More accurately depicts the group’s operations
20 March 2023 – Today, Afrimat, a leading mid-tier open-pit mining company providing Industrial Minerals, Bulk Commodities, Construction Materials and Future Materials and Metals, announced that its JSE listing classification will change from the Basic Materials, Construction sector to the General Mining sector. Through confirmation from FTSE Russell the quarterly classification change was made after the market close on Friday, 17 March 2023 and effective on Monday, 20 March 2023.
Andries van Heerden, the CEO of Afrimat, said that this move made much better sense given where most of the group’s earnings are now generated, and that the new classification will also better position Afrimat amongst its peers in the marketplace.
“After we listed in 2006, Afrimat was focused on aggregates and quarries, with our Construction Materials segment being the only contributor to profitability. We then embarked on a conscious diversification strategy to broaden our product offering through a multi-commodity portfolio to ensure the long-term success and sustainability of the business. This involved expanding into Industrial Minerals and later into Bulk Commodities, which now includes the mining, processing and sale of iron ore and anthracite. We are adding phosphate, rare earth elements and vermiculite to our product offering through the development of Glenover mine. The newly formed Future Materials and Metals segment will house the Glenover operation.”
Van Heerden explains that as a result of the diversification strategy, the Group’s Construction Materials segment now contributes less than 20% towards operating profit. “The Bulk Commodities segment generates the bulk of our revenue and operating profit and, in accordance with the JSE Listing Requirements, a sector change was required.
“An extract of the definition of General Mining is, “Companies engaged in the exploration, extraction or refining of minerals not defined elsewhere within the Mining sector. It also includes companies engaged in diversified metals and mining, marketing of mining commodities, and providers of contracted drilling services.”
Van Heerden indicated that Afrimat would continue with its diversification strategy to consistently deliver exceptional results. “This strategy, coupled with the innovation of traditional products and inputs, has effectively protected Afrimat against lower economic growth rates in South Africa. Deeper diversification into bulk and other commodities will help position the Group as a Rand-hedge, able to earn foreign currency.”
The diversification strategy has also supported Afrimat in maintaining an outstanding Compound Annual Growth Rate (CAGR) of Profit After Tax of 22% from 2009 to 2022. An exacting focus on capital allocation and cash conversion will continue to be the foundation of stewardship.
-End-
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
- Account: Keyter Rech Investor Solutions
- Contact: Vanessa Rech
- Tel: 087-351-3814 or 083-307-5600
- Email: vrech@kris.co.za
Company background
Afrimat is a leading black empowered group with its main business and core competence in mid-tier mining. The Group supplies industrial minerals and construction materials to various industries across southern Africa. It further provides bulk commodities to local and international markets. The group mines and processes phosphate and vermiculite through the Future Materials and Metals segment.
- Bulk Commodities – Iron ore | anthracite
- Construction Materials – Aggregates | concrete products | readymix
- Industrial Minerals – Limestone | dolomite | industrial sands
- Future Materials and Metals – Phosphate | vermiculite | rare earth elements
