invested - merafe resourcesshare of production, in % charge cr benchmark (q3): us$ ct 112.5 per lb...

Merafe resources LiMited

results presentationfor the six months ended 30 June 2013

Zanele Matlala (ceo) and ditabe chocho (cfo)

partnerships

investedin lonG-term sustainable

Quote from the CEO

“We managed to achieve headline earnings per share of 4 cents for the six-month period, despite the difficult operating environment.

We are delighted to report that good progress has been made on our flagship Lion II smelter project which is on track to be commissioned at the end of this year.

Our significant investments in improving the cost efficiencies in our operations leave us well positioned as one of the lowest cost producers in the world which should enable us to take advantage of the forecasted increase in demand for ferrochrome and to grow our market share going forward”.

Legal notice/disclaimer

This presentation is published solely for informational purposes and does not constitute investment, legal, tax or other advice nor is it to be relied upon in making an investment decision. Information contained herein has been taken from sources considered by Merafe Resources to be reliable but no warranty is given that such information is accurate or complete and it should not be relied upon as such. Views and opinions expressed in this presentation reflect the judgment of Merafe Resources as of the date of this presentation and are subject to change. Merafe Resources will not be responsible for any liability for loss or damage of any kind which arises, directly or indirectly, and is caused by the use of any of the information provided. The entire presentation is subject to copyright with all rights reserved. The information contained herein shall not be published, rewritten for broadcast or publication or redistributed in any medium without prior written consent from Merafe Resources. Prospective investors should take appropriate investment advice and inform themselves as to applicable legal requirements, exchange control regulations and tax considerations in the countries of their citizenship, residence or domicile. The distribution of the information contained in this presentation in certain countries may be restricted by law and persons who access it are required to inform themselves and to comply with any such restrictions. This information does not constitute an offer or solicitation in any jurisdiction in which such an offer or solicitation is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. Past performance is not a guarantee of future performance. The price of shares can go down as well as up and may be affected by change in exchange rates, market conditions and risks associated with a mining venture.

Key features

Agenda

1. Key features

2. Sustainability

3. Market review

4. Financial review

5. Outlook

Annexures

Sustainability

6

Key features

•  Increase in production of 23%

•  Increase in revenue of 19%

•  Decrease in EBITDA from R263m to R210m

•  Decrease in HEPS from 5.5 cents to 3.8 cents

•  Operating cash flows of R234m

•  The Venture’s R5bn Project Lion II is on schedule and within budget

8

Sustainability

•  Safety – Regrettably two fatalities – TRIFR – 4.27

•  Labour issues –  Eastern mines unprotected strike which resulted

in the dismissal of more than 1 200 employees –  Wage negotiations are ongoing

Market review

10

7% increase in stainless steel production

-

5 000

10 000

15 000

20 000

25 000

589/645 1 011/1 070 1 167/1 231 1 593/1 560 1 694/1 594 4 084/4 003 7 823/9 117 17 961/19 220

