| Tue 29 Jan 2002, 0:00 | | Ceo Newsletter And Ist Nuclear Appointed Key Suppl |
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Share code : IST
ISIN code : ZAE000015798
Dear IST Stakeholder
29 January 2002
IST Nuclear appointed key system supplier to PBMR
In previous updates on the progress of the Pebble Bed Modular Reactor
project, I noted that IST hoped to be appointed as the sole supplier of
three key support systems not just for the demonstrator plant but for the
first commercial units. I am happy to tell you that IST Nuclear - the
specialist subsidiary we established towards the end of last year to focus
our PBMR effort - has now formally been appointed to supply the fuel
handling and storage system, the reactivity control and shutdown system and
the gas system for the demonstrator plant as well as the first 10
commercially produced plants. We are naturally very pleased that our
continuing involvement in PBMR has been confirmed as the project heads
towards the home stretch. There is still a lot of work to be done, however,
and a final decision on whether or not to proceed with the demonstrator
plant may still be as much as a year away.
IST Energy completes major project for Swaziland Electricity Board
Last month IST Energy handed over a R45 million SCADA/EMS system to the
Swaziland Electricity Board. The turnkey project, designed to meet the
utility's need for a network management system that will enhance
availability and quality of supply throughout the country, was completed on
time, within budget - and profitably. In spite of the scale and complexity
of the project, the new system was fully available to the customer 20 months
after work started. Final tuning and stability testing were completed
within another three months.
The swings and roundabouts of the rand
The sharp decline in the value of the rand at the end of 2001 has mixed
implications for the IST group. On the negative side, the cost to customers
of products we source from overseas principals, mainly in IST Telecom, will
obviously go up. (As virtually all such products are imported, however, the
local competitive field remains level.) On the positive side, our earnings
in rand from IST Dynamics' dollar-denominated exports will rise. On
balance, the drop in the rand will probably be beneficial to us in the short
term. It has also sharpened our appetite for hard-currency revenues. One
of the group's strategic objectives is to expand its offshore business, and
we will pursue that goal with increased vigour in the new year.
Share buyback and option scheme
In my November newsletter I mentioned that IST had bought back some 11
million of its own shares on the open market with a view to reissuing them
at a later stage as options in line with our objective of maintaining a
substantial empowerment presence in our shareholder base. Details of the
option scheme are currently being finalised and a further announcement in
this regard will be made in the course of next month.
Year-end results
IST's results for its financial year to February 2002 will be published on
or about 11 April. To coincide with this, we shall make a comprehensive
presentation in Johannesburg as well as Cape Town on the group's performance
and prospects. You will receive an invitation to this presentation nearer
the time. At this stage, we look well set to meet or exceed our earnings
forecast of 10 cents per share.
Yours sincerely
Harry Coetzee
Chief Executive
IST NUCLEAR APPOINTED KEY SUPPLIER TO PBMR PROJECT
Pretoria, 29 January - IST Nuclear, a subsidiary of the IST Group, has
been appointed as the sole supplier of three key systems by PBMR (Pty)
Ltd. Should the project to build a demonstration Pebble Bed Modular
Reactor at Koeberg be approved, IST will supply these systems for the
demonstrator plant as well as for the first 10 commercially produced
plants.
The PBMR project is currently in the detailed feasibility and
environmental impact assessment phase. IST has been involved in the
conceptualisation, design and development of the PBMR technology since
1990. Most recently, it was responsible for the feasibility-study design
and costing of PBMR's three major support systems: fuel handling and
storage; reactivity control and shutdown; and the gas systems. It is
these systems the company has now been retained to supply if the project
gets the green light.
IST Group last year established a specialist subsidiary, IST Nuclear
Power Systems, to focus on this further involvement in the PBMR Project,
saying it had advanced to the stage where the substantial effort IST was
investing in it needed to be accommodated in a distinct structure.
The Pebble Bed Modular Reactor is a small-scale, inherently safe nuclear
reactor which is being developed by Eskom and local and international
partners for potential application as a power source in South Africa, as
well as a viable South African export product.
The first phase of the project, which was given the go-ahead by the South
African Government in April 2000, involves undertaking a detailed
feasibility study, an environmental impact assessment (EIA) and a public
participation process. In addition to shareholder approval, the building
of a demonstration module is subject to a series of milestone reviews by
the South African Government, the successful completion of the EIA
process, and the issuing of a license by the South African National
Nuclear Regulator.
For further information, contact Giel de Lange
on 012-426 7444 or 082 558 8979
Issued by du Plessis Associates on behalf of IST Group. dPA contact:
Kathy du Plessis on tel:011-728-4701, fax:011-728 2547, mobile:083 266
5847or e-mail: ist@dpapr.com
