Investment Case

Afrimat is a leading black-empowered open pit mining group that supplies industrial minerals and construction materials to a range of businesses and industries across southern Africa. In addition, the Group supplies bulk commodities to both local and international markets. It listed on the JSE Main Board in 2006 and is currently listed in the Basic Materials: General Mining sector.

The business is built on the principle of an entrepreneurial culture that seeks to ensure sustainability and profitability by positioning itself as a multi-commodity, mid-tier miner, which is also able to produce and supply construction materials and high-quality industrial minerals.

Afrimat is known for being a highly successful business as a result of its strategic focus, thorough planning, meticulous execution and constant monitoring and measurement of the initiatives that it implements. This is done within an ethical organisational framework, and a people-centric culture that breeds success and rewards performance. This ethical viewpoint further ensures a caring organisation that deems environmental, social and governance (ESG) factors to be critical to its operations, and engages regularly and transparently with all stakeholders, including the communities within which it operates.

After listing in 2006, when Afrimat’s main focus was on aggregates and quarries, the Group embarked on a diversification strategy in order to ensure the long-term success and sustainability of the business. This strategy has effectively protected Afrimat against lower economic growth rates in South Africa, with the further diversification into bulk commodities helping to position the Group as a Rand-hedge, able to earn foreign currency.

The diversification strategy has also supported Afrimat in being able to maintain an outstanding Compound Annual Growth Rate (CAGR) of Profit After Tax of 22% from 2009 to 2021. An exacting focus on capital allocation and cash conversion has further ensured the Group’s ability to be a consistent dividend payer, with a dividend cover of 2,75 times in place.