PPC
PPC
PPC - PPC - Trading Update - Chairman`s Statement at the AGM - 23 January 2007
Pretoria Portland Cement Company Limited
Incorporated in the Republic of South Africa
(Registration number 1892/000667/06)
("PPC" or "the company")
JSE code : PPC
ISIN code : ZAE000005559
TRADING UPDATE - CHAIRMAN`S STATEMENT AT THE AGM - 23 JANUARY 2007
The positive outlook continues as evidenced by regional cement demand growth of
8.3% in the first quarter of this financial year over the comparable period last
financial year. The Botswana market is starting to show some signs of recovery
after a number of years of decline. All production lines were in operation and
ran at high utilisation levels.
During this recent period of peak demand, imported Surebuild cement was supplied
to customers in the Cape Town and Port Elizabeth markets. Currently customer
requirements can be met from our own local production supplemented by supplies
from our Zimbabwe operation and it is unlikely that further imports will be
required before mid year.
The "Batsweledi" expansion project at Dwaalboom is fully contracted, within
budget, progressing to schedule and start-up remains on course for the second
quarter of 2008.
Whilst Porthold in Zimbabwe continued to experience very difficult conditions,
given the political and economic environment, we are pleased with sales volumes.
Lime profitability and volumes remained satisfactory and in line with our
expectations.
Discussions are currently in progress with a number of potential BEE partners.
It is anticipated that the details of our empowerment transaction will be
announced by May. This timing is dependent on the prior unbundling of PPC from
Barloworld Ltd having been completed. Once the BEE transaction is finalised, the
company plans to appoint a number of additional black non-executive directors to
the Board and a black chairman.
AJ Phillips
Chairman
Sandton
23 January 2007
Sponsor
JP Morgan Equities Limited
Date: 23/01/2007 13:23:01 Produced by the JSE SENS Department.
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