Mining and materials company Afrimat expects to report improved full-year earnings thanks to higher local iron ore sales volumes and a good performance in its aggregates business.
The group, which specialises in industrial minerals, construction materials, bulk commodities and mining services, expects HEPS for the year to end-February to be between 91.8c and 99.1c, an increase of between 27.0% and 37.1% compared with a year earlier.
EPS is expected to be 22.1%-32.1% higher year on year.
The group’s earnings were also boosted by the successful sale of non-core brick and block and ready-mix plants.
Financial approval from the preferred bidder’s financiers has been obtained to acquire Afrimat’s assets identified for divestiture as mandated by the Competition Commission. However, approval from the department of mineral and petroleum resources is pending, it said.
The group said losses in cement had moderated and international iron ore sales were “satisfactory”.
It added that the restart of certain ferrochrome smelters in South Africa has led to the commencement of anthracite supplies from the Nkomati anthracite mine. However, this will not have any impact on the results for the year to end-February 2026.
In a business update in February, Afrimat warned trading conditions in South Africa will remain difficult without fair-trade protections.
The company is feeling the impact of pedestrian economic growth and cheap imports.
“It is time for our political leadership to make sound economic decisions, collaborate more actively with the private sector, and demonstrate performance and tangible outcomes supported by strong economic objectives,” the group said earlier this year.
Cheap imports have devastated several industries, including steel, poultry, textiles and sugar.
Afrimat is scouring domestic and international markets to bring its rare earth project, Glenover, online.
“Rare earth processing is highly complex and strategically important. Afrimat’s technical team has performed extensive testing locally and internationally, assessing different processing methods to achieve the best recovery,” it said.
“Afrimat has chosen project strength over speed and has invested the time needed to position a globally competitive project. Discussions have begun with reputable international players to partner with Afrimat on this project technically and financially.”
The group in 2021 acquired mining and fertiliser company Glenover Phosphate for about R550m to further diversify its portfolio.
Afrimat will release its financial results on May 20.
- With Kabelo Khumalo
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