According to Dr Botha, arguably the most impressive aspect of the latest ACI is that the downward trend of the four-quarter average has been arrested, with a marginal uptick recorded.

“The majority of indicators recorded double-digit growth rates, whilst the volume of building materials produced enjoyed the second highest year-on-year increase and the third highest quarter-on-quarter increase.”

He added that a further decline of 25 basis points in the prime overdraft rate during this period also played a role in the improvement of several indicators, especially in the values of building plans passed and retail trade sales of hardware.

Construction sector activity outperformed the GDP by a healthy margin during the third quarter of 2025, although it lagged behind overall economic activity compared to the third quarter of last year.

The following table shows the quarter-on-quarter and year-on-year percentage changes for the 10 constituent indicators included in the ACI.

According to Botha, it is encouraging that only one of the 10 indicators failed to record quarter-on-quarter growth, namely the value of construction works (in real terms). “The lack of progress with capital formation in the economy, which is generally associated with a significant element of construction works, should be of concern to the Government, as the country is in dire need of repairs and expansion of infrastructure, especially roads, water, and sewage.”

He added that it was, howe er, worth noting that South Africa’s economic growth prospects ha e impro ed lately, mainly due to the lower interest rates and a lar e measure of fiscal stability. “The latter has been boosted by the performance of gold and platinum prices, which played a key role in securing a healthy cumulative trade surplus during the first ten months of the year.”

Looking ahead, Dr Botha expects a further recovery in construction sector activity, especially due to the latest decrease in the prime overdraft rate to . 5%. “ Although the modest relaxation of monetary policy is to be welcomed, more interest rate cuts are required to bring the cost of capital in South Africa in line with our key trading partners.”

Afrimat’s strategic expansion and positive outlook

Andries van Heerden, the CEO of Afrimat, says that the Group’s acquisition of the Lafarge assets was a deliberate strategic move aimed at expanding its geographic footprint and securing access to well-designed, high-quality quarries. “While these assets experienced some neglect during the Competition Tribunal approval process, they are now beginning to deliver on the potential we originally identified.”

Although the Government has yet to announce major infrastructure maintenance or new development projects, Afrimat is seeing tangible benefits from provincial and private sector spending across the country.

Van Heerden added that, in the quarry business, every ton sold contributes to overall performance, and that is exactly what Afrimat is now experiencing. “Even previously closed quarries, which we have successfully reopened, are now receiving meaningful orders, and margins are stabilising. This trend aligns with recent construction sector data reflected in the and supports the recent upgrade of South Africa’s credit rating.”

He went on to say that, encouragingly, the cement plant in Lichtenburg achieved break-even in recent months and continues to improve in terms of both reliability and clinker output. “Although losses from the first half of the financial year will not be fully recovered, we do not anticipate that the losses will escalate further. Demand for cement, both bagged and bulk, remains strong in our local and regional supply regions, mirroring the robust demand for aggregates.”

What Afrimat is experiencing currently is very reassuring. “We attribute this progress to the commitment of provincial managers and leaders, as well as the private sector, who are actively working together to restore national pride and ensure that infrastructure operates effectively. We remain confident that collaboration between the public and private sectors will drive sustainable growth for all South Africans.”

Van Heerden concluded by saying that Afrimat’s positioning as a multi-commodity, diversified mid-tier mining company, producing and supplying construction materials, iron ore, anthracite, and other minerals, places it firmly on a path to support the growth South Africa is ready for.

-Ends-

Issued for: Afrimat Limited

• Contact: Andries van Heerden, Chief Executive Officer (CEO)
• Tel: 021-917-8853
• Email: andries@afrimat.co.za
• Website: www.afrimat.co.za
• Issued by: Keyter Rech Investor Solutions
• Contact: Vanessa Rech
• Tel: 083-307-5600
• Email: vrech@kris.co.za

The post Afrimat Construction Index continues recovery in third quarter of 2025 appeared first on Afrimat.

Salient features of the interim results

• Group revenue up 29,9% to R5,3 billion
• Interim dividend per share of 20,0 cents
• Headline earnings per share (‘HEPS’) up 92,3% to 101,9 cents
• Operating profit up 29,8% to R379,8 million
• Net asset value (‘NAV’) per share 2 951 cents

23 October 2025 – 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.”

-Ends-

Issued for: Afrimat Limited

• Contact: Andries van Heerden, Chief Executive Officer (CEO)
• Tel: 021-917-8853
• Email: andries@afrimat.co.za
• Website: www.afrimat.co.za
• Issued by: Keyter Rech Investor Solutions
• Contact: Vanessa Rech
• Tel: 083-307-5600
• Email: vrech@kris.co.za

The post Afrimat delivers on asset integration and improved performance appeared first on Afrimat.

“A strong rebound occurred since the first quarter of 2025 for several key indicators, most notably the value of buildings completed, up by 21.7%, the sales value of building materials, up 13%, and the volume of building materials produced, up 10%, ” said Dr Botha.

According to him, the recovery of the ACI was, however, fairly predictable, as the indicators included in the index came off a low base recorded in the first quarter of the year. The further marginal decline in the prime overdraft rate during the second quarter also played a role in the improvement.

