Afrimat FY’25 HEPS sinks 87%, CEO cites impact of “a perfect storm”

Mid-tier mining and materials company Afrimat has had a challenging financial year in 2025, with a significant plunge in annual earnings. The company's CEO, Andries van Heerden, attributed this decline to falling iron ore prices and the underperformance of South Africa's export rail lines, leading to a 90 per cent reduction in the annual dividend. Reflecting on the year, van Heerden highlighted the impact of both local and international iron ore prices, as well as the acquisition of the Lafarge business, which faced approval delays from authorities. Despite these challenges, he remains optimistic about the future, citing stable prospects in the iron ore market and the company's diversified business portfolio. The CEO also discussed the recovery of iron ore volumes with AMSA and the progress in ship exports at Komati, indicating positive developments. Looking ahead, Afrimat plans to develop the Glenover project for rare earths over the next few years, aligning with the growing demand for these resources. While navigating the path forward, van Heerden emphasized the importance of extracting full value from the company's assets and expressed hope for increased infrastructure development in South Africa, potentially turning the country into a construction hub. He also commended the progress made by the ore users forum and Transnet in reviving the export rail lines, signaling promising signs of improvement. Despite the challenges faced in FY’25, Afrimat aims to recover operational performance by the financial year 2026, leveraging its strong asset base and strategic positioning in the market.