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AFRIMAT LIMITED

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Our opinion on the current state of AFRIMAT(AFT)Afrimat (AFT) is an open-pit mining company supplying composites, construction materials, and other commodities to various industries across Southern Africa. Historically, Afrimat was one of the top-performing shares on the JSE until the end of 2015. After a period of consolidation and navigating through the COVID-19 crisis, the stock broke out of a 3-year sideways pattern, peaking at R76 on 6th April 2022. However, it has since declined due to the downturn in the commodity cycle. The acquisition of the Demaneng iron mine in the Northern Cape has helped buffer Afrimat from challenges in the construction industry. Afrimat has been actively pursuing diversification into other base minerals such as manganese, chrome, and coal. The company's CEO, Andries van Heerden, has stated that Afrimat is known for its successful acquisitions and is constantly evaluating new opportunities. Some of Afrimat's significant acquisitions and developments include: - On 26th May 2020, Afrimat expressed interest in Unicorn Capital Partners, which operates an anthracite mine. - On 17th August 2020, Afrimat purchased Coza Mining, involved in iron and manganese exploration, for R300 million. - On 21st May 2021, Afrimat acquired the Gravenhage manganese mine in the Kalahari Manganese Field for $45 million. - On 10th December 2021, Afrimat announced the acquisition of Glenover Phosphate for R550 million. - On 20th March 2022, Afrimat's listing was moved to the General Mining sector, reflecting its diversified business. - On 20th June 2023, Afrimat acquired Lafarge, a construction materials company, for $6 million. In its latest financial results for the six months ending 31st August 2024, Afrimat reported: - Revenue up 44.3%. - Headline earnings per share (HEPS) down to 53c, from 263.4c in the previous period. - Net asset value (NAV) increased by 10.5% to 3038c per share. Afrimat highlighted several challenges during this period, including a declining iron ore price, a strengthening Rand, export limitations on rail lines, and losses in its cement business. The company also dealt with reduced offtake from large industrial customers. Despite these challenges, Afrimat’s low debt levels and diversified portfolio across multiple commodities help mitigate some of the risks posed by fluctuating commodity prices. The company received approval from the Competition Commission on 10th April 2024 for its full acquisition of Lafarge. With a price-to-earnings (P:E) ratio of 11.63, Afrimat appears reasonably priced. Although the company has faced setbacks due to commodity price drops, its diversification and low debt levels make it a compelling value opportunity. Technically, the share is in a volatile upward trend, and there is confidence that the trend will continue in the near term, supported by the company’s strong fundamentals and acquisition-driven strategy.
JSE:AFT
by PDSnetSA
Our opinion on the current state of AFRIMAT(AFT)Afrimat (AFT) is an open-pit mining company that supplies composites, construction materials, and other commodities to a range of industries in Southern Africa. Until the end of 2015, Afrimat was one of the best-performing shares on the JSE. The share broke up out of a 3-year sideways pattern, which included the COVID-19 crisis. It rose to a peak of R76 on 6th April 2022, but has been declining since then as the commodities cycle came to an end. The acquisition of the Demaneng iron mine in the Northern Cape has insulated Afrimat against the difficulties in the construction industry. The company is also looking to diversify into other base minerals like manganese, chrome, and coal. The CEO, Andries van Heerden, said that Afrimat was known for its success in acquisitions and was still evaluating potential acquisitions. On 26th May 2020, the company announced that it had submitted a non-binding expression of interest to Unicorn Capital Partners (in which it already owns 27%), which runs an anthracite mine. The offer is for 1 Afrimat share for 280 Unicorn shares. The company benefited from rising iron ore prices due to supply constraints in Brazil and rising demand from China. On 17th August 2020, the company announced that it had bought a mining exploration company (Coza Mining) involved in looking for iron and manganese in the Northern Cape for R300m. On 21st May 2021, the company announced the purchase of a manganese mine, Gravenhage, in the Kalahari Manganese Field, 50km from Hotazel for $45m plus R15m. On 10th December 2021, the company announced the acquisition of Glenover Phosphate for R550m. On 20th March 2022, the company announced that its listing had been moved from Basic Materials Construction and Materials to the General Mining sector, which better reflected its business. On 20th June 2023, the company announced that it had acquired 100% of construction materials company, Lafarge, for $6m, less any amounts categorised as leakage under the Share Purchase Agreement. In its results for the year to 29th February 2024, the company reported