Despite the impressive quarter-on-quarter overall increase in the ACI of 6.8% during the second quarter, which is more than double the GDP growth rate, it remains a point of concern that the year-on-year change remained negative, said Dr Botha.

The table that follows provides the quarter-on-quarter and year-on-year percentage changes for the 10 constituent indicators included in the ACI.

Looking ahead, Dr Botha expects a further recovery in construction sector activity, especially due to the upward trend in the value of building plans passed, as well as the rise in the latest reading of the BetterBond Index of Home Loan Applications.

“The impact on the residential property market of the recent lowerin of the country’s benchm rk lendin rate has been reflected in the latter index increasing by 14% year-on-year during July and August. In the process, the number of home loan applications reached its highest level since the third quarter of 2022, when record high interest rates really started biting into the pockets of prospective homebuyers.”

Botha added that the residential property market is slowly but surely building up steam, which will ultimately benefit construction activity at large. “The pace of further recovery in the construction sector will, however, only gain significant traction once the prime rate has returned to its level of 7% that existed immediately after the pandemic, and the Government takes re l ction on it l infr structure projects.”

From a business perspective, Afrimat has not really felt the impact of what the latest year-on-year reading of the ACI indicates.

“Given the success with the turnaround of most of the ex-Lafarge businesses, together with the contribution from our mining assets, Afrimat was able to counter the lack of infrastructure spending by the Government. We are starting to see early progress, with the rebuilding of the country’s r il systems, and this, along with the expansion of the electricity distribution network, bodes well for the future of our Construction Materials business,” explained Afrimat’s CEO, Andries van Heerden.

Focusing specifically on this segment of Afrimat, van Heerden says that with the acquisition and integration of the ex-Lafarge quarries, along with investments to address neglect and the completion of integrating information systems and management structures, the second quarter of the financial year saw improved operational efficiencies and increased profitability.

This was also aided by regaining market share previously lost when Lafarge began exiting South Africa. “We got this right, through improved service delivery to customers who were previously neglected.”

Afrimat’s diversified operations, its acquisition of Lafarge South Africa, and the fact that 50% of the Transnet-approved quarries are owned by Afrimat, ensure that it is well-positioned to support Transnet’s infrastructure development and maintenance across all six major rail corridors. The Group continues to evolve its cement strategy, aligning with global sustainability trends and operational efficiency.

“We believe the traditional cement model is no longer viable in today’s market. By reducing reliance on costly and environmentally taxing components and incorporating extenders innovatively, we can supply compliant, cost-effective, and lower-carbon cement products to the market,” van Heerden said, going on to explain that demand for low-carbon cement is supported by attractive sales volumes.

He concluded by saying that Afrimat can play a key role in these strategic national projects by supplying critical construction materials and leveraging its national footprint.

-Ends-

Issued for: Afrimat Limited

• Contact: Andries van Heerden, Chief Executive Officer (CEO)
• Tel: 021-917-8853
• Email: andries@afrimat.co.za
• Website: www.afrimat.co.za
• Issued by: Keyter Rech Investor Solutions
• Contact: Vanessa Rech
• Tel: 083-307-5600
• Email: vrech@kris.co.za

The post Afrimat Construction Index records solid recovery in second quarter of 2025 appeared first on Afrimat.

Johannesburg, 25 June 2025 – Afrimat, a multi-commodity, mid-tier mining company that produces and supplies construction materials, iron ore, anthracite, phosphate, and high-quality industrial minerals, has released the findings of its Afrimat Construction Index (ACI) for the first quarter of 2025. The ACI is a composite index of the level of activity within the building and construction sectors, compiled by economist Dr Roelof Botha.

According to Dr Botha, the marginal declines in the prime overdraft rate since September last year have not been sufficient to exert a meaningful positive impact on the ACI. The seasonality of the construction industry implies that the index values should only be compared with corresponding quarters of previous years. The year-on-year comparison with the first quarter of last year shows a decline of 2.6%.

He believes the reading is an accurate reflection of the Government’s lack of willingness to spend on economic assets. “It should be a point of concern for South African policymakers. Following a sharp drop during the pandemic, the ACI recovered swiftly to within a whisker of its pre-COVID level, but the recovery was then stymied by a combination of inadequate fiscal support for infrastructure expansion and the hangover from the state capture era, during which the effectiveness of several key state-owned enterprises and other public sector agencies was eroded. Over the past two years, these problems have been exacerbated by the South African Reserve Bank’s restrictive monetary policy, leading to the highest lending rates in 15 years.”

Dr Botha adds that the sector has been hamstrung ever since the high interest rates started to bite into the pockets of prospective home-owners and property developers, as witnessed by the decline in the real value of building plans passed by the metros and larger municipalities. Over the past three years, these have declined for Gauteng, the Western Cape, and KwaZulu-Natal (“KZN”).

“Construction is the most labour-intensive sector in the economy, and the restrictive monetary policy has not only prevented this sector from recovering from the pandemic but has also contributed to the sector entering a deep recession.”

