Modern Quarrying Q3 2018

INDUSTRY NEWS

Diversification remains Afrimat’s pillar of strength Afrimat, a leading open-pit mining company providing indus- trial minerals, commodities and construction materials, has released full year results for the year ended February 28, 2018. Andries van Heerden, CEO of Afrimat, indicates satisfaction with the results, which were well supported by the group’s diversification strategy. “Despite difficult trading conditions impacted by political uncertainty, which in turn affected business confidence in the first half of the year, the industrial

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large part of the increased cost was as a result of an approved decision to accelerate the ramp-up of Demaneng in order to capitalise on the attractive iron ore price,” explains van Heerden. Headline earnings per share declined by 8% to 180,7 cents per share (2017:

minerals segment of the group faired particularly well.” Van Heerden indicates that the economic slow-down during the last quarter of 2017 exacerbated the operating climate, but the entrepreneurial flair of the businesses that make up the group did not allow market conditions to dic- tate performance. “Our product range is highly diversified and coupled with our strategic positioning and excellent service delivery, we were able to maintain, and in some instances even gain, market share,” he says. The acquisition of Demaneng, the new name for Diro Manganese Proprietary Limited and Diro Iron Ore Proprietary Limited, added bulk commodities to this already diversified product offering and provides the group with the ability to now market and sell iron ore. Group revenue increased by 10,3% to R2,5-billion (2017: R2,2-billion), with the contribution from operations declin- ing by 13,3% to R351,8-million (2017: R405,6-million). “A

196,4 cents). The net debt equity ratio increased from 19,8% in the prior year to 37% in the current year, mainly due to a new R300-million amortising five-year term facility being introduced to finance the acquisition of the Demaneng mine. Afrimat declared a final dividend of 42 cents per share, taking the total dividend for the year to 62 cents per share. The business operates in Aggregates and Industrial Minerals, Commodities and Concrete Based Products. The Aggregates and Industrial Minerals segment generated a satisfactory result. Van Heerden indicates that he was “particularly happy with the industrial mineral producing operations across all regions, as well as the Western Cape aggregates business”. l

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MODERN QUARRYING QUARTER 3 - 2018

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