22 October 2026 – Afrimat, a successful multi-commodity, mid-tier mining company that produces and supplies construction materials, iron ore, anthracite, manganese, phosphate, and high-quality industrial minerals, has released interim results for the period ended 31 August 2026.
“An exceptional combination of pressures caused the most challenging trading conditions that Afrimat has ever faced since it listed in 2006,” said Group CEO Andries van Heerden.
He explained that an excellent performance from the Aggregates business was hampered by a decline in the profitability of the Iron Ore business and continued operational challenges in Cement.
“Cash generated from operations increased, supported by successful working capital initiatives. Net debt reduced and the net debt:equity ratio improved, reflecting management’s continued attention to cash preservation during this period of operational pressure,” said van Heerden.
“Management remained focused on optimising the portfolio and protecting the balance sheet. Loss-making and non-core operations were closed, disposed of, or restructured. The resulting portfolio is more focused, and the benefits are visible in the Aggregates business’ improved underlying margins.
Financial results
Group revenue fell 4,3% to R5,1 billion (August 2025: R5,3 billion), mainly due to lower revenue in the Iron Ore and Cement businesses, partly offset by growth in Aggregates and higher anthracite export volumes.
Operating profit decreased by 32,8% to R255,2 million (August 2025: R379,8 million). Operating profit includes a once-off profit of R95,5 million on the disposal of the divested operations.
The overall decline was driven primarily by the Bulk Commodities segment, where operating profit decreased from R445,1 million to R8,6 million, and by the wider operating loss in the Cement business. These headwinds were partially offset by a strong performance in Aggregates and a 30,6% reduction in centralised shared services costs to R194,0 million (August 2025: R279,5 million), largely due to eliminating legacy information system costs.
On the positive side, and in line with actions taken by management, cash generated from operations increased by 21,1% to R433,1 million (August 2025: R357,7 million). “The improvement was primarily driven by disciplined working capital management,” van Heerden said.
Earnings per share decreased to 2,6 cents (August 2025: 102,7 cents), and the Group reported a headline loss per share of 58,0 cents (August 2025: headline earnings per share of 101,9 cents). The larger decline in headline earnings reflects the exclusion of the profit on the disposal of businesses, including divested operations as well as the disposal of non-core assets.
Given the period’s results and the Group’s continued focus on reducing debt and preserving cash, the Board resolved not to declare an interim dividend for the six months ended 31 August 2026.
Proceeds of R158,0 million from the disposal of businesses supported the repayment of borrowings. The net debt:equity ratio improved to 46,0% (February 2026: 50,2%). All bank covenants remain within the limits set by the lenders.
Operational review
Construction Materials
Revenue increased by 0,2% to R2,8 billion and operating profit more than doubled to R421,7 million (August 2025: R194,1 million).
The Aggregates and Fly-ash components delivered an excellent first-half performance. Revenue increased by 5,3% to R2,0 billion (August 2025: R1,9 billion) and operating profit increased by 76,8% to R567,8 million (August 2025: R321,2 million), at an operating profit margin of 27,8% (August 2025: 16,6%).
“Improved operational efficiency and cost discipline at the ex-Lafarge quarries, a deliberate focus on higher-margin products, completed capital projects that improved plant capacity and efficiency, and increased ballast and boulder sales, including emergency flood repair work in the Western Cape, drove the improvement,” said van Heerden.
The closure, disposal and restructuring of loss-making operations contributed further to the improvement. These results were achieved despite rising fuel prices, which led customers to postpone projects, and prolonged wet weather in the Eastern Cape.
The Cement business remained loss-making, with an operating loss of R146,1 million (August 2025: R127,1 million). Revenue decreased by 11,1% to R776,3 million, as sales volumes declined by 9,0%. Clinker production for the period increased by 12,0%.
Bulk Commodities
The Bulk Commodities segment came under significant pressure during the period. Revenue decreased by 3,3% to R1,8 billion and operating profit decreased to R8,6 million (August 2025: R445,1 million).
Revenue from the iron ore and manganese mines decreased by 7,9% to R1,2 billion (August 2025: R1,3 billion), as higher export volumes largely offset lower domestic volumes. Operating profit decreased to R11,3 million (August 2025: R403,5 million), primarily due to lower domestic sales volumes, weaker realised export prices, higher mining costs with Demaneng Mine reaching the end of its life. Doornfontein, a newly acquired low-cost deposit, will replace Demaneng towards the end of this financial year.
A stronger Rand and significantly higher shipping costs (49,1%) due to disruptions from the Iran conflict adversely affected iron ore export revenue. As a result, average mine-gate revenue per tonne was down by 16,4%.
