Afrimat eyes steady recovery in quarter two amid operational gains, cement challenges

SOUTH African industrial minerals and construction materials group Afrimat reported signs of a recovery in the second quarter of its 2026 financial year, following a difficult 2025 and muted performance in the opening months of financial year 2026.

- PHILIPPA LARKIN

The group cited improvements at its Nkomati anthracite operation, a marked increase in local iron ore sales, and significant progress in its aggregates business as key drivers of the recent upturn.

Afrimat also noted successful integration of acquired assets, particularly the Lafarge South Africa business, and monthly cost savings following the migration of Holcim’s systems onto the Afrimat platform.

It said the focus for the past eight months has been to ensure that Afrimat remains strategically positioned.

"Our diversified model ensures the correct deployment of resources across operations," Afrimat said. "After each acquisition, we allowed time to stabilise distressed assets...we are now beginning to see a steady turnaround."

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Afrimat said its strategic objective in acquiring Lafarge was to get access to the quarries. However, the quarries had been neglected and required a significant investment of both time and capital to bring them back to production.