Press Release 2010
24th May 2010
Infrasors Holdings Limited ready to turn the corner
Year-end results for the year ended February 2010 released today by base minerals mining company, Infrasors Holdings Limited, show that the company is still being impacted by the lingering effects of the global and domestic recession.
Revenue was down 3% on 2009 to R211m; profit from operating activities was 17% down on the previous year at R35m and Earnings Per Share came in on par with the previous year at 17.4 cents (2009 17 cents). Infrasors CEO, Trevor Robinson, said the year had been a challenging one for the company with the demand for base and industrial minerals in the manufacturing sector slumping as a consequence of the recession with a slow return evident in the last quarter.
However, the company has been steadily investing in new plant and infrastructure at all of its existing operations (R34m was spent last year) and is now in a strong position from a capacity perspective to be able to supply the demand for its products once the volume off take starts to increase.
“The anticipated end of the recession in South Africa and the lessening of global financial instability has resulted in the demand for Infrasors’ products beginning to increase – particularly in the manufacturing base metals sector. “Consequently, Infrasors is anticipating further demand-driven growth in 2011 on the back of the improving sales levels being experienced in 2010.”
According to Robinson, R21m was spent at the Lyttelton Dolomite Centurion mine on the refurbishment of the primary crusher, the installation of a new aggregate sizing plant and overburden removal. At the Marble Hall mine the primary crusher was refurbished and further overburden removed. The Lyttleton Dolomite operations are involved in mining and beneficiating dolomite and limestone metallurgical and construction aggregate, sand and powders for the industrial, coal mining and construction sectors.
The Delf Silica operation spent around R11m on the refurbishment of its older, smaller drier facilities and start-up operations at Tongaat in KwaZulu Natal. A further R2m was spent on the development of its Pienaarspoort Silica Quartz and Culilinan mining initiatives. Delf Silica undertakes mining and beneficiation of high grade silica sand for the foundry industry, tile adhesive market, glass, building, construction and leisure resort sectors.
Infrasors’ Infrabric operation, which manufactured bricks for the residential building and constructor sector, was closed down in November last year as a result of weak demand for its products brought about by the recession. Overall, the Lyttleton Dolomite Centurion and Marble Hall mines showed increased production output and rising profitability as the demand cycles of its various products tended to balance each other. For, example, as the metallurgical market showed an improvement, demand for construction aggregate leveled off.
The Delf Silica operation experienced a 36% decline in off take from the foundry sector and a 53% contraction from the golf resort and leisure markets. However, the division was able to successfully penetrate to tile adhesive markets and volume sales to this sector grew 28%. Robinson anticipates steady increase in demand for Delf Silica’s products for the remainder of the year and says the new operation at Tongaat KwaZulu- Natal will help to service the regional tile adhesive and foundry markets in the province and increase its national footprint. In the medium term, Robinson says Infrasors is well placed to grow its future
revenue and profits.
“Our capital expenditure projects and plant refurbishments have been designed to expand production and reduce unit costs per ton mined and beneficiated, which should facilitate greater throughput per month once the economic recovery takes off.”
ISSUED BY: GRAY CORPORATE & INVESTOR RELATIONS
Graham Fiford Tel: 011 442 - 9019
ON BEHALF OF: INFRASORS HOLDINGS LIMITED
Trevor Robinson Tel: 011 234 - 0109