LEADERSHIP REVIEWS

Chief executive officer's strategic review

Our strategy remains unchanged and we continue to focus on ferrochrome and chrome ore production and maximising cash flows from the Venture. We continue to evaluate growth opportunities together with our Venture partner.

ZANELE MATLALA
Chief Executive Officer

PERFORMANCE: FINANCIAL CAPITAL

Financial capital makes it possible for other types of capital to be owned and traded. Financial capital is also representative of how successful we have been at achieving the sustainable development of our natural, human, social and manufactured capitals.

DITABE CHOCHO
Financial Director

TRANSPARENCY AND ACCOUNTABILITY

Chairperson's report

Overview

Merafe's performance in 2023, was again exceptional. This is manifested in our reported revenue, EBITDA, profit after tax and net cash on hand at the end of the reporting period. I am also pleased to report that the operations of the Venture performed well with regard to production (despite the planned pullback) and its identified sustainability criteria with the exception of two fatalities at our operations which I discuss in more detail below.

ABIEL MNGOMEZULU
Chairperson

FINANCIAL

2023 YEAR IN REVIEW

Cash balance R1 656 million(2022: R1 269 million)

Revenue R9 244 million(2022: R7 939 million)

*EBITDA

R2 545 million

(2022: R2 141 million)

Net profit

R1 753 million

(2022: R1 410 million)

Final cash dividend

22 cps

(2022: 13 cps)

Headline earnings per share

60.1 cps

(2022: 56.4 cps)

11% increase in net cash generated from operating activities

R1 879 million

(2022: R1 698 million)

* Earnings before interest, taxation, depreciation and amortisation

Our operating context

Key statistics for 2023

Chrome is a metallurgical marvel. It brings critical properties to the metals with which it is alloyed.

Global ferrochrome production increased from 15.1mt in 2022 to 15.4mt in 2023
Ferrochrome demand increased from 13.9mt in 2022 to 14.5mt in 2023
South Africa’s share of global ferrochrome production was 3.2mt (2022: 3.9mt)
China imported approximately 14.9mt chrome ore from South Africa (2022: 12.3mt)