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 unaudited condensed consolidated interim financial results
for the period ended 31 August 2022 and change to board committee

Highlights
Group revenue R2,6 billion
HEPS 252,2 cents
Interim dividend 40,0 cents per share
Operating profit margin 19,7%
Net asset value ('NAV') per share 2 481 cents
Net cash from operating activities of R784,1 million
Return on net operating assets 27,4%
Strong balance sheet with net cash position

COMMENTARY
BASIS OF PREPARATION
The short-form announcement is the responsibility of the directors and is only a summary of the information
in the full announcement and does not contain full or complete details. The full announcement was released
on SENS on 27 October 2022. The full announcement can be found at:
https://senspdf.jse.co.za/documents/2022/jse/isse/AFT/FY23H1.pdf. Copies of the full announcement is
also available for viewing on the Company's website www.afrimat.co.za or may be requested at the
Company's registered office, at no charge, during office hours and are also available for inspection at the
offices of the sponsor. Any investment decision should be based on the consideration of the full
announcement published on the Company's website.

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

INTRODUCTION
The Group continues to remain resilient and delivered satisfactory results for the first six months of F2023
supported by its diversification strategy, which enabled the Group to compensate for most of the impact
from several factors which include poor market sentiment, inflationary cost pressures impacting profit
margins, Eskom electricity supply interruptions and constraints, as well as the rising concerns of a global
recession.

Strategic initiatives that contributed positively to the Group's performance were the successful
commissioning of Jenkins iron ore mine, the turnaround of Nkomati anthracite mine and the continuation
of the Group's continuous improvement of existing operations. On the negative side, Group results were
affected by the downturn in iron ore prices, an economic slow-down experienced which impacted the
Construction Materials and Industrial Minerals businesses, coupled with a rise in input costs such as diesel,
explosives and electricity.

Diversification, cost reductions and efficiency improvement initiatives, remain the cornerstone of the
Group's strategy and are used to counter economic impacts which are beyond the control of management.

FINANCIAL RESULTS
Group revenue increased by 7,2% from R2,4 billion to R2,6 billion. Operating profit decreased by 12,1%
from R582,8 million to R512,2 million, resulting in the operating profit margin declining from 24,1% to 19,7%.

Headline earnings per share remained adequate with a decline of 14,5% from 295,1 cents to 252,2 cents.

The balance sheet of the Group remains strong with a net cash balance of R772,7 million. Net cash from
operating activities of R784,1 million was generated, as well as R680,0 million from a successful equity
raise during the period. At present, the Group is considered to be debt free as the cash balance exceeds
the borrowings, with sufficient capital to make meaningful acquisitions, as well as invest in the ramp-up of
current projects. All of which support future growth.

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 relatively wide and
diversified and is made up of Construction Materials consisting of aggregates and concrete-based
products, Industrial Minerals consisting of limestone, dolomite and industrial sand, Bulk Commodities
consisting of iron ore and anthracite. The Services segment consists of external logistical and mining
services. The Group's latest addition, Future Materials and Metals consisting of phosphate, vermiculite and
rare earth elements, has expanded the Group's product offering and national footprint.

The Bulk Commodities segment, consisting of the Demaneng and Jenkins iron ore mines, and the Nkomati
anthracite mine, contributed 76,8% to the Group's operating profit. The excellent performance was largely
due to increased volumes from the Jenkins mine coming into production, the successful turnaround of the
Nkomati anthracite mine and cost-saving initiatives.

The Jenkins iron ore mine is fully operational and together with the Demaneng mine produced an increase
of 21,9% in iron ore sales volume from 554 721 tonnes to 676 252 tonnes during the current period compared
to the previous period. Although the operating profit decreased by 33,6% due to the decline in the iron ore
price and a rise in input costs, a healthy operating profit margin of 37,0% was generated from the iron ore
mines. Should the iron ore price continue to decline the Group is well positioned to weather the volatility.

During the year, the first blast was undertaken at Driehoekspan, the iron ore asset that will replace the
Demaneng mine once it is mined out, which is expected to be in three years' time. Driehoekspan and
Doornpan (as part of the Coza acquisition) are to be brought into production to maintain export volumes and
have a combined life of mine in excess of 15 years.

Innovative technology solutions were rolled out at Jenkins across the mine fleet, which optimise the efficiency.
This has resulted in cost savings which in turn have countered the rise in diesel prices and the fall in iron
ore prices.

