| Fri 11 Jul 2008, 7:11 | | MRF - Merafe - Trading Statement |
|
MRF
MRF
MRF - Merafe - Trading Statement
Merafe Resources Limited
(Incorporated in the Republic of South Africa)
(Registration number 1987/003452/06)
Share Code: MRF
ISIN: ZAE000060000
("Merafe" or "the Company")
Trading Statement
In compliance with section 3.4(b) of the JSE Limited Listings Requirements,
shareholders are advised that:
- For the six months ended 30 June 2008, earnings per share ("EPS") and
headline earnings per share ("HEPS") are expected to be between 21 cents
and 24 cents which is between 425% and 500% higher than the 4 cents
reported for the corresponding six month period to 30 June 2007.
- Merafe expects the EPS and HEPS for the second six months to 31 December
2008 to be higher than the EPS and HEPS to be reported for the first six
months to 30 June 2008.
- The expected increase in EPS and HEPS for the second six months is based
on the fact that the EPS and HEPS for the six months to June 2008 were
achieved at an average European benchmark ferrochrome price of $1.56 /lb
whilst the European benchmark ferrochrome price for the third quarter of
2008 has been set at $2.05/lb.
Merafe would also like to re-iterate the following guidance previously given
to investors and which is also contained in various announcements and
presentations on our website:
- Due to the cutback by Eskom of 10% of available power load in January
2008, -Merafe expects saleable ferrochrome production for the year from
the Xstrata-Merafe joint venture to be approximately 1.5 million tonnes.
- Merafe`s attributable saleable ferrochrome production for the year is
therefore expected to be approximately 307,000 tonnes, an increase of 8%
over the previous year.
- European benchmark ferrochrome prices have increased from $1.00/lb in
the fourth quarter of 2007 to $2.05/lb in the third quarter of 2008, an
increase of 105%.
- Production costs are rising for all ferrochrome producers due to
increased prices of oil, electricity, reductants and high mining sector
inflation.
- While stainless steel production has slowed due to, inter alia, the
traditional seasonal slowdown and some destocking, we believe that this
is a short-term situation and that stainless steel production in Europe
and China will recover and that ferrochrome prices will remain strong
with further price increases expected.
Shareholders are advised that the above information has not been reviewed or
reported on by Merafe`s auditors. The financial results for the six months
ended 30 June 2008 are expected to be released on SENS on or about 6 August
2008.
Sandton
11 July 2008
Sponsor
Deutsche Securities (SA) (Proprietary) Limited
Date: 11/07/2008 07:11:28 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
