1EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
INVESTOR AGANANG SITE VISIT PRESENTATION : 31 MARCH 2015
AGANANG SITE VISIT PRESENTATION : 31 MARCH 2015
2EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
DISCLAIMER
This presentation includes certain forward-looking information. All statements other than statements of historical fact are, or may
be deemed to be, forward-looking statements, including, without limitation, those concerning: Sephaku Holdings’ strategy; the
economic outlook for the industry; production; cash costs and other operating results; growth prospects and outlook for Sephaku
Holdings’ operations, individually or in the aggregate; liquidity and capital resources and expenditure; and the outcome and
consequences of any pending litigation proceedings. These forward-looking statements are not based on historical facts, but
rather reflect Sephaku Holdings’ current expectations concerning future results and events and generally may be identified by the
use of forward-looking words or phrases such as “believe”, “aim”, “expect”, “anticipate”, “intend”, “foresee”, “forecast”, “likely”,
“should”, “planned”, “may”, “estimated”, “potential” or similar words and phrases. Similarly, statements concerning Sephaku
Holdings’ objectives, plans or goals are or may be forward-looking statements. These forward-looking statements involve known
and unknown risks, uncertainties and other factors that may affect Sephaku Holdings’ actual results, performance or
achievements expressed or implied by these forward-looking statements. Although Sephaku Holdings believes that the
expectations reflected in these forward-looking statements are reasonable, no assurance can be given that such expectations will
prove to have been correct.
3EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
AGENDA
The SepCem group
FY14 highlights
Cement industry overview
Plant technology & efficiencies
Integrated plant configuration
Quality control
Delmas & SepAsh
Delmas plant performance
SepAsh
Sephaku Holdings Overview
Group performance update
Share price performance
Conclusion
4EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
SEPHAKU CEMENT GROUP
Above: Aganang integrated plant Below: Delmas milling plant
5EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
THE SEPHAKU HOLDINGS STRUCTURE
6EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
OVERVIEW - LOCATION OF ASSETS
Aganang Integrated Plant
Delmas Grinding Plant
Kendal Ash Plant
Dwaalboom Project
Metier Concrete Plants
Note: Project locations not exact but indicative for illustrative purposes
7EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
Revenue at approximately R919 million:
Q4 revenue at cR405 million mainly due to the commencement of production at Aganang in October
2014
– SepCem gaining market share in all key inland markets in the retail sector
Bag market entry successful with the SepCem brand being distributed by the four major retailers
– Highly experienced sales team has managed to increase brand presence in all market segments including the
rural areas
Combined annualised capacity utilisation at over 60% at Delmas and Aganang
Anticipate to be at steady state capacity utilisation by end of Q2 CY2015
Internally produced clinker has significantly improved variable cost efficiencies by 50%
SEPCEM FY 2014 SALIENT POINTS
NB – FY2014 period to end of December 2014
8EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
SEPCEM INCREASES PRESENCE IN THE INLAND
MARKETS
55 000
206 000
515 000
919 000
0
200 000
400 000
600 000
800 000
1000 000
Q1 2014 Q2 2014 Q3 2014 Q4 2014
Cum
ula
tive
reve
nu
e (
R0
00
)
Cumulative quarterly sales FY 2014
Revenue increased at 25% quarterly compound rate as SepCem penetrated the market
9EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
SEPCEM EBITDA EVOLUTION FY 2014
-35 -2
15
26
-40
-30
-20
-10
0
10
20
30
Q1 Q2 Q3 Q4
EBITDA %
EBITDA evolution a reflection of increasing sales volumes
Targeting a margin 8 – 10% higher than industry average at steady state
Q4 margin comparative to industry average in spite of volume not fully ramped up
10EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
CEMENT INDUSTRY OVERVIEW
11EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
Sources: ¹SepCem research.
Annual cement demand growth in developing countries typically increases at 1,5% above GDP
SepCem’s long-term demand growth projection for SA between 4% and 4,5%¹
Demand growth may exceed capacity in 5 years times based on clinker production
Possibility of inefficient capacity retired as entrants introduce highly efficient modern technology
Major producers’ passive response to imports enabling growth of import volumes particularly in coastal
markets
Introduction of capacity of 1mtpa from a new entrant expected to place additional pressure on producers
with older capacity
One major producer emerging from considerable leadership turmoil whilst another fraught with kiln
reliability problems which have had a significant impact on their sales performance
The market has widely and positively accepted SepCem as a mainstream cement player which is borne
out by inter alia, the number of accounts and delivery points achieved by the end of 2014
SepCem has had excellent penetration in the retail sector particularly with the major retail groups
SepCem remains very well positioned to further entrench itself as a formidable cement player in South
Africa
INDUSTRY ANALYSIS
12EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
INDUSTRY CAPACITY ANALYSIS BASED ON
CLINKER PRODUCTION
Cement production capacity determined by kiln capacity (multiplied by c/k ratio) instead of milling capacity
Capacity largely determined by the product mix
A new producer targeting entry early CY2016
Assumption that growth in imports in 2015 will be at 5% if :
ITAC dumping probe outcome is further delayed and coastal producers remain passive Source: Sephaku Cement research – 2015.