2012 June actual tonnes in '000 2013 June estimated tonnes in '000

2012 2013 Change

Full year – tonnes in ‘000 35 809 38 284* 7%

10% 6% 5% 2% 6%

2%

17%

7%

Source: Heinz H Pariser/July 2013

* Estimate

Others NAFTA India Japan S Korea/ Taiwan

EU China Total

11

4% increase in ferrochrome demand

-

1 000

2 000

3 000

4 000

5 000

6 000

248/231 259/268 397/352 322/340 413/368 938/930 2 317/2 613 4 894/5 102


7% 3% 11% 6% 11%

1%

13%

4%

2012 2013 Change



NAFTA India Others Japan S Korea/ Taiwan

EU China Total

* Estimate

12

3% increase in ferrochrome production

-

1 000

2 000

3 000

4 000

5 000

6 000

177/145 154//170 171/230 459/545 537/551 1 596/1 798 1 591/1 390 4 685/4 829


18% 10% 35% 19% 3%

13% 13%

3%

Others Russia/ Turkey/ Albania

EU India Kazakhstan China South Africa Total

444 2012 2013 Change



* Estimate

13 Chrome ore imports into China increased 26% period on period

2011 ‘000

2012 ‘000

2013 (June year-to-date) ‘000

Albania 357 305 296 Algeria – 1 – Australia 208 501 233 Brazil 60 29 – India 439 310 66 Indonesia 13 16 – Iran 330 448 204 Kazakhstan 94 89 67 Madagascar 86 118 53 Mozambique 24 11 19 Oman 645 426 298 Pakistan 440 472 261 Philippines 137 180 54 South Africa 4 675 4 490 3 136 Sudan 61 14 11 Turkey 1 612 1 840 871 United Arab Emirates 11 17 5 Vietnam 25 2 10 Zimbabwe 212 1 – Others 15 31 3 Total 9 444 9 300 5 590

Source: Chinese Customs/July 2013

Six months ended 30 June 2012

Six months ended 30 June 2013 Change

‘000 tonnes 4 439 5 590 26%

14

Volatility in the market during 2013

Quarter Ferrochrome price in Usc/lb

Q1 2013 112.5

Positive signs in the Chinese, North American and European markets coupled with further Eskom buy-back arrangements

Q2 2013 127

Global economic uncertainty, weakening Rand, concerns about Chinese growth and lower nickel prices

Q3 2013 112.5

Financial review

16

Revenue

EBITDA

HEPS

Capex

Key financial features

Net debt

19%

20%

R85m

1.7 cents

16%

R1 230m

R1 469m

R263m R210m

5.5c 3.8c

R242m R280m

R441m R525m

June 2013 June 2012

June 2013 June 2012

June 2013 June 2012

June 2013 June 2012

June 2013 June 2012

17

Revenue

Ferrochrome sales tonnes

Rand/Dollar exchange rate

Average benchmark ferrochrome price

Chrome ore sales

124kt

137kt

7.9

9.2

125 USc/lb

120 USc/lb

R168m

R180m

June 2013 June 2012 June 2013 June 2012

June 2013 June 2012 June 2013 June 2012

7%

4% 10%

16%

18

Key contributors to lower EBITDA

•  Mining division costs

–  Development costs

–  Strike related costs

–  Inflationary increases

•  Smelting division costs

–  Inflationary increases (power, fuel and labour)

•  Foreign exchange losses

19 Decrease of 2% in production costs* per tonne of ferrochrome

Negatively impacted by:

lower EBITDA contributors

increased winter production

Positively impacted by:

ferrochrome production volumes

efficiencies at plants

recovery from slag

* including fixed costs, standing charges and head-office costs

20

Reconciliation of EBITDA to profit

0

50

100

150

200

250

Merafe's 20.5% of EBITDA from the venture

Corporate costs

Depreciation and impairment

Net financing costs

Current tax expense

Deferred tax expense

Prior year overprovision

Profit

236

(26)

(145) (9) (1)

(22)

1 34

R m

illio

n

21

Balance sheet

As at 30 June 2013

Reviewed R’000

As at 31 December 2012

Audited R’000 Movement

Total non-current assets 2 902 009 2 677 308

Property, plant and equipment 2 902 009 2 677 308 8%

Total current assets 1 611 793 1 614 804

Inventories 1 142 276 1 088 885 5%

Trade and other receivables 395 990 344 725 15%

Current tax asset 26 986 26 424

Cash and cash equivalents 46 541 82 643

Assets held for sale – 72 127

Total assets 4 513 802 4 292 112

22

Balance sheet (continued)

