Adbri's Kwinana Upgrade Project and Trading Update

Adbri Limited (ASX: $ABC) has provided updates on the Kwinana Upgrade Project, which aims to consolidate its two existing cement production sites. The project is expected to be completed within the previously advised capital cost estimate of $385 - $420 million and remains on track for commencement of commissioning of key equipment from Q2 2024. Additionally, the company expects its 2023 underlying EBITDA to be within the range of $310 - $315 million, with capital expenditure for 2023 expected to be within the range of $310 - $320 million, lower than the previous estimate.

Executive Commentary on Kwinana Upgrade Project and Trading Update

The Kwinana Upgrade Project is a strategic investment for Adbri, aiming to deliver a modern state-of-the-art facility that consolidates the company's existing cement production sites. This will significantly lower the cost per tonne compared to the company's current operations in Western Australia, driven by reduced energy consumption and emission intensity. We are pleased with the progress of the project and the strong demand for our products across key markets, which has led to the expectation of recording full year underlying EBITDA within the range of $310 - $315 million, exceeding the previous outlook provided at the half year results in August. Furthermore, the lower than estimated capital expenditure for 2023 reflects our commitment to efficient financial management and operational excellence. We look forward to releasing our financial results for the full year ended 31 December 2023 on Tuesday, 27 February 2024.

Summary of Adbri's Kwinana Upgrade Project and Trading Update

Adbri Limited (ASX: $ABC) is making significant progress with the Kwinana Upgrade Project, which is expected to strengthen its position as a sustainable, low-cost cement supplier in Western Australia. The project remains on track for completion within the previously advised capital cost estimate and is set to commence commissioning of key equipment from Q2 2024. The company anticipates its 2023 underlying EBITDA to be within the range of $310 - $315 million, reflecting strong demand for its products across key markets. Additionally, the lower than estimated capital expenditure for 2023 demonstrates Adbri's commitment to efficient financial management. Adbri's strategic investments and operational excellence position the company for continued growth and success in the cement industry.