2015 2016 2017 2018 2019
Producer A 2 21 2 171 823 2 171 823 2 171 823 2 171 823 2 171 823
Producer B 3 38 3 947 931 3 947 931 3 947 931 3 947 931 3 947 931
Producer C 10 39 5 141 244 5 141 244 5 141 244 5 141 244 5 141 244
Producer D 2 20 1 818 545 1 818 545 1 818 545 1 818 545 1 818 545
Sephaku 1 1 2 606 100 2 606 100 2 606 100 2 606 100 2 606 100
New Entrant - 503 381 1 006 761 1 006 761 1 006 761
Sub total 18 33 15 685 643 16 189 024 16 692 405 16 692 405 16 692 405
Imports 1 419 600 1 419 600 1 419 600 1 419 600 1 419 600
Total 17 105 243 17 608 624 18 112 005 18 112 005 18 112 005
Estimated Cement demand 14 937 865 15 522 530 16 132 482 16 768 814 17 432 667
% of capacity utlised 87.3% 88.2% 89.1% 92.6% 96.2%
Company
No of
operating
Kilns
Average age
of operating
Kilns
Annual estimated max cement production
13EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
OUR PRODUCTS ALWAYS GET TO THE MARKET
Production of 32.5 R cement at
Delmas plant
Production of 32.5 R cement at
Delmas plant
14EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
SEPCEM’S COMPETITIVE EDGE
Minimal maintenance
• Low costs due to brand new plants
High energy efficiency
• Guaranteed 97.5 kWh/tonne utilisation
• Relative cost saving of 25 - 30%
Logistical advantage
• Delmas plant proximity to Gauteng
• Return load cost advantages between the
two plants
Consistent cement quality
• Critical characteristic for penetrating the
bulk market
Inland market focus
• Coastal margins being impacted
by imports
Low environmental impact
• Low particle emissions of approximately
30mg/Nm³
15EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
CUSTOMER CENTRIC SALES FOCUS
SAP system was installed prior to market entry
Fully integrated contact centre for centralised order placement and logistical planning
Integrated despatch system at both plants, with weighbridges and out-loading systems
Full sales staff complement based at Centurion and in the regions, to sell, support and maintain
customer needs and relationships
Technical support and customer laboratory established at Delmas
To assist all customers requiring technical assistance
16EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
MODERN PLANT TECHNOLOGY & EFFICIENCIES
17EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
CEMENT PLANT TECHNOLOGY OVERVIEW
Global trends towards reduction of carbon footprint
Reduction of carbon footprint generally through:
Improved electrical energy efficiency
Improved thermal energy efficiency
Use of renewable energy sources
Use of cement extenders maximised by using more reactive clinker
SepCem well positioned in South Africa regarding above due to:
Latest technology employed
Highly automated , state of the art kiln
18EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
INTEGRATED CEMENT PLANT CONFIGURATION
Sephaku Development (Pty) Ltd
AGANANG MINING OPERATION
Sephaku Cement (Pty) Ltd
AGANANG MANUFACTURING OPERATION
2.702
Raw Meal
Blending Silo20 000 t
Quality Assurance
tph
tpd Capacity (Tons per day)
LEGEND
Mass Metering
Air Quality Control
Capacity (Tons per hour)
tpa Capacity (Tons per annum)
Limestone Quarry
Total limestone mineed = 3 Mtpa
ImpactCrusher
1200 tph1400 tph
140 ktpa 2860 ktpaBlended Limestone Stockpiles
2 x 50 000 t
Magnetite Stockpile
2 000 t
Bauxite / Alumina slag Stockpile
6 000 t
4 000 t
Bottoms ash Stockpile
46 ktpa
60 ktpa
2860 ktpa
Raw Mill 450 tph
2840 Mtpa
Pre-
Calci
ner
Main Bag Filter
Main kiln
Stack
Waste Gas FanRotary Cement Kiln
Clinker Grate Cooler
Pulverised Coal
Coal Mill Filter
Coal Mill
Raw Coal
hoppers
Coal Stockpiles2 x 15 000 t
2 x 100 t
50 tph
140 ktpa114 ktpa
6000 tpd
1865 ktpa
Clinker Storage
885 ktpa
240 ktpa
81 ktpa
limestone / pozz-sand
Gypsum
Clinker to Delmas Grinding plant
980 ktpa
Cement Mill
155 tph
