12 Oct - 3 min read

Voluntary update on the kiln outage and share price rally

Voluntary update on the kiln outage and share price rally

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




                         Voluntary update on the kiln outage and share price rally

SepHold would like to provide its shareholders with insight on the recent share price rally and an update
on the recent Dangote Cement SA (Pty) Ltd.’s (“Sephaku Cement”, “SepCem” or “the associate”) kiln
outage.

Share price rally
The Treasury Department issued a circular effectively banning imported cement in government-funded
projects from 4 November 2021. Importers of cement have increased market share due to the
marginally higher pricing from local manufacturers from the additional, non-negotiable costs for
legislative compliance such as carbon tax. The circular prescribes that all government institutions at all
legislative levels and state-owned enterprises must stipulate in tender invitations that only South African
produced cement will be permitted on all public sector construction projects. The cement has to be
produced with locally sourced raw materials, which is a condition that eliminates competitors that import
clinker.

This decision has resulted in a significant rally in the share price due to the fifty (50) planned government
infrastructure strategic integrated projects and twelve (12) special projects as part of a drive to stimulate
the economy. Last week, the Infrastructure Fund (“the Fund”) reported that it had submitted four
projects, collectively valued at R21 billion, for National Treasury approval and will contribute R5,4 billion
through finance from both public and private resources. The projects have supposedly been approved
by Infrastructure South Africa, which is tasked with overseeing the government’s Infrastructure
Investment Plan. The Fund is apparently finalising four more projects valued at approximately R85-
billion for submission in 2022.

SepHold’s subsidiary, Métier Mixed Concrete (Pty) Ltd.’s (“Métier”), has a plant footprint well-positioned
in three key geographic markets of Gauteng, Mpumalanga and Western Cape to compete for the supply
of concrete into the strategic infrastructure projects. Furthermore, SepCem produces bagged and bulk
cement at its integrated Aganang plant in the North West and the grinding Delmas plant in Mpumalanga,
enabling access to all major inland markets.

SepCem kiln maintenance update
The associate resumed production as scheduled on 6 October 2021 following the unplanned
maintenance stop announced on 30 September 2021: https://sephakuholdings.com/investor-
centre/sens-news-and-archives/press-releases/. The cause of the plant outage was identified and
remedied. SepCem management has implemented several procedures to improve plant reliability and
mitigate a reoccurrence. The kiln is running at operational capacity.

Detailed commentary on the group’s performance will be disclosed in the interim financial results for
the period ended 30 September 2021, incorporating the related SepCem figures for the six months
ended 30 June 2021 during the week ending 19 November 2021.

Centurion
12 October 2021
_________________________________________________________________________________
Enquiries contact:
Sakhile Ndlovu
Investor Relations Officer
012 684 6300
sakhile@sephold.co.za

Sponsor: Questco Corporate Advisory (Pty) Ltd

About Sephaku Holdings Limited
SepHold is a building and construction materials company with a portfolio of investments in the cement sector in South Africa.
The strategy of SepHold is to generate growth and realise value for shareholders through the production of cement and ready
mixed concrete in Southern Africa. The Company’s core investments are a 36% stake in Dangote Cement South Africa (Pty) Ltd
(Sephaku Cement) and 100% in Metier Mixed Concrete (Pty) Ltd.
www.sephakuholdings.com

Date: 12-10-2021 05:30:00
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