revenue up 23.9% and headline earnings per share (HEPS) up 24%. The company said, "Operating profit increased by 19.8% to total R1.2 billion (2023: R961.6 million), delivering an operating profit margin for the Group of 18.9%. The diversified position Afrimat has adopted, together with the efficiency projects that are in place, helped the Group to counter impactful economic headwinds." In a pre-close briefing on the 6th of August 2024, the company said, "In the first quarter (March, April, May) ("Q1") the bulk commodity market was lacklustre. By the second quarter (June, July and the first week of August) ("Q2"), volume increases were evident, as domestic customers with furnaces started up again, and tender activity increased in road, rail and small infrastructure projects." In a trading statement for the six months to 31st August 2024, the company estimated that HEPS would fall by between 75% and 85%. Like all commodity companies, Afrimat's shares have declined with the drop in commodity prices, but this company is well diversified and has very low debt levels, making it good value. On 10th April 2024, the company announced that it had received approval from the Competition Commission for its acquisition of 100% of Lafarge. On a P:E of 11.48, it seems reasonably priced to us. Technically, the share is in a volatile upward trend, which we believe will continue.
JSE:AFT
by PDSnetSA
AFT.JO Prints an IH&S Pattern 1 Year Study.Afrimat has printed an Inverse Head and Shoulders Pattern. I know the Shoulders are small & Cute! In this 1 Year Study Analysis I've Switched to a simple line Chart as to easily depict the Pattern. The Chart Depicts the possible Upsides. As always get a few Experts Advice before making any Investments or Trade decisions. Smash that Rocket Boost Button to show your Appreciation for my Analysis Studies. Prosperous Investing for 2024 to All. Regards Graham.
JSE:AFTLong
by hitchcoxg
Our opinion on the current state of AFRIMAT(AFT)Afrimat, an open-pit mining company based in Southern Africa, has developed a robust reputation for its diverse supply of composites, construction materials, and other commodities to various industries. Historically one of the best performing shares on the Johannesburg Stock Exchange (JSE) until the end of 2015, Afrimat has navigated through periods of economic turbulence, including the COVID-19 crisis, and demonstrated resilience in a fluctuating commodities market. The company reached a notable high of R76 on April 6, 2022, but since then, its share price has experienced a decline, coinciding with the downturn in the commodities cycle. Afrimat has, however, strategically insulated itself from the broader difficulties facing the construction industry through its acquisition of the Demaneng iron mine in the Northern Cape. This acquisition underscores Afrimat’s approach to mitigating sector-specific risks and stabilizing its earnings. Further diversification efforts have seen Afrimat expanding into other base minerals such as manganese, chrome, and coal. The CEO, Andries van Heerden, has emphasized the company's proactive strategy in acquisitions, which has been a significant component of its growth. Notable acquisitions include a non-binding interest in Unicorn Capital Partners for an anthracite mine, the purchase of Coza Mining, which is involved in mining for iron and manganese, and the acquisition of the Gravenhage manganese mine in the Kalahari Manganese Field for $45 million plus an additional R15 million. The company also acquired Glenover Phosphate for R550 million. On March 20, 2022, Afrimat transitioned its listing from the Basic Materials Construction and Materials sector to the General Mining sector on the JSE, reflecting a more accurate representation of its business operations. This was followed by the strategic acquisition of the construction materials company Lafarge for $6 million, demonstrating Afrimat's continued expansion and consolidation within the industry. Financially, Afrimat has shown strong performance, with a report for the six months to August 31, 2023, indicating a revenue increase of 9.6% and a rise in headline earnings per share (HEPS) by 4.4%. The company's net asset value (NAV) also increased by 10.8% to 2750c per share. Afrimat maintains a strong balance sheet with a significant net cash balance and a favorable debt-to-equity ratio, highlighting its financial health and operational efficiency. Looking forward, Afrimat provided a trading statement estimating that HEPS for the year ending February 29, 2024, would rise by between 21% and 26%. This forecast suggests continued financial improvement and operational success. Despite the general decline in commodity prices, which has impacted shares across the sector, Afrimat's well-diversified business model and low debt levels position it as a valuable investment. The recent approval from the Competition Commission for its acquisition of Lafarge further strengthens this position. With a price-to-earnings (P/E) ratio of 13.44, Afrimat presents as a reasonably priced investment, particularly for those looking to capitalize on opportunities within the mining and materials sector.
