Afrimat Limited ('Afrimat' or 'the Company' or 'the Group')
(Incorporated in the Republic of South Africa)
(Registration Number: 2006/022534/06)
Share code: AFT
ISIN code: ZAE000086302

Announcement of Audited Consolidated Financial Statements for the year ended 28 February 2025

SUMMARY
- Group revenue up 36,7% to R8,3 billion
- HEPS 72,3 cents
- Net asset value ('NAV') per share 2 862 cents
- Final dividend per share of 15,0 cents
- Operating profit R477,7 million

COMMENTARY
BASIS OF PREPARATION
The short-form announcement is the responsibility of the directors and is only a summary of the information
in the annual financial statements for the year ended 28 February 2025 and does not contain full or
complete details. The annual financial statements are available on the JSE cloudlink at:
https://senspdf.jse.co.za/documents/2025/jse/isse/AFT/FY25H2.pdf

Copies of the annual financial statements are also available for viewing on the Company's website at
www.afrimat.co.za.

Any investment decision should be based on the consideration of the annual financial statements
published on the Company's website and on the JSE cloudlink, as a whole, as the information in this
short-form announcement does not contain full or complete details.

The financial statements have been prepared under the supervision of the Chief Financial Officer ('CFO'),
PGS de Wit CA(SA).

While the short-form announcement itself is not audited or reviewed, the annual financial statements for
the year ended 28 February 2025 of which this announcement is a summary, has been independently
audited by the Company's auditor, PricewaterhouseCoopers Inc., who expressed an unmodified audit
opinion thereon.

The full auditor's report includes details of key audit matters and is available, along with the annual
financial statements, on the Company's website at www.afrimat.co.za.

INTRODUCTION
Afrimat is a successful multi-commodity, mid-tier mining company that produces and supplies construction
materials, cement, iron ore, anthracite, phosphate, and high-quality industrial minerals. The Group's
entrepreneurial culture ensures sustainability and profitability through strategic focus, careful planning, and
meticulous execution. Afrimat's long-term growth strategy is underpinned by a diversified asset base in the
mining, quarrying, and related industries, and it is renowned for acquiring distressed assets and turning
them into profitable and sustainable businesses. Lafarge South Africa, Afrimat's most recent acquisition,
has successfully been integrated into the Company and is Afrimat's largest acquisition to date. It became
unconditional during the first quarter of this financial year. The traditional aggregate quarries and ash
business delivered a solid performance during F2025. The cement business continued to incur losses
throughout the period. Pleasingly, these losses from the cement business are steadily reducing as the
cement operations were successfully restored and are now functioning at acceptable levels.

Changes in the iron ore market, influenced by the Rand value received on iron ore exports, and a
weaker-than-expected performance from anthracite further hindered performance. While many impacts
were not entirely within management's control, the Group remained highly resourceful. Substantial work
was done to ensure a strong foundation for sustainability and improved performance in the next financial
year, F2026.

The Company has consistently achieved commendable audit scores from external health, safety, and
environmental bodies. Moreover, during the year under review, the Group achieved an all-time low lost-time
injury frequency rate of 0,27.

FINANCIAL RESULTS
Group revenue increased by 36,7% from R6,1 billion to R8,3 billion, with the inclusion of the Lafarge
business. Operating profit decreased by 58,5% from R1 152,4 million to R477,7 million, resulting in an
overall profit margin of 5,7%. Cash generated from operations equates to R571,6 million compared to the
comparative period of R1 551,4 million. This decrease was impacted by lower profits and the working
capital requirements of the Group.

In the interim results, a gain on bargain purchase of R262,7 million was reported in relation to the
acquisition of Lafarge, based on preliminary fair values of the identifiable assets. However, in line with
IFRS 3, and as part of the final purchase price allocation within the permitted measurement period, the
Group reassessed the fair values of the identifiable net assets acquired. This reassessment led to a
downward adjustment to the value of certain assets based on updated information that existed at the
acquisition date. As a result, the previously recognised bargain purchase gain was derecognised, and no
gain on bargain purchase is reflected in the final results.
Afrimat bore the impact of a declining iron ore price, a strengthening Rand, and ongoing limitations on the
export rail line. A large industrial customer reduced offtake of iron ore products during the first half of the
year but increased it in the second half. Additionally, there were no anthracite product exports from
Nkomati through Mozambique due to border closures, and the cement business faced losses. Furthermore,
additional debt to fund the acquisition of Lafarge resulted in significant additional finance costs. This
culminated in headline earnings per share reducing from 567,3 cents to 72,3 cents.

