The open pit miner further stated that its dedicated business development team continues to successfully identify and pursue opportunities in existing markets, as well as in anticipated new high growth areas.
“The group has continued to deliver solid results driven by its diversification strategy. The turnaround of Infrasors, acquired during the previous year, is progressing well and contributing positive results,” it added.
[DATA AFT:Afrimat], which reported its interim results on Thursday, also indicated that revenue for the period increased by 10.5 per cent to 1.0 billion rand for the six months ending 31 August 2014 from 931.9 million rand for the same period in 2013.
(READ MORE: Afrimat’s FY revenue up by 42%)
“The mining and aggregates segment generated satisfactory profits with an excellent contribution from the clinker operations. The KwaZulu-Natal operations incurred high mining and maintenance costs in efforts to ensure long-term compliance with Department of Mineral Resources’ requirements,” it said.
“Contracting operations were impacted by contracts coming to an end and setup costs for new contracts. Industrial mineral operations performed well, with the Infrasors’ turnaround progressing as planned. All processing plants are fully operational and well-placed to supply market demand.”
Operating profit grew 16.9 per cent to 127 million rand in 2014 from 108 million rand in 2013 and profit before taxation increased by 20 per cent to 124 million rand from 103 million rand.
Diluted earnings per ordinary share rose 27.3 per cent to 60.2 cents in the 2014 period from 47.3 cents for the same period in 2013.
“The group is well positioned to capitalise on its strategic initiatives. Operational efficiency initiatives aimed at expanding volumes, reducing costs and developing the required skill levels of all employees remains a key focus in all operations,” Afrimat said.
(WATCH VIDEO: Afrimat increases offer to Infrasors minorities)
“Going forward, the group is intensifying its focus on finding opportunities outside of South Africa. Afrimat expects the current business climate to continue. The group’s growth will remain driven by the successful execution of its proven strategy which has been implemented over the last five years.”