As at 30 June 2013

Reviewed R’000

As at 31 December 2012

Audited R’000 Movement

Total non-current liabilities 1 215 224 1 132 929

Loans and borrowings 571 791 523 872 9%

Provision for close down and restoration costs 54 800 57 892

Deferred tax 588 633 551 165

Total current liabilities 553 172 449 554

Loans and borrowings 667 636

Trade and other payables 552 505 430 368 28%

Liabilities held for sale – 18 550

Total liabilities 1 768 396 1 582 483

23

Net debt bridge

-600

-500

-400

-300

-200

-100

0

100

200

300

Net debt at 31 December

2012

Cash flows from operating activities*

Expansionary capex

Sustaining capex

Net debt at 30 June 2013

Closing net debt at 30 June 2013 (525)

Cash at 30 June 2013 46

Debt at 30 June 2013 (571)

R m

illio

n

* Net of effect of exchange rate fluctuations

(441)

196

(200)

(80)

(525)

24

Lion II is on track and within budget

Description

Project cost (Merafe’s portion

at 20.5%) Commissioning

date Progress

Lion II smelter complex 360 000 tpa of ferrochrome smelting capacity and development of Magareng mine

R1 billion

Q4 2013

On track to be completed on schedule and within budget

25

Financing of Lion II

R’million

Total project cost (Merafe’s 20.5%) 1 000 Less: Capital expenditure to 30 June 2013 (650) Capital expenditure outstanding 350 Cash on balance sheet 46 ABSA debt* 240 Glencore warehousing facility (Merafe’s 20.5%)*# 100 Glencore overdraft facilities (Merafe’s 20.5%)*# 250 Total facilities available (excluding cash generated) 636

* Unutilised facility # Based on the closing R/$ exchange rate at 30 June 2013

Outlook

27

Outlook

Cost performance of Rustenburg plant on par with our other non-premus furnaces which enables higher capacity utilisation

6% forecasted improvement in total cost per tonne as a result of Lion II

•  Strong balance sheet will enable debt reduction and payment of dividends post Lion II expansion.

•  Stainless steel production is expected to grow by 7% in 2013 and by 5% in the long-term which is expected to increase demand for ferrochrome.

•  We are well positioned to take advantage of the increase in demand for ferrochrome:

28

Questions

Annexures

30

Ferrochrome Industry Cost Curve

1

23

4 56

789 10 11121314 15

16 17 18 19

20

21

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0

Co

st in

US$

ct

pe

r lb

Cr

Co

nte

nt

Share of Production, in %

Charge Cr Benchmark (Q3):US$ ct 112.5 per lb

China Tender (Q2):US$ ct 102 per lb (50% Cr)

© Heinz H. Pariser

2012

1. KazChrom2. Xstrata Merafe3. Samancor Cr4. IFML5. Ruukki SA6. Hernic7. IMFA8. Facor Group9. Outokumpu10. ASA Metals11. Balasore

12. Vargön13. Rohit14. JSL Ltd15. China - I16. Assmang17. China - II18. Ferbasa19. Tata Steel KZN20. Eti Krom21. Tikhvin

July 2013JulyY-t-D 2013

2012: US$ ct 88.0 per lbY-t-D 2013: US$ ct 83.5 per lbJuly 2013: US$ ct 81.1 per lb


31

Stainless Production by Grade

Global Grade Structure 200 Series Production Share

53.8

23.8

22.5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Sha

re o

f Pro

duc

tion,

in %

© Heinz H. Pariser

300 Series

400 Series

200 Series

1.01.9

17.8

36.0

0

5

10

15

20

25

30

35

40

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

200

Serie

s M

elti

ng

Pro

du

ctio

n S

ha

re

"Traditional"Producers *

China

© Heinz H. Pariser* USA, EU, Japan, Taiwan, South Korea, South Africa


32

Globally Rising Power Prices

0.00

0.02

0.04

0.06

0.08

0.10

0.12

0.14A

vera

ge

po

we

r p

rice

, in

US$

pe

r kW

h

Scandi-navia

IndiaCaptive Power

ChinaSouth AfricaEskom

IndiaPurchased

Power

Kazakh-stan

Turkey

Sources: Individual annual and company reports, NordPool Electricity Spot Prices, NRDC, Eskom, Heinz H. Pariser