In addition, parts of the country experienced above-average rainfall in the first quarter of 2025, severely impacting construction activity and production in several provinces. KZN had a noticeable increase over its historical average, consistent with reports of the province experiencing exceptionally heavy rain. Gauteng also experienced above-average rainfall, particularly in January 2025, while the North West saw a notable increase in rainfall compared to its historical average. This is supported by the South African Weather Service issuing warnings for heavy rain and potential flooding across Gauteng, KZN, and North West in early January 2025.

The exceptionally high rainfall was a major contributing factor to the decline of some of the indicators comprising the ACI during the first quarter of 2025, with only two indicators showing growth on a year-on-year basis.

According to Dr Botha, the roadmap for higher and sustained economic growth in South Africa that was published recently by the World Bank at the request of the Government, provides ample opportunity for eliminating some of the impediments to a revival of the construction sector, especially in the area of enhancing the competence of decision making in relevant public sector agencies.

“Hopefully, the Government will soon start to implement the recommendations of the World Bank roadmap, which, together with a further significant lowering of interest rates, should pave the way for a revival of construction sector activity.”

Andries van Heerden, CEO of Afrimat, expressed ratitude that Afrimat’s experience in demand and activity countered the Index’s results.

“Both cement kilns are running, and market demand is significantly stronger than originally anticipated. Despite heavy rainfall in the North West, the dryer weather has come at a perfect time, and we have made up some of the heightened demand we experienced for our products.”

He adds that demand for Afrimat’s innovative low-carbon cement product continues to be strong.

“Quarrying and fly ash operations are performing significantly better than the previous year, with the ex-Lafarge quarry volumes increasing, and in some areas, where large projects are underway, such as in KZN, demand for construction materials has been strong.”

Should the Government roll out its announced infrastructure investment over the next three years, Afrimat stands ready. “This spend will be hugely beneficial to the country in terms of vital job creation as well as ensuring economic activity is heightened. This is especially true in terms of logistics, with mineral and material exports being critical to the fiscus of the country. The renewed focus on rail maintenance is creating a welcome increase in the demand for construction materials such as ballast stone,” says van Heerden.

“ n my opinion, it is critical for the Government to ensure that export logistics are maintained and optimised for the wealth of exports our country has. Thankfully, Afrimat has been able to export anthracite via the Maputo port, and in the first quarter, two shipments were exported with further shipments currently being loaded.”

On the social side, Afrimat continues to invest to ensure South Africans are trained and ready to take up employment opportunities when these arise. Afrimat, in collaboration with industry colleagues AfriSam and Sephaku Development, has handed over a fully refurbished and modernised Resource Centre at the Taletso TVET College in Lichtenburg.

Van Heerden says he is proud of the initiative, which “is a si nificant step towards bolsterin local economic development and addressing critical community needs. ” He adds that the Group takes great pride in this type of support to communities close to the areas in which it operates.

-Ends-

Issued for: Afrimat Limited

• Contact: Andries van Heerden, Chief Executive Officer (CEO)
• Tel: 021-917-8853
• Email: andries@afrimat.co.za
• Website: www.afrimat.co.za
• Issued by: Keyter Rech Investor Solutions
• Contact: Vanessa Rech
• Tel: 083-307-5600
• Email: vrech@kris.co.za

The post Afrimat Construction Index for Q1 2025 weakens appeared first on Afrimat.

This milestone represents a significant step towards bolstering local economic development and addressing critical community needs.

The project is a testament to the commitment of these leading cement producers to the communities in which they operate and entailed the comprehensive refurbishment of two classrooms, transforming them into a modern resource centre equipped with computers, televisions, cameras, an inverter, and essential furniture. The project also included crucial foundation stabilisation and painting, ensuring the longevity and functionality of the facility.

“It has been a privilege to partner with our fellow industry leaders and government to positively contribute to the Lichtenburg community,” stated Esther Teffo, Group Manager: Mineral Resources and Compliance at Afrimat. “Furthermore, Afrimat, as a new player in the cement industry following our acquisition of Lafarge South Africa, is exceptionally proud to hand over this project as a show of good faith towards the community and to affirm Afrimat’s commitment to enhance LED initiatives in the community.”

According to Jaco Vermaak, General Manager at AfriSam’s Dudfield Cement operation, “AfriSam is proud to have collaborated with Afrimat and Sephaku Development to bring the Taletso Resource Centre to life. This initiative reflects our shared commitment to education, skills development, and empowering future generations. We believe that access to quality resources is a cornerstone of academic success, and we are honoured to contribute to the growth and development of students at the TVET college.”

“At Sephaku Development, we view education as a cornerstone for sustainable socio-economic progress”, said Robert Mathye, Executive Manager – Sustainable Development. “This Resource Centre is more than a refurbished space, it is a beacon of opportunity for young minds at Taletso TVET College. Through our partnership in the DCMF, we are proud to support this initiative, which aligns with our broader mission to empower communities through meaningful and lasting development. We believe that by investing in education and digital access, we are laying the foundation for a skilled and resilient workforce. We thank the DMPR, the Department of Higher Education and Training, and our fellow DCMF partners for their collaboration and shared vision.”

