Afrimat reports Q2 2026 turnaround despite challenging start to year

Afrimat experienced a challenging 2025 financial year and a continuation of these trends in Q1 2026, with a decrease in base returns. However, the Group noted improvements across several key areas by Q2 2026, including operational enhancements at Nkomati and a significant increase in local iron ore sales volumes. International iron ore sales were satisfactory, and aggregate sales volumes showed marked improvement.

Strategic acquisitions, such as Lafarge, are being integrated, with information systems and management structures now fully on Afrimat's system. The company aims to improve quarry margins and differentiate its cement business through expanders and innovative products. Capital investments at the Lichtenburg cement factory address historical underinvestment, with five engineers deployed to enhance plant reliability. July 2025 marked the highest monthly cement sales since the acquisition, and the fly ash business also saw its highest volume month in July 2025.

Domestic iron ore sales volumes reached 339,648 by August 31, 2024, with expectations of stability. Export iron ore volumes are projected to increase compared to the previous period (349,084 by August 31, 2024), though full-year volumes are expected to be similar to the previous year, roughly 16% below Afrimat's annual allocation of 870,000 tpa. Anthracite volumes, however, are expected to decrease by 10% to 15% due to reduced demand from ferrochrome smelters, with domestic volumes at 155,686 by August 31, 2024.