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Trading statement for the year ended 28 February 2025
AFRIMAT LIMITED
Incorporated in the Republic of South Africa
(Registration number: 2006/022534/06)
Share code: AFT
ISIN: ZAE000086302
("Afrimat" or "the Company")
TRADING STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2025
In terms of paragraph 3.4(b)(i) of the JSE Limited 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 year ended 28 February 2025:
• earnings per share ("EPS") is expected to be between 52.0 cents and 78.1 cents
representing a decrease of between 85% and 90% compared to EPS of 520.3 cents
reported for the year ended 29 February 2024; and
• headline earnings per share ("HEPS") is expected to be between 56.7 cents and 85.1
cents representing a decrease of between 85% and 90% compared to HEPS of 567.3
cents reported for year ended 29 February 2024.
While many impacts were not entirely within management's control, this did not stop the
businesses from being extremely resourceful. Substantial work was done to ensure a strong
foundation for sustainability and returned performance for the next financial year, FY2026.
Changes in the iron ore market, given the Rand value received on iron ore exports and the
volume reduction from ArcelorMittal South Africa ("AMSA") 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.
Construction Materials
Lafarge South Africa, Afrimat's most recent acquisition, has successfully been integrated into
the Company. Strong performance from the traditional aggregate quarries and ash business
will ensure that the Construction Materials (Aggregates) segment achieves a better result than
last year.
The cement operations were successfully revitalised and are now functioning at acceptable
levels. Afrimat is regaining market share, and the trend remains positive. The cement kilns
have benefitted from extensive maintenance and are operating both efficiently and
dependably, ensuring that Afrimat can operate with backup capacity.
Industrial Minerals
The Industrial Minerals business has significantly recovered and is returning to its previous
performance. The ongoing suspension of loadshedding and optimistic signs of economic
growth bode well for this business and its customers.
Bulk Commodities
Key achievements at Nkomati include the partial receipt of the Environmental Impact
Assessment (EIA) for the full Life of Mine Plan, and the successful relocation of power lines,
graves, and houses. This, along with a reorganised management structure, supports
optimised open-pit mining. Underground mining operations were relocated to a safer area,
and together with gains from the abovementioned adjustments, Nkomati's results improved
towards the end of the reporting period. No anthracite products were exported in the latter
half of the financial year due to the closure of the border with Mozambique, which restricted
access to the Maputo port. This led to a delay in export shipments. Fortunately, the border
has reopened, and Afrimat has secured commitments for up to 80% of the new financial year's
export volume.
Despite maintaining export iron ore volumes consistent with the prior financial year, and
maintaining a positive relationship with our marketing partner, persistent rail inefficiencies
continue to hinder performance. Consequently, actual volumes remain 20% below our
allocated rail capacity. Furthermore, international iron ore prices have remained lower than
last year's comparative period. Local iron ore volumes suffered a 70% retraction in Q1 of
1HY2025 due to significantly reduced volumes taken up by AMSA. Pleasingly, volumes
recovered well for part of Q2 and continued across 2HY2025. Afrimat remains in active
discussions with AMSA to supply them with innovative raw material solutions to support their
long-term sustainability.
Future Materials and Metals
The test work on the rare earths component is nearing completion and showing positive
results. Afrimat is perusing the final design of the process to ensure it capitalises on the
inherent competitive advantage of the Glenover resource. On the phosphate side, the plant is
now operational, with ramp-up progressing well, although slower than projected.
Looking forward
The successful integration of Lafarge has strengthened Afrimat's already strong foundation.
Management's focus on "Consistently Delivering", guided by a strong leadership focus,
remains central to all strategic initiatives. These initiatives are designed to ensure that FY2026
delivers to expectations.
With the expanded EIA in place, flexible mining at Nkomati will make a meaningful difference,
supported by the strategic changes that have been implemented as outlined.
The Construction Materials segment is benefitting from strong aggregates performance and
encouraging margin recovery while steadily reducing cement losses.
Thus, 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.
This announcement contains forward-looking statements based on Afrimat's current beliefs
and expectations of future events. The Company's external auditors have not reviewed or
reported on the financial information contained in this announcement.
Cape Town
23 April 2025
Sponsor
Valeo Capital (Pty) Ltd
Date: 23-04-2025 07:15:00
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