AECI eyes opportunities in mining boom as it emerge from COVID-19 shocks

Chemicals group AECI recently reported a 23% drop in headline earnings per share for the year ended December 2020, with its mining and chemicals segments being particularly affected. Despite the challenges posed by the COVID-19 pandemic, AECI is eyeing opportunities in the mining sector and positioning itself for growth and sustainability. Mark Dytor, the CEO of AECI, shared insights on the company's strategy and future prospects in an interview with CNBC Africa. The potential reduction in corporate taxes announced by the Finance Minister sparked optimism for businesses like AECI. Dytor acknowledged the opportunities it may create for investment but emphasized the need to address infrastructure and sustainability challenges for long-term economic viability. AECI's 'One AECI for a Better World' strategy underscores its commitment to sustainability and reducing environmental impact. Dytor highlighted the company's focus on sustainability, particularly in water usage and agriculture, leveraging greener technologies for a more sustainable future. With the mining sector experiencing a commodity super cycle, AECI anticipates increased capital expenditure and opportunities for growth. Dytor expressed optimism about the industry's prospects, noting the resurgence of open-cast mines and expansions by key players like Anglo. AECI aims to capitalize on this momentum to drive growth and strengthen its position in the market. Amidst a decline in safety records, attributed in part to COVID fatigue among employees, AECI has intensified its safety initiatives and employee wellness programs. Dytor emphasized the company's focus on 'zero harm' and supporting its workforce during challenging times, including providing counseling and community assistance. Despite the recent performance of its share price, AECI remains confident in its strategy and financial position. Dytor highlighted the company's diversification across markets and geographies, which has proven beneficial during the pandemic. A strong cash flow and prudent management further bolster AECI's resilience and potential for future growth. Looking ahead, AECI aims to instill confidence in shareholders by demonstrating its strategic focus, strong management team, and commitment to sustainable growth. Dytor remains optimistic about the company's prospects for re-rating and growth, contingent on external economic conditions. As AECI navigates the evolving business landscape and leverages opportunities in the mining sector, the company's strategic vision and proactive approach position it for long-term success and sustainability.