Slide 1: Audited consolidated financial statements for the year ended 29 February 2024
Audited consolidated financial statements for the year ended 29 February 2024
Slide 2: Core message
Core message Steady stream of growth Consistently delivering and strategic projects to above average growth in aid sustainability and earnings diversification Company culture and high standard of execution supports Group moats Resource x machines x people 2 = Unlocking Success 2
Slide 3: Why we exist
1 WHY WE EXIST Consciously making a difference through excellence with integrity
Slide 4: The Afrimat Way: Excellence with Integrity
The Afrimat Way Excellence with Integrity 4
Slide 5: What we do
2 WHAT WE DO A leading, empowered mid-tier mining and materials supply company
Slide 6: What we do
What we do Growth through structured diversification Construction Industrial Bulk Future Materials * Minerals Commodities Materials and Metals Aggregates | readymix | Limestone | dolomite | Iron ore | anthracite | Phosphate | rare earth concrete products industrial sands manganese elements ▪ 35 acti
Slide 7: Rationale for and result of diversified structure
Rationale for and result of diversified structure ▪ Smooth growth for more than a Profit history with and without acquisitions decade 600 ▪ Good blend of local and international priced commodities 500 ▪ Exposure to different currencies 1. Glen Douglas 400 and economic cycles 2. Clinker Group Cents 3
Slide 8: Afrimat's moats
Afrimat’s moats 1 2 3 UNIQUE COMPETITIVE RESPECT FOR CAPITAL AND EXECUTION ADVANTAGE ITS ALLOCATION ▪ Culture ▪ Strong balance sheet ▪ Multi-discipline approach to ▪ Unique metallurgy ▪ RONA of 25,6% project execution ▪ Structural cost advantage ▪ Consistent cash generation − Engineering, IT, financ
Slide 9: Short-term strategic focus
Short-term strategic focus ▪ Integration and turn-around of Lafarge ▪ Continuously improve performance from existing assets through operational efficiency ▪ Ensure continued sustainable value from Nkomati anthracite mine ▪ Mine fully developed ▪ Optimise value from available iron ore sources ▪ Caref
Slide 10: How we do it
3 HOW WE DO IT Culture of care in all that we do and a thriving entrepreneurial spirit
Slide 11: Sustainability and ESG
Sustainability and ESG Active community Focus on job creation, relations with investment staff training and in education, youth ensuring a high standard employment and of health and safety infrastructure ESG focus across 44 mining licenses, rehabilitation and carbon neutrality strategy 11
Slide 12: The value we place on care
The value we place on care Jabu’s Growth Journey When you grow, ▪ May 2014 – Mine Engineering Intern we grow ▪ May 2016 – Regional Mine Planner Growing with Afrimat ▪ August 2016 – Acting Quarry Manager “The growth of ▪ May 2017 – Quarry Manager Afrimat has ▪ Aug 2022 – Mining Engineer always been l
Slide 13: The value we place on care (cont.)
The value we place on care (cont.) Employees from Listen and be 6 days 37 sites Nationwide present welcomed In person welcoming 14 Afrimat senior executives 13
Slide 14: People management
People management 756 new 5.5% of total employees – 8 266 Staff wellness 2 755 employees employees hired learners, apprentices and training days programme (224 FTC*) interns Absenteeism Attrition Staff composition 2,5% 2,3% 80% 71% 14,0% 70% 12,4% 2,0% 12,0% 11,2% 60% 10,0% 50% 1,5% 1,3% 1,4% 1,3% 1
Slide 15: Health, safety and environment
Health, safety and environment LTIFR* progress TRIFR** progress 0,9 0,8 0,77 2,50 0,7 0,58 1,94 1,87 0,6 0,55 2,00 1,65 0,5 1,50 1,30 0,4 0,34 1,04 0,29 0,3 1,00 0,2 0,50 0,1 0 0,00 * LTIFR – Lost time injury frequency rate ** TFIFR – Total reportable injury frequency rate 15
Slide 16: Health, safety and environment
