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Audited AFS, dividend declaration, changes to board committees, distribution of IAR and Notice of AGM
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")
AUDITED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 28
FEBRUARY 2026, DIVIDEND DECLARATION, CHANGES TO BOARD COMMITTEES,
DISTRIBUTION OF THE INTEGRATED ANNUAL REPORT AND NOTICE OF ANNUAL GENERAL
MEETING ("AGM")
1. BASIS OF PREPARATION
This short-form announcement is the responsibility of the directors and is only a summary of the
information in the audited consolidated annual financial statements for the year ended 28 February
2026 ("annual financial statements") and does not contain full or complete details. The 2026
integrated annual report, incorporating the annual financial statements and notice of the annual
general meeting ("notice of AGM"), is available on the JSE cloudlink at:
https://senspdf.jse.co.za/documents/2026/jse/isse/AFT/FY26H2.pdf and is also available on the
Company's website at www.afrimat.co.za.
Any investment decision should be based on the consideration of the annual financial statements
published on the Company's website and on the JSE cloudlink, as a whole, as the information in
this short-form announcement does not contain full or complete details.
The annual financial statements have been prepared under the supervision of the Chief Financial
Officer, PGS de Wit CA(SA).
While the short-form announcement itself is not audited or reviewed, the annual financial
statements of which this announcement is a summary, have been independently audited by the
Company's auditor, PricewaterhouseCoopers Inc., who expressed an unmodified audit opinion
thereon.
2. INTRODUCTION
Afrimat is a successful multi-commodity, mid-tier mining company that produces and supplies
construction materials, cement, iron ore, anthracite, phosphate, and high-quality industrial minerals.
Its entrepreneurial culture ensures sustainability and profitability through strategic focus, careful
planning, and meticulous execution.
Afrimat's long-term growth strategy is underpinned by a diversified asset base in the mining,
quarrying and related industries. The business is renowned for acquiring distressed assets and
turning them into profitable and sustainable businesses.
Afrimat remains profitable, able to service debt, and is a consistent dividend payer. However, there
are aspects of the operating environment that are beyond its control. These include the factors
mentioned below in the operational review that had the greatest impact on the year's performance.
3. FINANCIAL RESULTS
Audited year Audited year Change %
ended 28 ended 28
February February 2025
2026
Revenue (R'000) 10 009 050 8 317 766 20,3
Operating profit (R'000) 523 692 477 735 9,6
EPS (cents) 80,0 63,0 27,0
HEPS (cents) 95,8 72,3 32,5
Total dividend per share (cents) 33,0 25,0 32,0
Group revenue increased by 20,3% to R10,0 billion from R8,3 billion. Afrimat remains profitable,
with operating profit which increased by 9.6% to R523,7 million (FY2025: R477,7 million). The
increase in the cost of sales is primarily due to higher-than-normal repairs and maintenance in the
Cement business to improve the performance of the plant.
Cash generated from operations amounted to R831,4 million (FY2025: R571,6 million). Although
this is below Afrimat's customary levels, the work done during the financial year puts cash
generation on a firmer footing for the future. This, together with cash from the sale of non-core
assets and properties, expected in the new financial year, will be used to pay down debt.
Cash flow from operating activities is beginning to recover, but a stock build-up in the Iron Ore
business due to a domestic customer unexpectedly taking less volume, temporarily tied up cash.
Afrimat has, however, implemented initiatives to convert these stockpiles into cash.
Cost savings across the Group were a core focus during the year. As part of the Lafarge integration,
the SAP system was migrated to Sage X3 at the end of August 2025, resulting in a monthly saving
of approximately R6 million. Afrimat was also able to end the rental contract of the previous Lafarge
main office at the end of November 2025 and secured another, more affordable premise, saving
approximately R2 million per month.
Within the Construction Materials segment, sales of non-core brick and block and readymix assets
were completed, as well as the sale of two non-core properties, with a total of R60 million received
in February 2026 for the latter. Quarry divestitures (as a result of the Competition Commission
ruling) should bring in further cash once the Section 11 approvals are received. These are expected
to be received towards mid-year of FY2027.
Despite headway on margins across the Group, Afrimat is mindful of the potential impact of higher
energy prices resulting from the war in Iran. During the year, the Group used approximately 27
million litres of diesel. Post the financial year-end, there was an increase in diesel prices due to the
war, some of which has already been passed on to customers. Afrimat is actively working on
minimising the impact of diesel price increases on the business.
