Diversified mining and construction materials group Afrimat says its performance for the six months to June 30 will reflect the pressure it has been under as a combination of weaker commodity prices, a stronger rand, higher shipping and fuel costs and subdued domestic demand weighed heavily on the business.
Afrimat describes the period as among the hardest in its 20-year history, although it expects conditions to improve during the second half of the year.
“Despite these headwinds, Afrimat’s diversified portfolio and resources delivered gains across the business. These are some of the hardest times Afrimat has faced, yet its people and culture continue to show resilience, positivity, operational discipline and leadership in adversity,” the company says.
The company notes that domestic iron-ore sales weakened in the first quarter of the year, although volumes normalised in the second quarter.
Afrimat adds that an improvement in rail performance has supported its international iron-ore business, although a ten-day maintenance shutdown reduced volumes. Another shutdown is planned for October, with the company expecting yearly volumes to remain about 10% below its 870 000 t allocation.