Health, safety and environment Environmental Awards ASPASA ISHE Audits ASPASA environmental ▪ Hluhluwe - Best physical award – compliance audits Top performer ▪ Dingwell- Most improved site 94,0% 93,8% 93,5% ▪ Ashleigh - Outstanding commitment 93,2% 96,0% 93,0% 95,0% 92,4% 95,0% Safety Awards 92,5%
Slide 17: Community relations
Community relations Social license to operate Extension and renovation of nutrition facilities in four primary schools in Macassar, Western Cape 75 sites across South Africa CSI spend in F2024 R34,4m • Oklahoma Primary (1 100 learners in the school and the nutrition facility feeds 104 learners per d
Slide 18: Community relations
Community relations Social license to operate Additional classroom at a primary school in Dundee (KZN) Skills programme for unemployed youth in Steenbokpan (Limpopo) • 350 learners at Morningside Primary school • 88 candidates trained in trackless mobile machinery • 48 employed thus far 18
Slide 19: Community relations - Risk matrix
Community relations - Risk matrix Excellent relationships with the communities Severity surrounding our mining operations and production plants Probability 19
Slide 20: Carbon neutral strategy
Carbon neutral strategy Reduce carbon emissions by 32% by 2030 200 000 179 285 ▪ Reduction in line with 180 000 160 000 UN SDG’s 140 000 121 913 ▪ 2050 target carbon neutrality 120 000 100 000 across operations 80 000 ▪ 2023 – Carbon emissions 60 000 40 000 on target for 2030 20 000 - Opening total
Slide 21: Financial outcomes
4 FINANCIAL OUTCOMES The financial scorecard supports and encompasses the way we diligently and methodically do things
Slide 22: Core financial discipline to support growth
Core financial discipline to support growth Entrenched diversification Strong cash strategy supported generation by prudent capital allocation Surplus cash supports acquisitions, capex and consistent dividends Continuous measurement against decisions taken 22
Slide 23: Financial highlights
Financial highlights Up 23,9% to R6,1 billion 24,0% improvement HEPS – 567,3 cents per Group revenue share 154,0 cents per share 18,9% Final dividend Operating profit margin 15,9% up to 3 004 cents 25,6% Return on net operating Net asset value assets 1,4% 25,3% up to R1,2 billion Net cash from opera
Slide 24: Revenue and operating profit
Revenue and operating profit Revenue (R’000) Operating profit (R’000) 1 400 000 7 000 000 1 200 000 6 000 000 1 000 000 618 314 526 111 5 000 000 449 357 800 000 2 312 980 3 239 606 2 258 468 533 183 4 000 000 600 000 2 135 130 282 959 1 719 802 1 584 574 3 000 000 400 000 2 000 000 2 843 674 1 558
Slide 25: Operating profit margin
Operating profit margin Operating profit margin (%) FY2024 FY2023 Construction Materials 12,4% 7,2% Industrial Minerals 2,5% 8,9% Bulk Commodities 32,4% 31,8% Future Materials and Metals (41,1%) (45,4%) Services (24,4%)* 16,1% Overall 18,9% 19,6% * Loss on sale of Mozambique business 25
Slide 26: Solid metrics
Solid metrics HEPS (full year) Net cash from operating activities (R’000) 600,0 1 400 000 567,3 542,9 1 200 000 500,0 457,6 441,7 1 000 000 400,0 Cents per share 347,7 800 000 1 237 004 300,0 600 000 987 319 767 580 736 555 676 810 200,0 400 000 100,0 200 000 - 0,0 2020 2021 2022 2023 2024 2020 2021
Slide 27: Statement of financial position
Statement of financial position Assets Audited Audited R’000 % Change Feb 2024 Feb 2023 * Property, plant and equipment 3 898 037 3 337 330 16,8 Intangible assets 234 728 254 385 (7,7) Inventories 829 443 671 503 23,5 Trade and other receivables 773 973 739 961 4,6 Cash 504 678 280 817 79,7 Other as
Slide 28: Statement of financial position
Statement of financial position Equities and liabilities Audited Audited R’000 % Change Feb 2024 Feb 2023 * Total equity 4 563 041 3 848 352 18,6 Borrowings 557 125 321 159 73,5 Provisions 279 939 298 574 (6,2) Overdraft - 1 578 (100,0) Trade and other payables 940 777 691 066 36,1 Other liabilities
Slide 29: Provision for iron ore pricing
