Release Date: 18/04/2008 11:21:37 Code(s): HLM
HLM - Hulamin - Statement By The Chairman At The Annual General Meeting Of
Hulamin Limited
HULAMIN LIMITED
Registration number 1940/013924/06 (Incorporated in the Republic of South Africa)
(Share Code: HLM) (ISIN: ZAE000096210) ("Hulamin")
STATEMENT BY THE CHAIRMAN AT THE ANNUAL GENERAL MEETING OF HULAMIN LIMITED
In October 2006 the board of Hulamin approved a R950 million expansion project to increase rolled products capacity by 20% to 250 000 tons and to enable further improvement in product mix. Benefits are expected to start coming on stream from 2009.
Speaking at the Annual General Meeting yesterday, Chairman Mafika Mkwanazi said that the project is progressing very well and remains on schedule and within budget, in spite of significant inflationary pressures and skills shortages. Contracts amounting to 80% of the total R950 million have now been awarded and there is thus rising confidence that the project will be completed within budget. It is particularly pleasing that with the 750 contract project workers now on site, there has not been a single lost time injury since the commencement of the project, with total hours worked now exceeding one million.
Most of the additional energy requirements for the expansion project will be satisfied by using Liquid Petroleum Gas (LPG). Infrastructure and project approvals are in place for the electricity requirement for the project, which falls within Hulamin`s existing notified maximum demand. Notwithstanding this, Hulamin is developing plans to reduce the additional electricity requirement for the expanded facilities in line with the 10% reduction.
Hulamin has experienced increased daily load shedding in recent weeks. In line with the national imperative, the company has implemented a range of actions to reduce its consumption of electricity in line with national targets.
Mkwanazi went on to say that these measures are resulting in reduced electricity consumption, although it is possible that current load shedding and related disruptions may impact on sales this year.
Rolled Products margins are exceeding expectations as the business continues
to improve its mix of high value products and pursues more direct routes to certain markets. These factors are expected to more than compensate for the effects of load shedding and increases in input costs that are occurring in the current inflationary environment. Export sales have also benefited from movements in the Rand exchange rate.
18 April 2008
Ends.
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Enquiries
Hulamin 033 395 6911
Richard Jacob 033 395 6425
College Hill 011 4473030
Johannes van Niekerk 082 921 9110
Fred Cornet 083 307 8286
Date: 18/04/2008 11:21:36 Supplied by www.sharenet.co.za
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