Slide 1: Merafe Resources Limited
2025 MERAFE RESOURCES LIMITED Delivering today. Investing in tomorrow.
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
01 HALF YEAR IN REVIEW AGENDA 02 MARKETING REVIEW 03 OPERATIONAL REVIEW 04 FINANCIAL REVIEW 05 CAPITAL ALLOCATION 06 OUTLOOK 3
Slide 4: Half Year in Review
01 HALF YEAR IN REVIEW 4
Slide 5: Deteriorating financial performance indicative of a tough operating environment
DETERIORATING FINANCIAL PERFORMANCE INDICATIVE OF A TOUGH OPERATING ENVIRONMENT SAFETY OPERATIONAL MARKETING FINANCIAL § No fatalities § Review of smelting operations § Global market uncertainty § Revenue down by 47% § TRIFR decreased by 35% undertaken and additional § Increase in global stainless p
Slide 6: Marketing Review
02 MARKETING REVIEW 6
Slide 7: Increase in stainless steel production and ferrochrome demand
INCREASE IN STAINLESS STEEL PRODUCTION AND FERROCHROME DEMAND Global stainless steel production (mt) Global ferrochrome demand (mt) 32.6 32.9 8.3 31.5 8.2 2.8 2.7 7.9 2.6 0.7 0.8 0.6 19.7 20.8 20.9 5.3 5.5 5.6 3.2 3.0 3.0 0.6 0.6 0.4 2.5 2.5 2.7 0.8 0.8 0.9 2.3 2.4 2.4 0.3 0.3 0.3 1.1 1.2 1.2 0.3 0.
Slide 8: China's industry dominance continues
CHINA’S INDUSTRY DOMINANCE CONTINUES Global stainless steel production (%) Global ferrochrome demand (%) 8.3 3.6 8.4 3.6 9.8 3.4 4.2 7.9 3.4 4.2 7.4 7.3 10.5 10.3 8.2 8.0 4.3 7.1 H12025 9.0 H12024 10.2 FY H12025 H12024 2024 63.5 62.5 67.2 67.9 Japan India Indonesia Europe China Other Source for all
Slide 9: China's ferrochrome production lower; impacting ore imports into China
CHINA’S FERROCHROME PRODUCTION LOWER; IMPACTING ORE IMPORTS INTO CHINA Global ferrochrome production (mt) Chrome ore imports into China (mt) 8.4 8.6 12.0 10.6 0.8 0.9 7.7 0.3 0.3 10.0 0.7 0.7 0.8 0.8 0.7 0.3 8.4 0.1 0.6 8.3 0.7 0.7 0.7 8.0 0.5 0.3 0.7 0.5 0.7 1.6 0.1 0.4 0.1 0.3 1.7 1.2 6.0 4.0 8.4
Slide 10: Volatile commodity prices
VOLATILE COMMODITY PRICES Ferrochrome merchant prices European ferrochrome UG2 merchant prices (USD/t) 48%–63% (USc/lb) benchmark price# (USc/lb) 350 140 250 300 120 200 250 100 200 80 150 150 60 100 100 40 50 50 20 0 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 11: Venture's prices mostly softer
VENTURES PRICES MOSTLY SOFTER FERROCHROME CHROME ORE PGMS § Since late 2024, ferrochrome prices have § Chrome ore prices are softer but continue § Material price uptick in the average basket been under significant pressure. to show some resilience. price seen in latter part of H2 2025. Ferrochrome (
Slide 12: Operational Review
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Slide 13: Health and safety of employees central to operations
HEALTH AND SAFETY OF EMPLOYEES CENTRAL TO OPERATIONS Total recordable injury frequency rate (TRIFR) § TRIFR improved to 1.50 from 2.31 in December 2024. § Safety of our employees remains a critical focus area with the goal of achieving zero harm. 2.5 2.3 2.3 2.0 § Safety campaigns and programmes con
Slide 14: Eskom update
ESKOM UPDATE Power supply stable for most of the period to date although load curtailments experienced in Q1 2025. High tariffs remain a concern. Although the Negotiated Pricing Agreement terms provided some relief, impact still not enough to make the Venture competitive. 14
Slide 15: Alternative energy/technology
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. Several scenarios are being considered to derisk the 100MW Pele Green Energy project, PPA sign
Slide 16: Production
PRODUCTION FERROCHROME § H1 2025 production decreased to 112kt. – Installed capacity utilisation of 47%. – 73% utilisation of operating capacity. § Boshoek and Wonderkop smelters suspended. § Lion smelter suspended for scheduled maintenance. Ferrochrome production (kt) 300 301 185 154 112 H1 2023 FY
Slide 17: Production costs
PRODUCTION COSTS FERROCHROME CHROME ORE § Total production cost per tonne decreased by 5% § Cash production cost per tonne increased by 7% (from Dec 2024). (from Dec 2024). – Labour cost increases. – Lower chrome ore prices. – Engineering cost increases. – Lower reductants and fluxes costs. – Higher
Slide 18: PGMs operations
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 increased. – Venture’s feed volume was 274kt (2024: 223kt). – Venture’s production volume was 34 502oz
Slide 19: Chrome ore agreements
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 historical agreement with Lonmin plc. – A chrome management agreement (CMA). § The agreements will res
Slide 20: Review of smelting operations
REVIEW OF SMELTING OPERATIONS § 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 maintenance. § Engagements with stakeholders continue. § Government has indicated support for
