First publishedon www.AggBusiness.com
Afrimat has posted record six-month interim results. Pictured is one of the company's open-pit mining sites pic: Afrimat
Afrimat, a major South African open-pit mining company supplying construction materials, industrial minerals and bulk commodities, is celebrating a record set of interim results for the six months to 31 August 2019, with revenue up 19.9% to R1.7 billion (US$112.98mn).
Operating profit was up an eye-catching 56.9% to R318mn (US$21.13mn), while Afrmat’s headline earnings per share rose by 94.3% to 181.9 cents.
The firm’s Bulk Commodities segment, consisting of the Demaneng iron ore mine in Northern Cape, South Africa, continued to deliver a healthy contribution to the group results, amounting to 28.9% of overall revenue. Bulk Commodities segment revenue increased by 77.5% from R280.4mn to R497.7 (US$33.07mn) and operating profit increased by 176.2% from R50mn to R138.2mn (US$9.18mn) as a result of an impressive increase in volumes and favourable pricing during the period. The Construction Materials and Industrial Minerals business segments, the former including sales in Mozambique, also recorded revenue rises over the analysed six-month period.
New business development remains a key component of the Afrimat’s growth strategy, according to a group board statement released with the six-month trading figures.
The statement continued: “The group is well positioned to capitalise on its strategic initiatives. It foresees continued growth from an excellent asset base and expects further expansion of its range of unique products. The continuation of selective acquisitions is expected to deliver good results.
“Operational efficiency initiatives aimed at expanding volumes, reducing costs and developing the required skill levels across all employees, remain a key focus in all operations.”