In last year's balance sheet, a R1,6 billion revolving debt facility was classified under current
liabilities as per International Financial Reporting Standards requirements. However, this did not
accurately represent the nature of the debt. In February 2026, the debt was restructured: R1 billion
was converted into a five-year medium-term amortising loan, with repayments beginning in the
upcoming financial year. This portion is now shown as a non-current liability, better aligning with its
true nature.
Headline earnings per share ("HEPS") for the full year was 95,8 cents per share (FY2025: 72,3
cents per share). During HY1 2026, Afrimat delivered 101,9 cents per share, which turned to
negative 6,1 cents per share in HY2 2026 due to Nkomati losses in the second half. This was
caused by the Glencor-Merafe ferrochrome smelter shutdown and lower profitability in the Iron Ore
business which was both volume and price-driven.
The financial focus going forward will be to assist businesses drive cash generation and use that
cash to reduce debt. A further focus will also be on improved margins across the Group.
4. OPERATIONAL REVIEW
All operating units are strategically positioned to deliver outstanding service to customers, whilst
acting as an efficient hedge against volatile local business conditions. The Group's product range
is wide and diversified and is made up of Construction Materials consisting of aggregates, concrete-
based products, fly-ash, and cement; Industrial Minerals consisting of limestone and dolomite; and
Bulk Commodities consisting of iron ore and anthracite. The Services segment consists of external
logistical and mining services, while the Future Materials and Metals segment is made up of
phosphate and rare earth elements.
Construction Materials
The segment's collective revenue increased by 20,7% from R4 552,7 million to R5 496,9 million,
with Aggregates delivering an increase of 11,2% and Cement an increase of 54,3%. The
Aggregates business's operating profit increased by 24,0%, resulting in an operating profit margin
of 17,7% (FY2025: 15,8%). The FY2026 margin for the Construction Materials segment improved
slightly to 9,3%, impacted by the negative contribution from Cement.
The Aggregates and Ash components of this segment were affected by excessive rainfall in the first
quarter, which reduced aggregate order volumes. This turned later in the year with improved sales
volumes, supported by better cost control and other operational efficiencies. In addition, improved
service levels and product availability at the former Lafarge quarries enabled the business to regain
previously lost market share, driving stronger sales performance. The fly-ash business performed
very well.
Significant progress was made in the Aggregates business during the second half of the financial
year, with 80% of the projects required to position it as a stronger, more competitive player
completed. These included maintenance, repairs, and operational improvements. The focus has
now shifted to quarries with suboptimal margins, where initiatives are underway to bring their
performance in line with the overall Aggregates margin.
Year-on-year revenue growth was driven by a wider presence across the country, supported by
continued orders from road, construction, rail projects and provincial infrastructure maintenance.
Non-core brick and block, readymix businesses, as well as non-core properties, were sold. In some
instances, cash proceeds from non-core asset sales are expected to flow through in the new
financial year. To improve efficiency in some of the larger quarries, rental plant was replaced with
Afrimat mobile plant.
The Cement business contributed revenue and an operating loss of R1 560,9 million and R185,1
million, respectively. Both production and sales continued their upward trajectory, and their
commercial strategy remains effective, as evidenced by growing market share in all segments.
Clinker production was 18,8% higher than last year. Overall Equipment Efficiency ("OEE")
improved, with some work still to be done. The Tswana Lime Mine operations are in good condition
and should deliver significant additional cost savings in the future. The Randfontein Grinding Plant
operated at an acceptable, consistent level throughout the year and has been a key enabler of cost-
effective supply of extended cement products. Cement sales volumes increased, delivering 36,2%
sales growth, while resolving inherited operational challenges and improving revenue by 54,3%.
With substantial remedial work and maintenance properly undertaken to repair previous neglect (a
total of R271,6 million was spent in FY2026 on repairs and maintenance), losses in the Cement
business have been stemmed with strategic alternatives under consideration.
Bulk Commodities
Revenue increased by 15,7% from the previous year. The iron ore mines' operating profit increased
by 35,3% to R605,1 million from R447,1 million. The first half of the year delivered strong volume
performance from local iron ore sales, which was partially offset by a softer trading environment in
the second half. Importantly, the Group still achieved year-on-year volume growth and increased
local sales volumes from 876 215 tons to 1 512 550 tons. While the decline in volumes towards
year-end weighed on profitability, this has informed a more deliberate and disciplined approach to
production planning going forward.