Cement Mill Bag Filter
Packers / Palletisers
2 x 120 tph
Bulk Cement Storage
10 00
0 ton
Bagged Cement60-70%
Bulk Cement30-40%
Aganang Total Cement Sales
1.2 Mtpa
2 000
ton
32 ktpa
Cooler bag
filter
Cooler Stack
5
50 000 ton
4
3
2
1 1
10 00
0 ton
Coal Mill Stack
Raw materials from third-party suppliers by road transportCoal from third-party supplier by road transport
QUARRYING
19EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
LIMESTONE OPENCAST QUARRY
Limestone mine (North West)
Situated adjacent to the Aganang plant with an expected life of mine at 30 years
Limestone is mined opencast at a rate of 1.6 for 1.0 million tonnes of clinker
Extensive quality control in conducted on the drilling of reserves and real-time quality control on
run-of-mine material as it passes through the crushing circuit
20EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
INTEGRATED CEMENT PLANT CONFIGURATION
Sephaku Development (Pty) Ltd
AGANANG MINING OPERATION
Sephaku Cement (Pty) Ltd
AGANANG MANUFACTURING OPERATION
2.702
Raw Meal
Blending Silo20 000 t
Quality Assurance
tph
tpd Capacity (Tons per day)
LEGEND
Mass Metering
Air Quality Control
Capacity (Tons per hour)
tpa Capacity (Tons per annum)
Limestone Quarry
Total limestone mineed = 3 Mtpa
ImpactCrusher
1200 tph1400 tph
140 ktpa 2860 ktpaBlended Limestone Stockpiles
2 x 50 000 t
Magnetite Stockpile
2 000 t
Bauxite / Alumina slag Stockpile
6 000 t
4 000 t
Bottoms ash Stockpile
46 ktpa
60 ktpa
2860 ktpa
Raw Mill 450 tph
2840 Mtpa
Pre-
Calci
ner
Main Bag Filter
Main kiln
Stack
Waste Gas FanRotary Cement Kiln
Clinker Grate Cooler
Pulverised Coal
Coal Mill Filter
Coal Mill
Raw Coal
hoppers
Coal Stockpiles2 x 15 000 t
2 x 100 t
50 tph
140 ktpa114 ktpa
6000 tpd
1865 ktpa
Clinker Storage
885 ktpa
240 ktpa
81 ktpa
limestone / pozz-sand
Gypsum
Clinker to Delmas Grinding plant
980 ktpa
Cement Mill
155 tph
Cement Mill Bag Filter
Packers / Palletisers
2 x 120 tph
Bulk Cement Storage
10 00
0 ton
Bagged Cement60-70%
Bulk Cement30-40%
Aganang Total Cement Sales
1.2 Mtpa
2 000
ton
32 ktpa
Cooler bag
filter
Cooler Stack
5
50 000 ton
4
3
2
1 1
10 00
0 ton
Coal Mill Stack
Raw materials from third-party suppliers by road transportCoal from third-party supplier by road transport
CRUSHING
21EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
LIMESTONE CRUSHER BUILDING
Latest generation primary impact - crusher
Latest limestone roller-screening technology - beneficiation
Supplied by Hazemag : Germany
22EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
HAZEMAG PRIMARY IMPACTOR CRUSHER FOR
LIMESTONE (AP-PM 2022)
23EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
INTEGRATED CEMENT PLANT CONFIGURATION
Sephaku Development (Pty) Ltd
AGANANG MINING OPERATION
Sephaku Cement (Pty) Ltd
AGANANG MANUFACTURING OPERATION
2.702
Raw Meal
Blending Silo20 000 t
Quality Assurance
tph
tpd Capacity (Tons per day)
LEGEND
Mass Metering
Air Quality Control
Capacity (Tons per hour)
tpa Capacity (Tons per annum)
Limestone Quarry
Total limestone mineed = 3 Mtpa
ImpactCrusher
1200 tph1400 tph
140 ktpa 2860 ktpaBlended Limestone Stockpiles
2 x 50 000 t
Magnetite Stockpile
2 000 t
Bauxite / Alumina slag Stockpile
6 000 t
4 000 t
Bottoms ash Stockpile
46 ktpa
60 ktpa
2860 ktpa
Raw Mill 450 tph
2840 Mtpa
Pre-
Calci
ner
Main Bag Filter
Main kiln
Stack
Waste Gas FanRotary Cement Kiln
Clinker Grate Cooler
Pulverised Coal
Coal Mill Filter
Coal Mill
Raw Coal
hoppers
Coal Stockpiles2 x 15 000 t
2 x 100 t
50 tph
140 ktpa114 ktpa
6000 tpd
1865 ktpa
Clinker Storage
885 ktpa
240 ktpa
81 ktpa
limestone / pozz-sand
Gypsum
Clinker to Delmas Grinding plant
980 ktpa
Cement Mill
155 tph
Cement Mill Bag Filter
Packers / Palletisers
2 x 120 tph
Bulk Cement Storage
10 00
0 ton
Bagged Cement60-70%
Bulk Cement30-40%
Aganang Total Cement Sales
