Afrimat says interim earnings are expected to decline by as much as 20% due to lower iron ore prices and higher production costs, and warned that the strike at Transnet would affect the export and inland logistics for its iron ore mines.
Headline earnings per share — a measure of profit that strips out impairments and one-off items — are forecast at 236.1c-265.6c for the six months to end-August, a decline of 10%-19.8% year on year, the miner of industrial minerals, bulk commodities and construction materials said in a trading statement on Thursday.
However, the blow will be softened by the performance of the Nkomati Anthracite mine and higher volumes at the Jenkins iron ore mine, Afrimat said. Nkomati generated 7.8% of total revenue in the 2022 financial year and Jenkins 11.9%.
Afrimat reminded investors that the ongoing strike at Transnet has led the state-owned ports and rail operator to declare force majeure, which could affect operations. “Shareholders will be updated of any further developments,” it said.
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