Infrasors Holdings Limited continues on a steady path

Mining resources company, Infrasors Holdings Limited, has turned in a solid performance for the year ended February 2011 – despite the weak economy and the flagging construction sector.

Group revenue was 15.1% up year-on-year to R243.5m on the back of substantial increases in the volumes sold at its Lyttelton Centurion and Marble Hall mines.

This positive trend resulted in profit from its operating activities increasing by 18.5% to R41.3m. Earnings Per Share came in at 16.1 cents a share. No dividend has been declared  as the Group  has elected to preserve its capital in the current economic climate.

Infrasors CEO, Trevor Robinson, is pleased with the results, which he says shows that the Group’s continued capital investment in plant,equipment and mine expansion in the preceding years has brought structure and improved efficiencies and is beginning to deliver a positive return.

In the previous financial year the Group spent R34.2m on capital projects and a further R34.8m last year – predominantly attributed to mobile plant and equipment, mine development and the replacement of transport vehicles.

The net effect was that, volume throughput from its mine in Marble Hall was 47% up to a total of 357 000 tons and output from its Lyttelton Centurion mine was 15% higher at 1.1 million tons and saw a marginal increase at its Delf Silica operation of 2%.

Robinson goes on to say,

What is particularly encouraging  is the increased revenue in tight market conditions. Our ability to gain market share and meeting production requirements, particularly at its Lyttelton Centurion and Marble Hall mines was a highlight.

Robinson says the group is pressing ahead with consolidating its mining assets. We have been working on concluding the expansion of the mining areas at both its Lyttelton Dolomite and Delf Silica operations.

Yet another positive development  is the granting of a   prospecting right  on our  Cullinan property containing an alluvial silica deposit. Infrasors is currently proceeding with the pre-planning of the mine in conjunction with firming up the reserve volumes. A drilling programme is in place and together with the evaluation of the plant detail will certainly be the focus of our attention in the year ahead. In addition the southern portion of  the Marble Hall mine has been  granted a prospecting right  in February this year as well as two mining permit applications have been submitted in respect of Delf Silica in KwaZulu Natal.

Mining is almost complete on a section of property at its Delf Sand mine. Infrasors is working towards developing a mixed use residential and commercial township on this section. A township development framework plan has been prepared and is proceeding with the application for township establishment.

Looking ahead Robinson says it seems likely that sales volumes of product from the Lyttelton and Marble Hall mines are likely to continue at their current levels but with sales into the construction market being of concern due to its volatility. Sales of our metallurgical products at both mines, he says, continue to improve; powder sales into the coal mines and the agricultural sector are relatively steady, though somewhat pedestrian.

Sales of product from Delf Silica have increased marginally by2% to 275 000tons with sales to the foundry market increasing by 5.5% and the tile adhesive market by 3.9%. Meanwhile, the sale of sands to the golf and leisure markets  have declined substantially and the status quo is likely to persist for the remainder of the current financial year.

ISSUED BY:                GRAY CORPORATE & INVESTOR RELATIONS

Graham Fiford Tel: 011 442 – 9019/083 391 2459

ON BEHALF OF:        INFRASORS HOLDINGS LIMITED

Trevor Robinson Tel: 011 234 – 0109