Mining Group Infrasors Holdings Limited ends 2012 on a firm note

Despite the construction sector and the market for industrial mineral sands being depressed, mining group, Infrasors Holdings Limited, has done well to increase turnover by 14.7% to R279m for the year ended February 2012.

Gross profit was also up 16% to R81m from the previous year, largely on the back of higher volumes of product sold. However costs such as electricity, fuel and labour have impacted its Earnings Per Share which is down from 16.1cents to 15.0 cents. Overall, the group sold 1.9mts of its mined and processed products in 2012 as opposed to 1.7mts last year – an increase of 9.7%.

CEO, Trevor Robinson, says sales of metallurgical minerals, in particular, were influenced by a strike in the steel industry in July and August last year and furnace  shut downs brought on by recurrent power constraints, causing off take from the sector to diminish.

However, says Trevor Robinson the Group was able to compensate to some extent by increasing sales of aggregate and other products into the construction and mining sectors.

Sales of dolomite from the Lyttelton Centurion mine increased by 12.2% - mainly due to higher demand for construction aggregate. Off take of product from the Marble Hall mine remained constant.

The sale of the Goup’s alluvial silica sand increased by 10.9% and the sale of its core product into the foundry industry remains steady. A healthy uptake was experienced at it’s KwaZulu-Natal sphere of operations where Infrasors has just acquired a controlling interest in a competing alluvial sand producer, Spec Sand.

Looking ahead, Robinson says the market for foundry sand should remain buoyant in the medium term while the metallurgical aggregate demand is expected to remain steady. He says that the group is currently boosting its milling capacity to meet the expected increase in demand for its powder products.

“We have been able to increase our construction market share in what remains a tough and competitive market,” he notes. “We remain focused on obtaining additional market share of the current local construction spend which is occurring in the private sector and to a lesser degree on government projects. Uptake time lines from the proposed government spend remains unclear.  

The Lyttelton Centurion mine has received approval for its New Order mining license and has had the extension to its mining footprint granted. As a result, it will now investigate increasing the mines output capacity to match demand. The Marble Hall mine remains well positioned for supply into the powders market and into clean air initiatives.

Solid progress is also being made in concluding the remaining regulatory approvals for the Delf Cullinan alluvial silica mine outside Pretoria and construction is expected to commence on this project in the second half of the financial year. This is line with its long term strategy of ensuring quality long term supply of product into the silica market.

Ends

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