HULAMIN LIMITED - Impact of Covid-19 on Operations

Impact of Covid-19 on Operations

HULAMIN LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1940/013924/06
JSE Code: HLM
ISIN: ZAE000096210
(“Hulamin” or “the Company”)


IMPACT OF COVID-19 ON OPERATIONS

Hulamin fully supports President Cyril Ramaphosa’s announcement of a 21-day nationwide
lockdown, as the optimum mitigating action to limit the significant economic and life-threatening
impacts of COVID-19. Hulamin supports over 1,700 employees and many more suppliers and
contractors from local communities. In these areas, there are high frequencies of chronic disease
and malnutrition. It is unclear the extent to which health care will be able to cope with a high-
volume outbreak of the disease.

In recent months, many proactive cost reduction measures have been implemented to improve
business competitiveness. These cost savings include the reduction in employment of around 250
people as well as the reduction in supplies, goods and services from local communities. The outbreak
of this pandemic requires additional, unprecedented and strong actions. Accordingly, we have put
on hold all uncommitted capital expenditure, terminated metal procurement, eliminated variable
costs and reduced fixed costs where possible so as to preserve and protect our cash flow and
balance sheet.

In extraordinary times like this, there are numerous potentially conflicting priorities for the
Company’s various stakeholders. Hulamin has decided to align itself with the guidelines provided by
government to minimize the health risks to the community and country. As a consequence, we have
commenced the orderly shutting down of operations. Wherever possible, we are expediting the
shipment of inventory to customers prior to safely closing the operation for this 21-day period.

The forward picture remains uncertain and we will put out another brief when new information
comes to light.


Pietermaritzburg
26 March 2020

Sponsor
Questco Corporate Advisory Proprietary Limited

Date: 26-03-2020 04:57:00
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