JSE:AFT
by PDSnetSA
Our opinion on the current state of AFRIMAT(AFT)Afrimat, a prominent open-pit mining company in Southern Africa, provides a broad range of products including composites and construction materials. Until the end of 2015, it stood out as one of the JSE's top-performing shares, showcasing resilience and growth even through the COVID-19 pandemic. This growth trajectory saw the share price reach a peak of R76 on 6th April 2022. However, the end of the commodities cycle has since led to a decline in its share value. A significant factor in Afrimat's sustained performance has been its strategic acquisition of the Demaneng iron mine in the Northern Cape. This move has not only buffered the company against the construction industry's volatility but also marked a pivot towards diversification into other base minerals like manganese, chrome, and coal. CEO Andries van Heerden highlighted Afrimat's reputation for successful acquisitions and indicated ongoing evaluations for potential growth opportunities. In a strategic move to deepen its mining portfolio, on 26th May 2020, Afrimat proposed a non-binding expression of interest for Unicorn Capital Partners, targeting an anthracite mine and offering 1 Afrimat share for every 280 Unicorn shares. The company's timely acquisitions, bolstered by the surge in iron ore prices due to supply constraints and rising demand from China, underscore its strategic market positioning. Further expansions include the purchase of Coza Mining in August 2020 for R300m, the acquisition of the Gravenhage manganese mine in May 2021 for a combined total of $45m and R15m, and the acquisition of Glenover Phosphate for R550m in December 2021. Reflecting its transition towards more diversified mining activities, Afrimat's listing was shifted to the General Mining sector in March 2022. The acquisition spree continued with the purchase of Lafarge for $6m, as announced in June 2023, enhancing Afrimat's footprint in the construction materials sector. For the six months ending on 31st August 2023, the company reported a 9.6% increase in revenue and a 4.4% rise in headline earnings per share (HEPS). The net asset value (NAV) also saw a significant increase, with the company maintaining a strong balance sheet and a favorable debt-to-equity ratio. Despite the downturn in commodity prices affecting the industry at large, Afrimat's diversified portfolio and low debt levels stand out as key factors underpinning its value proposition. The recent approval from the Competition Commission for the acquisition of Lafarge, announced on 10th April 2024, marks another milestone in Afrimat's expansion journey. With a price-to-earnings (P:E) ratio of 12.8, Afrimat presents itself as a reasonably priced investment in the mining sector, promising continued growth and stability.
JSE:AFT
by PDSnetSA
$JSEAFT - Afrimat: Leading Diagonal A Base For Bullish OutlookSee link for previous analysis. Afrimat used to be a one-way steam train but the stock has lost its momentum since peaking at an all time high in April of 2022. A 43% bear market saw the stock decline from 7647 to 4366 cps. What we have seen from the 4366 low is a sequence of higher highs and higher lows with strong overlaps in the price swings. From an Elliott Wave perspective, this is consistent with a leading diagonal. This leading diagonal is in its fifth and final wave so I am anticipating a three wave pullback before looking to join the bulls. For this outlook to remain valid, the correction must terminate above 4366.
JSE:AFT
by Loyiso_BlaqueSoros_Mpeta
AFT.JO Afrimat Prints IH&S 1 Year Study.Afrimat has printed an Inverse Head and Shoulders Pattern. I know the Shoulders are small & Cute! In this 1 Year Study Analysis I've Switched to a simple line Chart as to easily depict the Pattern. The Chart Depicts the possible Upsides. As always get a few Experts Advice before making any Investments or Trade decisions. Smash that Rocket Boost Button to show your Appreciation for my Analysis Studies. Prosperous Investing for 2024 to All. Regards Graham.
