Afrimat, a successful multi-commodity, mid-tier mining company that produces and supplies construction materials, iron ore, anthracite, phosphate, and high-quality industrial minerals, has released results for the year ended 28 February 2026.
“These results reflect the strength of Afrimat’s strategic positioning and our ability to deliver on our investment commitments. Our renewed focus on aggregate quarrying has proved to be well-timed, and the Lafarge integration is complete and performing exceptionally well. The Aggregates business has been significantly strengthened, and the numbers demonstrate this clearly. Afrimat remains profitable, able to service debt, and is a consistent dividend payer,” said Group CEO Andries van Heerden.
“We are currently in a phase where significant strategic acquisitions have been completed. Where integration of operations into Afrimat was possible, it has been executed successfully and is performing exceptionally well, as demonstrated by Aggregates. Our core strength remains open-cast mining, and for Cement and the Glenover project, we are actively assessing a range of strategic alternatives and potential technology partners. We recognise the high quality of the assets within our portfolio and will continue to evolve our strategy to optimise and sustain returns on invested capital over the long term, while remaining responsive to the dynamic macroeconomic environment,” he added.
Financial results
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 cost of sales is primarily due to higher-than-normal repairs and maintenance in the Cement business to improve plant performance.
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. Together with cash from the sale of non-core assets and properties, expected in the new financial year, this will be used to pay down debt.
Cash flow from operating activities is beginning to recover. A stock build-up in the Iron Ore business, due to a domestic customer unexpectedly taking less volume, temporarily tied up cash, but Afrimat has implemented initiatives to convert these stockpiles into cash.
“The financial focus going forward will be to assist businesses in driving cash generation and use that cash to reduce debt,” van Heerden said.
Operational review
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 (including Cement) improved slightly to 9,3%, impacted by the negative contribution from Cement.
Significant progress was made in the Aggregates business during the second half of the financial year, positioning it as a stronger, more competitive player. This included maintenance, repairs, and operational improvements to the quarries acquired as part of the Lafarge acquisition. Furthermore, quarries that were delivering suboptimal margins are being addressed, with initiatives underway to bring their performance in line with the overall Aggregates margin.
Revenue growth was driven by a wider presence across the country and continued orders from road, construction and rail projects as well as some provincial infrastructure maintenance. Non-core brick and block and readymix businesses were sold, as well as non-core properties.
Both production and sales in the Cement business continued their upward trajectory, and their commercial strategy remains effective, as evidenced by growing market share in all segments. It contributed revenue of R1 560,9 million and an operating loss of R185,1 million.
Van Heerden explained that clinker production was 18,8% higher than last year. 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
In this segment, revenue increased by 15,7%. 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. The decline in volumes towards year-end weighed on profitability.
International iron ore sales were adversely impacted by lower US dollar prices, down by 2,9%; 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 limitations on the rail system. International sales tonnage decreased marginally from 726 436 tons to 721 947 tons.
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. No domestic sales took place for the second half of the financial year, 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. The resource contains a unique combination of minerals, including phosphate, iron and a high concentration of valuable rare earth minerals. Comprehensive research and development have demonstrated that the Glenover material is a unique and highly valuable feedstock for modern batteries and a source of rare earth minerals. Discussions to identify suitable technical partners to advance the project towards implementation are progressing well. Afrimat has prioritised project strength over speed and has invested the time needed to position the project as globally competitive,” van Heerden said.
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.
Prospects
The position of the Aggregates and Iron Ore business is strong, with sufficient quarries and iron ore mines to ensure that Afrimat can serve maintenance, infrastructure, and building needs with construction materials, as well as supply the domestic and export markets with iron ore.
Van Heerden said that 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,” he indicated.
He added that a reduced electricity tariff for the ferrochrome industry could dramatically improve Nkomati's prospects.
Afrimat has applied 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.
In conclusion, he mentioned that 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. For the coming year, the focus will be on reducing debt.