International iron ore sales were adversely impacted by lower US dollar prices, down by 2,9%; a
decrease in shipping costs of 3,9%; a decrease in the lump premium of 8,3%; and concurrent
strengthening of the South African Rand of 4,5%. Exports continue to be impacted by the challenges
on the rail line. International sales tonnage decreased from 726 436 tons to 721 947 tons.
Despite Transnet not being able to provide capacity to fill the Group's rail allocation of 870,000 tons
per annum, with export volumes remaining 17% below this allocation, the work being done by the
new Transnet management team to fix a broken and ailing iron ore export line is to be commended.
The team's attitude towards private-sector participation and assistance shows how much can be
achieved when parties are willing to work side by side on a foundation of trust.
The anthracite mine's revenue increased by 0,6% to R833,7 million. The temporary shutdown of all
South African ferrochrome smelters in August 2025 had a significant impact on Nkomati's revenue
(with no sales for six months) and profitability, and operations were suspended as part of cost-
containment measures. This shutdown, together with an impairment of the underground operation
amounting to R118,2 million, resulted in an operating loss of R160,5 million, compared to an
operating profit of R57,3 million in the prior year. Local volume sales of 138 918 tons were achieved
(FY2025: 277 151 tons).
Anthracite from stockpiles was sold in the international market. These export volumes increased
substantially from 74 244 tons to 206 271 tons. However, pricing was low, and the increase was
insufficient to offset the loss in local volumes. Total anthracite volumes for FY2026 settled 1.8%
lower at 345 189 tons (FY2025: 351 394 tons).
Future Materials and Metals
Afrimat embarked on a strategy to gain exposure to critical minerals by acquiring Glenover a few
years ago. This resource contains a unique combination of minerals including phosphate, iron and
a high concentration of valuable rare earth minerals in the resource. Comprehensive research and
development work has proven that the Glenover material is a unique and highly valuable feedstock
for modern batteries as well as a source of rare earth minerals. Discussions to find suitable technical
partners to advance the project to implementation are progressing well. Afrimat has chosen project
strength over speed and has invested the time needed to position a globally competitive project.
A small part of the project is the supply of phosphate rock and single super phosphate to the
agricultural market. Sales volumes for fertiliser are slowly ramping up, with revenue increasing
from R68,1 million in 2025 to R164,3 million in the current financial year, with start-up losses of
R30,7 million.
Industrial Minerals
This segment is relatively small compared to the other segments of the business, with revenue
decreasing from R575,1 million to R476,5 million. The operating profit decreased by 65,6% from
R117,9 million to R40,6 million. The underperformance in metallurgical sales was due to reduced
off-take, impacted by the shutdown of the ferrochrome smelters and the closure of the Newcastle
steelworks. Aggregates sales, however, remained encouraging. The segment reported an
operating margin of 8,5% (FY2025: 20,5%).
5. BUSINESS DEVELOPMENT
The Group's Business Development team remains a key component of the Group's strategy, and
continues to identify opportunities in existing markets, as well as in anticipated new high-growth
areas in southern Africa.
6. OUTLOOK
The position of the Aggregates and Iron Ore business is strong, with sufficient capacity to increase
production in both should market demand call for greater supplies.
As the world prepares for artificial intelligence ('AI') and hyperscale data centres, demand for rare
earth elements is rising, and Afrimat recognises Glenover's significance in this scenario. While the
Group is experienced in mining this type of asset, it has started discussions with reputable
international and local players to partner with it on this project, both technically and financially, to
develop processing technology for extracting battery minerals and rare earths.
Similarly, the Group recognises the value of the cement operation. Now that the performance has
improved sufficiently, various strategic alternatives are being investigated.
A reduced electricity tariff for the ferrochrome industry could dramatically improve Nkomati's
prospects. The outcome of the National Energy Regulator of South Africa's decision on reduced
tariffs is expected in June 2026.
Afrimat has submitted an application for an increased allocation on the iron ore export line from its
current allocation of 870 000 tons per annum and expects a final decision from Transnet towards
the end of 2027.
The Group is aware of the excellent assets in its portfolio and intends to continue evolving its
strategy to ensure the best and most sustained return on invested capital over time, taking the ever-
changing macro environment into account.
