Merafe Resources Limited · JSE:MRF
Merafe Resources — FY2025 Earnings Presentation
40 slides from Merafe Resources's earnings presentation, December 2025
Slide 1: Merafe Resources Limited
UM ff Merafe Resources Limited MERAFE 20 Delivering today. Investing in ton
Slide 2: Legal notice
Legal notice 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 rel
Slide 3: Agenda
Agenda Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook MERAFE RESOURCES LIMITED | Annual Results Presentation for the year ended 31 December 2025 3
Slide 4: Year in Review
MERAFE RESOURCES
Slide 5: Deteriorating financial performance indicative of a tough operating environment
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Deteriorating Financial Performance indicative of a tough operating environment Safety Operational Marketing Financial No fatalities All Venture’s smelting Global market uncertainty Revenue down by
Slide 6: Marketing Review
Marketing Review 6
Slide 7: Increase in Stainless Steel production and Ferrochrome demand
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Increase in Stainless Steel production and Ferrochrome demand Global stainless steel production (mt) Global ferrochrome demand (mt) 64.0 65.4 16.4 16.0 60.3 5,2 15.1 5,4 1,3 1,6 5,1 1,2 40,5 41,5 38,3 10,8
Slide 8: China's industry dominance continues
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook China’s industry dominance continues Global stainless steel production (%) Global ferrochrome demand (%) 7,9 3,6 8,5 3,6 9,7 3,4 4,3 8,0 3,3 4,2 7,5 7,2 10,0 10,1 7,8 7,9 6,8 6,9 9,6 9,7 FY2025 FY2024 FY20
Slide 9: China's Ferrochrome production lower; ore imports into China increase
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook China’s Ferrochrome production lower; Ore imports into China increase Global ferrochrome production (mt) Chrome ore imports into China (mt) 17.1 23.7 15.9 1,1 15.4 1,6 20.9 0,5 1,9 1,4 1,6 0,3 1,4 18.3 1,3
Slide 10: Volatile commodity prices
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Volatile commodity prices UG2 merchant prices (USD/t) Ferrochrome merchant prices European ferrochrome benchmark 48%–63% (USc/lb) price# (USc/lb) 350 120 250 300 100 200 250 80 200 150 60 150 100 40 100 20
Slide 11: Venture prices softer except for PGMs
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Ventures prices softer except for PGMs Ferrochrome (USc/lb) Chrome Ore (USD/t) PGMs (USD/oz) Since late 2024, ferrochrome prices have been Chrome ore prices are softer but continue Material price upt
Slide 12: Operational Review
Operational Review 12
Slide 13: Health and safety of employees central to operations
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Health and safety of employees central to operations Total recordable injury frequency rate (TRIFR) No fatalities. TRIFR improved to 1.79 from 2.31 in December 2024. Safety of our employees 2.6 remai
Slide 14: Eskom update
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Eskom update Power supply stable for most of the period to date with minimal load curtailments experienced in 2025. High tariffs remain a concern. Discussions with Eskom continue post year-end. The Nationa
Slide 15: Alternative energy/technology
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Alternative energy/technology Co-generation Alternative technologies for producing electricity from off-gas are currently on hold. Renewable energy All onsite renewable energy projects have been suspended.