The Nkomati anthracite mine has turned from initial start-up losses to being profitable from August 2021
and contributed 25,5% to the segment's revenue for the period. It produces a high-quality product sold
into the local market, as a replacement for imported anthracite, and is recognised as a consistent, reliable
supplier of anthracite.

The long-term sustainable life of mine plan is being enhanced through the opening of two opencast pits and
the continued development of the underground operations. The first anthracite is expected to be extracted
early in the new calendar year from these developments. These planned new sources will result in the overall
average strip ratio reducing when compared to historical stripping ratios.

Industrial Minerals businesses across all regions delivered satisfactory results, however the impact of the
economic slowdown was felt within this segment resulting in a decrease in operating profit of 25,9% from
R49,6 million to R36,8 million.

The Construction Materials segment felt the brunt of the slowdown in economic activity, with the Western
Cape businesses being impacted the most due to an overall reduction in construction across the province.
The KwaZulu-Natal businesses have shown good improvement when compared to the previous period,
primarily as a result of an uptick in construction after the riots and floods in KwaZulu-Natal. The operating
profit remains relatively flat from the comparative period with a slight decrease of 6,1% from R77,8 million
to R73,1 million.

Future Materials and Metals is a segment that has been added to the Group's operational segments in
support of its diversification strategy.

Glenover is a new project that diversifies Afrimat's exposure wider than ferrous metals and aligns it to
global trends such as the advancement of technology for decarbonisation (through rare earth minerals) and
food security (through fertiliser products). Glenover is a greenfields project which has started with first
production during the period and is in a ramp-up phase. The project contains three essential businesses:
(i) fertiliser for agricultural applications; (ii) vermiculite for various applications from industrial
to horticulture; and (iii) rare earth elements, supporting technological advancements such as high
strength permanent magnets and battery technology.

As a reminder, Afrimat purchased various stockpiles for R215,1 million and the Vermiculite Mining Right for
R34,9 million. Currently sales are generated from high-grade phosphate (fertiliser) material. Current and
future sales are targeted at the local market as South Africa remains a net importer of fertiliser. Potential
export opportunities to neighbouring countries exist.

The Glenover project has been broken up into a number of phases which will be embarked on only if and
when the specific phase has been proven to be technically and financially viable.

Testing and design work is currently underway for the vermiculite and single super phosphate ('SSP') plants
with optimisation of the high-grade phosphate process.

Stage 2 of the project, i.e. the test work for the nitro-phosphate and rare earth processes is making good
progress and should be concluded in due course. Thereafter the detailed designs will be completed which
will inform the final capital required.

The Afrimat Board approved a spend of R300,0 million needed to purchase all the shares in Glenover
including the surface and mining rights. This is essential to support a longer life of mine and an optimised
business case to maximise Glenover's value in addition to the stockpiles already purchased.

Revenue of R17,8 million was generated by this new segment with start-up losses of R3,9 million. The
Group is in the process of ramping up this operation, with site establishment already completed.

Looking ahead, project implementation across the next 6 to 12 months is critical. This will include vermiculite
processing, optimisation of the high-grade fertiliser project and the implementation of the SSP project.
These product lines will add additional volumes.

PROSPECTS
The Group is well positioned to capitalise on strategic initiatives and future opportunities. The Group's future
growth will be driven by the successful execution of its proven strategy, recent acquisitions and a wider
product offering to the market. Many exciting opportunities are being investigated.
Afrimat continues to focus on sustainable diversification in all four segments. In the new Future Materials
and Metals segment, the focus is to ramp up the production of high-grade phosphate and to execute the
next stages of the project as seamlessly as possible.

The Bulk Commodities segment has implemented an internal efficiency drive with new solutions technology,
which has proved to be successful. These solutions will now be implemented throughout the Group in order
to further improve efficiencies and margins.

The Group has Driehoekspan and Doornpan iron ore assets to bring online once Demaneng volumes begin
to reduce. This should be within the next three years. To optimise production, the Nkomati anthracite mine
is in the process of opening up two opencast mine areas as well as an underground access point. Volumes
are expected to ramp up and the processing plant is well maintained and able to take on additional production.

Within the Industrial Minerals and Construction Materials segments, market development, as well as
product development, continues to take place in accordance with customers' needs.

Operational efficiency initiatives aimed at expanding volumes, reducing costs and developing the required
skill levels across all employees, remain a key focus in all operations.

