BUACEMENT | BUA Cement Plc Initiation of Coverage : Unearthing returns from aggressive expansions- 25 October 23
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BUACEMENT embarked on an aggressive capacity rollout between 2018 and 2022, growing from 5 million metric tonnes (MT) at the start of the period to 11.0MT in January 2022, aided by the 6.0MT capacity expansion across its Kalambaina plant in Sokoto and Obu plant in Edo. Its management took the capacity expansion drive further in 2023 by commencing an additional 6.0MT plant capacity project, following a $500 million capital raise from the International Finance Corporation (IFC). This project should raise the total installed capacity to 17.0MT by 2024, boost economies of scale potential, and drive down cash costs per ton.