SENS Note - 24 May 2010

Infrasors final results February 2010

Revenue declined to R211.5 million (R217.8 million) and profit from operating activities decreased to R34.9 million (R42.1 million). Net attributable profit remained almost stable at R30 million (R30.1 million). In addition, headline earnings from continuing operations fell to 14.2cps (16.4cps).

Outlook

The products and services supplied by Infrasors broadly form part of the industrial minerals supply chain and are directly and immediately affected by overall demand in the base minerals and manufacturing economy. Consequently Infrasors was directly and immediately affected by the demand slump which manifested in F2009 and continued in F2010. Infrasors is equally well-positioned to respond to the anticipated gradual upturn expected. The anticipated end of the recession in the South African economy and the lessening of global financial instability have resulted in the demand for Infrasors products beginning to increase. The latter is particularly noticeable with key clients in base metals industrial applications. Capital expenditure projects and plant refurbishments have been designed to expand production and reduce unit costs per ton mined and beneficiated at Lyttelton Dolomite and Delf Sand. These have been implemented enabling greater tonnage throughput per month once the economic recovery takes off.