2010/11

2012/132011/12

2009/10

All data based on average power prices and exchange rates for the years stated /South African Projection based on Exchange Rate of ZAR 9.5 per US$

2008/0920082009

20102011

2009

20102011 2009

20102011

20102011

2009/10

2010/11

2008/092012

2012

2009

2008

BrazilHydro

2010

2011

20092008

Russia

201020112012

20092008

2012

2011/12

2012

2016/17

2012

2013/14

MY

PD 3

33

Asia – Centre of Stainless Demand

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

0

5

10

15

20

25

30

35

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Sha

re o

f Glo

ba

l De

ma

nd

, in %

Sta

inle

ss S

tee

l D

em

an

d, M

ill t

Others

Japan

America

EU

Other Asia

China

% China of Global Demand

% Total Asia of Global Demand

© Heinz H. Pariser


Merafe resources LiMited (incorporated in the republic of south africa) company registration number: 1987/003452/06 share code: Mrf isin: Zae000060000 (Merafe or the company or the Group)

reviewed interim resultsfor the six months ended 30 June 2013

preparation of this reportthe following individuals were responsible for the preparation of the reviewed interim results: Kajal Bissessor ca(sa), financial Manager ditabe chocho ca(sa), chief financial officer

increase in revenue of

19%increase in production of

23%

decrease in eBitda from r263m to

r210mdecrease in HePs from 5.5 cents to

3.8 cents

operating cash flows of

r234m

the Venture’s

r5bn Project Lion ii is on schedule and within budget

Key features

corporate governance

empo

wer

m

ent

ferrochrome

sustainability

Our goals remain focused . . .

• to ensure our interests in the ferrochrome industry are profitable and sustainable

• to continue with organic growth of our ferrochrome business and to grow through diversification

commentaryBasis of preparation in compliance with the Jse Limited Listings requirements, Merafe resources Limited (“Merafe”) prepared its interim financial report for the six months ended 30 June 2013 in accordance with and containing the information required by ias 34: interim financial reporting, as well as the saica financial reporting Guides as issued by the accounting Practices committee and financial Pronouncements as issued by financial reporting standards council. the accounting policies adopted are in line with ifrs and are consistent with those applied in the annual financial statements for the year ended 31 december 2012.

review of results the condensed consolidated interim financial results of Merafe and its subsidiaries (“company”) for the six months ended 30 June 2013 have been reviewed by the company’s auditor, KPMG inc. in their review report dated 6 august 2013, which is available for inspection at the company’s registered office, KPMG inc state that their review was conducted in accordance with the international standard on review engagements 2410, review of interim information Performed by the independent auditor of the entity, and have expressed an unmodified conclusion on the condensed consolidated interim financial statements.

Merafe’s revenue and operating income is primarily generated from the Glencore-Merafe chrome Venture (“the Venture”), one of the world’s largest producers of ferrochrome, with a total installed capacity of 1.98 million tonnes of ferrochrome per annum. Merafe shares in 20.5% of the earnings before interest, taxation, depreciation and amortisation (“eBitda”) from the Venture.

Merafe’s share of ferrochrome sales volume from the Venture for the first half of 2013 amounted to 137 000 tonnes which was 10% above the 2012 comparative period of 124 000 tonnes. chrome ore revenue as a percentage of total revenue decreased from 14% in the first half of 2012 to 12% in the first half of 2013. the average rand us dollar exchange rate was r9.21 in the first half of 2013, compared to r7.90 for the 2012 comparative period. the average european benchmark ferrochrome price was 120usc/lb in the first half of 2013 compared to 125usc/lb in the first half of 2012.

