Open-pit mining company Afrimat’s acquisitions have started paying off, boosting the group’s six-month performance.
On Thursday, the company released its results for the half year to end-August, which showed a 61% increase in its headline earnings per share. Afrimat declared an interim dividend per share of 40 cents.
Its revenue increased to R2.4 billion, from R1.6 billion in the same six months in 2020.
The company, which provides industrial minerals, bulk commodities and construction materials, has been diversifying its business. Its most recent acquisitions include the Nkomati anthracite and Jenkins iron ore mines, which form its bulk commodities segment, together with Demaneng mine, which it acquired in 2016.
The segment’s operating profit grew by 39% to R453.7 million, which Afrimat said was largely due to favourable international iron ore prices during the six months.
Afrimat’s CEO Andries van Heerden said Nkomati and Jenkins in particular made a strong contribution to the results.
“With Jenkins successfully coming into production, the ramp-up is in accordance with strategic plans and product is being sold into the local market through a defined price contract.
“Nkomati, which turned from realising start-up losses to also contributing positively to the segment’s result in August, produces a high-quality product sold into the local market as a replacement for imported anthracite,” he said.
The group's other segments also performed well, with industrial minerals returning to pre-Covid-19 volumes, with its operating profit increasing from R24.6 million to R51 million. Construction materials also saw strong growth.
Afrimat is continuing with its acquisition drive, and is in the final stages of a deal to buy Gravenhage manganese mine in the Kalahari.