Thursday, November 8, 2012

AFRICA: Afrimat posts a profit

South African open pit mining company Afrimat on Thursday reported a 16.3% rise in diluted headline earnings per share for the six months ended August 2012 to 34.2 cents from the previous corresponding period’s 29.4 cents. 

The miner said the main reason behind the rise in earnings was the acquisition of Clinker Supplies during the period‚ which had stimulated an increase in Afrimat’s key division‚ namely mining & aggregates. 

“Tough market conditions continued to impact sales volumes in the other regions and high energy costs and a strike in KwaZulu-Natal also had a negative impact. All processing plants are fully commissioned and well placed to supply market demand and should sustain revenue going forward‚” the miner said on Thursday. 

Revenue jumped 32.5% to R671m from the previous period’s R506m. 

It also declared an interim dividend of 8 cents‚ up from the 6 cents declared in 2011. 

The miner expects the recovery in the mining sector to remain slow and under pressure. However it feels it is well positioned to capitalise from its strategic initiatives such as its investment in industrial minerals through the Glen Douglas Dolomite operation and its acquisition of the Clinker Group. 

“These initiatives‚ supported by ongoing product diversification in attractive growth sectors‚ such as industrial minerals and open cast mining‚ should see volumes increase‚” Afrimat said.

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