Afrimat interim revenue up 9.6%

AFRIMAT, a leading construction materials and mining company, has recently released its financial results for the six months ending in August 2023, showcasing a 9.6% increase in group revenue and a 4.4% rise in earnings. The impressive performance was attributed to the company's diversified strategy, successful cost-saving initiatives, and heightened demand for construction materials, particularly in infrastructure projects. Andries van Heerden, CEO of AFRIMAT, joined CNBC Africa to discuss the company's growth trajectory and future prospects. Van Heerden highlighted the challenging operating environment, citing factors such as load shedding and economic slowdown. Despite these challenges, AFRIMAT's iron ore business thrived with a significant increase in volume, especially in the domestic market. The Construction Materials segment also excelled due to heightened road and rail maintenance activities. The CEO emphasized the importance of diversification in withstanding economic uncertainties and ensuring business resilience. In terms of future growth, AFRIMAT is optimistic about its bulk commodities segment, specifically the Komati Anthracite mine, which has recently ramped up production. The company has also acquired Lafarge South Africa's assets, positioning itself for further growth in the construction materials sector. While AFRIMAT has been active in acquisitions in recent years, the focus for the next six to 12 months will be on maximizing the potential of existing investments. Looking ahead, AFRIMAT sees promising opportunities in its future materials and metals segment, particularly in phosphate and rare earths. The company views rare earths as a crucial component in battery minerals, essential for electric motors in the automotive industry's shift towards electric vehicles. This strategic positioning in future minerals aligns with AFRIMAT's long-term growth objectives. Van Heerden envisions AFRIMAT evolving into a prominent player in the construction materials sector within the subcontinent, supported by a strong mining division operating across multiple commodities. The company aims to establish itself as a mid-tier miner with diversified operations, capitalizing on its strengths in different market segments. In closing, the CEO shared his outlook on the sector, noting positive trends in road and rail maintenance driving demand for construction materials, while highlighting a slower pace in the commercial building sector. AFRIMAT anticipates sustained demand for bulk commodities like anthracite and strong market interest in phosphate and rare earths. Despite market challenges, AFRIMAT remains positioned for growth and expansion, leveraging its diversified portfolio and strategic acquisitions.