WHERE TO INVEST: Warning signs on Afrimat’s losses were already visible, if you knew where to look
A stronger rand, higher shipping costs and collapsing domestic iron ore volumes exposed the risks of Afrimat’s operating leverage, despite diversified revenue streams.
Afrimat, once a darling of investors, has seen its share price plummet significantly since its peak in mid-2024. Despite diversified revenue streams, the company's losses have become increasingly evident. In the six months ending August 2026, Afrimat reported a headline loss per share of -55 cents to -60 cents, a stark contrast to the positive interim earnings of 252.2 cents to 295.1 cents from 2022 to 2024.
The collapse in Afrimat's share price from R73 to the current R31.50 reflects the severity of the situation. In the latest trading statement, Afrimat acknowledged that it has never faced such challenging trading conditions since its listing in 2006. The losses stem from various factors, including higher shipping costs, a stronger rand, and collapsing domestic iron ore volumes.
The Lafarge acquisition, while contributing to the dip in earnings in the first half of 2025, is not the primary driver of the current losses. The iron ore and anthracite segments, particularly, have suffered due to export market pressure and domestic market challenges. Afrimat's cement and aggregates operations have shown resilience, with the latter benefiting from the acquisition of Lafarge quarries.
However, investors are closely watching Afrimat's detailed results on 22 October to gain more insights into the accelerated loss acceleration.
Written by urgent.news from Daily Maverick's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
