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SEPHAKU HOLDINGS LIMITED - Operational update

Release Date: 01/10/2014 11:15
Code(s): SEP     PDF:  
Wrap Text
Operational update

Sephaku Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2005/003306/06)
Share code: SEP
ISIN: ZAE000138459


Operational update

Métier completes the fourth 70m³/ hour plant in Gauteng

Following the announcement on 21 August 2014, Sephaku Holdings Limited (“SepHold”) is pleased to
confirm that Métier Mixed Concrete (Pty) Ltd (“Métier”) has completed the construction of the fourth
plant with a 70m³/hour production capacity in the Gauteng province. Production commenced on 22
September 2014 bringing the total number of plants to eleven (11) with 7 located in KwaZulu Natal.

Métier’s main objective is to achieve relatively high margins through the creation and production of
specialised concretes. These high value concretes constituted 29% of revenue for the financial year
ended 31 March 2014.

Delmas annualised capacity utilisation at 80%

Clinker production at Sephaku Cement (Pty) Ltd’s (“SepCem”) Aganang integrated plant commenced
successfully on 20 August 2014 and cement production is scheduled for October. The internally
produced clinker is expected to significantly enhance the cost efficiencies and competitiveness of
SepCem. To this end and depending on the production mix, SepCem is expected to achieve a
substantial reduction in input costs.

The initial consignment of clinker was delivered to the Delmas milling plant within the first week of
production in August 2014. In September 2014, Delmas plant reached an annualised production
capacity utilisation of 80% which is an indication of the increasing sales ramp up rate since the
beginning of the year. The demand for the SepCem brand has increased significanlty in both the bulk
and retail (bag) markets. The brands acceptance is reflected by its delivery to more than 1000 points
in the targeted markets and approximately 500 order related calls per day being handled by the
Company call centre. Marketing and sales activities have intensified in the North West province ,Free
State province and Botswana in anticipation of cement production at Aganang plant.

SepCem has received support from bag and bulk users and will ensure that its key selling proposition
of consistent quality and exceptional service is extensively pursued. SepCem is producing cement in
all strength classes and plans are in place to increase the 42.5R and 52.5N volumes targeting
technical users.


Authorised by
Chief executive officer
Dr. Lelau Mohuba

1 October 2014
_________________________________________________________________________________
Enquiries contact: Sakhile Ndlovu Sephaku Holdings Investor Relations 012 612 0210

Sponsor to Sephaku Holdings: Questco (Pty) Ltd

About Sephaku Holdings Limited

Sephaku Holdings Limited (SepHold) is a building and construction materials company with a portfolio of investments in the
cement sector in South Africa. The company’s core investments are a 36% stake in Sephaku Cement (Pty) Ltd and 100% in
Métier Mixed Concrete (Pty) Ltd. SepHold’s strategy is to generate income and realise value for shareholders through the
production of cement and ready-mixed concrete in southern Africa.

www.sephakuholdings.com

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