Steel producer ArcelorMittal South Africa (AMSA) insists that it is fundamentally stronger than was the case 18 months ago and that “profitability is within reach”, after reporting a headline loss of R1.49-billion during the first half of 2026.
The JSE-listed company had, over the past 18 months, placed its longs business into care and maintenance, leading to the closure of the Newcastle Works in KwaZulu-Natal, which contributed to some of the nonrecurring costs during the period.
It is also trading under a cautionary in relation to a possible transaction with the Industrial Development Corporation, on which no update was provided in the interim results.
CEO Kobus Verster said the loss was heavily influenced by R571-million of nonrecurring charges, including R38-million in severance and credit loss charges, R222-million of charges to support liquidity, R74-million to settle a legacy municipal legal dispute, and R237-million relating to the recovery of the blast furnace chilled hearth conditions in January 2026.
CFO Gavin Griffiths said that, without those charges, the group’s normalised earnings before interest, taxes, depreciation and amortisation (Ebitda) would have reflected a profit of R160-million.
