Welcome to the results presentationof the Metmar Limited financial year end results

for the period ended on 28 February 2014

05 / 06 May 2014

Metmar Results Presentation

Programme of events

• Snapshot of the results• Metmar Trading• Metmar Investments & Resources• Looking forward• Questions to the panel• Further conversation

David Ellwood CEO of Metmar LimitedSizwe Nkosi CFO of Metmar Limited

Snapshot of the results

Aggressive write-down of investment portfolio

following completion of review process

Board and leadership strengthened through the appointment of seasoned

industry professionals

Good progress made on Core Investments

Increased revenue as a result of product

diversification, focused trading strategy and a

weakening exchange rate

Core Trading business prospered despite challenging trading

conditions

Company Highlights

5% increase in traded volumes to 731,429

tonnes

38% growth in turnover to R2.1 billion

EBITDA from Core Trading grows to R82

million (2013: R1.3 million)

42% reduction in headline loss,

notwithstanding aggressive write-down of

investment portfolio

Cash generated from operations increased to

R41.9 million (2013: R78.2 million utilised)

Operating costs reduced by 23% to R126.2 million

(2013: R162.9 million)

Financial Highlights

STRATEGIC REFOCUS ON CORE TRADING STARTING TO BEAR FRUIT

David Ellwood Metmar Trading

Metmar Trading

Metmar Trading performance

Key Area 2014

R’m

2013

R’m

% change

Core Trading      

Revenue 2 052.6 1 503.4 37%

Gross Margin 5.9% 4.6% 28%

EBITDA 82.0 1.3 6184%

Profit/(Loss) after Tax 50.3 (28.9) 274%

       

Discontinued Operations      

(Loss)/Profit after Tax (22.0) 17.9 (223%)

       

Kalagadi Tolling Project      

Loss after Tax (15.5) 0 -

Metmar Trading - Core Trading

• Core Trading revenue increased to R2.1 billion (2013: R1.50 billion)

• EBITDA increased significantly to R82.0 million (2013: R1.3 million)

• Profit after tax of R50.3 million (2013: loss after tax of R28.9 million)

CORE TRADING RETURNS TO PROFIT driven by product diversification, focused trading strategy and better cost control

Metmar Trading - Discontinued Operations

• WAG operating profit of R3.7 million (four months trading)

• Capital profit on sale of WAG was R19.2 million• Goodwill and intangibles of R36.9 million and R10.2

million respectively• Loss after tax of R22.0 million (2013: profit after tax of

R17.9 million)

WAG SOLD IN MANAGEMENT BUYOUT generating R53.7 million in cash

Metmar Trading - Kalagadi Tolling Project

• Delays in sinter plant commissioning now largely overcome

• Production of almost 90,000 tonnes in March 2014 alone

• Loss after tax of R15.5 million (2013: N/A) owing to high finance costs associated with delayed start up

FIRST BULK SHIPMENT OF 44,000 TONNES SOLD and vessel sailed from Saldanha in early April

Michael Golding COO of Metmar Investments & Resources

Metmar Investments & Resources (“MIR”)

MIR performance

Description 2014

R’m

2013

R’m

% change

Revenue 234.0 43.5 438%

Gross Margin 25.0% (8.8%) 384%

EBITDA/(LBITDA) 49.6 (27.8) 278%

Loss after Tax (140.2) (94.1) (49%)

MIR performance

• MIR revenue increased significantly to R234.0 million (2013: R43.5 million) due to sales of coke breeze, alumina slag, recycled plastic products and carbon products

• Impairment of investments and non-current assets held for sale amounted to R145.5 million (2013: R36.6 million)

• Loss after tax of R140.2 million (2013: R94.1 million)

AGGRESSIVE WRITE DOWN OF INVESTMENT PORTFOLIO following completion of portfolio review

MIR performance

• Breakdown of MIR revenue by contribution:• Carbon products (including coke) – 63%• Alumina slag – 19%• Recycled plastic products – 18%

• Breakdown of MIR impairments:• Impairments as per Income Statement – R145.5 million• Less: Inventory impairment – R18.1 million• Impairments relating to investments – R127.4 million

David Ellwood CEO of Metmar Limited

Looking forward

CEO outlook

Recently released Chinese GDP growth figures forecast a slower growth rate for the Chinese economy. With uncertain growth prospects for other significant economies, the financial year

ahead is likely to continue to be challenging for commodity market participants.Metmar has however been working on a number of projects / initiatives which are expected to

start contributing to the groups revenue and returns in the near future. These include:

Trading of sintered manganese in

terms of the tolling agreement and Kalagadi’s own

operation

Cost management and efficiency

initiatives

Appointment of Rob Still as Chairman

Sefateng mining right expected

to be granted in H2 2014

New orders for a wide spectrum of

commodities, e.g. Iron ore, Steel scrap

Improve working capital

management (new treasury system) and expand trade

and other finance facilities

Changed incentive

arrangements to foster greater

employee drive towards

profitability

David Ellwood CEO Metmar Limited and Metmar TradingMichael Golding COO Metmar Investments & Resources

Sizwe Nkosi CFO Metmar LimitedSean Naylor IRO Metmar Limited

Questions to the panel

Thank you