NOTES TO THE FINANCIAL STATEMENTS l NOTE 3

                Issued share capital               Percentage holding               Investment cost          Loans to subsidiaries               Total  
    2015   2014   2015   2014   2015   2014   2015   2014   2015   2014  
    Number of shares   %   %   R'000   R'000   R'000   R'000   R'000   R'000  
3. Investments in subsidiaries                                        
  Directly held                                        
  Merafe Chrome and Alloys Proprietary Limited 200   200   100   100   101 683   101 683   1 190 972   1 145 972   1 292 655   1 247 655  
  Indirectly held                                        
  Merafe Ferrochrome and Mining Proprietary Limited 400   400   100   100   *   *   –   –   –   –  

  * Less than R1 000
 

The above loans are unsecured, interest free, have no fixed terms of repayment and are long-term in nature.  The wholly owned subsidiaries are incorporated in the Republic of South Africa.

Interest in the profits of subsidiaries for the year ended 31 December 2015 amounted to R307m (2014: R167m).  Subsidiaries are incorporated in the Republic of South Africa.

Structured entities

The following entities are consolidated and considered to be subsidiaries of the Merafe Resources Limited group:

• Horizon Nature Conservation Trust
• Merafe Kroondal Rehabilitation Trust
• Merafe Resources Limited Share Incentive Scheme Trust

Refer to the related parties Note 22 for further details on investments in subsidiaries and structured entities.

There are no contractual arrangements that require the company to provide financial support to any of the above entities nor are there any events or circumstances that could expose the company to a loss.