Merafe’s share of eBitda from the Venture for the first half of 2013 was r236.5m (2012 H1: r279.3m). eBitda from the Venture decreased period on period primarily as a result of the decrease in the average european benchmark ferrochrome price, inflationary increases, an increase in standing charges relating to the unprotected strike at the eastern mining operations and foreign exchange losses incurred which were partially offset by the weakening of the rand compared to the us dollar and the increase in ferrochrome sales tonnes. eBitda for the first half of 2013 includes a foreign exchange (“forex”) loss of r28.7m against a forex gain of r3.6m in the comparative period. the forex loss primarily arose as a result of the realised losses on the forex contract hedge.

after accounting for corporate costs of r23.3m (H1 2012: r17.2m) and a share-based payment expense of r3m (H1 2012: share based payment income of r0.8m), Merafe’s eBitda was r210.2m. corporate costs increased from the 2012 comparative period primarily as a result of the reversal of an overprovision for an indirect tax liability that was included in the prior period.

the profit and total comprehensive income for the period was r33.5m after taking into account depreciation of r69.4m, an impairment loss of r75.9m, net financing costs of r9.6m, current tax expense of r0.8m, deferred tax expense of r22.3m and a r1.3m write-back arising from prior years’ overprovision of current tax. the impairment loss was as a result of the Venture considering the sale of its Horizon mine. the balance of unredeemed capital expenditure is estimated to be r507m at 30 June 2013.

Property, plant and equipment increased over the six months to 30 June 2013 as a result of capital expenditure of r280m of which r200m was expansionary and r80m was sustaining. expansionary capital comprised expenditure primarily on Project Lion ii. trade and other payables include a new financing facility made available by Glencore on 30 June 2013. Merafe’s share of the utilised portion of the facility was r101m.

Merafe started the year with a cash balance of r83m, generated operating cash flows of r234m, invested r280m in capital expenditure, raised loans of r48m, incurred r38m foreign exchange fluctuations on cash held and closed with a cash balance of r47m at 30 June 2013. of this balance, cash held by Merafe was r17m and Merafe’s share of cash in the Venture was r30m. at 30 June 2013, Merafe had long-term debt owing to aBsa capital of r560m and approximately r240m unutilised aBsa long-term debt facilities.

review of operationsferrochrome production for the first six months of 2013 was 23% higher than the comparative 2012 period. operating capacity utilisation for the first six months of 2013 was 79% compared to 64% for the prior comparative period. this was primarily as a result of operational improvements of furnaces, higher winter month production and the impact of the successful commissioning and ramp up of the tswelopele pelletising plant. ferrochrome production volumes in the first half of 2013 were also impacted by the eskom power buyback agreement as in the 2012 comparative period.

unfortunately, the Venture suffered an unprotected strike at its eastern mining operations towards the end of the first half of 2013 which resulted in the dismissal of more than 1 200 employees. these mining operations were recently resumed and the smelters that were supplied by these mines were not significantly affected due to sufficient stockpiles of chrome ore.

safetythe safety of our employees remains a key focus area as evident from our total recordable injury frequency rate of 4.27 for the first half of 2013 which was at similar levels to the prior year. despite these efforts, we deeply regret to report that there were two fatalities during 2013. in addition to the fatality already reported on 5 March 2013, another employee, Mr Gabafiwe Petrus ramatlapeng passed away on 10 July 2013. our deepest sympathies go out to his family, colleagues and friends.

Market review Global stainless steel production was 19.2m* tonnes in the first half of 2013 which was 7% higher than the 2012 comparative period. Global consumption of ferrochrome reached 5.1m* tonnes in the first half of 2013, driven by stronger stainless steel production. despite a strong start to the year, stainless steel production continues to be threatened by global economic uncertainty and weak market sentiment. in addition, the downward trend in the nickel price continues to negatively impact prices, keeping inventory levels and apparent consumption of stainless steel suppressed.

