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Trading statement for the six-month period ended 31 August 2025 and changes to board committees
AFRIMAT LIMITED
Incorporated in the Republic of South Africa
(Registration number: 2006/022534/06)
Share code: AFT
ISIN: ZAE000086302
("Afrimat" or "the Company" or "the Group")
TRADING STATEMENT FOR THE SIX-MONTH PERIOD ENDED 31 AUGUST 2025 AND CHANGES TO BOARD COMMITTEES
In terms of paragraph 3.4(b)(i) of the JSE Limited ("JSE") Listings Requirements, a listed
company is required to publish a trading statement as soon as they are satisfied that a
reasonable degree of certainty exists that the financial results for the period to be reported on
next will differ by at least 20% from the financial results of the previous corresponding period.
The Company hereby advises that for the period ended 31 August 2025:
• earnings per share ("EPS") is expected to be between 101,4 cents and 104,3 cents,
representing an increase of between 74% and 79% compared to EPS of 58,3 cents
reported for the period ended 31 August 2024 (restated). During the current period,
the comparative information relating to the gain on the bargain purchase of the Lafarge
assets for August 2024 was retrospectively adjusted to be consistent with the
accounting treatment of the audited financial statements for the year ended 28
February 2025. Accordingly, the EPS have been restated from 231,8 cents to 58,3
cents; and
• headline earnings per share ("HEPS") is expected to be between 100,7 cents and
103,4 cents, representing an increase of between 90% and 95% compared to HEPS
of 53,0 cents reported for the period ended 31 August 2024.
The improvement in earnings across the comparative periods is largely due to improvements
across several key areas of the Group, as highlighted in the Business Update released on the
Stock Exchange News Service on 27 August 2025.
Construction Materials
The aggregate components of this segment had a slow start to Q1, but experienced a marked
improvement in sales volumes, with enhanced operational efficiency at the acquired Lafarge
quarries in Q2, and the recovery of previously lost market share. This was achieved by
improving customer service and ensuring product availability.
Afrimat's fly ash business is experiencing solid growth in volume and profitability after the
successful completion of several key projects. Notably, July 2025 was the highest volume
month since the business was acquired. We are confident in our ability to sustain this
momentum in the second half of the year, supported by strong demand and increased
operational capacity.
Results for the cement business in the first half are expected to be loss-making. However,
plant reliability has been significantly improved, and production disruptions have decreased.
The operation continues to benefit from strong product demand, and its strategic positioning
as a low-carbon, high-quality cement is proving to be the correct one.
Bulk Commodities
A significant increase in local iron ore sales volumes was recorded when compared to the
comparative period. Afrimat has worked hard to ensure sustainable sources of supply and
continues to meet the needs of its customers. Volumes increased to 830,662 tons (31 August
2024: 339,648 tons).
Total international iron ore export volumes increased to 396,384 tons (31 August 2024:
349,084 tons). The expectation is that the full year volumes will be similar to the previous year,
approximately 17% below Afrimat's yearly allocation of 870,000 tpa, primarily due to logistics
availability on the Saldanha export line due to a maintenance shutdown of the line during the
second half.
Operational improvements at Nkomati Anthracite Mine were successfully implemented, and
with a full EIA in place, Nkomati processed 100,000 tons through the plant in July 2025. An
assessment of underground viability led to the mothballing of the underground mining
operation. Due to decreased demand from ferrochrome smelters during the period, volumes
amounted to 136,216 tons (31 August 2024: 155,686 tons). Unfortunately, in August 2025,
due to structural economic impediments in the local economy, all ferrochrome smelters were
temporarily shut down.
The Mozambique border has reopened, and two shipments of anthracite were exported,
totalling 61,861 tons when compared to the previous period (31 August 2024: 41,568 tons),
with additional shipments expected for the remainder of the financial year.
Management is currently assessing viable options for the Nkomati mine to minimise the impact
of the ferrochrome smelters' prolonged shutdown and will update shareholders on the
progress when we have better clarity.
Industrial Minerals
Although a very small part of the Group, orders from the agricultural sector arrived late, due
to delayed rainfall and subsequent planting. These volumes will reflect in the second half of
the financial year. This segment was impacted by reduced volumes resulting from the
shutdowns of ferrochrome smelters.
Future Materials and Metals
Encouraged by promising applications in the battery and magnet markets, significant progress
has been achieved with local operators and international processes to leach and extract rare
earths from stockpiles. The economics of these applications and plant requirements are still
three years away, but they should not require any additional capital investment from Afrimat.
Sales of phosphate material in the agricultural market are ensuring steady cash flow for the
Glenover project, with operating losses decreasing.
Reporting date
The financial information on which this trading statement is based has not been reviewed or
reported on by the Company's auditors. The Company's financial results are expected to be
released on or about 23 October 2025. At that time, management will update the market in
greater detail regarding the performance for the interim period and provide an outlook for the
remainder of the financial year.
Changes to Board Committees
In accordance with paragraph 3.59(c) of the JSE Listings Requirements, the board of
directors of the Company ("Board") wishes to advise Afrimat shareholders of the following
changes to the Afrimat Social, Ethics and Sustainability Committee and the Audit and Risk
Committee, which changes have been approved by the Board and are effective immediately:
Social, Ethics and Sustainability Committee:
Mr P Joubert ("Mr Joubert") has been appointed as a member of the Social, Ethics and
Sustainability Committee of the Company.
Audit and Risk Committee:
Mr J Breytenbach ("Mr Breytenbach") has been appointed as a member of the Audit and
Risk Committee of the Company.
The Board congratulates Messrs Joubert and Breytenbach on their appointments and looks
forward to their continued contribution to the Company.
Cape Town
7 October 2025
Sponsor
Valeo Capital (Pty) Ltd
Date: 07-10-2025 07:05:00
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