The Taletso Resource Centre is a direct response to fundamental needs identified by the Lichtenburg community and forms a core component of the Local Economic Development (LED) initiatives undertaken by the participating companies. The resource centre will provide essential educational and technological resources, empowering local residents and students to access vital learning opportunities.

This collaborative effort underscores the profound impact that can be achieved when leaders in the mining and construction industry work in close partnership with government. By pooling resources, expertise, and a shared commitment to community development, we can create sustainable futures and leave a lasting legacy. It is through such unified efforts that we can truly give back to the communities in which we operate, enabling growth, opportunity, and prosperity.

-end-

CONTACT

The post Industry Leaders Unite to Deliver Vital Resource Centre to Lichtenburg Community appeared first on Afrimat.

South Africa’s mining sector, a cornerstone of its economy, is witnessing a significant shift: a growing number of companies are opting for contract mining. This strategic move is not just a fleeting trend but a fundamental re-evaluation of operational models aimed at enhancing efficiency, mitigating risks, and sharpening competitive edges.

What is Contract Mining?

At its core, contract mining involves a mine owner engaging specialist contractors to execute various mining operations. Instead of using their own equipment and personnel for every task, companies outsource functions ranging from drilling and blasting to loading, hauling, equipment maintenance, and even comprehensive mine planning. This allows mine owners to leverage external expertise for specific or entire segments of the mining value chain.

At Afrimat Contract Mining Services we exemplify this model by offering “full pit to port solutions to the mining, construction, and quarry industry throughout Southern Africa.” Our services span from open cast mine planning, bulk drilling and blasting, load and haul, crushing and screening, and the beneficiation of materials.

In-house vs. Outsourced: A Strategic Comparison

The decision to manage mining operations in-house or to outsource them is a critical one, with distinct advantages and disadvantages for each model:

In-House Model:

There are many mining companies that prefer to maintain full control over their operations, investing heavily in their own fleets, infrastructure, and workforce. While this in-house model offers benefits like direct control and knowledge retention, it also comes with significant drawbacks:

• High Capital Outlay: Requires substantial upfront investment in machinery and infrastructure.
• Fixed Costs: Leads to high fixed operational costs, regardless of production levels or market fluctuations.
• Resource Management Obligation: The company bears full responsibility for equipment maintenance, procurement, and managing a large workforce.
• Exposure to Risk: Full assumption of all operational, safety, and environmental risks.
• Skills Gap: Potential challenges in acquiring and retaining specialised skills for every aspect of mining.

Outsourced Model (Contract Mining):

This approach shifts many operational responsibilities and associated risks to external contractors, offering significant advantages:

• Cost efficiency: Contractors absorb large equipment costs, converting fixed costs to variable ones and leveraging economies of scale. This frees up capital for the mine owner.
• Specialised expertise: Contractors provide experienced professionals and advanced techniques, bridging skill gaps and boosting productivity.
• Risk Management: Operational risks like equipment breakdowns and safety incidents are transferred to the contractor.
• Flexibility: Companies can scale operations up or down easily, adapting to market changes without extensive internal adjustments.
• Focus on core business: Mine owners can concentrate on strategic areas like exploration and financial management.

Why the shift in South Africa?

There are several factors leading South African mine companies to embrace contract mining in South Africa:

• Economic pressures: Volatile commodity prices demand more flexible and efficient financial models.
• Modernisation needs: Access to advanced equipment without the direct capital investment.
• Skills shortages: Contractors provide readily available, specialised expertise.
• Operational efficiency: The drive for higher productivity and lower costs.
• Enabling emerging miners: Facilitating participation for emerging miners with limited funding and expertise.

How is Afrimat contributing to Contract Mining?

Afrimat’s Contract Mining Services stand out by providing comprehensive solutions that align with the benefits sought by South African mining companies. Our offerings include:

• Mine Planning: Strategic and detailed planning for efficient extraction.
• Bulk Drilling & Blasting: Utilising modern software and a wide range of explosives, with significant capacity for large-scale operations.
• Load & Haul: Efficient movement of ore and waste materials.
• Crushing & Screening: Both mobile and fixed solutions for material processing.
• Beneficiation of Materials: Adding value to raw materials through processing.
• Legal compliance: Licence to operate

Afrimat’s expertise in managing and executing drilling requirements, both for our internal group and external clients, demonstrates our capability to provide a “complete professional rock-on-ground service.” This holistic approach allows clients to achieve operational efficiencies and cost savings.

In conclusion, contract mining, a service exemplified by Afrimat, is becoming an indispensable strategy for South African mining companies navigating a complex and dynamic industry. By leveraging external expertise and flexible operational models, we are positioned to enhance efficiency, manage risks, and focus on sustainable growth.

Contact us today to learn more about our services and how we can help you achieve your mining goals.

The post What is Contract Mining and why are more South African mining companies outsourcing it? appeared first on Afrimat.

