Building materials and mining group Afrimat has changed its sector classification on the JSE from construction materials to the general mining sector, saying this categorisation more accurately depicts its business operations.
The group said in a statement the classification change will be effective immediately.
With a market capitalisation of R7.9bn, the Cape Town-based group counts the Public Investment Corporation and PSG Asset Management among its largest shareholders. Last week billionaire Patrice Motsepe’s African Rainbow Capital sold its remaining stake in Afrimat for R486m.
Since its debut on the JSE 17 years ago when its main focus was on aggregates and quarries, the company has diversified into bulk commodities which helped it to position itself as a rand-hedge, able to earn foreign currency.
As construction activity remains in the doldrums, Afrimat has bulked up its mining interests. Its most recent acquisitions include the Nkomati anthracite and Jenkins iron ore mines, which form its bulk commodities segment, together with Demaneng mine, which it acquired in 2016.
The midtier group supplies products ranging from construction materials such as aggregates, bricks, blocks, pavers and ready-mixed concrete, to industrial minerals such as lime and lime products and bulk commodities including iron ore, anthracite and manganese to local and international markets.
About two-thirds of Afrimat’s operating profit is now generated by its bulk commodities segment, which includes iron ore exports and local sales.
The group has also been positioning itself to snap up opportunities in “future minerals”, latching on to a growing trend in which mining companies look to cash in on electric vehicles.
The company’s share price closed up 0.63% at R49.61 on Monday.
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