PPC ap­proves $253 mil­lion rights is­sue

Chronicle (Zimbabwe) - - Business Chronicle -

RE­GIONAL ce­ment pro­ducer Pre­to­ria Port­land Ce­ment (PPC) says it “is fun­da­men­tally strong and prof­itable with a solid op­er­at­ing base” and is on track to com­plete its projects in Zim­babwe, DRC and Ethiopia.

Chief ex­ec­u­tive Dar­ryll Cas­tle told share­hold­ers at the com­pany’s ex­traor­di­nary gen­eral meet­ing in Jo­han­nes­burg last week Monday — at which share­hold­ers ap­proved PPC’s pro­posed R4 bil­lion ($253 mil­lion) rights is­sue unan­i­mously — that the com­pany has ap­pro­pri­ate plans in place to nav­i­gate the cur­rent eco­nomic land­scape by driv­ing cost ef­fi­cien­cies.

“PPC is fun­da­men­tally strong and prof­itable with a solid op­er­at­ing base. I am con­fi­dent that we have the ap­pro­pri­ate plans in place to nav­i­gate the cur­rent eco­nomic land­scape by driv­ing cost ef­fi­cien­cies and lever­ag­ing our ca­pa­bil­i­ties to achieve op­er­a­tional ex­cel­lence,” Cas­tle said.

“We are on track to com­plete our size­able projects in the DRC, Ethiopia and Zim­babwe which, in the medium-term, will start to con­trib­ute to PPC´s rev­enue stream.”

Com­ment­ing on the rights is­sue, Cas­tle said it was “a pleas­ing re­sult for PPC” and it placed them firmly on a path to re­solv­ing their im­me­di­ate liq­uid­ity chal­lenges as well as en­abling them to pur­sue their cor­po­rate strat­egy.

PPC is con­struct­ing a $75 mil­lion plant in Harare, which will have ca­pac­ity to pro­duce 680 000 tonnes an­nu­ally, which is due to come on­line later this year.

The cap­i­tal raise move is part of a strat­egy to re­view its bal­ance sheet to pay off debts due this year and next year, which it said would put it in good stead to ex­e­cute its plans.

PPC’s only ce­ment plant in Zim­babwe, lo­cated in Bu­l­awayo, pro­duced around 600 000 tonnes of ce­ment last year while op­er­at­ing at 75 per­cent of in­stalled ca­pac­ity.

The group also has a lime clinker plant in Colleen Bawn in Mata­bele­land South but the bulk of its ce­ment mar­ket is in Harare. — The Source.

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