Maiden dividend of 12 cents per share declared

8 May 2008
FOR IMMEDIATE RELEASE:
51.1% INCREASE IN REVENUE

Johannesburg, 8 May 2008: JSE AltX-listed Infrasors Holdings Limited today reported a 51.1%increase in revenue to R237 million for the 2008 financial year ended 29 February 2008 comparedwith the pro forma revenue of R157 million for financial 2007 reported in the company’s pre-listing

statement.This translated to a 111% increase in headline EPS, a result both of increased production and salesand containment of operating costs and the company has declared a maiden dividend of 12 cents per

share.Infrasors is a fast-growing South African mining resources holding company, which listed on the JSE’sAltX in July 2007. Producer of a spread of industrial and construction minerals, Infrasors is currentlyexpanding and is well positioned to seize opportunities presented by South Africa’s continuing

infrastructural growth demand.Cash of R78.8 million was generated by operations before outflow from investments in working capital

of R23.6 million, tax of R10.9 million and net finance income of R2.7 million.Capital expenditure of R20.2 million was incurred, reflecting significant investment in plant andinfrastructure to meet market demand.Specifically:

  • R10 million was spent at sand and silica producer Delf Sand – R.4.5 million on plant andmachinery and R5.5 million on additions to the transport fleet;
  • R8 million at brick manufacturer Infrabric – R2 million on plant and machinery and R6 millionon additions to the transport fleet; and
  • R2.2 million at aggregate and metallurgical dolomite producer Lyttelton on plant expansion.

Infrasors CEO Le Roux Roets said “pleasing” operation performances were delivered by the Lyttelton

and Delf Sand operations.Lyttelton increased production by 11% to 1.286 million tonnes, reflecting the R2.2 million investmentto increase plant capacity by 30 000 tonnes per month. Included in supply was the Gautrain Bombelacontract, the full benefit of which will be felt in F2009. Lyttelton contributed R116.5 million (F2007:

R88.4 million) to group revenue and R24.9 million (F2007: R14.5 million) to profit before tax.Delf Sand increased silica production by 25% to 437 000 tonnes, a consequence of thecommissioning of a fourth drier and an increase in the delivery fleet. Delf contributed R87.4 million

(F2007: R68.4 million) to group revenue and R35.2 million (F2007: R28.4 million) to profit before tax.Roets said good progress has been made at the Pienaarspoort flint silica and crushing plant project.An extensive drilling programme was completed, followed by laboratory analysis of product. Thisconfirmed the presence of flint silica as an economically viable resource, ideally suited for productionof a range of products for the glass and foundry industries. Final bulk sampling and analysis by usersis expected to be completed by the second quarter of calendar 2008 and plant construction and

commissioning by the second half of the year.Looking ahead in the short-term, prospects for the Infrasors group are positive as demand for itsproducts and services continues to grow robustly, Roets said.Medium term, the group is well placed to continue to grow its revenue stream as the strength ofdemand relative to constrained supply for the majority of its products continues. A capital expenditureprogramme for 2009 totalling R80.6 million will extend capacity, resulting in economies of scale and

reduced production costs per unit.“Against this backdrop, we are confident that Infrasors will realise its growth prospects and increaseboth assets and earnings,” he saidAs a response to power utility Eskom’s power cuts, the group has installed diesel generators at all ofits operations and head office. As a result, assuming a 10% reduction in power supply, production

targets were not expected to be affected negatively.Power cuts during the second half of F2008 had not resulted in any reduction in product demand bycustomers, Roets added.Queries:Infrasors Holdings LimitedLe Roux Roets, Chief Executive OfficerMobile: 083 309 9955Walter Stander, Corporate CommunicationsOffice: 011 234 0109Mobile: 082 417 0343Website address:www.infrasors.co.za