Domestic iron ore sales volumes decreased by 36,5% to 527 696 tonnes (August 2025: 830 662 tonnes), adversely affected in Q1 as a domestic customer drew on non-Afrimat stockpiles it had secured previously, leading to lower and irregular sales volumes. Domestic iron ore volume trends began to recover in Q2.
International iron ore volumes increased by 29,9% to 514 809 tonnes (August 2025: 396 384 tonnes), including 110 140 tonnes exported through an allocation on the General Freight Business (‘GFB’) rail line in July and August.
Afrimat secured a seven-year manganese MECA III allocation of 240 000 tonnes per annum via the Coega Manganese Export Terminal near Gqeberha. The first vessel under this allocation departed on 4 August 2026, carrying 59 635 tonnes. Including these tonnes, total manganese volumes increased to 240 433 tonnes (August 2025: 76 337 tonnes). Afrimat expects to fill one vessel per quarter for the remainder of the financial year.
Nkomati Anthracite Mine’s revenue increased by 9,2% to R543,0 million (August 2025: R497,2 million), supported by significantly higher export volumes albeit at relatively low prices. Export sales accelerated as a survival measure after losing domestic sales due to the temporary closure of all ferrochrome smelters in South Africa. It reported an operating loss of R2,7 million (August 2025: operating profit of R41,6 million). Total sales volumes increased by 18,2% to 234 051 tonnes. International anthracite volumes increased to 150 933 tonnes (August 2025: 61 862 tonnes) as additional ports and shipments were secured, although subdued export prices led to only marginal contributions. The ferrochrome smelters are starting up again and positive market conditions bode well for the future of this mine.
Future Materials and Metals
Revenue increased 12,9% to R60,6 million (August 2025: R53,7 million), while the operating loss narrowed to R19,7 million (August 2025: R24,8 million).
“Glenover’s resource includes rare earth and iron phosphate streams. Rare earth has been recovered from rare earth-rich slag, while the iron phosphate stream produces Fe-P alloy, a feedstock for battery precursors. Technical development continues, with positive results and efficiency gains across key process stages. Commercial momentum is building among prospective partners, as strategic parties help validate the project and engagement continues in the coming months,” van Heerden said.
Industrial Minerals
Revenue fell 20,0% to R216,4 million (August 2025: R270,6 million), while operating profit declined 5,2% to R21,3 million (August 2025: R22,5 million). The operating margin rose to 9,8% from 8,3%. Performance improved in the second quarter following a challenging first quarter. Demand in the steel, ferrochrome and chemical sectors remained below normal, while low-cost imports continued to pressure key customers, resulting in lower volumes of industrial minerals sold to these customers. These effects were partly offset by a strong recovery in construction aggregate and road-building material sales, alongside a good agricultural lime season.
Prospects
The Aggregates business is expected to maintain its improved performance, supported by a more focused portfolio, the benefits of completed capital projects and continued demand from rail maintenance and infrastructure work.
With Kiln 3 back in operation from 1 September 2026, the Cement business is expected to benefit from improved clinker availability. Management remains focused on plant reliability and throughput, and demand for low-carbon, high-quality cement remains strong. The investigation into strategic alternatives continues, and the market will be updated as soon as possible.
Iron ore export volumes recovered well towards the end of the period, but realised prices remain under pressure from high shipping costs and a stronger Rand. The Doornfontein resource will replace the mined-out Demaneng mine. “Initially mined as a Direct Shipping Ore, this will keep overall mine costs lower than they currently are at Demaneng and provide a strong moat around this part of the business. We expect the first iron ore from Doornfontein in the last quarter of F2027,” he indicated.
Domestic iron ore demand is expected to stabilise at 90 000 to 100 000 tonnes per month.
Nkomati’s lower cost base leaves it well placed to benefit from higher volumes as the domestic market improves and more smelters come online, supported by the Group’s export strategy.
The Industrial Minerals segment will benefit from the reopening of the ferrochrome smelters, as well as import protection, which the Government seems to be moving towards.
“Against a global backdrop of tight supply and growing demand for secure, diversified sources of critical minerals, the strategic case for the Glenover project is becoming even more exciting,” van Heerden said, adding that the Company will share updates with the market as work progresses.
In conclusion, he mentioned that, despite the difficult trading environment, management is confident the Group’s diversified foundation is sound. Afrimat will continue to prioritise cash generation, debt reduction and operational reliability, positioning it to deliver improved returns as conditions recover.
-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