Hulamin’s update well received
HULAMIN shareholders appear to have received an operational update on Friday with open arms if the share price is anything to go by.
The Pietermaritzburgbased aluminium rolled product and extrusions company’s share price first climbed by 2,94% to R7 per share on Friday, the day the operational update was given.
Yesterday the share price was another 1,40% higher at R7,24, that’s more than six percent in a little over two trading days. In contrast the JSE All Share Index was down 0,30% by early yesterday afternoon.
The company also on Friday night became a joint runnerup in the Pietermaritzburg Chamber of Business’ Business of the Year competition, in the manufacturing category.
Hulamin provided some details of its operational update on its website.
Stock management had improved, use of its scrap metal units had increased and manufacturing costs had been reduced over the past 24 months.
The company consists primarily of two operations: Hulamin Rolled Products and Hulamin Extrusions.
Cost reduction targets for the financial year were being met — some R300 million in cost savings were being targeted over the medium term.
“The turnaround in the operational performance of the business during 2016 and 2017 has been notable, and we continue to build on these successes,” the group noted on its website.
On the manufacturing front, a record 18month performance was noted, process controls were strengthened, there was a focus on equipment reliability, safety, business improvement projects and on competency and capability development.
There had also been “rapid growth in scrap utilisation”, with scrap now comprising more than 20% of the input metal.
A more than 15% improvement in rolled product margin, in U.S. dollar/ton, was being targeted for the next five years.
Also under consideration, or being planned, were further equipment investments, such as precision machining equipment to integrate into the component market, new technology, alliances with international partners, and participation in the horizontal integration initiatives in Isizinda.
Isizinda Aluminium was established in 2014 by Bingelela Capital (with 60% shareholding) and Hulamin (with 40% shareholding). The company aims to be a preferred partner in the beneficiation of aluminium, through the creation of sustainable valueadded aluminium products.