CEO COMMENTARY ON RESULTS

Sustained pressure from the prolonged economic downturn in the global ferrochrome market has led to a significant profit decline of R233 million for the six months ended 30 June 2025. The challenges (such as high energy costs and increased competition from China) faced by the ferrochrome industry in South Africa, have led to the suspension of several of the Group's smelting operations in Q2 of 2025. Additionally, there was reduced demand for chrome ore units in H1 of 2025.

Preparation of this report

This report was prepared under the supervision of Ditabe Chocho CA(SA) (Financial Director). These unaudited condensed consolidated financial statements of Merafe for the six months ended 30 June 2025 have not been independently reviewed by the Company's independent auditor, Deloitte & Touche.