Afrimat buoyed by strong iron ore prices
In a short trading statement regarding Afrimat’s financial results for the six months ended 31 August 2020, the Company stated it expected profit before interest and tax (PBIT) to increase between 10% and 15% from the previous corresponding period.
The bulk commodities segment, lead by iron ore, experienced exceptional growth year-on-year as a result of favourable pricing. The Construction Material segment and Industrial Minerals segment recovered from the Covid-19 impact and returned to profitability.
Its bulk commodities business consists of the Demaneng iron ore mine in the Northern Cape, which was permitted to continue producing iron ore from Demaneng for the duration of the lockdown – although under restricted conditions.
It is growing the business with the recent purchase of iron ore and manganese development company Coza Mining and the proposed acquisition of Unicorn Capital Partners, which owns Nkomati Anthracite.
After falling towards $80 per tonne in March this year, iron ore prices have steady increased, topping $125 last month on concern over supply disruptions.
The Company’s financial results will be released on or about 29 October 2020.
