To view the PDF file, sign up for a MySharenet subscription.

AFRIMAT LIMITED - Voluntary Business Update

Release Date: 23/02/2018 07:05
Code(s): AFT     PDF:  
Wrap Text
Voluntary Business Update

Afrimat Limited
Incorporated in the Republic of South Africa
(Registration number: 2006/022534/06)
Share code: AFT ISIN: ZAE000086302
("Afrimat" or "the Company")

VOLUNTARY BUSINESS UPDATE

Afrimat the JSE-listed black empowered open-pit mining group that supplies industrial minerals and
construction materials is publishing a voluntary business update for the year ending 28 February
2018.

At this time a reasonable degree of certainty exists, however a clear and specific percentage or
range has not yet been determined. It is expected that Headline Earnings per Share could be down
by a maximum of 20%.

Impacts on the results:

    -   Amplified by the political uncertainty of the last months of 2017, sales volume in the last
        quarter of the calendar year (October, November and December 2017) were slow, with the
        slow-down exacerbated in November and December in construction material products;
    -   The impact of the slow-down was felt more strongly in KwaZulu-Natal and southern Gauteng
        where the operations of Glen Douglas and Clinker experienced reduced volumes; and
    -   As a direct result of much improved commodity prices, it was decided to accelerate the
        ramp-up of Demaneng mine (previously called Diro mine). Expenses increased substantially
        in-line with the accelerated ramp-up. The mine is expected to reach its design production
        capacity of 1 million tonnes per annum at the end of February 2018. All processing
        equipment has been commissioned. A new load out facility has also been commissioned that
        enables Afrimat to load trains on the Sishen-Saldanha railway line.

Andries van Heerden, CEO of Afrimat said that, “In my concluding remarks in November 2017 I
indicated that Afrimat continues to be well positioned to capitalise on its strategic initiatives, such as
the continued growth from the diversified asset base but that the business environment would
continue to pose challenges. I stated that our unique product range and entrepreneurial
management team, who are renowned for efficient execution, positioned Afrimat to navigate the
challenging environment. I still believe this to be true and this belief is strengthened by the current
positive performance of our iron ore mine and the effect on the rest of our business given the
current positive sentiment in South Africa.”

Symbolic of the fresh start that Afrimat had brought about for the mine previously known as Diro, it
was renamed to “Afrimat Demaneng”, after one of the farms on which the mine was developed.

Further exploration has proven additional reserves of iron ore at Demaneng, increasing the proven
reserves to around 12 million tonnes, up from the 5.6 million tonnes that was initially announced
when the mine was acquired. The ore produced on the mine will mostly be exported to China.

Further Trading Statement

Afrimat will release a further trading statement providing specific guidance on earnings and headline
earnings per share during April 2018. The forecast financial information on which this Voluntary
Business Update is based has not been reviewed nor reported on by the group’s external auditors.

Afrimat is due to release results for the year ending 28 February 2018 on 24 May 2018.

By order of the board of directors of the Company

Cape Town

23 February 2018

Sponsor: Bridge Capital Advisors Proprietary Limited

Date: 23/02/2018 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story