Hulamin Limited (JSE:HLM) News - Trading Statement for the year ended 31 December 2021

HULAMIN LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1940/013924/06
JSE Code: HLM
ISIN: ZAE000096210
(“Hulamin” or “the Company”)


TRADING STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021

In terms of paragraph 3.4(b) of the JSE Limited Listings Requirements, Hulamin advises that there is a
reasonable degree of certainty that the financial results for the financial year to end 31 December
2021 will differ by at least 20% when compared with the published financial results for the financial
year ended 31 December 2020 as follows:

                               31 December 2021             Change from 2020 actual to            31 December 2020
                                          Expected                 2021 expected range                        Actual
    Loss per share              At least (60) cents        Improvement of at least 20%                 (75) cents per
                                          per share           (being 15 cents per share)                       share
    Headline loss per           At least (54) cents        Improvement of at least 20%                 (68) cents per
    share                                 per share           (being 14 cents per share)                       share
    Normalised headline         At least (72) cents        Improvement of at least 20%                 (91) cents per
    loss per share1                       per share           (being 19 cents per share)                       share

1 Normalised headline earnings per share is calculated in a consistent manner as per the latest annual financial statements,
by dividing normalised headline earnings by the weighted average number of ordinary shares in issue during the year.

Normalised headline earnings is defined as headline earnings excluding (i) metal price lag and (ii) material non-trading
expense or income items which, due to their irregular occurrence, are adjusted for in order to better present earnings
attributable to the ongoing activities of the group. The presentation of normalised headline earnings is not an IFRS
requirement and may not be directly comparable with the same or similar measures disclosed by other companies.


Due to the level of uncertainty between now and the finalisation of the financial results for the year
to end 31 December 2021, Hulamin is unable to provide a tighter range with the required level of
certainty. The Company will issue a further trading update in February 2022 when there is a greater
level of certainty regarding the range of the financial results to be reported on.

Hulamin experienced a subdued start to the year with the country in its second wave of COVID-19
infections, which resulted in further lockdown restrictions. Following their lifting during the first
quarter and the need to implement plant upgrades and execute biennial equipment maintenance, the
go-ahead was given for a 12-day maintenance shutdown that was successfully completed in late-
March 2021. The subsequent improvements laid the foundation for further operational performance
enhancements that have continued through to the fourth quarter. The business continues to ramp up
to full operational capacity. Hulamin achieved sales volumes of 102 000 tonnes in the first half of 2021
and expects the second half volumes to exceed those. This is despite the widespread public unrest
resulting in a 6-day plant closure in July and the subsequent and widely published Transnet cyber-
attack that disrupted Durban port operations for approximately 7 days in July. Both major operating
divisions, namely Hulamin Rolled Products and Hulamin Extrusions, have performed well in 2021 with
Hulamin Rolled Products benefitting from firm demand in most markets, stable and improving plant
performance, a rising London Metal Exchange aluminium price and a weaker currency in the second
half of the year. Earnings in both divisions are expected to be supported by metal price lag profits.

The financial information contained in this trading statement is the responsibility of the directors and
has not been reviewed or reported on by the Company’s external auditors.


Pietermaritzburg
14 December 2021


Sponsor
Questco Corporate Advisory Proprietary Limited

Date: 14-12-2021 12:08:00
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