Blog by Andre van Rensburg – Ops Manger D&B: Aggregates

At Afrimat, we believe in delivering end-to-end mining solutions that are safe, sustainable, and cost-effective. Our Contract Mining division provides comprehensive open cast mining services – from resource modelling to the final delivery of processed material. This blog outlines the complete journey of how we transform in-situ resources into valuable, market-ready products through a structured, professional, and well-managed workflow.

1. Geological Assessment & Resource Evaluation

Every successful mining operation starts with a deep understanding of the resource. Our in-house geologists work closely with exploration data to build detailed geological models, evaluate ore reserves, and identify the most economically viable extraction plan. We use advanced technologies such as drone mapping, 3D modelling, and geostatistical analysis to ensure accuracy and transparency from the start.

2. Mine Planning & Design

Using cutting-edge mine planning software, our technical teams develop strategic mine plans that optimise ore recovery, minimise environmental impact, and enhance operational efficiency. We consider key factors such as:

• Optimised pit design and layout
• Stripping ratios*
• Drill & blast parameters
• Haul road optimisation

This ensures that the mine design is not only technically sound but also tailored to the client’s production targets and timeline.

*What is Stripping ratios? It is the amount of waste (or overburden) that must be removed to release a given ore quantity in pure or run of mine (ROM) format.

3. Environmental & Safety Compliance

Zero Harm isn’t just a slogan at Afrimat – it’s a commitment that underpins our License to Operate and Social Responsibility Compliance. Before operations begin, our Environmental and SHEQ teams ensure full compliance with all regulatory requirements. Environmental Management Plans (EMPs), rehabilitation strategies, and risk assessments are developed and approved to uphold Afrimat’s standards for sustainability and worker safety, solidifying our commitment to both the environment and the communities in which we operate.

4. Mobilisation & Site Establishment

Once plans are approved, we move swiftly to mobilise our fleet and establish site infrastructure. This includes:

• Workshops and storage facilities
• Offices and control rooms
• Fuel bays and wash bays
• Communication systems and weighbridges

Our ability to rapidly set up and scale mining operations gives us a competitive edge in delivering on time and within budget.

5. Drilling & Blasting

With a focus on precision and safety, our experienced drilling and blasting teams execute controlled blasts that optimise fragmentation while reducing vibration and fly rock. Blast monitoring and analysis ensure consistent quality and minimal environmental disruption.

6. Load & Haul Operations

Afrimat operates a fleet of modern, well-maintained earthmoving equipment capable of handling any terrain or material type. We ensure:

• Efficient material movement from pit to plant or stockpile
• Minimum downtime through proactive maintenance
• Real-time production monitoring using fleet management systems

This stage is the engine room of our mining process, where tonnages are moved effectively and economically.

7. Crushing & Screening

Our in-pit and mobile crushing units reduce material to the required sizes, while screening plants ensure product specification compliance. We can produce a wide range of aggregates, coal, anthracite, and industrial minerals, depending on client requirements.

8. Quality Control & Laboratory Testing

Product quality is non-negotiable. Our dedicated quality control teams perform routine sampling, lab analysis, and reporting to ensure every tonne meets the client’s technical specifications. Afrimat’s in-house laboratories are fully equipped for fast, accurate turnaround.

9. Stockpiling & Material Management

Finished products are stockpiled in a manner that allows for easy access, inventory tracking, and efficient dispatch. Our teams manage stock rotation, contamination prevention, and loadout scheduling to maximise customer satisfaction.

10. Logistics & Delivery

The final leg of the journey is getting the material to the customer – safely, reliably, and cost-effectively. Our logistics teams coordinate:

• On-site loading
• Transport fleet scheduling
• Weighbridge operations
• Delivery tracking and documentation
• Export Assistance

Whether by road or rail, Afrimat ensures that delivery meets both time and quality expectations.

Afrimat’s Contract Mining workflow is built on years of experience, technical excellence, and a relentless focus on safety and sustainability. From mine planning to final delivery, we offer a seamless, integrated solution that allows our clients to focus on their core business while we take care of the mining.

Contact us today learn more about how Afrimat can optimise your mining operations.

The post From Mine Planning to Delivery: The Complete Contract Mining Workflow appeared first on Afrimat.

15 May 2025 – 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 year ended 28 February 2025.

“While these results are not as robust as in the past, the entrepreneurial culture continues to ensure sustainability and profitability through strategic focus, careful planning, and meticulous execution,” said Group CEO Andries van Heerden.

“Our long-term growth strategy is underpinned by a diversified asset base in the mining, quarrying, and related industries, and we continue to be renowned for acquiring distressed assets and turning them into profitable and sustainable businesses.”

He added that diversification and efficiency improvement initiatives remain the cornerstones of the Group’s strategy. “Our most recent acquisition, that of Lafarge South Africa, has been integrated successfully. Being our largest acquisition to date, the transaction became unconditional during the first quarter of this financial year.”

Van Heerden further explained that while the traditional aggregate quarries and ash business delivered a solid performance, the cement business incurred losses throughout the year. “Pleasingly though, these are steadily reducing as the cement operations were successfully restored and are now functioning at acceptable levels.”