Global ferrochrome production was 4.8m* tonnes in first half of 2013 which was 3%* higher than the comparative 2012 period. china remains the determining factor in the industry producing more than 47%* of the world’s stainless steel and accounting for 37%* of the world’s total ferrochrome production in the first half of 2013. chinese ferrochrome production continues its forward growth momentum and china maintained its position as the largest producing country in the world. china is currently ahead of south africa, which accounted for only 29%* of global ferrochrome production in the first half of 2013. ferrochrome supply from south africa was most impacted in the first half of 2013 by producers participating in eskom’s buyback programme. Most south african ferrochrome producers are expected to produce at higher capacity utilisation rates in the second half of 2013, post the buy-back programme.

south african ferrochrome imports into china continue to be displaced by domestic chinese ferrochrome production on the back of unbeneficiated chrome ore exports from south africa. it is estimated that 3.1m** tonnes of chrome ore was imported into china from south africa in the first half of 2013, which is an increase of 48% period on period. the south african ferrochrome industry has continued to advance its engagement with the south african Government to find sustainable solutions to this challenge.

the european benchmark ferrochrome price for the first quarter of 2013 was settled at 112.5 usc/lb and increased to 127usc/lb in the second quarter of 2013. the third quarter european benchmark ferrochrome price was settled at 112.5usc/lb.

developmentsWe are delighted to report that good progress has been made on our flagship Lion ii smelter project which should be ready for hot commissioning by the end of this year. the Magareng mine, which will be supplying chrome ore to the Lion ii smelter, is already in production and the surface processing plant at the mine was recently commissioned. the overall Lion ii project remains on schedule and within budget and to 30 June 2013 about 65% of the total budgeted cost of r5bn, Merafe’s portion of which is r1bn, was spent.

outlookstainless steel production is expected to grow by 7%* in 2013 and by 5%* in the long-term which is expected to lead to increased demand for ferrochrome globally. since the tswelopele pelletising plant is in full operation, we are proud to report that our rustenburg plant is now on par with the cost performance of our other non-premus furnaces. this should enable an increase in production going forward as already evidenced by our capacity utilisation improvement in the first half of 2013. in addition, once Lion ii ramps-up to full production capacity, we forecast an improvement of 6% in total cost per tonne, across our operations. these investments in improving our cost efficiencies in our operations leave us well positioned as one of the lowest cost producers in the world. this will enable us to take advantage of the increased demand for ferrochrome and grow our market share.

Merafe has the advantage of a strong balance sheet, low gearing, a healthy cash-flow and a partnership with Glencore, one of the world’s largest and profitable mining companies.

*source: Heinz Pariser/July2013

**source: chinese customs/June 2013

chris Molefe Zanele MatlalaNon-executive chairman chief executive officer

sandton

6 august 2013

Group condensed statement of comprehensive income

six months ended30 June 2013

reviewedr’000

six months ended30 June 2012

reviewedr’000

revenue 1 469 324 1 229 840

eBitda 210 185 262 898depreciation and impairment (145 370) (67 832)Net financing costs (9 579) (10 426)

Profit before taxation 55 236 184 640taxation (21 713) (46 570)

current tax (797) (501)deferred tax (22 275) (79 054)Prior years overprovision 1 359 32 985

profit and total comprehensive income for the period 33 523 138 070

Basic earnings per share (cents) 1,3 5,5diluted earnings per share (cents) 1,3 5,5Headline earnings per share (cents) 3,8# 5,5diluted headline earnings per share (cents) 3,8# 5,5ordinary shares in issue 2 493 221 394 2 493 221 394Weighted average number of shares for the period 2 493 221 394 2 493 221 394diluted weighted average number of shares for the period 2 509 534 023 2 499 047 985

# Headline earnings reconciliation:

Profit and total comprehensive income for the period 33 523 138 070Impairment 75 933 –Taxation effect of impairment (15 194) –Profit on disposal of fixed assets (37) –

