Trading Statement and Operational Update

• Shareholders are advised that the Group expects to report an earnings loss per share and a headline loss per share for the year ended 30 June 2023, in comparison to earnings per share of 106 cents and headline earnings of 252 cents per share in the prior year.
• The financial information on which this trading statement is based has not been reviewed or reported on by the Group’s external auditors.
• A further trading statement will be released providing shareholders with ranges for earnings per share and headline earnings per share, as required by the JSE Listings Requirements, in due course.
• McConnell Dowell’s Australian and New Zealand & Pacific business units are expected to report increased operating earnings in comparison to the prior year (FY2022: R777 million (AUD70 million)). This improved performance is overshadowed by the losses in Southeast Asia, primarily from the Batangas LNG terminal project (“BLNG project”).
• Despite the improved performance in the Australian and New Zealand & Pacific business units, McConnell Dowell is expected to report an operating loss in the order of R820 million (AUD65 million) for the year. The BLNG project is expected to report a total operational loss of R1 350 million (AUD114 million) after providing for costs to date and costs to complete.
• Moolmans focus during the year was investment in equipment, people and systems to aid efficient project execution. With the new five-year Tshipi é Ntle project secured, Moolmans committed to a R900 million investment in new heavy mining equipment. The majority of this equipment is now on site and is either in deployment or awaiting commissioning.
• The Group is expected to report a net cash position of R1,3 billion, excluding IFRS16, after taking into account positive cash on hand of R2,3 billion and debt of R1 billion. The current debt is made up of c.R700 million in new asset backed finance in Moolmans and c.R286 million in McConnell Dowell incurred on the BLNG project. McConnell Dowell’s debt will be settled in FY2024.