Afrimat digs deep to improve cash flows
After a year of digging deep, Afrimat reports a return to pre-pandemic levels in financial performance. The construction minerals miner reported a jump in headline earnings per share of 22 per cent and group revenue reported at R4 billion.
Joining CNBC Africa for more is Andries van Heerden, CEO of Afrimat.
Thu, 19 May 2022 15:45:04 GMT
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AI Generated Summary
- Afrimat reports a significant 22% increase in headline earnings per share and achieves R4 billion in group revenue, signaling a strong financial recovery post-pandemic.
- The company's bulk commodities business emerges as the star performer, benefiting from favorable iron ore pricing and successful operational turnarounds.
- Afrimat focuses on sustainable growth through diversified expansion plans, including the Magnesia deposits project, while driving decarbonization efforts with innovative initiatives to reduce carbon emissions.
After a year of digging deep, Afrimat, a leading construction minerals miner, has reported a remarkable return to pre-pandemic levels in its financial performance. The company's CEO, Andries van Heerden, shared in an exclusive interview with CNBC Africa that Afrimat witnessed a significant 22% increase in headline earnings per share and group revenue hitting an impressive R4 billion. The standout performer for Afrimat was its bulk commodities business, driven by favorable iron ore pricing and successful operational turnarounds. Moving forward, Afrimat is focusing on sustainable growth and decarbonization initiatives to mitigate risks and tap into new opportunities. Van Heerden highlighted the company's strategic roadmap, which includes a mix of expansion plans, such as the Magnesia deposits project and decarbonization strategies involving innovative projects to reduce carbon emissions. Afrimat remains optimistic about the future, with a clear vision for growth and commitment to environmental sustainability.
Afrimat's impressive financial results were underpinned by the stellar performance of its bulk commodities business, which showcased robust growth fueled by favorable iron ore pricing. The company's strategic acquisitions, including Jenkins mine and the successful turnaround of a previously loss-making business, contributed significantly to Afrimat's profitability. Additionally, the construction materials and industrial minerals segments also played a crucial role in Afrimat's overall performance, with a notable recovery in 2019 levels despite economic challenges.
Looking ahead, Afrimat is eyeing sustainable growth through a diversified portfolio and expansion initiatives. The company's CEO outlined the key targets for production output across various segments, signaling confidence in achieving long-term growth objectives. Furthermore, Afrimat's commitment to decarbonization is evident through its innovative projects aimed at reducing carbon emissions, such as the production of lime bricks and the adoption of alternative energy sources. Afrimat's proactive approach towards sustainability aligns with global environmental goals and underscores its responsibility as a corporate citizen.
In conclusion, Afrimat's success story serves as a testament to resilience and strategic foresight in navigating challenging business landscapes. With a clear focus on sustainable growth and environmental stewardship, Afrimat is poised to continue its trajectory of success while contributing positively to the industry and the environment.