AEG<
> AEG <
> AEG - Aveng Limited - Chairman's announcement <
> AVENG LIMITED <
> (Incorporated in the Republic of South Africa) <
> (Registration number: 1944/018119/06) <
> ISIN: ZAE000111829 <
> SHARE CODE: AEG <
> ("Aveng" or "the Group") <
> CHAIRMAN'S ANNOUNCEMENT <
> In spite of tough trading conditions, The Aveng Group is managing its current <
> portfolio to generate and extract value for shareholders through its focus on <
> margin improvement and growth in areas where market opportunities exist. <
> In the South African environment, the market is still being affected by delays <
> in contract awards, particularly in the public sector. Grinaker-LTA has won a <
> R350 million contract to build the Mitchell's Plain Hospital in the Western Cape<
> as well as the Chimneys and Silos for the Medupi Power Station in joint venture,<
> with its share of the contract valued at R320 million. The operating group was <
> also granted an extension of its contract at the Two Rivers Platinum Mine in <
> Steelpoort valued at R360 million. <
> Moolmans has secured an opencast gold mining contract with a two year term at <
> Sadiola in Mali. <
> McConnell Dowell has been awarded several contracts during the quarter including<
> a R420 million contract for the construction of marine facilities on the Sino <
> Iron Project in Hong Kong and the Singapore International Cruise Terminal on <
> Jurong Island. <
> Notwithstanding the tight market conditions, the Group's two year order book at <
> 30 September 2009 increased to R31,3 billion compared to R30,4 billion at 30 <
> June 2009. Aveng continues to pursue opportunities in its total project pipeline<
> which remains stable at R100 billion. <
> Volumes in the Manufacturing and Processing cluster have stabilised while <
> average steel prices have risen by some 10%. However its comparative performance<
> in the first half of the 2010 financial year is expected to reflect the current <
> tougher trading environment, compared to the first half of 2009, when demand was<
> still buoyant. <
> The continued relative strength of the Rand against other currencies is of <
> concern and will negatively affect foreign earnings when translated to Rand, <
> particularly in McConnell Dowell and Moolmans. <
> The Group's strong balance sheet and positive cash balances ensure its position,<
> both defensively and for growth. <
> 23 October 2009 <
> Sponsor: <
> J.P. Morgan Equities Limited <
> Date: 23/10/2009 11:08:01 Produced by the JSE SENS Department. <
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>