JSE:AFTLong
by hitchcoxg
The Afrimat Bull RunThe Afrimat Bull Run: Afrimat limited Chart Analysis 1.Price Formation: The price has broken out from an inverted C&H price formation on a daily chart. 2.Moving Averages: The 7-day moving average (MA) is above the 21-day MA, which is a positive sign indicating bullish momentum. 3.200-day Moving Average is below the Price. 4.Thus, Mas 7>21>200 5.Relative Strength Index (RSI): The RSI is > than 50, indicating bullish momentum and potential further upward movement. 6.Price Target: R72 Afrimat Limited is a leading black empowered open pit mining company in South Africa. They provide industrial minerals, commodities, and construction materials. The company operates through various segments, including Aggregates and Industrial Minerals, Concrete Based Products, and Commodities. Afrimat has established a strong foothold in the mining industry, known for its diversified range of products and operational efficiency. Their focus on sustainable and responsible mining practices has contributed to their reputation as a reliable and innovative provider in the mining and materials sector.
JSE:AFTLong
by Sahle
Our opinion on the current state of AFTAfrimat (AFT) is an open-pit mining company that supplies composites, construction materials and other commodities to a range of industries in Southern Africa. Until the end of 2015, Afrimat was one of the best performing shares on the JSE. The share broke up out of a 3-year sideways pattern which included the COVID-19 crisis. It rose to a peak of R76 on 6th April 2022, but has been declining since then as the commodities cycle came to an end. The acquisition of the Demaneng iron mine in the Northern Cape has insulated Afrimat against the difficulties in the construction industry. The company is also looking to diversify into other base minerals like manganese, chrome, and coal. The CEO, Andries van Heerden, said that Afrimat was known for its success in acquisitions and was still evaluating potential acquisitions. On 26th May 2020, the company announced that it had submitted a non-binding expression of interest to Unicorn Capital Partners (in which it already owns 27%) which runs an anthracite mine. The offer is for 1 Afrimat share for 280 Unicorn shares. The company benefited from rising iron ore prices due to supply constraints in Brazil and rising demand from China. On 17th August 2020, the company announced that it had bought a mining exploration company (Coza Mining) involved in looking for iron and manganese in the Northern Cape for R300m. On 21st May 2021 the company announced the purchase of a manganese mine, Gravenhage, in the Kalahari Manganese Field, 50km from Hotazel for $45m plus R15m. On 10th December 2021 the company announced the acquisition of Glenover Phosphate for R550m. On 20th March 2022 the company announced that its listing had been moved from Basic Materials Construction and Materials to the General Mining sector which better reflected its business. On 20th June 2023 the company announced that it had acquired 100% of construction materials company, Lafarge, for $6m, less any amounts categorised as leakage under the Share Purchase Agreement. In its results for the six months to 31st August 2023 the company reported revenue up 9,6% and headline earnings per share (HEPS) up 4,4%. The company's net asset value (NAV) rose 10,8% to 2750c per share. The company said, "The balance sheet of the Group remains strong with a net cash balance of R278,7 million. Net cash from operating activities of R577,5 million was generated. The debt:equity position remains favourable at 6,2% (February 2023: 4,7%)". Like all commodity companies, Afrimat's shares have declined with the drop in commodity prices, but this company is well diversified and has very low debt levels making it good value. On a P:E of 11,3 it seems reasonably priced to us.
JSE:AFT
by PDSnetSA
$JSEAFT #Afrimat - A Possible Bearish FlagIt seems #Afrimat is catching the headlines of late but not for the right reasons. As the Monthly chart shows, there is a possibility that the price might currently be forming a bearish flag pattern, and it needs to stay above the lower yellow line to escape that fate. If not, the price can go substantially lower according to the flag pattern, but still not close to my personal target lower. Further, if one looks at the MACD, we see that this indicator, and this on a Monthly chart, was below the zero line for the last time almost 12 years ago. So still being above zero quite a bit, and pointing down, this might just be a reminder that over time all things revert to the mean. Bear in mind that this might be a longer term view, but then all longer term moves have to start somewhere, and the move to the downside has now been going for some time already.