1.2 Mtpa
2 000
ton
32 ktpa
Cooler bag
filter
Cooler Stack
5
50 000 ton
4
3
2
1 1
10 00
0 ton
Coal Mill Stack
Raw materials from third-party suppliers by road transportCoal from third-party supplier by road transport
RAW MILLING
24EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
RAW MILL BUILDING
Vertical roller mills throughout the plant for raw, coal and cement milling
Supplied by Loesche – Germany
25EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
LOESCHE LM 56.4 VERTICAL ROLLER MILL
26EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
INTEGRATED CEMENT PLANT CONFIGURATION
Sephaku Development (Pty) Ltd
AGANANG MINING OPERATION
Sephaku Cement (Pty) Ltd
AGANANG MANUFACTURING OPERATION
2.702
Raw Meal
Blending Silo20 000 t
Quality Assurance
tph
tpd Capacity (Tons per day)
LEGEND
Mass Metering
Air Quality Control
Capacity (Tons per hour)
tpa Capacity (Tons per annum)
Limestone Quarry
Total limestone mineed = 3 Mtpa
ImpactCrusher
1200 tph1400 tph
140 ktpa 2860 ktpaBlended Limestone Stockpiles
2 x 50 000 t
Magnetite Stockpile
2 000 t
Bauxite / Alumina slag Stockpile
6 000 t
4 000 t
Bottoms ash Stockpile
46 ktpa
60 ktpa
2860 ktpa
Raw Mill 450 tph
2840 Mtpa
Pre-
Calci
ner
Main Bag Filter
Main kiln
Stack
Waste Gas FanRotary Cement Kiln
Clinker Grate Cooler
Pulverised Coal
Coal Mill Filter
Coal Mill
Raw Coal
hoppers
Coal Stockpiles2 x 15 000 t
2 x 100 t
50 tph
140 ktpa114 ktpa
6000 tpd
1865 ktpa
Clinker Storage
885 ktpa
240 ktpa
81 ktpa
limestone / pozz-sand
Gypsum
Clinker to Delmas Grinding plant
980 ktpa
Cement Mill
155 tph
Cement Mill Bag Filter
Packers / Palletisers
2 x 120 tph
Bulk Cement Storage
10 00
0 ton
Bagged Cement60-70%
Bulk Cement30-40%
Aganang Total Cement Sales
1.2 Mtpa
2 000
ton
32 ktpa
Cooler bag
filter
Cooler Stack
5
50 000 ton
4
3
2
1 1
10 00
0 ton
Coal Mill Stack
Raw materials from third-party suppliers by road transportCoal from third-party supplier by road transport
PREHEATING
27EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
SINOMA 5-STAGE PREHEATER / CALCINER
Latest pyro-processing technology : air – separate
pre-calciner kiln with a 5-STAGE preheater
28EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
INTEGRATED CEMENT PLANT CONFIGURATION
Sephaku Development (Pty) Ltd
AGANANG MINING OPERATION
Sephaku Cement (Pty) Ltd
AGANANG MANUFACTURING OPERATION
2.702
Raw Meal
Blending Silo20 000 t
Quality Assurance
tph
tpd Capacity (Tons per day)
LEGEND
Mass Metering
Air Quality Control
Capacity (Tons per hour)
tpa Capacity (Tons per annum)
Limestone Quarry
Total limestone mineed = 3 Mtpa
ImpactCrusher
1200 tph1400 tph
140 ktpa 2860 ktpaBlended Limestone Stockpiles
2 x 50 000 t
Magnetite Stockpile
2 000 t
Bauxite / Alumina slag Stockpile
6 000 t
4 000 t
Bottoms ash Stockpile
46 ktpa
60 ktpa
2860 ktpa
Raw Mill 450 tph
2840 Mtpa
Pre-
Calci
ner
Main Bag Filter
Main kiln
Stack
Waste Gas FanRotary Cement Kiln
Clinker Grate Cooler
Pulverised Coal
Coal Mill Filter
Coal Mill
Raw Coal
hoppers
Coal Stockpiles2 x 15 000 t
2 x 100 t
50 tph
140 ktpa114 ktpa
6000 tpd
1865 ktpa
Clinker Storage
885 ktpa
240 ktpa
81 ktpa
limestone / pozz-sand
Gypsum
Clinker to Delmas Grinding plant
980 ktpa
Cement Mill
155 tph
Cement Mill Bag Filter
Packers / Palletisers
2 x 120 tph
Bulk Cement Storage
10 00
0 ton
Bagged Cement60-70%
Bulk Cement30-40%
Aganang Total Cement Sales
1.2 Mtpa
2 000
ton
32 ktpa
Cooler bag
filter
Cooler Stack
5
50 000 ton
4
3
2
1 1
10 00
0 ton
Coal Mill Stack
Raw materials from third-party suppliers by road transportCoal from third-party supplier by road transport
BURNING
29EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
SINOMA KILN (5.4 X 72)
Latest generation high-impulse multi-channel burner
Supplied by Pillard - France
30EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
