Afrimat’s business conditions went from bad to worse in the second half of its financial year to end-February after the diversified mining group reported a 45% drop in operating profit for the six months to end-August.
In a trading statement released today Afrimat is now predicting a drop of between 85% and 90% in earnings a share to between 52c and 78.1c for the full year compared with 520.3c for the year to end-February 2024.
According to the trading statement, “changes in the iron ore market, given the rand value received on iron ore exports, and the volume reduction from Arcelor Mittal South Africa in the first half of the financial year severely impacted Afrimat.
“In addition, losses from cement and weaker-than-expected performance from anthracite hindered performance.”
The first six months included losses from the then recently acquired Lafarge cement business but CEO Andries van Heerden commented at the time that “a speedy return to profitability is expected.”
Van Heerden also added, “prospects for Nkomati Anthracite; an expanded construction materials business through Lafarge; a recovery in cement through innovation and other growth initiatives will better balance Afrimat’s diversity, placing the group on a sustainable pathway forward.
Nkomati Anthracite exported no products in the second half of the financial year because of the closure of the Mozambique border which restricted access to the port of Maputo and delayed export shipments.
Today’s trading statement from the company commented, “while many impacts were not entirely within management’s control, this did not stop the business from being extremely resourceful. Substantial work was done to ensure a strong foundation for sustainability and returned performance for financial year 2026.
“Management remains confident that the majority of the company’s metrics have turned and bode well for a better financial result in the coming year.”
