. Demand for ferrochrome realised chrome ore prices and a weaker ZAR:US$ both days inclusive.
https://www.meraferesources.co.za/results/annuals-2023/index.php, (Registration number: 1987/003452/06)
was weaker compared to prior years, which resulted in lower exchange rate. These were somewhat offset by lower
for further detailed
ferrochrome information
prices and salespertaining
volumes,to asMerafe’s business
well as higher JSE and A2X share code: MRF
Sandton
sales volumes and lower realised prices, whilst chrome ore
and
costsoperations, including
of ferrochrome detailed results commentary in
production. ISIN:
15 ZAE000060000
August 2023
sales volumes were significantly elevated and realised prices
respect of the year ended 31 December 2023. Merafe” or the “C
(“M Company”)
increased due to buoyant demand and supply constraints.
Outlook Sponsor
The board of directors of Merafe (“BBoard”) resolved to declare Declaration of an
Some key trends thatordinary cash
are shaping the dividend forin the
environment which One Capital
Sponsor
a final cash dividend of R550 million, bringing the total year endedare:
we operate 31 December 2023 One Capital Sponsor Services Proprietary Limited
dividends for the 2023 financial year to R1 050 million • Economic
Notice is herebyuncertainty
given that athat
grossis characterised by rising
final cash dividend of Merafe Resources
Executive Directors Limited
(2022: R625 million). inflation,
22 cents interest
per share rates and2022:
(December trade13 tensions. This
cents per share) has
Z(Incorporated
Matlala (Chief in the Republic
Executive of South Africa)
Officer)
beenuncertainty
declared byisthe
making
Boardit on
difficult
Friday, for15
businesses
March 2024,to make
Outlook long-term plans, and it also leads to volatility in the D(Registration number:
Chocho (Financial 1987/003452/06)
Director)
payable to holders of ordinary shares. JSE and A2X share code: MRF
A slowdown will likely follow the resilience that characterised markets.
The dividend
Non-executive Directors
ISIN: ZAE000060000
our industry in 2023. • The shift will
to abemore
paid sustainable
out of income reserves.The global
economy. A(“Merafe” or the
Mngomezulu* “Company”)M Vuso*, K Tlale*,
(Chairperson),
market is increasingly focused on sustainability, J Mclaughlan*, N Mabusela-Aikhuere*, D McGluwa,
The ordinary dividend will be subject to a local dividend tax
The Glencore-Merafe Chrome Venture (“V Venture”) has laid a and businesses are under pressure to reduce their Sponsor
D Green, S Phiri*
foundation that should help us withstand looming headwinds. rate environmental
of 20%. The netimpact.
local ordinary dividend to those
The Glencore-Merafe Pooling * One Capital
Independent Sponsor Services Proprietary Limited
The Negotiated Pricing Agreement aids with pricing certainty shareholders
and SharingwhoVenture
are not exempt fromhas
(“Venture”) paying dividendthis
embraced tax is
and ongoing work on green energy supports not only the therefore 17.6and
initiative cents per share. Merafe’s
incorporated income
sustainability tax number
initiatives into is Executive
Company Directors
Secretary
reduction of our greenhouse gas emissions but also with some 9 550 008 602.
strategic The number
plans. Our greenof ordinary shares issued
energy initiatives are aatkey
the Z MatlalaGovernance
(Chief Executive Officer),
datepart
of the CorpStat Services Proprietary Limited
power stability. Continued operational efficiencies assist with of declaration
these plans. is 2 499 126 870. D Chocho (Financial Director)
managing costs. Our capital expenditure improves safety and • important
The Technological
datesinnovation
pertaininghas a major
to the impact
dividend onfollows:
are as Registered office Directors
Non-executive
efficiencies and lessens risks from mechanical breakdowns. the global market, as new technologies are being Building B, 2 Floor, Ballyoaks Office Park,
nd
Our team continues to explore the best ways to mitigate the developed that are changing the way we do business. 2024
A Mngomezulu* (Chairperson), M Vuso*, K Tlale*,
35 Ballyclare Drive, Bryanston, 2191
logistics constraints. For our business, the key benefits of innovation are J Mclaughlan*, N Mabusela-Aikhuere*, D McGluwa,
efficiencies and the safety
Last day for ordinary shares to of our employees.
Tuesday, 9 April D Green secretaries
Transfer
With continued economic uncertainty in 2024, we expect trade
Our cum ordinary
business is not dividend:
immune to the impact of these trends * Independent
JSE Investor Services Proprietary Limited
commodity prices to come under pressure. Given the which are firmly on management’s radar.
unrelenting inflationary pressures, our margins remain at risk of Last day for ordinary shares to Wednesday, 10 April Company
Investor Secretary
relations
Local
tradechallenges, which include power shortages, energy
ex ordinary dividend: CorpStat Governance Services Proprietary Limited
being squeezed in 2024. Ditabe Chocho
costs and logistics constraints continue to be monitored by
The anticipated slowdown in 2024 demands that we remain the Venture
Record and mitigated in the best ways possible.
date: Friday, 12 April Registered
Tel: +27 11 office
783 4780
Email: ditabe@meraferesources.co.za
Building B, 2nd Floor, Ballyoaks Office Park,
focused on efficient operations, cash preservation, cost We expect the second half of 2023 (“H2 2023”) to be
control and efficient capital allocation. Payment
softer on adate:
weaker market outlook. Downward Monday, 15 April
pressure 35 Ballyclare Drive, Bryanston, 2191
on chrome ore prices, which have started coming down,
We continue to focus on creating shared value for our is expected to translate to lower ferrochrome prices. Given
Transfer secretaries
stakeholders. Shareholders will not be permitted
the forecast inflationary pressures, to our
dematerialise
margins are or at risk JSE Investor Services Proprietary Limited
rematerialise their ordinary
of being squeezed in H2 shares
2023. between Wednesday,
Further information 10 April 2024 and Friday, 12 April 2024, both days inclusive. Investor relations
The Venture plans on producing ferrochrome only at the Ditabe Chocho
The announcement is the responsibility of the directors. Lion smelter over
Availability of thetheBroad-Based
three-month high electricity
Black demand
Economic Tel: +27 11 783 4780
winter season, a period of elevated power prices. This will Email: ditabe@meraferesources.co.za
Empowerment annual compliance report
assist with managing costs and lowering inventory levels as
As the information in this announcement does not provide all
of the details, any investment decisions should be based on sales units are
Shareholders areexpected
advised thatto be
thedrawn down latest
Company’s from inventory.
annual
the published audited consolidated annual financial statements compliance
We remain report
cautiousprepared
in our pursuant
approachtotosection 13G(2) of the
the remaining
for the year ended 31 December 2023, available through the Broad-Based
six months ofBlack Economic
the year and willEmpowerment Act, No.
continue to focus 53 of
on efficient www.meraferesources.co.za
JSE cloudlink at operations,
2003, cash preservation,
as amended, is available on cost
the control and efficient
Company’s website at
https://senspdf.jse.co.za/documents/2024/JSE/ISSE/MRF/AFS_2024.pdf capital allocation.
https://www.meraferesources.co.za/compliance-policies-
and on Merafe’s website at charters-and-assurance.php.
We are committed to creating shared value for our
https://www.meraferesources.co.za/results/annuals-2023/index.php. stakeholders.
The audited consolidated annual financial statements for the Sandton
year ended 31 December 2023 have been audited by the 18 March 2024
Company’s auditors, Deloitte & Touche, who expressed an
unmodified audit opinion thereon.