INTEGRATED CEMENT PLANT CONFIGURATION
Sephaku Development (Pty) Ltd
AGANANG MINING OPERATION
Sephaku Cement (Pty) Ltd
AGANANG MANUFACTURING OPERATION
2.702
Raw Meal
Blending Silo20 000 t
Quality Assurance
tph
tpd Capacity (Tons per day)
LEGEND
Mass Metering
Air Quality Control
Capacity (Tons per hour)
tpa Capacity (Tons per annum)
Limestone Quarry
Total limestone mineed = 3 Mtpa
ImpactCrusher
1200 tph1400 tph
140 ktpa 2860 ktpaBlended Limestone Stockpiles
2 x 50 000 t
Magnetite Stockpile
2 000 t
Bauxite / Alumina slag Stockpile
6 000 t
4 000 t
Bottoms ash Stockpile
46 ktpa
60 ktpa
2860 ktpa
Raw Mill 450 tph
2840 Mtpa
Pre-
Calci
ner
Main Bag Filter
Main kiln
Stack
Waste Gas FanRotary Cement Kiln
Clinker Grate Cooler
Pulverised Coal
Coal Mill Filter
Coal Mill
Raw Coal
hoppers
Coal Stockpiles2 x 15 000 t
2 x 100 t
50 tph
140 ktpa114 ktpa
6000 tpd
1865 ktpa
Clinker Storage
885 ktpa
240 ktpa
81 ktpa
limestone / pozz-sand
Gypsum
Clinker to Delmas Grinding plant
980 ktpa
Cement Mill
155 tph
Cement Mill Bag Filter
Packers / Palletisers
2 x 120 tph
Bulk Cement Storage
10 00
0 ton
Bagged Cement60-70%
Bulk Cement30-40%
Aganang Total Cement Sales
1.2 Mtpa
2 000
ton
32 ktpa
Cooler bag
filter
Cooler Stack
5
50 000 ton
4
3
2
1 1
10 00
0 ton
Coal Mill Stack
Raw materials from third-party suppliers by road transportCoal from third-party supplier by road transport
COOLING
31EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
IKN PENDULUM COOLER
Latest generation pendulum – grate cooler
Supplied by IKN – Germany
32EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
INTEGRATED CEMENT PLANT CONFIGURATION
Sephaku Development (Pty) Ltd
AGANANG MINING OPERATION
Sephaku Cement (Pty) Ltd
AGANANG MANUFACTURING OPERATION
2.702
Raw Meal
Blending Silo20 000 t
Quality Assurance
tph
tpd Capacity (Tons per day)
LEGEND
Mass Metering
Air Quality Control
Capacity (Tons per hour)
tpa Capacity (Tons per annum)
Limestone Quarry
Total limestone mineed = 3 Mtpa
ImpactCrusher
1200 tph1400 tph
140 ktpa 2860 ktpaBlended Limestone Stockpiles
2 x 50 000 t
Magnetite Stockpile
2 000 t
Bauxite / Alumina slag Stockpile
6 000 t
4 000 t
Bottoms ash Stockpile
46 ktpa
60 ktpa
2860 ktpa
Raw Mill 450 tph
2840 Mtpa
Pre-
Calci
ner
Main Bag Filter
Main kiln
Stack
Waste Gas FanRotary Cement Kiln
Clinker Grate Cooler
Pulverised Coal
Coal Mill Filter
Coal Mill
Raw Coal
hoppers
Coal Stockpiles2 x 15 000 t
2 x 100 t
50 tph
140 ktpa114 ktpa
6000 tpd
1865 ktpa
Clinker Storage
885 ktpa
240 ktpa
81 ktpa
limestone / pozz-sand
Gypsum
Clinker to Delmas Grinding plant
980 ktpa
Cement Mill
155 tph
Cement Mill Bag Filter
Packers / Palletisers
2 x 120 tph
Bulk Cement Storage
10 00
0 ton
Bagged Cement60-70%
Bulk Cement30-40%
Aganang Total Cement Sales
1.2 Mtpa
2 000
ton
32 ktpa
Cooler bag
filter
Cooler Stack
5
50 000 ton
4
3
2
1 1
10 00
0 ton
Coal Mill Stack
Raw materials from third-party suppliers by road transportCoal from third-party supplier by road transport
STORAGE
34EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
INTEGRATED CEMENT PLANT CONFIGURATION
Sephaku Development (Pty) Ltd
AGANANG MINING OPERATION
Sephaku Cement (Pty) Ltd
AGANANG MANUFACTURING OPERATION
2.702
Raw Meal
Blending Silo20 000 t
Quality Assurance
tph
tpd Capacity (Tons per day)
LEGEND
Mass Metering
Air Quality Control
Capacity (Tons per hour)
tpa Capacity (Tons per annum)
Limestone Quarry
Total limestone mineed = 3 Mtpa
ImpactCrusher
1200 tph1400 tph
140 ktpa 2860 ktpaBlended Limestone Stockpiles
2 x 50 000 t
Magnetite Stockpile
2 000 t
Bauxite / Alumina slag Stockpile
6 000 t
4 000 t
Bottoms ash Stockpile
46 ktpa
60 ktpa
2860 ktpa
Raw Mill 450 tph
2840 Mtpa
Pre-
Calci
ner
Main Bag Filter
Main kiln
Stack
Waste Gas FanRotary Cement Kiln
Clinker Grate Cooler
Pulverised Coal
Coal Mill Filter
Coal Mill
Raw Coal