Slide 16: Production
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Production Ferrochrome production (kt) Ferrochrome FY 2025 production decreased to 112kt. 379 384 Installed capacity utilisation of 23%. 300 301 37% utilisation of operating capacity. Boshoek and W
Slide 17: Chrome ore
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Chrome ore Chrome ore production (kt) Chrome ore FY 2025 total production decreased by 2%. 1 073 1 089 1 011 – While chrome ore production 948 932 increased by 4% due to higher yields, – UG2 production w
Slide 18: Production costs
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Production costs Ferrochrome Chrome Ore Total production cost per tonne increased by 14% Cash production cost per tonne increased by 8% (from Dec 2024) due to a higher fixed costs (from Dec 2024). abso
Slide 19: PGMs operations
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook PGMs operations The Eastern PGMs operation continues to perform well. PGMs production increased due to additional capacity from Eastern PGMs operation and PGMX plant. PGMs production volumes increase
Slide 20: Chrome ore agreements
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Chrome ore agreements As previously reported, the Venture entered into mutually beneficial agreements with Sibanye Stillwater plc. These agreements were: – An agreement enhancing the terms to the histori
Slide 21: Smelting operations update
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Smelting operations update The business review process undertaken in Q1 2025 has been concluded. The decision taken was to suspend Wonderkop and Boshoek smelters. Lion smelter suspended for planned m
Slide 22: Financial Review
Financial Review 04 MERAFE RESOURCES
Slide 23: Revenue
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Revenue Revenue Breakdown 2025 2024 FeCr Cr Ore PGMs Other Total FeCr Cr Ore PGMs Other Total Export revenue (R’m) 2 179 2 909 - - 5 088 5 696 1 754 - - 7 450 Volumes sold (kt/oz) 124 683 14 948 N/A N/A 31
Slide 24: Revenue
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Revenue Total revenue decreased by 31% period-on-period to R5 835 million Ferrochrome Chrome ore PGMs Ferrochrome revenue decreased by 61% period- Chrome ore revenue increased by 37% PoP PGMs revenue
Slide 25: Earnings
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Earnings HEPS and Basic EPS (cents) Headline earnings per share of 12.2 cents for the reporting period. Lower ferrochrome volumes sold, 90 lower sales prices for ferrochrome and chrome ore, a stronger
Slide 26: EBITDA per operation
Year in Review Marketing Review Operational Review FinancialReview Financial Review Capital Allocation Outlook EBITDA per operation Contribution per operation to Venture’s EBITDA (%) 39% 9% 38% 9% (26%) (146%) FY2024 FY2025 107% 169% Ferrochrome Chrome ore PGMs HO adjustments MERAFE RESOURCES LIMITE
Slide 27: EBITDA
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook EBITDA EBITDA from the Venture variance analysis | FY 2025 vs FY 2024 (%) 15 (13) (5) (18) (17) 100 (18) (11) 34 EBITDA Revenue and cost Revenue Unit cost Inflation and Foreign Standing Other EBITDA FY 202
Slide 28: EBITDA reconciliation to profit
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook EBITDA reconciliation to profit Venture’s EBITDA reconciliation to Merafe’s profit after tax (R’m) (69) 602 (201) 67 13 (47) (222) 143 Adjusted Merafe's Corporate costs Depreciation and Impairments Income
Slide 29: Financial performance overview
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Financial performance overview FY 2025 FY 2024 Revenue For the year ended R’m R’m As earlier discussed. Ferrochrome revenue 2 296 5 909 Foreign exchange (loss)/gain Chrome ore revenue 3 110 2 262 A str
Slide 30: Financial position overview
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Financial position overview 31 Dec 2025 31 Dec 2024 Non-current assets As at R’m R’m Impacted by the further impairment of smelting plants. Total non-current assets 1 316 1 261 Inventories Current assets
Slide 31: Inventory levels
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Inventory levels Chrome Ore Ferrochrome 2025 2024 2025 2024 Closing stock (kt) 290 129 Closing stock (kt) 71 83 Inventory make-up Inventory location 15% 20% 28% 85% 52% UG2 Met Grade Other Plant & Port Con
Slide 32: Capital expenditure (capex)
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Capital expenditure (capex) Capex per operation 73% of the PSV’s capex was on replacement and sustaining capex. 20% of the PSV’s capex was to address health, safety, environment and community requireme
Slide 33: Reconciliation of cash and cash equivalents
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Reconciliation of cash and cash equivalents Reconciliation of cash and cash equivalents 610 ( 39) ( 407) ( 300) ( 8) 603 458 Opening balance Net cash from operating Expansionary capex Sustaining capex Divi
Slide 34: Sufficient headroom under facilities
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Sufficient headroom under facilities Merafe 120-day Other cash and As at 31 December 2025 notice liquid cash Merafe deposit1 balances2 equivalents total R’m R’m R’m R’m Closing liquid reserves 394 698 458
Slide 35: Capital Allocation
a. Capital Allocation : RESOURCES
Slide 36: Dividend
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Dividend 1 2 The Board The final dividend has declared amounts to a final ordinary 8 cents cash dividend per share of R200 million before dividend tax MERAFE RESOURCES LIMITED | Annual Results Presentation
Slide 37: Outlook
Outlook 37
Slide 38: Outlook
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Outlook Anticipated 2026 business context – Volatile, uncertain, complex and ambiguous environment characterised by Geopolitical tensions. Protectionist policies. Regional conflicts. Macro-econom
Slide 39: Outlook
Year in Review Marketing Review Operational Review Financial Review Capital Allocation Outlook Outlook Merafe’s response – Reviewed smelting operations to explore options concluded. Wonderkop and Boshoek smelters suspended. – Lion smelter has resumed operations after scheduled maintenance. – Engag
Slide 40: Thank you
Thank you MERAFE Delivering today,