Afrimat, a successful multi-commodity, mid-tier mining company that produces and supplies construction materials, iron ore, anthracite, phosphate, and high-quality industrial minerals, today released results for the six months ended 31 August 2025.
“The focus for the period under review was on meticulous operational execution to ensure that Afrimat unlocks the full potential of its diversified asset base. The troubled Lafarge South Africa assets that we recently acquired have now been fully integrated into our structures, and good progress has been made with the turnaround of these businesses,” said Group CEO Andries van Heerden.
“The first quarter reflected a continuation of the prior year’s challenges; however, by the second quarter, the benefits of the improvements we implemented began to gain momentum. A significant increase in local iron ore sales, coupled with satisfactory international sales, resulted in an overall strong performance from the iron ore component of the Group,” added Van Heerden.
In the aggregates segment of the business, the focus was on instilling the Afrimat Way within the quarries the Group acquired and elevating the standard of product availability and customer service. This ultimately led to an improvement in aggregate sales volumes, accompanied by a corresponding increase in market share, which was visible towards the end of the second quarter (‘Q2’) after contending with excessive rainfall in the first quarter (‘Q1’).
Van Heerden explained that the turnaround of the ex-Lafarge cement factory in Lichtenburg gained momentum towards the end of the reporting period. “There was a much-improved performance in the weeks after the reporting period, which is very encouraging and supports the strategic positioning of our low-cost cement products. It’s good to report that positive momentum has been established.”
Financial results
Group revenue increased by 29,9% from R4,1 billion to R5,3 billion, supported by the integration of the Lafarge businesses and overall volume and sales increases from iron ore and cement.
Operating profit increased by 29,8% to R379,8 million (August 2024 (restated) R292,6 million), with an operating profit margin of 7,1%.
Despite finance costs increasing to R148,4 million, every effort is being made, including the sale of non-core and unprofitable assets, to ensure that debt is settled as quickly as possible. The net debt:equity position of the Group is 52,5%, representing a marginal increase compared to the position as at February 2025. This increase is the result of further investment in working capital due to increased iron ore sales.
The sale of assets process, in accordance with the Competition Commission's requirements, is now at an advanced stage. All necessary efforts are being undertaken to ensure the transaction is concluded as efficiently and expeditiously as possible. Afrimat has also sold operations that it felt were no longer core to its Construction Materials businesses.
After the investment of both time and resources in integrating the Lafarge acquisition, fixing previously neglected Lafarge assets, turning the Nkomati business around, and ensuring a high-quality iron ore product, profit after tax improved by 78,9% to R173,5 million (August 2024 (restated): R96,9 million). This translated into improved earnings and headline earnings per share of 102,7 cents per share and 101,9 cents per share, respectively (August 2024 (restated): 58,3 cents per share and 53,0 cents per share, respectively).
Cash generated from operations improved significantly to R357,7 million compared to cash used in operations of R131,4 million in the previous comparable period. The increase was supported by increased sales volumes in cement and iron ore.
An interim gross dividend of 20,0 cents per share (August 2024: 10,0 cents per share) for the period was declared on 22 October 2025.
Operational review
The aggregate and ash components of the Construction Materials segment were affected by excessive rainfall in the northern regions of South Africa during Q1, which limited orders of aggregates. During Q2, improved sales volumes were evident, with operational efficiency at the former Lafarge quarries leading to previously lost market share being regained. This was achieved by delivering better service and ensuring product availability to customers. “The momentum is expected to continue into the second half of the year.”
Revenue of the aggregates and fly-ash division grew by 9,1% to R1,9 billion (August 2024: R1,8 billion), while the operating profit grew to R321,2 million (August 2024: R290,1 million). This is mainly due to the final integration and investment into the former Lafarge quarries. “The fly-ash business and the readymix batching plants performed very well.”