Changes in the iron ore market, influenced by the Rand value of iron ore exports, and a weaker-than-expected anthracite performance further hindered the results.

While many impacts were not entirely within management’s control, the Group remained highly resourceful. “Substantial work was done to ensure a strong foundation for sustainability and to ensure improved performance in the next financial year,” commented van Heerden.

Financial results
Group revenue increased by 36,7% from R6,1 billion to R8,3 billion, with the inclusion of the Lafarge business. Operating profit decreased by 58,5% from R1 152,4 million to R477,7 million, resulting in an overall profit margin of 5,7%. Cash generated from operations equated to R571,6 million compared to R1 551,4 million, impacted by lower profits and the working capital requirements of the Group.

In the interim results, a gain on bargain purchase of R262,7 million was reported in relation to the Lafarge acquisition, based on the preliminary fair values of the identifiable assets. However, in line with IFRS 3, and as part of the final purchase price allocation within the permitted measurement period, the Group reassessed the fair values of the identifiable net assets acquired. This reassessment led to a downward adjustment to the value of certain assets, based on updated information that existed at the acquisition date. As a result, the previously recognised bargain purchase gain was derecognised, and no gain on bargain purchase is reflected in the final results.

Van Heerden explained that Afrimat was affected by a declining iron ore price, a strengthening Rand, and ongoing limitations on the export rail line. Iron ore volumes sold to AMSA improved well in the second half of the year after offtake was reduced in the first half after a furnace freeze.

“Additionally, there were no anthracite product exports from Nkomati through Mozambique due to border closures, and the cement business faced losses. Furthermore, additional debt to fund the acquisition of Lafarge resulted in significant additional finance costs. This culminated in headline earnings per share reducing from 567,3 cents to 72,3 cents.”

As expected, the net debt: equity position increased to 48,9% (February 2024: 1,4%) due to funding towards the Lafarge and Glenover transactions. The Group remains committed to ensuring strong cash generation to settle the additional debt as quickly as possible.

Operational review
The aggregates component of the Construction Materials segment delivered a solid performance, increasing operating profit by 40,2% to R383,5 million from R273,4 million in the previous year and delivering an operating profit margin of 10,8% (2024: 12,4%).

Van Heerden said that this was mainly due to the successful integration of the Lafarge quarries, the fly ash business, and the readymix batching plants, as well as volume growth.

The cement business incurred losses of R285,4 million. “During the first half of the financial year, the operation contended with known reliability issues at the cement factory, resulting in excessive maintenance costs and limited production. Following the revitalisation of the plant, production is at acceptable, efficient, and dependable levels, but during the second half of the year, the business had to contend with unusually high rainfall, which impacted production in January and February 2025.”

He added that the cement kilns benefited from extensive maintenance and are operating more efficiently and dependably, ensuring that Afrimat can now operate with backup capacity. “Production has steadily improved, and good progress has been made towards achieving the Group’s desired market share.”

The Industrial Minerals businesses delivered a strong and recovered performance. Revenue remained relatively flat from R554,5 million to R575,1 million, however, the operating profit increased by 325,7% from R13,8 million to R58,8 million for the year.

Van Heerden said that the suspension of loadshedding has been positive for both the segment and its customers. “This improved performance is encouraging and has been supplemented by strategic marketing initiatives and significant progress in the agricultural lime and precision farming sectors.”

The Bulk Commodities segment contributed 60,0% to the Group’s operating profit. Both revenue and operating profit decreased by 4,5% and 70,1% respectively from the previous year.

The operating profit for the iron ore mines decreased by 69,8% to R238,1 million from R789,0 million. International iron ore sales were adversely impacted by lower US dollar prices, down by 12,9%; an increase in shipping costs of 7,5%; a decrease in the lump premium of 12,4%; and the concurrent strengthening of the South African Rand of 2,1%.

Exports continue to be impacted by the challenges on the rail line although international sales tonnages increased marginally. However, overall volumes remain 16,5% below Afrimat’s rail allocation, and international iron ore prices have remained lower than last year.

“Domestic iron ore sales remain an important component of Afrimat’s offering and we remain in active discussions with our customer to supply it with innovative raw material solutions to support its long-term sustainability,” said van Heerden.

Local iron ore sales volumes for the year improved slightly and are expected to increase in the new financial year.

The anthracite mine’s revenue increased by 11,0% to R829,1 million from R746,7 million. Operating profit declined to R48,6 million compared to an operating profit of R168,7 million in the comparative year.

Key achievements at the Nkomati Anthracite Mine include the partial receipt of the Environmental Impact Assessment (EIA) for the full Life-of-Mine Plan, and the successful relocation of power lines, graves, and houses. This, along with a reorganised management structure, supports optimised performance. Underground mining operations were also relocated to a safer area.

“Along with the gains from the aforementioned adjustments, Nkomati’s results improved towards the end of the reporting period. No anthracite products were exported in the latter half of the financial year due to the closure of the border with Mozambique, which restricted access to the Maputo port. Fortunately, the border has reopened, and Afrimat has secured commitments for up to 80% of the new financial year’s export volumes.”