As expected, the net debt:equity position increased to 48,9% (February 2024: 1,4%) due to funding
towards the Lafarge and Glenover transactions. The Group remains committed to ensure strong cash
generation to settle the additional debt as quickly as possible.

OPERATIONAL REVIEW
All operating units are strategically positioned to deliver outstanding service to customers, whilst acting as
an efficient hedge against volatile local business conditions. The product range is wide and diversified and
is made up of Construction Materials consisting of aggregates, concrete-based products, fly-ash and
cement; Industrial Minerals consisting of limestone and dolomite; Bulk Commodities consisting of iron ore
and anthracite. The Services segment consists of external logistical and mining services while the Future
Materials and Metals segment is made up of phosphate and rare earth elements.

The aggregates component of the Construction Materials segment delivered a solid performance,
increasing operating profit by 40,2% to R383,5 million from R273,4 million in the previous year and
delivering an operating profit margin of 10,8% (2024: 12,4%). This is due mainly to the successful
integration of the Lafarge quarries, the fly ash business, and the readymix batching plants, as well as
volume growth.

The cement business incurred losses of R285,4 million. During the first half of the financial year, the
operation contended with known reliability issues at the cement factory, resulting in excessive maintenance
costs and limited production. Following the revitalisation of the plant, production is at acceptable, efficient,
and dependable levels, but during the second half of the year the business had to contend with unusual
rainfall which impacted production in January and February 2025. The cement kilns benefited from
extensive maintenance and are operating efficiently and dependably, ensuring that Afrimat can now operate
with backup capacity. Production has steadily improved, and good progress has been made towards
achieving the Group's desired market share.

The Industrial Minerals businesses delivered a strong and recovered performance. Revenue remained
relatively flat from R554,5 million to R575,1 million, however the operating profit increased by 325,7% from
R13,8 million to R58,8 million for the year. The suspension of loadshedding has been positive for both the
segment and its customers. This improved performance is encouraging and has been supplemented by
strategic marketing initiatives and significant progress in the agricultural lime and precision farming sectors.

The Bulk Commodities segment contributed 60,0% to the Group's operating profit. Both revenue and
operating profit decreasing by 4,5% and 70,1% respectively from the previous year.

The iron ore mines' operating profit decreased by 69,8% to R238,1 million from R789,0 million.
International iron ore sales were adversely impacted by lower US dollar prices, down by 12,9%; increase
in shipping costs of 7,5%; a decrease in the lump premium of 12,4%; and concurrent strengthening of the
South African Rand of 2,1%.

Exports continue to be impacted by the challenges on the rail line. International sales tonnages increased
from 709 709 to 726 436. However, overall volumes remain 16,5% below Afrimat's rail allocation, and
international iron ore prices have remained lower than last year.

In the first half of the financial year, local iron ore volumes were impacted by a furnace freeze at AMSA.
Pleasingly, volumes recovered well across the second half of the financial year. Afrimat remains in active
discussions with AMSA to supply it with innovative raw material solutions to support its long-term
sustainability. Local iron ore sales volumes for the year amounted to 889 556 tonnes (2024: 882 168 tonnes)
and volumes are expected to continue to be steady.

The anthracite mine's revenue increased by 11,0% to R829,1 million from R746,7 million. Operating profit
declined to R48,6 million compared to an operating profit of R168,7 million in the comparative year.

Key achievements at the Nkomati Anthracite Mine include the partial receipt of the Environmental Impact
Assessment ('EIA') for the full Life of Mine Plan, and the successful relocation of power lines, graves, and
houses. This, along with a reorganised management structure, supports optimised open-pit mining.
Underground mining operations were relocated to a safer area. Along with the gains from the
aforementioned adjustments, Nkomati's results improved towards the end of the reporting period. No
anthracite products were exported in the latter half of the financial year due to the closure of the border
with Mozambique, which restricted access to the Maputo port. Fortunately, the border has reopened, and
Afrimat has secured commitments for up to 80% of the new financial year's export volumes.

