Share Forum - Discuss JSE shares and join the Investor Challenge

Uitgif is "Rights"

Trading @ 146034 (+3.00%). Why the sudden interest around 11:00?

Duhh ..... cause we are talking about it ...... Fund managers read our posts.....  :laugh:

Thanks

MRF

Reviewed interim results for the six months ended 30 June 2014

These results were published on 12 August 2014.

KEY FEATURES

- 16% increase in production tonnes to 168k
- 35% increase in revenue to R2bn
- 134% increase in HEPS to 8.9 cents
- Cash from operating activities of R265m
- Flagship Project Lion II in production


Review of operations

Merafe’s operating capacity utilisation for the first half of 2014 was 90% which is equivalent to an increase of 16% compared to the
previous corresponding period. This increase is primarily attributable to a stronger market and the impact of the non-recurring Eskom
buy-back agreements that were entered into in the first half of 2013.

Despite the start-up costs of Lion II and the impact of the strike action in the platinum sector, the total ferrochrome cost per tonne
increase was below mining inflation, primarily as a result of higher production volumes and cost saving initiatives.

The Venture’s wage negotiations at its eastern smelters and mines were successfully concluded. Wage negotiations at the Venture’s
western mines and smelters are ongoing.

Market review

Global stainless steel production for the first half of 2014 reached 21.1m* tonnes, primarily due to a 14.3%* increase in China,
compared to the previous corresponding period, while higher production in India and USA also played a role. As a result, 2014 estimated
global stainless steel production of 41.9m* tonnes is on track to surpass last year’s all time annual high of 38.5m* tonnes.

Global ferrochrome demand continued to rise, reaching 5.7m* tonnes in the first half of the year. Global ferrochrome production
increased by 20.5%* to 5.7m* tonnes compared to the previous corresponding period. The majority of this increase came from China and
South Africa, which expanded output by 12.4%* and 36.2%* respectively. During the first half of 2014, it is estimated that China
accounted for 49.9%* and 35.5%* of the world’s stainless steel and ferrochrome production, respectively.

US ferrochrome imports for the first four months of the year increased by 53%# to 192kt# compared to the previous corresponding period.
The rise in imports was largely due to a pick-up in real demand with the automotive sector being particularly robust, with healthy
demand from the energy, aerospace and special alloy sectors. The restocking of raw materials post year-end further contributed to the
rise in US imports.

Chinese chrome ore imports were 4.3m* tonnes for the first five months of the 2014 year, 12.5%* lower compared to the previous
corresponding period, with May 2014 imports at the lowest level since July 2012. Chrome ore imports from South Africa were 2.5m*
tonnes for the same period, 9.3%* lower compared to the previous corresponding period. The South African platinum producers reached
settlement with the unions in late June 2014, bringing an end to the five-month strike that impacted UG2 supply.

The second quarter European benchmark ferrochrome price increased by 4USc/lb to 122USc/lb. Despite the European benchmark increase,
Chinese stainless mills lowered their monthly ferrochrome tender prices during this period, prompting major Chinese alloy smelters to
reduce their output in order to minimise their losses.**

The third quarter European benchmark ferrochrome price was settled at 119USc/lb, a reduction of 2.5% from the price in the second
quarter of 2014.


Developments

Project Lion II

As projected in our 23 April 2014 announcement, the second line of the Lion II expansion was successfully commissioned in June 2014
and the plant is now fully operational. During mid-July 2014, daily ferrochrome production reached more than 60% of design capacity and
the plant is expected to reach full capacity within the next year. Production is being ramped up and current plant output is better
than forecast.

Declaration of an ordinary dividend for the interim period ended 30 June 2014

The Merafe Board declared an interim dividend of R28m. Notice is hereby given that a gross interim ordinary dividend in the amount of
1.12 cents per ordinary share has been declared by the Board of Merafe, payable to holders of ordinary shares. The dividend will be
paid out of distributable reserves.

Outlook

Stainless steel production and demand is expected to increase by approximately 5.5%* per year for the next three years. The demand for
ferrochrome is expected to follow suit with an increase of approximately 6%* per year for the next three years. Our suite of cost and
energy efficient technology, further enhanced with the recent addition of Lion II, place us in an ideal position to significantly
benefit from the projected increase in demand for ferrochrome. Furthermore, with our partnership and excellent relationship with
Glencore, one of the world’s largest diversified miners and leaders in the marketing of chrome ore and ferrochrome, we are excited
about the future prospects and further reinforcing our position in this industry.


GROUP CONDENSED STATEMENT OF COMPREHENSIVE INCOME
for the six months ended 30 June 2014

                                                                               Six months ended                 Six months ended
                                                                                        30 June                          30 June
                                                                                           2014                             2013
                                                                                       Reviewed                         Reviewed
                                                                                          R’000                            R’000
                                                                                                                                 
Revenue                                                                               1 990 697                        1 469 324
Basic earnings per share (cents)                                                            9,0                              1,3
Diluted earnings per share (cents)                                                          8,9                              1,3

Hello Orca ...

Apparently not, (although I hope so). You will receive rights to buy shares in the new "good" bank. I hope that you can sell your rights. Suppose we will have to wait for further announcement.

Hopefully when they offer current shareholders rights to new Good Bank, A person can sell the rights.

Must say for our SARB to come up with the names, Good Bank and Bad Bank ? must have taken a lot of thought. What next, a colour in competition to work out the new logo's for Good Bank and Bad Bank.

Ag well, will right it down and out in my Bransby and 1time file. File getting big there jaDEB ... 

APN - Hey it is not ABL 
SGL - Hey it is not ABL 
OCE - This 1 seems stuck ....  Why ?
PNC -