8 November 2010
Infrasors Holdings Limited weathers the recession

Continued investment in new plant and equipment last year to upgrade its operations has paid off for mining company Infrasors Holdings Limited which released its interim results to end August 2010 to the Stock Exchange News Service today.

The results show steady volume output improvements from its Centurion and Marble Hall mines – especially Marble Hall where output rose 64% to around 182 124 tons. Production at Lyttelton Centurion was up 16% to 555 888 tons.

Last year Infrasors spent around R21m on refurbishing and upgrading its crushing, washing and sizing facilities at its Centurion and Marble Hall mining operations. At the same time it spent around R11m on improvements to its plant at Delf Silica - including the commissioning of a new silica operation at Tongaat in KwaZulu-Natal.

However, the industry is still beset by sluggish demand from the industrial and construction sectors where the bulk of its products are sold. Also, demand for foundry silica sand from the metallurgical industry is flat with no volume growth over the previous year.

As a consequence, revenues for the first half, at R125m, were only 7% higher than the comparable period last year. After tax profit, at R7.6m was in line with that of last year as were Earnings Per Share at 4.2 cents a share.

Infrasors CEO, Trevor Robinson, says he’s pleased that the company has been able to increase its turnover over the previous year – especially after closing down its Infrabric brick making operation last year because of weak demand for bricks from the construction sector.

“The turnover we have lost through closing down Infrabric has been more than compensated for by better volume throughput from our Lyttelton Centurion and Marble Hall mines,” he notes.

“The improvements we have made at our Lyttelton Centurion and Marble Hall mines have allowed for greater volume throughput from those facilities as well as a more diverse range of aggregate products for our customers. This can only be positive for sales.”

Looking ahead, Robinson says the construction market is being constrained by the slow implementation of government’s infrastructural projects and the cautious approach being adopted by developers in the private sector.

He expects the construction sector to remain under pressure for at least the next six months but he anticipates a slow improvement in demand for base metals from the manufacturing and foundry industry..

Another positive development for the company, he believes, is the commissioning in August of the new processing and distribution facility at the Delf Silica operation in Tongaat KwaZulu-Natal. This, he says, should allow the facility to service its customers in its core markets with much improved turnaround times.

Ends

ISSUED BY:                GRAY CORPORATE & INVESTOR RELATIONS

Graham Fiford Tel: 011 442 - 9019

 

ON BEHALF OF:        INFRASORS HOLDINGS LIMITED

Trevor Robinson Tel: 011 234 - 0109