Taxation effect of profit on disposal of fixed assets 10 –

Headline earnings 94 235 138 070

Group condensed statement of financial position

as at30 June 2013

reviewedr’000

as at31 december 2012

auditedr’000

assetsProperty, plant and equipment 2 902 009 2 677 308

total non-current assets 2 902 009 2 677 308

inventories 1 142 276 1 088 885trade and other receivables 395 990 344 725current tax assets 26 986 26 424cash and cash equivalents 46 541 82 643assets held for sale – 72 127

total current assets 1 611 793 1 614 804

total assets 4 513 802 4 292 112

equityshare capital 24 932 24 932share premium 1 262 481 1 262 481equity-settled share-based payment reserve 36 101 33 847retained earnings 1 421 892 1 388 369

total equity attributable to equity holders 2 745 406 2 709 629

LiaBiLitiesLoans and borrowings 571 791 523 872Provision for close down and restoration costs 54 800 57 892deferred tax liabilities 588 633 551 165

total non-current liabilities 1 215 224 1 132 929

Loans and borrowings 667 636trade and other payables 552 505 430 368Liabilities held for sale – 18 550

total current liabilities 553 172 449 554

total liabilities 1 768 396 1 582 483

total equity and liabilities 4 513 802 4 292 112

Group condensed statement of changes in equitysix months ended

30 June 2013reviewed

r’000

six months ended 30 June 2012

reviewedr’000

share capital 24 932 24 932

Balance at beginning of the period 24 932 24 932share options exercised – –

share premium 1 262 481 1 262 481

Balance at beginning of the period 1 262 481 1 262 481share premium arising from share options exercised – –

equity-settled share-based payment reserve 36 101 30 925

Balance at beginning of the period 33 847 31 759share grants exercised (716) –share-based payment 2 970 (834)

retained earnings 1 421 892 1 477 566

Balance at beginning of the period 1 388 369 1 339 496Profit and total comprehensive income for the period 33 523 138 070

total equity at end of the period 2 745 406 2 795 904

Group condensed statement of cash flowsix months ended

30 June 2013reviewed

r’000

six months ended 30 June 2012

reviewedr’000

profit before taxation 55 236 184 640interest paid 9 919 15 903 interest received (340) (5 477)depreciation and impairment 145 370 67 832adjusted for non-cash items 2 970 (834)share grants excercised (716) –adjusted for working capital changes 31 001 (128 378)

cash flows from operations 243 440 133 686interest paid (9 757) (15 903)interest received 340 2 305*tax paid – (7 158)

cash flows from operating activities 234 023 112 930cash flows from investing activities (280 016) (241 699)

Proceeds on disposal of property, plant and equipment 97 –acquisition of property, plant and equipment – expansionary (200 442) (163 875)acquisition of property, plant and equipment – sustaining (79 671) (77 824)

cash flows from financing activities 47 919 (301)

increase/(decrease) in non-current borrowings 47 919 (301)

Net increase/(decrease) in cash and cash equivalents 1 926 (129 070)cash and cash equivalents at the beginning of the period 82 643 220 459effect of exchange rate fluctuations on cash held (38 028) (11 764)

cash and cash equivalents at the end of the period 46 541 79 625

* Excludes R2.9 million income relating to the fair value adjustment on the interest rate swap.

Executive directors: Z Matlala (chief executive officer), d chocho (chief financial officer), B McBride

Non-executive directors: cK Molefe (chairman)*, NB Majova*, M Mamathuba, a Mngomezulu*,

K Nondumo*, M salanje*, s Phiri, M Mosweu, Z van der Walt*, Company secretary: a Mahendranath

Registered office: first floor, Block B, sandton Place, 68 Wierda road east, Wierda Valley, sandton, 2196

Transfer secretaries: Link Market services south africa Proprietary Limited

* Independent

sponsor: Merrill Lynch south africa proprietary Limited

www.meraferesources.co.za

invested - merafe resourcesshare of production, in % charge cr benchmark (q3): us$ ct 112.5 per lb...

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