The Business Development team is evaluating opportunities in neighbouring countries that align
with Afrimat's mining expertise and will add value to its current diversified portfolio.
The Group continues to support community development through its corporate social investment
initiatives. As a mid-tier miner operating across 107 operating sites, it takes pride in a low lost time
injury frequency rate of 0,32 for the year under review.
For the coming year, the focus will be on reducing debt.
7. DIVIDEND DECLARATION
Notice is hereby given that a final gross dividend, No. 38 of 13,0 cents per share, in respect of the
year ended 28 February 2026, was declared on Wednesday, 20 May 2026. There are 160 297 456
shares in issue at the reporting date, of which 8 196 641 are held in treasury. The total dividend
payable is R20,8 million (2025: R24,0 million). The Board has confirmed by resolution that the
solvency and liquidity test as contemplated by the Companies Act, No. 71 of 2008, has been duly
considered, applied and satisfied. This is a dividend as defined in the Income Tax Act, 1962, and
is payable from income reserves. The South African dividend tax rate is 20,0%. The net dividend
payable to shareholders who are subject to dividend tax and shareholders who are exempt from
dividend tax is 10,4 cents and 13,0 cents per share, respectively. The income tax number of the
Company is 9568738158.
Relevant dates of the dividend declaration are:
Last day to trade cum dividend Tuesday, 9 June 2026
Trading ex-dividend commences Wednesday, 10 June 2026
Record date Friday, 12 June 2026
Date of payment Monday, 15 June 2026
Share certificates may not be dematerialised or re-materialised between Wednesday, 10 June 2026
and Friday, 12 June 2026, both days inclusive.
8. CHANGES TO BOARD COMMITTEES
Shareholders are advised of the following changes to the composition of Board Committees with
immediate effect:
• Mr Francois Louw has stepped down as a member of the Audit and Risk Committee, the
Sustainability and Ethics Committee, and the Remuneration and Nomination Committee. He
will however attend all these meetings in his capacity as Chairman of the Board.
• Mr Loyiso Dotwana has stepped down as a member of the Audit and Risk Committee.
• Mr Andries van Heerden has stepped down as a member of the Sustainability and Ethics
Committee.
• Mr Derick van der Merwe has been appointed as a member of the Sustainability and Ethics
Committee.
In addition, Mr Derick van der Merwe has resigned as Lead Independent Director and has been
replaced by Nicolaas Kruger.
These changes have been implemented to ensure that the composition of the Board Committees
are aligned with the principles of King V.
The Board thanks the outgoing members for their valuable contributions and welcomes the new
appointments.
9. DISTRIBUTION OF THE INTEGRATED ANNUAL REPORT AND NOTICE OF AGM
Shareholders of the Company are hereby advised that the Company's integrated annual report,
incorporating the annual financial statements and the notice of AGM, was distributed to
shareholders today, 21 May 2026.
Accordingly, notice is hereby given that the annual general meeting of shareholders ("AGM") will
be held at the Company's registered office at Tyger Valley Office Park No. 2, Corner of Willie van
Schoor Avenue and Old Oak Road, Tyger Valley, 7530 on Wednesday, 29 July 2026, at 14:00 to
transact the business as set out in the Notice of AGM.
Kindly note the following salient details of the AGM:
Issuer name Afrimat Limited
Type of instrument Ordinary Shares
ISIN number ZAE000086302
JSE code AFT
Meeting type Annual General Meeting
Meeting venue Tyger Valley Office Park No. 2, Corner of
Willie van Schoor Avenue and Old Oak
Road, Tyger Valley, 7530
Record date – to determine which Friday, 15 May 2026
shareholders are entitled to receive
the notice of meeting
Publication/posting date Thursday, 21 May 2026
Last day to trade – Last day to trade Tuesday, 21 July 2026
to determine eligible shareholders
that may attend, speak and vote at the
meeting
Record date – to determine eligible Friday, 24 July 2026
shareholders that may
attend, speak and vote at the meeting
Meeting deadline date (For Monday, 27 July 2026
administrative purposes, forms of proxy
for the meeting to be lodged)
Meeting date Wednesday, 29 July 2026
Publication of results Wednesday, 29 July 2026
Website link www.afrimat.co.za
Cape Town
21 May 2026
Sponsor
Valeo Capital (Pty) Ltd
Date: 21-05-2026 07:05:00
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