Provision for iron ore pricing Audited Audited Trade and other receivables (R’000) Feb 2024 Feb 2023 Trade receivables – net 621 238 426 399 Trade receivables at fair value through profit or loss 120 997 160 355 Provision for final price adjustment (43 806) 35 990 Other 75 544 117 217 Total trade an
Slide 30: Total capital expenditure – FY2024
Total capital expenditure – FY2024 Services Construction ▪ Site establishment and plant upgrades 8% Materials − R19,1 million – iron ore mines 10% Industrial Future Minerals 4% − R10,0 million – anthracite mine Materials and Metals 18% − R165,3 million – Afrimat Phosphates Iron ore mines 18% ▪ Capit
Slide 31: Total capital expenditure – FY2024
Total capital expenditure – FY2024 Capital Expenditure 2016 - Planned 2025 (R'000) Feb Feb Improvement capital 1 200 000 2024 2023 Nkomati (developing of R356 m R432 m 1 000 000 963 093 929 481 underground mine and other mine development, etc.) 800 000 782 446 Jenkins R22 m R62 m 600 000 300 702 Dem
Slide 32: Segmental performance
5 SEGMENTAL PERFORMANCE The value of diversification
Slide 33: Efficiency improvement at Nkomati anthracite mine
Efficiency improvement at Nkomati anthracite mine Litre per cube mined (12 month average) 1,15 Litre per cube mined 1,13 From baseline 1,11 • Nkomati has successfully reduced its diesel 1,09 consumption per cube mined from a baseline 1,07 average of 1.39 litres per cube to 0.98 litres per cube 1,05
Slide 34: Efficiency improvement at iron ore mines
Efficiency improvement at iron ore mines Litre per ton mined (12 month average) Litre per ton mined 0,65 From baseline 0,6 • Demaneng has successfully reduced its diesel consumption per ton mined from a baseline average of 0.63 litre per ton to 0,55 0.47 litre per ton • Jenkins has successfully redu
Slide 35: Deep segmental diversification
Deep segmental diversification FY2024 - revenue contribution FY2024 - Operating profit (R’000) Bulk Commodities contribute 83,1% (Feb-23: 82,0%) Services Anthracite 5% 12% (FY2023: 1%) (FY2023: CM 12%) 37% (FY2023:37%) 129 603 Iron ore 36% IM 49 387 168 727 273 448 789 048 767 899 19 754 (FY2023: 38
Slide 36: Bulk commodities
Bulk commodities Solid performance based on product diversification Revenue Operating profit and margin 3 500 $155 * $119 * $121 * 1 200 35,7% 31,8% 32,4% 3 000 1 000 2 500 800 R’million R’million 2 000 600 1 500 2 958,0 958,0 2 409,0 2 480,0 400 860,0 788,0 1 000 500 200 0 0 Feb '22 Feb '23 Feb '24
Slide 37: Anthracite
Life of mine: 20 years Market: Domestic Anthracite Location: Mpumalanga ▪ Underground mine established ▪ Long-term life of mine (two opencast pits and an underground operation) ensures sustainability ▪ Volumes are ramping up according to plan Plant Production ▪ Fixed-price contract 80000 72 263 7000
Slide 38: Iron ore
Life of mines: 20 years Market: Domestic & international Iron ore Location: Northern Cape ▪ Rand value sales realisation was good ▪ Lost roughly 15% in international volumes due to export rail system performance, partially compensated by Rand/US$ exchange ▪ Group is actively involved with industry i
Slide 39: Iron ore volumes
Iron ore volumes International volumes achieved (tons) Local volumes achieved (tons) $155 * $119 * $121 * 388 984 349 568 376 934 325 785 254 656 333 227 428 504 493 184 369 101 383 924 247 748 110 870 2022 2023 2024 2022 2023 2024 HY1 HY2 HY1 HY2 * Average US$ for each respective period 39
Slide 40: Sales volumes (tons)
Sales volumes (tons) 0 50 000 100 000 150 000 200 000 Jan-20 69 702 Feb-20 92 673 Mar-20 57 623 Apr-20 46 437 May-20 69 582 Jun-20 68 189 Jul-20 81 189 Aug-20 69 650 Sep-20 80 735 Oct-20 56 804 Nov-20 57 778 Dec-20 55 395 Jan-21 67 678 Feb-21 69 206 12 952 Mar-21 69 385 Apr-21 69 108 31 924 May-21 6
Slide 41: Industrial Minerals
Industrial Minerals Delivered disappointing results Revenue Operating profit and margin 18,0% 8,9% 2,5% 580,0 90,0 560,0 80,0 540,0 70,0 60,0 R’million 520,0 R’million 50,0 500,0 85,0 554,0 555,0 40,0 480,0 30,0 460,0 49,0 20,0 440,0 472,0 10,0 14,0 420,0 0,0 Feb '22 Feb '23 Feb '24 Feb '22 Feb '23