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

CHANGE IN BOARD COMMITTEE
In accordance with paragraph 3.59(c) of the JSE Limited Listings Requirements, shareholders are advised
that Mr FM Louw was appointed to serve on the Social, Ethics and Sustainability Committee of the Company,
effective from 25 October 2022.

On behalf of the Board

FM Louw
Chairman

AJ van Heerden
Chief Executive Officer

Wednesday, 26 October 2022

DIVIDEND DECLARATION
Notice is hereby given that an interim gross dividend, No. 31 of 40,0 cents per share, in respect of the six
months ended 31 August 2022, was declared by the Board on Wednesday, 26 October 2022. There are
159 718 929 shares in issue at reporting date, of which 8 277 770 are held in treasury. The total dividend
payable is R63,9 million (August 2021: R58,5 million). The Board has confirmed 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 dividend payable to shareholders who are subject to dividend tax
and shareholders who are exempt from dividend tax is 32,0 cents and 40,0 cents per share, respectively.
The income tax number of the Company is 9568738158.

Relevant dates of the interim dividend are as follows:

Last day to trade cum dividend                                             Tuesday,   22   November   2022
Commence trading ex dividend                                             Wednesday,   23   November   2022
Record date                                                                 Friday,   25   November   2022
Dividend payable                                                            Monday,   28   November   2022

Share certificates may not be dematerialised or rematerialised between Wednesday, 23 November and
Friday, 25 November 2022, both dates inclusive.

Announcement date: 27 October 2022

FINANCIAL SUMMARY
                                                      Unaudited six    Unaudited six                   Audited
                                                       months ended     months ended                year ended
                                                          31 August        31 August               28 February
                                                               2022             2021 Change               2022
                                                              R'000            R'000       %             R'000
Revenue                                                   2 595 258        2 421 610     7,2         4 680 078
Operating profit                                            512 204          582 800   (12,1)        1 108 911
Profit attributable to shareholders                         356 096          403 182   (11,7)          775 168
Earnings per ordinary share (cents)                           252,4            292,1   (13,6)            560,7
Diluted earnings per ordinary share (cents)                   246,9            282,2   (12,5)            546,6
Headline earnings per ordinary share ('HEPS') (cents)         252,2            295,1   (14,5)            542,9
Diluted HEPS (cents)                                          246,8            285,1   (13,4)            529,2
Dividends per share (cents)                                    40,0             40,0       -             186,0
Net cash from operating activities                          784 069          806 492    (2,8)          736 555
Net asset value per share ('NAV') (cents)                     2 481            1 954    27,0             2 170
Net debt:equity ratio (%)                                      (9,7)            (4,1) (136,6)             12,1
SEGMENTAL INFORMATION*
External revenue
Construction Materials                                      916   613       890   992           1 644   510
Industrial Minerals                                         292   630       325   619             611   655
Bulk Commodities                                          1 353   087     1 197   777           2 408   710
Future Materials and Metals                                  17   764         1   158               2   964
Services                                                     15   164         6   064              12   239
                                                          2 595   258     2 421   610           4 680   078
Operating profit
Construction Materials                                       73   089        77 797               161   539
Industrial Minerals                                          36   806        49 646                94   474
Bulk Commodities                                            393   234       453 736               820   210
Future Materials and Metals                                  (3   877)          198                (2   457)
Services                                                     12   952         1 423                35   145
                                                            512   204       582 800             1 108   911
Operating profit margin on external revenue (%)
Construction Materials                                          8,0             8,7                  9,8
Industrial Minerals                                            12,6            15,2                 15,4
Bulk Commodities                                               29,1            37,9                 34,1
Future Materials and Metals                                   (21,8)           17,1                (82,9)
Overall contribution                                           19,7            24,1                 23,7
* During the period the Group reallocated various businesses within the operational segments in order to
  report in a manner consistent with the internal reporting provided to the chief operating decision-maker.
  These reallocations were due to an internal restructure performed during the period.

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*# (Lead Independent Director)
JHP van der Merwe*#
S Tuku*#
* 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
PSG Capital Proprietary Limited
1st Floor
Ou Kollege Building
35 Kerk Street
Stellenbosch
7600
(PO Box 7403, Stellenbosch, 7599)

Auditor
PricewaterhouseCoopers Inc.
1st Floor
Trumali Forum Building
Trumali Park
Cnr. 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)