The Future Materials and Metals segment further supports the diversification strategy and offers wider exposure than ferrous metals. The segment adds phosphate and rare earth elements to the offering and aligns Afrimat to advancing decarbonisation trends through rare earth elements and improved food security through fertiliser products.

The project processes high-grade phosphate and single superphosphate (SSP). With the SSP plant now operational, fertiliser sales are increasing.

Further testwork on the rare earth element component of the deposit was done with very pleasing results. “The rare earth elements strategy is being refined to ensure a comprehensive understanding of the market and technology. This project is recognised as a strategic development requiring time to achieve its full potential,” said van Heerden.

Outlook
Afrimat looks forward to leaving the 2025 financial year behind, confident that it has established a strong foundation to achieve the more robust results management anticipates in the years ahead.

“May 2025 marks the first anniversary of the Lafarge acquisition. Over the past year, we have successfully integrated quarries, fly ash, and readymix batching plants, yielding excellent results. The cement operations have been restored and are now performing well, with some spare capacity available. Nonetheless, certain costs persist in the cement sector, including the ongoing transition of the ERP system from the Holcim platform.”

Van Heerden further commented that the priority for the Construction Materials segment is to enhance operating margins in the aggregates business through efficiency projects, eliminate losses in the cement business, and advance sales toward the Group’s desired market share.

“Nkomati has turned a corner; however, management remains aware that there is always the possibility of unforeseen geological challenges at the mine. With the EIA in place, the focus will be on the successful execution of Nkomati by optimising the Life-of-Mine Plan. In the first quarter of the new financial year, shipment of exported product has started,” van Heerden said.

He said that the Group is well-positioned to assist in supplying iron ore to both domestic and international markets and to increase its supply by ensuring that it has a spectrum of sources available.

“We also continue to engage with Transnet and participate in the Ore Users’ Forum to assist Transnet as much as possible, and we are encouraged by the private sector participation projects that are progressing at government level.”

The Group has consistently focused on strong cash generation, utilising it to swiftly pay down debt levels, make acquisitions, cover all operating costs, and return excess to shareholders.
“We will prioritise enhancing cash flow to reduce debt levels in line with the historical base,” said van Heerden, adding that Afrimat continues to optimise its operational efficiency across all businesses by utilising innovative technology solutions. “Proven results demonstrate that, with the help of technology, efficiencies and savings give us a competitive edge, ensuring greater profitability.”

Van Heerden concluded as follows: “All of these actions and priorities are only possible with an engaged and healthy workforce. Pleasingly, we have consistently achieved commendable audit scores from external health, safety, and environmental bodies, and this year we achieved an all-time low lost-time injury frequency rate of 0,27. We will continue to prioritise education, learning, and skills development opportunities for employees, while also ensuring that our social license to operate is well supported so that the communities in which we operate can thrive.”

-Ends-

Issued for: Afrimat Limited

• Contact: Andries van Heerden, Chief Executive Officer (CEO)
• Tel: 021-917-8853
• Email: andries@afrimat.co.za
• Website: www.afrimat.co.za
• Issued by: Keyter Rech Investor Solutions
• Contact: Vanessa Rech
• Tel: 083-307-5600
• Email: vrech@kris.co.za

The post Afrimat continues to forge a strong base for future sustainability appeared first on Afrimat.

According to a News24 report, South African business executives are increasingly being impersonated by criminals on social media and through cloned websites, who exploit the companies’ brand identities.

Andries van Heerden, CEO of Afrimat, shared with News24 that these scams have become highly sophisticated. In one instance, a close friend was convinced they were conversing with him in Afrikaans via Telegram. The impersonator even referenced personal values and details, making the deception very convincing.

The News24 article highlights that a cybersecurity expert advises internet users to adopt a “zero-trust” approach online. Additionally, they suggest that companies should invest in tools to actively monitor and detect fraudulent activities.

The News24 article details how Afrimat has experienced various scams, including fake share sales, fraudulent cryptocurrency offers, and a bogus website selling Afrimat products with upfront payment demands.

The issue, according to the News24 article, has escalated significantly over the past two years, with numerous cases reported monthly across different platforms. Scammers are now using current press information, company logos, and social media content to enhance their deceptions.

Despite Afrimat’s efforts to warn the public, as reported by News24, individuals are still falling victim to these scams. One example given was of an elderly gentleman who was tricked into paying for discounted shares he believed were being sold by the CEO.

Afrimat, according to the News24 article, reports that the frequency of these scams is rising, with new incidents being reported almost weekly.

The News24 article states that while Afrimat reports these scams and has had some success in shutting down fake websites, Telegram has been unresponsive. They have also filed police reports, but the perpetrators are difficult to trace.

The company, according to News24, is concerned about the reputational damage these scams cause. They are actively trying to educate the public to use legitimate channels for transactions.

The News24 article included insights from Anna Collard, a cybersecurity expert, who emphasized that fake profiles of prominent business leaders are a growing problem. She noted that many South African financial services executives have had their identities misused on platforms like Telegram.

The article states that companies like Growthpoint Properties and Remgro have also issued warnings about executive impersonation scams.