The Future Materials and Metals segment further supports the diversification strategy and offers wider
exposure than ferrous metals. The segment adds phosphate and rare earth elements to the offering and
aligns Afrimat to advancing decarbonisation trends through rare earth elements and improved food
security through fertiliser products.

The project focuses on processing high-grade phosphate and single superphosphate ('SSP'). With the
SSP plant commissioned, sales volumes for fertiliser are slowly ramping up with an increase in revenue
from R31,3 million in 2024 to R68,1 million in the current financial year and start-up losses of R35,0 million.

The rare earth elements strategy remains under investigation to ensure a comprehensive understanding of
the market and technology. This project is recognised as a strategic development requiring time to achieve
its full potential.

BUSINESS DEVELOPMENT
The Group's business development team remains a key component of the Group's strategy. The team
continues to identify opportunities in existing markets, as well as in anticipated new high-growth areas in
southern Africa.

PROGRESS, PROSPECTS AND PRIORITIES
Afrimat looks forward to leaving the 2025 financial year behind, confident that it has established a strong
foundation to achieve the more robust results that management anticipates in the years ahead.

May 2025 marks the first anniversary of the Lafarge acquisition. Over the past year, Afrimat has successfully
integrated quarries, fly ash, and readymix batching plants, yielding excellent results. The cement operations
have been restored and are now performing well, with some spare capacity available. Nonetheless, certain
costs persist in the cement sector, including the ongoing transition of the ERP system from the Holcim
platform.

The priority for the Construction Materials segment is to enhance operating margins in the aggregates
business through efficiency projects, eliminate losses in the cement business, and advance sales toward
the Group's desired market share.
Nkomati has turned a corner; however, management remains aware that there is always the possibility of
unforeseen geological challenges at the mine. With the EIA in place, which encompasses a larger minable
area and includes production from the underground mine, the focus will be on the successful execution of
Nkomati by optimising the Life of Mine Plan. In the first quarter of the new financial year, shipment of
exported product has started.

Afrimat is well positioned to assist in supplying iron ore to AMSA and to increase its supply by ensuring
that it has a spectrum of sources available.

Afrimat continues to engage with Transnet and participates in the Ore User's Forum to assist Transnet as
much as possible. It is encouraged by the private sector participation projects that are progressing at
government level.

Afrimat has consistently focused on strong cash generation, utilising it to swiftly pay down debt levels,
make acquisitions, covering all operating costs, and return excess to shareholders. Afrimat will prioritise
enhancing cash flow to reduce debt levels and restore them to previous levels.

Afrimat continues to optimise its operational efficiency across all businesses by utilising innovative
technology solutions. Proven results demonstrate that, with the help of technology, efficiencies and savings
give Afrimat a competitive edge, ensuring greater profitability.

All of these actions and priorities are only possible with an engaged workforce. Afrimat will continue to
prioritise education, learning, and skills development opportunities for employees, while also ensuring that
our social licence to operate is well supported so that the communities in which we operate can thrive.

These financial statements may contain forward-looking statements that have not been reviewed nor
reported on by the Company's auditors.