Slide 21: Financial Review
4 FINANCIAL REVIEW 21
Slide 22: Revenue
REVENUE REVENUE BREAKDOWN 2025 2024 FeCr Cr Ore PGMs Other Total FeCr Cr Ore PGMs Other Total Export revenue (R’m) 1 292 847 - - 2 139 3 294 977 - - 4 271 Volumes sold (kt/oz) 76 217 7 112 N/A N/A 167 251 6 536 N/A N/A Sale price (USc/USD)* 87.6 271 1 171 N/A N/A 99.2 280 1 094 N/A N/A Domestic reve
Slide 23: Revenue
REVENUE Total revenue decreased by 47% period-on-period to R2 519 million Ferrochrome Chrome ore PGMs § Ferrochrome revenue decreased by 60% period-on-period § Chrome ore revenue declined by 17% PoP to § PGMs revenue increased from R131 million to R156 million (PoP) to R1 359 million. R1 004 million
Slide 24: Earnings
EARNINGS § Headline earnings per share of HEPS and Basic EPS (cents) 12.6 cents for the reporting period. § Lower volumes sold across all commodities, a stronger average ZAR:USD exchange rate and lower 60 ferrochrome prices contributed to 42.0 42.0 lower earnings. 40 28.1 28.2 28.8 § Further impairm
Slide 25: EBITDA per operation
EBITDA PER OPERATION Contribution per operation to Venture’s EBITDA (%) 41% -43% 15% -8% 7% 17% H1 2024 H1 2025 85% 85% Ferrochrome Chrome ore PGMs HO adjustments 25
Slide 26: EBITDA
EBITDA EBITDA from the Venture variance analysis: H1 2025 vs H1 2024 (%) (36) (15) 100 (10) 23 (9) (7) (3) 43 EBITDA Revenue and cost Revenue Unit cost Inflation and cost Foreign exchange Standing charges Other EBITDA H1 2024 volumes prices in real terms creeps effect H1 2025 26
Slide 27: EBITDA reconciliation to profit
EBITDA RECONCILIATION TO PROFIT Venture’s EBITDA reconciliation to Merafe’s profit after tax (R’m) 600 500 (35) 400 (106) 300 535 20 (113) 5 200 (73) 100 233 0 Adjusted Merafe's Corporate costs Depreciation and Impairments Income from equity Net financing income Current and deferred Profit after tax
Slide 28: Financial performance overview
FINANCIAL PERFORMANCE OVERVIEW H1 2025 H1 2024 H2 2024 Revenue R’m R’m R’m § As discussed. For the year ended Foreign exchange (loss)/gain Ferrochrome revenue 1 359 3 397 2 512 § A stronger ZAR:USD exchange rate. Chrome ore revenue 1 004 1 213 1 049 Operating expenses PGMs revenue 156 131 136 § Over
Slide 29: Financial performance overview
FINANCIAL PERFORMANCE OVERVIEW 30 Jun 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 1 244 1 261 Inventories Current assets Increase due to market dynamics and build-up of inventory. Inventories 2 472 1 794 Closing Fe
Slide 30: Capital expenditure (Capex)
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 requirements. § 7% of the PSV’s capex was on expansion projects. H1 2025 H1 2024 R’m R’m Smelting 101 91
Slide 31: Reconciliation of cash
RECONCILIATION OF CASH Reconciliation of cash (R’m) ( 160) ( 14) ( 190) ( 200) 0 ( 90) 1 795 1 142 Opening cash Net cash from Expansionary capex Sustaining capex Dividend payment Repayment of capital Foreign exchange Closing cash operating activities (net sale proceeds) portion of leases and effects
Slide 32: Sufficient headroom under facilities
SUFFICIENT HEADROOM UNDER FACILITIES Venture & Unicorn Merafe Merafe (Merafe’s share)1 head office total As at 30 June 2025 R’m R’m R’m Closing cash 693 449 1 142 Venture Interest bearing Merafe facilities debt2 total As at 30 June 2025 R’m R’m R’m 1 Includes R378m cash ring-fenced for Total facilit
Slide 33: Capital Allocation
5 CAPITAL ALLOCATION 33
Slide 34: Dividend
DIVIDEND 1 2 The Board The final dividend has declared amounts to an interim ordinary 4 cents per share cash dividend before dividend tax of R100 million 34
Slide 35: Capital allocation strategy
CAPITAL ALLOCATION STRATEGY 1. Alignment with our corporate strategy – stability and growth opportunities 2. Allocation options § Organic growth § Working capital requirements § Inorganic growth § Capital return to shareholders 3. Capital structure • Optimal debt/equity level – Revolving credit faci
Slide 36: Outlook
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Slide 37: Outlook
OUTLOOK § Anticipated 2025 business context – Volatile, uncertain, complex and ambiguous environment characterised by § Geopolitical tensions. § Protectionist policies. § Regional conflicts. § Macro-economic risks. – Stainless steel demand growth forecast. – China’s dominance to persist in stainless
Slide 38: Outlook
OUTLOOK § Merafe’s response – Reviewed smelting operations to explore options concluded. Wonderkop and Boshoek smelters suspended. – Lion smelter to resume operations after scheduled maintenance. – Engagements with key stakeholders continue with a view to finding long term solutions. – Decisions on
Slide 39: Thank you
2025 THANK YOU Delivering today. Investing in tomorrow.