Revenue for the cement business rose by 118,8% to R873,7 million, but it was loss-making at the operating profit level. Plant reliability showed a significant improvement towards the end of the reporting period, resulting in fewer production disruptions.
Van Heerden emphasised that the operation continues to benefit from strong product demand, and its strategic positioning as a low-carbon, high-quality cement remains effective. The Group remains excited about the potential of product innovation.
The Bulk Commodities segment provided a healthy contribution to the Group. Both revenue and operating profit increased by 53,6% and 56,8%, respectively, from the previous period.
The iron ore mines’ revenue increased by 77,9% to R1,7 billion (August 2024: R934,7 million). At an operating profit level, an increase of 73,5% was attained, resulting in an operating profit increase from R232,6 million to R403,5 million.
A significant increase in local iron ore sales volumes was recorded when compared to the comparative period, with volumes increasing to 830 662 tonnes (31 August 2024: 339 648 tonnes).
Total international iron ore export volumes increased to 396 384 tonnes (31 August 2024: 349 084 tonnes). The expectation is that the full-year volumes will be similar to the previous year, approximately 17,0% below Afrimat’s yearly allocation of 870 000 tpa, primarily due to logistics availability on the Saldanha export line as a result of a maintenance shutdown of the line during the second half.
Operational improvements at Nkomati Anthracite Mine were successfully implemented, and with a full EIA in place, the mine processed 100 000 tonnes in July 2025. An assessment of underground viability led to the mothballing of the underground mining operation. Due to decreased demand from ferrochrome smelters during the period, volumes amounted to 136 216 tonnes (31 August 2024 volumes: 155 686 tonnes).
The Mozambique border has reopened, and two shipments of anthracite were exported, totalling 61 861 tonnes as compared to the 41 568 tonnes in the previous period), with additional shipments expected for the remainder of the financial year.
Although the Industrial Minerals segment is a very small part of the Group, this business unit was also impacted by the shutdown of the ferrochrome smelters and the closure of the Newcastle steelworks. Revenue declined by 16,8% to R270,6 million (August 2024: R325,1 million), and operating profit dropped to R22,5 million from R68,6 million in the previous period.
Exciting progress was made in the Future Materials and Metals segment, with test work to unlock the full potential of this unique reserve. Encouraged by promising applications in the battery and magnet markets, significant progress has been made with local operators and international partners to develop the business case, which should not require significant further capital investment from Afrimat. Revenue from phosphate product sales increased to R53,7 million (August 2024: R38,9 million), but as the business is still ramping up, it incurred an operating loss of R24,8 million.
Prospects
The performance of the cement plant is expected to improve as reliability and throughput increase.
The assets acquired in the Lafarge transaction are either profitable or demonstrating strong momentum.
Post the interim period, the acquired Lafarge quarries are further increasing sales by regaining market share and developing new markets supported by a strong national presence. “Afrimat is well-positioned to benefit from road and rail maintenance, private building projects, provincial maintenance, infrastructure projects, and large-scale infrastructure and building initiatives across our borders”.
Afrimat expects domestic iron ore sales to be slightly lower in the second half of the financial year compared to the first half, due to the closure of AMSA’s Newcastle operation, but overall better than the previous year. International iron ore sales are projected to remain at similar levels to the previous year. “The recent rise in iron ore prices is a positive development.”
Unfortunately, due to the possibility of ferrochrome smelter closures in South Africa, management is currently evaluating viable options for the Nkomati Anthracite Mine. What is encouraging is that the sector and the Government are in discussions to secure sustainable electricity tariffs, thus maintaining competitiveness. Afrimat remains hopeful that no further erosion of industrialisation will occur in South Africa.
Van Heerden concluded by saying that despite the structural economic challenges in South Africa, Afrimat's management is confident that the foundation and diversification of the Group are sound.
“The Group will continue to support its customers while also exploring alternative markets. The effort spent to ensure future performance is resilient, with continued investment in operational reliability supporting a positive outlook for improved returns.”
