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Zimbabwe Stock Exchange listed entity PPC Limited, which is primarily listed on the Johannesburg Stock Exchange, says its businesses across the continent have generally been operationally constrained in their respective jurisdictions during April.
Most jurisdictions in the world spent the month of April under lockdown with little economic activity taking place except for those that were declared to be providing essential services.
As a result, overall sales volumes in South Africa for April are expected to be around 95 percent lower compared to April 2019 due to the stringent lock down measures imposed by the South African government.
However, there has been partial lifting of the lockdown and operations in Rwanda and Zimbabwe partially resumed in the second half of April.
Cement sales in these jurisdictions are, however, expected to be around 15 to 20 percent of the volumes sold in April 2019.
PPC Barnet in the DRC which was able to operate throughout April is expected to produce similar volumes compared to the same period last year.
In South Africa, PPC is preparing to start production to operate in line with the risk based regulations and related CV19 Risk Levels announced by the South African government on the April 25, 2020.
The Company, however, said the uncertainty around the further development of the containment of the coronavirus makes it necessary for PPC to work with various scenarios.
“Together with the other members of the Industry Association a request has been made to the Government to support the local industry, expedite construction work and implement the announced measures around infrastructure development and giving priority to local manufacturing,” said the company in a Covid-19 update released last week.
The company said it had implemented various cost reduction and cash preservation actions to protect liquidity through and post the lockdown period.
The committed facilities show sufficient headroom in South Africa under various economic scenarios, it said.
The company said it is also continuously engaging with international funders to ensure sufficient liquidity in its international operations.
The refinancing and restructuring project announced in October 2019 is continuing and an update of this project will be given at the announcement of the company’s annual results.
PPC will provide further guidance on the financial impact on the group at a later stage.
Online Reporter