On behalf of the Board

FM Louw
Chairman

AJ van Heerden
Chief Executive Officer

Wednesday, 14 May 2025

FINANCIAL SUMMARY*
                                                                     Audited       Audited
                                                                  year ended    year ended
                                                                 28 February   29 February
                                                                        2025          2024   Change
                                                                       R'000         R'000        %
Revenue                                                            8 317 766     6 083 280     36,7
Operating profit                                                     477 735     1 152 365    (58,5)
Profit attributable to shareholders                                  113 510       788 716    (85,6)
Earnings per ordinary share (cents)                                     63,0         520,3    (87,9)
Diluted earnings per ordinary share (cents)                             62,2         514,4    (87,9)
Headline earnings per ordinary share ('HEPS') (cents)                   72,3         567,3    (87,3)
Diluted HEPS (cents)                                                    71,4         560,7    (87,3)
Final dividends per share (cents)                                       15,0         154,0    (90,3)
Net cash from operating activities                                   239 754     1 237 005      (80,6)
Net asset value per share ('NAV') (cents)                              2 862         3 004       (4,7)
Net debt:equity ratio (%)                                               48,9           1,4    3 392,9
SEGMENTAL INFORMATION
External revenue
Construction Materials (aggregates)                                3 541 008     2 212 760
Construction Materials (cement)                                    1 011 659             -
Industrial Minerals                                                  575 149       554 546
Bulk Commodities                                                   2 825 071     2 957 816
Future Materials and Metals                                           68 054        31 266
Services                                                             296 825       326 892
                                                                   8 317 766     6 083 280
Operating profit
Construction Materials (aggregates)                                  383 458       273 448
Construction Materials (cement)                                     (285 428)            -
Industrial Minerals                                                   58 759        13 803
Bulk Commodities                                                     286 666       957 775
Future Materials and Metals                                          (34 980)      (12 851)
Services                                                              69 260       (79 810)
                                                                     477 735     1 152 365
Operating profit margin on external revenue (%)
Construction Materials                                                   2,2          12,4
Industrial Minerals                                                     10,2           2,5
Bulk Commodities                                                        10,1          32,4
Future Materials and Metals                                            (51,4)        (41,1)
Overall contribution                                                     5,7          18,9
* This information has not been audited or reviewed, but is extracted from audited annual financial
  statements.

DIVIDEND DECLARATION
Notice is hereby given that a final gross dividend, No. 36 of 15,0 cents per share, in respect of the year
ended 28 February 2025, was declared on Wednesday, 14 May 2025. There are 160 297 456 shares in
issue at the reporting date, of which 8 068 334 are held in treasury. The total dividend payable is
R24,0 million (2024: R245,9 million). The Board has confirmed by resolution that the solvency and liquidity
test as contemplated by the Companies Act, No. 71 of 2008, has been duly considered, applied and
satisfied. This is a dividend as defined in the Income Tax Act, 1962, and is payable from income reserves.
The South African dividend tax rate is 20,0%. The net dividend payable to shareholders who are subject to
dividend tax and shareholders who are exempt from dividend tax is 12,0 cents and 15,0 cents per share,
respectively. The income tax number of the Company is 9568738158.

Relevant dates to the final dividend are as follows:
Last day to trade cum dividend                                            Tuesday, 3 June 2025
Commence trading ex-dividend                                            Wednesday, 4 June 2025
Record date                                                                Friday, 6 June 2025
Dividend payable                                                           Monday, 9 June 2025

Share certificates may not be dematerialised or rematerialised between Wednesday, 4 June 2025 and
Friday, 6 June 2025, both dates inclusive.

Announcement date: 15 May 2025

Directors
FM Louw*# (Chairman)
AJ van Heerden (CEO)
PGS de Wit (CFO)
C Ramukhubathi
MG Odendaal
GJ Coffee*#
L Dotwana*
PRE Tsukudu*#
JF van der Merwe*#
JHP van der Merwe*#
S Tuku*#
NAS Kruger*#
* Non-executive director
# Independent

Registered office
Tyger Valley Office Park No. 2
Corner Willie van Schoor Avenue and Old Oak Road
Tyger Valley
7530
(PO Box 5278, Tyger Valley, 7536)

Sponsor
Valeo Capital Proprietary Limited
Unit 02, Skyfall Building
De Beers Avenue
Paardevlei
7130

Auditor
PricewaterhouseCoopers Inc.
1st Floor Trumali Forum Building
Trumali Park Corner Trumali Street and R44
Stellenbosch
7600
(PO Box 57, Stellenbosch, 7599)

Transfer secretaries
Computershare Investor Services Proprietary Limited
Rosebank Towers
15 Biermann Avenue
Rosebank
2196
(Private Bag X9000, Saxonwold, 2132)

Company Secretary
C Burger
Tyger Valley Office Park No. 2
Corner Willie van Schoor Avenue and Old Oak Road
Tyger Valley
7530
(PO Box 5278, Tyger Valley, 7536)