PPC sees 2010 capex at ZAR850-950m

PPC sees 2010 capex at ZAR850-950m
Published: 16 March 2010

South Africa’s biggest cement producer, PPC expects capital expenditure in 2010 to be between ZAR850-950m (US$114.8m) and to slow in 2011 to 800-900 million rand.

Pretoria Portland Cement (PPC) said on Tuesday in a presentation to investors that 2010/2011 replacement capex was under review due to lower activity in the country.

The cement company, which supplies infrastructure projects such as Eskom’s Medupi power station, said to date it has supplied 70,000t of cement to Medupi power station in the northern province of Limpopo.

The group said its dividend cover would remain in the target range of 1.2-1.5 times normalised earnings.

It added that current gross debt to earnings before interest, tax, depreciation and amortisation cover of 12 times was well within its conservative target of 2 to 3 times cover.