Afrimat’s strategic reverse into iron ore rocks the house

Business

Afrimat’s strategic reverse into iron ore rocks the house

Moving into bulk commodities has given Afrimat a hedge against the current downturn in construction

Siseko Njobeni

Afrimat (https://www.sharenet.co.za/v3/quickshare.php?scode=AFT)’s decision to buy the Demaneng iron ore mine in the Northern Cape in 2016 is paying off handsomely.

Its foray into commodities was perfectly timed to coincide with the recovery in iron ore prices. As a result, Demaneng, which makes up Afrimat’s bulk commodities segment, has contributed hugely to the company’s earnings growth.

The expected rise of up to 100% in earnings bears testimony to the success of the company’s diversification into different products and markets...

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