hoppers
Coal Stockpiles2 x 15 000 t
2 x 100 t
50 tph
140 ktpa114 ktpa
6000 tpd
1865 ktpa
Clinker Storage
885 ktpa
240 ktpa
81 ktpa
limestone / pozz-sand
Gypsum
Clinker to Delmas Grinding plant
980 ktpa
Cement Mill
155 tph
Cement Mill Bag Filter
Packers / Palletisers
2 x 120 tph
Bulk Cement Storage
10 00
0 ton
Bagged Cement60-70%
Bulk Cement30-40%
Aganang Total Cement Sales
1.2 Mtpa
2 000
ton
32 ktpa
Cooler bag
filter
Cooler Stack
5
50 000 ton
4
3
2
1 1
10 00
0 ton
Coal Mill Stack
Raw materials from third-party suppliers by road transportCoal from third-party supplier by road transport
FINISH GRIND
36EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
LOESCHE LM 53.3 + 3 VERTICAL ROLLER MILL
37EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
INTEGRATED CEMENT PLANT CONFIGURATION
Sephaku Development (Pty) Ltd
AGANANG MINING OPERATION
Sephaku Cement (Pty) Ltd
AGANANG MANUFACTURING OPERATION
2.702
Raw Meal
Blending Silo20 000 t
Quality Assurance
tph
tpd Capacity (Tons per day)
LEGEND
Mass Metering
Air Quality Control
Capacity (Tons per hour)
tpa Capacity (Tons per annum)
Limestone Quarry
Total limestone mineed = 3 Mtpa
ImpactCrusher
1200 tph1400 tph
140 ktpa 2860 ktpaBlended Limestone Stockpiles
2 x 50 000 t
Magnetite Stockpile
2 000 t
Bauxite / Alumina slag Stockpile
6 000 t
4 000 t
Bottoms ash Stockpile
46 ktpa
60 ktpa
2860 ktpa
Raw Mill 450 tph
2840 Mtpa
Pre-
Calci
ner
Main Bag Filter
Main kiln
Stack
Waste Gas FanRotary Cement Kiln
Clinker Grate Cooler
Pulverised Coal
Coal Mill Filter
Coal Mill
Raw Coal
hoppers
Coal Stockpiles2 x 15 000 t
2 x 100 t
50 tph
140 ktpa114 ktpa
6000 tpd
1865 ktpa
Clinker Storage
885 ktpa
240 ktpa
81 ktpa
limestone / pozz-sand
Gypsum
Clinker to Delmas Grinding plant
980 ktpa
Cement Mill
155 tph
Cement Mill Bag Filter
Packers / Palletisers
2 x 120 tph
Bulk Cement Storage
10 00
0 ton
Bagged Cement60-70%
Bulk Cement30-40%
Aganang Total Cement Sales
1.2 Mtpa
2 000
ton
32 ktpa
Cooler bag
filter
Cooler Stack
5
50 000 ton
4
3
2
1 1
10 00
0 ton
Coal Mill Stack
Raw materials from third-party suppliers by road transportCoal from third-party supplier by road transport
PACKAGING
38EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
2X VENTOMATIC 8-SPOUT ROTARY PACKERS
39EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
2X VENTOMATIC PALLETIZERS
40EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
2X BOCEDI STRETCH HOOD MACHINES
41EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
INTEGRATED CEMENT PLANT CONFIGURATION
Sephaku Development (Pty) Ltd
AGANANG MINING OPERATION
Sephaku Cement (Pty) Ltd
AGANANG MANUFACTURING OPERATION
2.702
Raw Meal
Blending Silo20 000 t
Quality Assurance
tph
tpd Capacity (Tons per day)
LEGEND
Mass Metering
Air Quality Control
Capacity (Tons per hour)
tpa Capacity (Tons per annum)
Limestone Quarry
Total limestone mineed = 3 Mtpa
ImpactCrusher
1200 tph1400 tph
140 ktpa 2860 ktpaBlended Limestone Stockpiles
2 x 50 000 t
Magnetite Stockpile
2 000 t
Bauxite / Alumina slag Stockpile
6 000 t
4 000 t
Bottoms ash Stockpile
46 ktpa
60 ktpa
2860 ktpa
Raw Mill 450 tph
2840 Mtpa
Pre-
Calci
ner
Main Bag Filter
Main kiln
Stack
Waste Gas FanRotary Cement Kiln
Clinker Grate Cooler
Pulverised Coal
Coal Mill Filter
Coal Mill
Raw Coal
hoppers
Coal Stockpiles2 x 15 000 t
2 x 100 t
50 tph
140 ktpa114 ktpa
6000 tpd
1865 ktpa
Clinker Storage
885 ktpa
240 ktpa
81 ktpa
limestone / pozz-sand
Gypsum
Clinker to Delmas Grinding plant
980 ktpa
Cement Mill
155 tph
Cement Mill Bag Filter
Packers / Palletisers
2 x 120 tph
Bulk Cement Storage
10 00
0 ton
Bagged Cement60-70%
Bulk Cement30-40%
Aganang Total Cement Sales
1.2 Mtpa
2 000
ton
32 ktpa
Cooler bag
filter
Cooler Stack
5
50 000 ton
4
3
2
1 1
10 00
0 ton
Coal Mill Stack
Raw materials from third-party suppliers by road transportCoal from third-party supplier by road transport
42EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
BULK CEMENT LOADING AND DESPATCH
43EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
INTEGRATED CEMENT PLANT CONFIGURATION
Sephaku Development (Pty) Ltd
AGANANG MINING OPERATION
Sephaku Cement (Pty) Ltd
AGANANG MANUFACTURING OPERATION
2.702
Raw Meal
Blending Silo20 000 t
Quality Assurance
tph
tpd Capacity (Tons per day)
LEGEND
Mass Metering
Air Quality Control
Capacity (Tons per hour)
tpa Capacity (Tons per annum)
Limestone Quarry
Total limestone mineed = 3 Mtpa
ImpactCrusher
1200 tph1400 tph
140 ktpa 2860 ktpaBlended Limestone Stockpiles
2 x 50 000 t
Magnetite Stockpile
2 000 t
Bauxite / Alumina slag Stockpile
6 000 t
4 000 t
Bottoms ash Stockpile
46 ktpa
60 ktpa
2860 ktpa
Raw Mill 450 tph
2840 Mtpa
Pre-
Calci
ner
Main Bag Filter
Main kiln
Stack
Waste Gas FanRotary Cement Kiln
Clinker Grate Cooler
Pulverised Coal
Coal Mill Filter
Coal Mill
Raw Coal
hoppers
Coal Stockpiles2 x 15 000 t
2 x 100 t
50 tph
140 ktpa114 ktpa
6000 tpd
1865 ktpa
Clinker Storage
885 ktpa
240 ktpa
81 ktpa
limestone / pozz-sand
Gypsum
Clinker to Delmas Grinding plant
980 ktpa
Cement Mill
155 tph
Cement Mill Bag Filter
Packers / Palletisers
2 x 120 tph
Bulk Cement Storage
10 00
0 ton
Bagged Cement60-70%
Bulk Cement30-40%
Aganang Total Cement Sales
1.2 Mtpa
2 000
ton
32 ktpa
Cooler bag
filter
Cooler Stack
5
50 000 ton
4
3
2
1 1
10 00
0 ton
Coal Mill Stack
Raw materials from third-party suppliers by road transportCoal from third-party supplier by road transport
46EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
STATE-OF-THE ART QUALITY CONTROL
Product consistency is of paramount importance
SepCem achieves this through:
• Single limestone source (consistent
chemistry)
• On-line chemical analyses of crusher product
(PGNA-technology)
• Consistent raw material additives
• Automated sampling, sample transport and
analyses by XRF/XRD
• Robo-lab technology
Further development during 2015/16 using:
• Use of expert control systems on cement
milling
• Use of expert control systems on kiln burningAutomatic sampler of clinker
47EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
PGNA ON-LINE ANALYSER OF LIMESTONE
48EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
AUTOMATIC SAMPLE TRANSPORT SYSTEMS
50EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
AUTOMATIC SAMPLE RECEIVING STATION
51EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
DELMAS MILLING AND SEPHAKU ASH PLANTS
52EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
DELMAS CEMENT PLANT CONFIGURATION
DELMAS OPERATION
Cement Mill
155 tph
Cement Mill
Bag Filter
Packers / Palletisers
2 x 120 tph
Feed proportioning
Clinker from Aganang
980 ktpa
Gypsum
80 ktpa
Fly Ash from Kendal
480 ktpa
Clinker Storage
Bulk Cement
400 ktpa
Bagged Cement
1 100 ktpaQuality Assurance
tph
tpd Capacity (Tons per day)
LEGEND
Mass Metering
Air Quality Control
Capacity (Tons per hour)
tpa Capacity (Tons per annum)
30 000 tonCement mill stack
1 0
00
to
n
1 0
00
to
n
Fly ash mixing screw
10
00
0 t
on
10
00
0 t
on
2 0
00
to
n
Bulk Cement Storage
Delmas Total Cement Sales
1.5 Mtpa
53EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
DELMAS STELLAR PERFORMANCE IN SPITE OF
SLOW START
Delmas is in close proximity to SepAsh (34kms away) and has access to markets with higher demand
namely Limpopo, Gauteng & Mpumalanga
By end of Q3 CY2014 Delmas was operating at 80% capacity and increased to just below 100% in the
fourth quarter as Aganang came on stream
High quality and consistent cements produced which significantly outperform its peers
Customer efficiency key measures of “in-plant turnaround” (“gate to gate”) improved significantly over
the first few months of operations
