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HULAMIN LIMITED - Trading statement for the six months ended 30 June 2019 and restatement of prior period results

In terms of the JSE Limited Listings Requirements, companies are required to provide guidance to the market when they are satisfied that a reasonable degree of certainty exists that the financial results for the current reporting period will differ by at least 20% from the results of the corresponding reporting period.

Shareholders are referred to the trading statement released on the Stock Exchange News Service

("SENS") on 12 July 2019 in which Hulamin advised that:

o    its basic earnings per share ("EPS") and basic headline earnings per share ("HEPS") will be at

     least 200%, being at least 26 cents per share, lower than as reported in respect of the six months

     ended 30 June 2018 ("H1 2018") of 13 cents per share; and

o    Normalised HEPS (note 1) is expected to be at least 25%, being at least 5 cents per share, lower

     than as reported in H1 2018.

Shareholders are now advised that Hulamin expects EPS, HEPS and Normalised HEPS for the six-

month period ended 30 June 2019 ("H1 2019") to be as follows:

                                              H1 2019                                        H1 2018

                      Expectation    Change versus H1      Change versus H1       Restated (Note          As

                        (cents)        2018 restated       2018 as originally       2) (cents)         originally

                                                               reported                                reported


 Basic EPS                (23)       - 50 cents (-185%)     -36 cents (-277%)           27                13

 Basic HEPS               (20)       -47 cents (-174%)      -33 cents (-254%)           27                13

 Basic Normalised          10          -9 cents (-47%)       -9 cents (-47%)            19                19

 HEPS (note 1)

Note 1: Normalised HEPS

Normalised HEPS is one of the measures which the Hulamin Executive Committee uses in assessing financial performance and is calculated in a consistent manner as per the latest annual financial statements, by dividing normalised earnings by the weighted average number of ordinary shares in issue during the year. Normalised 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.

In H1 2019, normalised earnings includes an adjustment for restructuring costs and the timing impact of a highly-effective commodity risk management programme not qualifying for hedge accounting as at 31 December 2018 due to the limitations of IAS 39.

The presentation of normalised HEPS is not an IFRS requirement and may not be directly comparable with the same or similar measures disclosed by other companies.

Note 2: Restatement of Prior Corresponding Period:

The Group reviewed the application of hedge accounting in terms of the IAS 39 standard during the finalisation of the 2018 annual financial statements. This resulted in the restatement of the 2017 annual financial statements following a timing adjustment between the 2017 and 2018 results, and similarly requires a restatement of the previously reported results for H1 2018.

There is no cumulative impact on earnings and also no impact on cash resulting from this restatement.

Hulamin´s commodity risk management programme is effective. Hulamin adopted the hedge accounting provisions of the new financial instruments standard IFRS 9 in 2019, which will overcome the limitations of IAS 39.

Full details of the restatement will be provided in Hulamin´s H1 2019 results which are expected to be released on SENS on or about 23 August 2019.

The financial information on which this trading statement is based and the H1 2018 restated information have not been reviewed or reported on by the Company´s external auditors.


20 August 2019


Questco Corporate Advisory Proprietary Limited

Date: 20/08/2019 02:15:00

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