News24 reported that it was able to quickly find multiple fake profiles of Andries Van Heerden on Telegram.

According to the News24 article, the Financial Sector Conduct Authority (FSCA) has also warned against these types of scams.

Collard, speaking to News24, explained that scammers exploit the perceived legitimacy of respected business leaders. The accessibility of AI tools makes it easier and cheaper to create convincing impersonations.

The News24 article describes how scammers gather information from various online sources, including websites, LinkedIn profiles, and data breaches. They are also using AI to generate fluent messages in different languages, such as Afrikaans.

Collard, in the News24 article, recommends a “zero-trust” approach to online interactions and suggests that companies use AI-driven tools to detect and prevent scams.

The News24 article suggests that companies should use brand protection services, and that business leaders should maintain clear social media profiles while avoiding oversharing personal information.

The News24 article advises consumers to be sceptical of online offers from CEOs and to be wary of deals that seem too good to be true.

The post Beware of cyber criminals who exploit reputable companies’ brand identity appeared first on Afrimat.

The ACI has now improved for three quarters in succession, the first time this has occurred since the pandemic-related lockdowns, re-establishing a familiar trend in the construction sector at large.

According to Dr Botha, the recent lowering of the repo rate, and, by inference, also the prime overdraft rate, has exerted a marginal positive impact on the ACI, with the year-on-year increase of 2.5% outperforming the year-on-year real GDP growth rate of 0.5% by a considerable margin.

However, he pointed out that for quarter-on-quarter growth rates, the ACI only increased by 0.5%, compared to 1.5% for the economy as a whole. “This discrepancy can be explained by withdrawals via the new two-pot retirement system, as well as the two interest rate cuts of 25 basis points each during the end of 2024, which released a measure of pent-up demand for household consumption expenditure,” Dr Botha explained, adding that household consumption expenditure represents almost 65% of GDP, whilst capital formation, which encompasses most construction activity, represents 14.5% of total GDP.

During the fourth quarter of 2024, five of the ten constituent indicators comprising the index had positive readings (year-on-year), with four of the top-five ranked indicators remaining amongst the previous quarter’s top-five performers.

“However, it is a point of concern that the real value of construction works remains in the doldrums, with a year-on-year contraction of 3.4% in the fourth quarter in real terms. The public sector’s contribution to overall capital formation in South Africa has diminished quite dramatically since the onset of state capture and, more recently, the restrictive monetary policy stance, which took interest rates to their highest level in one-and-a-half decades.”

The outstanding performers amongst the ten indicators of the ACI during the fourth quarter were (year-on-year rates of increase in parentheses):

• Value of Building Plans Passed by the metros and larger municipalities (6.8%)
• Value of Building Materials Produced (6.7%)
• Value of Building Material Sales (5.4%)
• Employment in Construction (2.8%)
• Wholesale Trade Sales of Construction Materials (2.5%)

According to Dr Botha no doubt exists over the negative effects that record high interest rates have exerted on the economy, in general, and the construction industry, in particular. This is confirmed by several key economic indicators, most notably exceptionally high debt-servicing ratios and a persistent decline in the real value of credit extension. The S&P Global Purchasing Managers’ Index (PMI) for South Africa has been below the neutral 50-mark since the beginning of the year and capital formation declined by 3.7% during 2024 – at a stage when investment in the repair and expansion of the country’s infrastructure has become a critical imperative.

On a positive note, inflation is well and truly under control, with the February reading of the CPI remaining at the bottom end of the inflation target range of 3% to 6%. Lower producer prices, combined with declines in the oil price and a resilient Rand exchange rate, should secure further interest rate cuts in the course of 2025.

Other good news is the welcome return to employment creation in the construction sector. Thanks to a splendid performance during the third quarter of 2024, total employment in construction finally managed to return to the pre-Covid level of 1.35 million, although this figure is still well short of the 1.5 million recorded in the third quarter of 2018.

According to Andries van Heerden, the upswing in the ACI bodes well for the construction sector. “ Afrimat remains poised for growth and with capacity to supply any improvement in the sector. We have bolstered our long-term growth strategy by expanding a well-chosen asset base in the mining, quarrying, cement, and related industries, with the integration of Lafarge South Africa now complete.”

He added that Afrimat, always in support of growth initiatives and job creation in South Africa, now has 3,875 employees, attributable to the Lafarge acquisition and 228 new employees hired in the past six months.

“To ether with prospects for Nkomati Anthracite, an expanded Construction Materials business through Lafarge, innovative cement products, and other growth initiatives, this has balanced Afrimat’s diversity, placing the Group on a sustainable pathway forward.”

-Ends-

Issued for: Afrimat Limited

• Contact: Andries van Heerden, Chief Executive Officer (CEO)
• Tel: 021-917-8853
• Email: andries@afrimat.co.za
• Website: www.afrimat.co.za
• Issued by: Keyter Rech Investor Solutions
• Contact: Vanessa Rech
• Tel: 083-307-5600
• Email: vrech@kris.co.za

The post Afrimat Construction Index improves in the fourth quarter of 2024 appeared first on Afrimat.