Iron ore prices boosts Afrimat’s half-year performance

Afrimat, a construction and mining company, has recently reported record-breaking operating profit margins and revenues in its interim numbers. The company's Chief Financial Officer, Peter de Wit, highlighted the exceptional performance in the first half of the financial year, attributing it to a significant increase in operating profit and profit margins. De Wit emphasized that the company's performance in the first half of the year surpassed any previous financial performance in the history of Afrimat. The outstanding results were driven by a substantial increase in operating profit, up by 65% from the previous reporting period, with a profit margin of 24.1%, outperforming the 22.7% reported earlier. De Wit credited the success to the surge in iron ore prices, particularly in the company's bulk commodities segment, which saw an impressive operating profit margin of 37%. Despite concerns about the potential impact of declining iron ore prices, De Wit expressed confidence in Afrimat's ability to continue delivering strong results. He highlighted the contributions expected from two new mines, the Commodity Anthracite Mine and the Jenkins Iron Ore Mine, in the second half of the year. Looking ahead, Afrimat anticipates further growth from ongoing projects, such as the Manganese Kravenni Mine, and is actively exploring additional opportunities to enhance its portfolio. The company's strategic focus remains on maintaining a diversified business model to maximize profitability across all segments. Afrimat also sees potential in operational efficiencies and continued investment in acquisitions, particularly in industrial minerals. Despite the challenges posed by the COVID-19 pandemic, Afrimat has implemented robust safety protocols across its operations to ensure the well-being of its employees. De Wit highlighted the company's efforts to vaccinate its workforce, with close to 50% already fully vaccinated. Afrimat remains optimistic about its future outlook and is committed to consolidating its recent acquisitions while pursuing new growth opportunities in the market.