<%If instr(currentUrl, "default.htm/") > 0 then%>
• Home
<%end if%> <%If instr(currentUrl, "commentary/") > 0 then%>
• Commentary
<%end if%> <%If instr(currentUrl, "financials/") > 0 then%>
• Financial Statements
  • CONDENSED INCOME STATEMENT
  • CONDENSED BALANCE SHEET
  • CONDENSED STATEMENT OF COMPREHENSIVE INCOME
  • CONDENSED STATEMENT OF CHANGES IN EQUITY
  • CONDENSED CASH FLOW STATEMENT
  • NOTES
<%end if%> <%If instr(currentUrl, "information/") > 0 then%>
• CORPORATE INFORMATION
<%end if%>

COMMENTARY

Hulamin’s improving operational performance continued in the first half of 2011, resulting in increased production and therefore sales volumes, as well as reduced unit costs.

Sales of rolled products for the first half of 2011 saw an increase of 22% to 208 000 tons annualised compared to 170 000 tons in the comparative period. Rolling margins in US Dollars continued to improve driven by increases in both sales of high value products and market prices. Turnover grew to R3,4 billion, an increase of 24% over the comparative period.

The Rand continued to strengthen against the US Dollar and averaged R6,91 in the reporting period, 8% stronger than the average of R7,54 in the first half of 2010. The profi t impact of this strengthening of the Rand off-set much of the operational improvements achieved.

An insurance settlement of R26 million (after tax) arising from a breakdown of the Camps Drift Hot Mill in 2009 contributed to the 167% increase in headline earnings to R71 million.

Hulamin’s order book remains healthy as a result of solid demand. Local sales showed a modest recovery, with the exception of the building and construction sector, which has continued to constrain sales of extrusions, as have ongoing low priced imports. Hulamin Extrusions is due to close the Cape Town extrusion plant at the end of September.

The R75 million project to increase rolling slab capacity in Pietermaritzburg was completed during the second quarter and is being ramped up to full capacity. Discussions continue with BHP Billiton on the supply of rolling slab beyond June 2012.

In the second half of 2011, prospects have been tempered by weaker demand in Europe and the USA, disruption of LP gas supply and the impact of the SEIFSA strike at local customers.

The above information has not been reviewed and reported on by the company’s external auditors.

Hulamin is pleased to announce the appointment of Messrs Gerrit Pretorius and Geoff Watson as independent non-executive directors with effect from 1 August 2011. Mr Pretorius is a former CEO of Reunert Limited and has 37 years’ experience in South African manufacturing. Mr Watson has held numerous senior executive positions in the aluminium rolling and steel industries, having spent the majority of his career with Alcoa Rolled Products in Australia and China.

21 July 2011