Delmas now consuming in excess of 80% of ash produced from Kendal
54EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
DELMAS PLANT TURNAROUND VS CAPACITY
UTILISATION
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
Jan 2014 Feb 2014 Mar 2014 Apr 2014 May 2014 Jun 2014 Jul 2014 Aug 2014 Sep 2014 Oct 2014 Nov 2014 Dec 2014
Tim
e in
min
ute
s
Cap
acit
y U
tilisati
on
Capacity Utlisation Turanround times - bags Turnaround times - bulk
Source: Sephaku Cement research – 2014.
55EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
CEMENT STRENGTH PERFORMANCE –
CONCRETE COMPARATIVE
-
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
32,5 -Sephaku
32,5 -Producer A
32,5 -Producer B
42,5Sephaku
42,5 -Producer B
42,5 -Producer A
42,5R -Producer A
42,5 -Producer C
42,5R -Producer C
MP
A
1 day 3 days 7 days 28 days
Source: Sephaku Cement research – 2014.
56EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
SEPHAKU ASH – STRATEGIC VALUE CREATION
FOR CEMENT
Sephaku Ash continues to operate well and is now
in its sixth year of operation.
Producing classified ash to various sectors
Primary focus has shifted during the course of 2014
to ensure continuous ash supply to Delmas
Key bulk customers have been maintained and
continue to be supplied by SepAsh
World class turn around times achieved at the plant
– in excess of 90% of loads are fully processed in
under 20 minutes
Preliminary commitment from Eskom to further
extend the existing ash supply agreement has been
obtained with contract negotiations underway.
57EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
SEPHAKU HOLDINGS OVERVIEW
58EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
Share ticker: JSE (MAIN) SEP
Sector Construction and Materials
Listing 2009
Issued shares 201 224 508
Closing price as at 25 March 2015 880
Average value traded per week 10 494 382
Average volume traded per week 1 217 398
Market capitalisation 1 770 775 670
Group net profit or (loss) /H1 2015 (R3.7) m [H1 2014: R6.3 m]
Métier operating profit /H1 2015 R62.6 m [H1 2014: R43.7m]
Headline profit or (loss) per share /H1 2015 (2,00) cents [H1 2014 : 2,78 cents]
Normalised headline earnings per share / H1 2015 9,69 cents
GROUP PERFORMANCE
59EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
SHARE PRICE ON AN UPWARD TREND
550
600
650
700
750
800
850
900
0
2000000
4000000
6000000
8000000
10000000
12000000
Volume Share price Linear (Share price )
60EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
Highest 52-week price at R9.01 and lowest at R5.15
High volumes traded in November following a targeted
roadshow
Significant increase in institutional interest on the share
as cement production ramps up and management
demonstrates :
Technical ability to produce good consistent
quality cement
Sell the cement and gain market share in a highly
competitive market
Deliver on stated targets with regards to
production capacity utilisation
INCREASING INVESTOR INTEREST
61EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
New technologically advanced production plants with higher cost efficiencies enhance
competitiveness
Profitable concrete operations with distinctive technical skills providing solid earnings and positive
net operating cash flows
Strategic focus on the building materials sector in Africa’s second largest economy, offering
increasing earnings and growth opportunities
Geographically well located cement operations targeting the inland markets
Key operational management with approximately 250 years combined experience
in cement manufacturing and over 80 years in mixed concrete technology
INVESTMENT CASE
62EXPLORATION,DEVELOPMENT,INCOME,GROWTH www.sephakuholdings.com 31 March 2015
CONTACT
Sakhile Ndlovu
Investor relations officer
Tel: + 27 12 612 0210
Email: [email protected]
Website: www.sephakuholdings.com