Slide 42: Construction Materials
Construction Materials Significant improvement in profitability supported by margin recovery Revenue Operating profit and margin 2 400,0 300,0 9,0% 7,2% 12,4% 2 200,0 2 000,0 250,0 1 800,0 1 600,0 200,0 R’million R’million 1 400,0 1 200,0 150,0 2 213,0 273,0 1 000,0 1 751,0 1 809,0 800,0 100,0 600,0
Slide 43: Afrimat Construction Index – Q4 2023
Afrimat Construction Index – Q4 2023 130 121,6 ACI 4Q avg. 120,2 120,3 118,8 118,9 120 115,6 115,4 116,0 114,6 114,2 114,4 113,2 113,0 111,9 110,9 109,1 110 107,1 105,2 Index: Q1 2011=100 100,7 100 90 80 70 67,1 60 Q1'19 2 3 4 Q1'20 2 3 4 Q1'21 2 3 4 Q1'22 2 3 4 Q1'23 2 3 4 43
Slide 44: Lafarge acquisition: Assets
Lafarge acquisition Assets ▪ Excellent quarries Long life-of-mine assets ▪ Very good fly-ash business Well-designed, good quality plants and equipment ▪ Well-positioned cement grinding plants and depots ▪ Integrated cement plant ▪ Readymix batching plants 44
Slide 45: Lafarge acquisition: Transaction
Lafarge acquisition Transaction ▪ Purchase consideration: $6,0 million ▪ Net asset value: R1,4 billion ▪ R500,0 million loan repayment on closing date ▪ R400,0 million loan repayment after 12 months ▪ Took control 23 April 2024 45
Slide 46: Lafarge acquisition: Rationale
Lafarge acquisition Rationale ▪ Good time to act – market low but turning ▪ Good synergies exist ▪ Good investment return expected ▪ Very good assets, especially quarries and fly-ash 46
Slide 47: Lafarge guidance
Lafarge guidance Business Status Actions Aggregates and ▪ Aggregates add 3 million tpa (divestiture ▪ Total business review Readymix assets volumes have been excluded) ▪ Aim for similar margins as Afrimat’s ▪ Readymix add 260 000 m3/pa (divestiture quarrying business assets volumes have been exclude
Slide 48: Future Materials and Metals
Future Materials and Metals Ramp up of operation in progress Revenue Operating profit and margin 35,0 Feb '22 Feb '23 Feb '24 30,0 0,0 -2,2 25,0 R’million R’million 20,0 -5,0 -11,4 15,0 31,0 -12,9 25,0 10,0 -10,0 5,0 0,0 3,0 Feb '22 Feb '23 Feb '24 -15,0 ▪ SSP plant commissioning and ramp-up ▪ Total
Slide 49: Glenover Stage 1
Glenover Stage 1 Phosphate Single Super Phosphate High Grade Phosphate Phosphate Concentrate (“SSP”) ▪ Small niche market ▪ Capacity ±60 000 tpa ▪ Capacity ±60 000 tpa ▪ Market constant on ±9 000 tons ▪ Feedstock for SSP (36 000 tpa) per annum (“tpa”) ▪ Commissioning in progress ▪ Market development
Slide 50: Glenover Stage 2
Glenover Stage 2 Rare Earth Evaluating various 2H 2024 technologies Optimising business case • Glenover mineralogy (NdPr) 1H 2025 • Geological work • Capital requirement Evaluating strategic options 1H 2025 Execution TBC 50
Slide 51: Future outlook
5 FUTURE OUTLOOK An increase in volumes and more acquisition opportunities
Slide 52: Looking ahead
Looking ahead Maintain strong growth rate across Group into future ▪ Lafarge integration – unlock the value ▪ Nkomati anthracite mine improving consistently towards steady state and to continue to deliver robust profits ▪ Maintain consistency in both local and international iron ore operations ▪ Eff
Slide 53: Core message
Core message Steady stream of growth Consistently delivering and strategic projects to above average aid sustainability and compound earnings diversification Company culture and high standard of execution supports Group moats Resource x machines x people 2 = Unlocking Success 53
Slide 54: Investor relations
Investor relations April 2024 Trading update May 2024 Announcement of annual results 12 June 2024 Investor open day Andries van Heerden Chief Executive Officer June 2024 Integrated annual report posted 021 917 8853 August 2024 Annual general meeting Vanessa Rech October 2024 Trading update Keyter Re