JSE:AFTShort
by dawievdwest
AFRIMAT - Time to add to position. The stock has formed a lovely bull flag and looks to be gearing up for a nice move towards target around R72 Ideally bulls don't want to see a daily close below R53 as it will negate the positive bias. A bull flag is a bullish continuation pattern that occurs during an uptrend. It is formed by a sharp price increase (flagpole) followed by a consolidation period (flag) that is characterized by parallel support and resistance lines. The pattern is considered to be confirmed when the price breaks out of the flag in an upward direction
JSE:AFTLong
by Trader-Dan
UPDATE: Afrimat on target to R66.75 and a new pattern arisesCup and Handle was the last pattern we used to make this prob prediction. Lately, we have had the price fall into a Falling Flag consolidation formation. And the price has already broken up and out of it. This means, we can expect upside to continue and head to our first target of R66.75. 7>21>200 RSI>50 Target R66.75 ABOUT THE COMPANY Afrimat Limited is a leading black empowered open pit mining company in South Africa. Name: Afrimat's name appears to be a combination of "Africa", reflecting its roots and primary operational region, and "mat", which could potentially be derived from "materials", representing the company's core business in supplying construction and industrial materials. Founding: Afrimat was founded in the early 1960s as the Lancaster Group, and was rebranded as Afrimat Limited in 2006. Listing: The company is listed on the Johannesburg Stock Exchange (JSE), and its listing took place in 2006. Headquarters: Afrimat's headquarters are situated in Durbanville, Cape Town, South Africa. Operations: Afrimat operates nationally in South Africa, and internationally in Namibia. It provides a range of materials, including aggregates, industrial minerals, and commodities. Aggregates: The company started as a producer of building aggregates, but it has since diversified into a wide range of mining and related sectors. Industrial Minerals: Afrimat expanded into industrial minerals and now produces dolomite, limestone, silica, and others. Leadership: Andries van Heerden is the Chief Executive Officer (CEO) of Afrimat.
JSE:AFTLong
by Timonrosso
Afrimat showing strong upside after C&H break up to R65.43Afrimat after a volatile period of ups and downs, seems to have chosen a direction. It's been making higher lows, which has solidified the Cup and Handle formation. We see indicators pointing up including: 7>21>200 RSI>50 My first target is to R65.43. This will give it enough room for upside and will give room in case the market jumps back down. SMART MONEY CONCEPTS Below the Handle and the Cup is clearly a Sell Side Liquidity Order Block. With the wicks coming down and for the bodies closing near the highs, states that buying is stronger. And so with SSL Smart Money buys into positions (and sweeps liquidity) from traders who are long (get stopped) and for short traders who enter into their trades. ABOUT THE COMPANY Afrimat Limited is a leading black empowered open pit mining company providing industrial minerals and construction materials in South Africa. Founding: Afrimat was founded in 1965 as Prima Klipbrekers, primarily a mobile crushing company. Name Origin: The name Afrimat is a combination of "Africa" and "Materials," indicating the company's African identity and its focus on materials. Public Listing: Afrimat was listed on the Johannesburg Stock Exchange (JSE) in 2006. Diversified Portfolio: Afrimat's portfolio of products includes crushed aggregates, limestone, silica, and other industrial minerals. Geographic Reach: The company has operations across South Africa, has expanded into other African countries. Acquisitions: Afrimat has grown through a series of strategic acquisitions, including Lancaster Quarries and the Glen Douglas dolomite mine. Construction Materials: The company supplies construction materials, primarily concrete-based products, to the construction industry. Industrial Minerals: Afrimat also has a strong presence in the industrial minerals sector, supplying materials for various industrial applications.
JSE:AFTLong
by Timonrosso
$JSEAFT - Afrimat Ltd: Bulls Taking ControlAfrimat has traded as previously forecasted, link below. 4366 has been well defended and price also held above 4650. Looking at recent price action, the stock looks to be impulsing and unfolding in five waves. From 4840, I am counting the advance as an impulse with price in the early stages of wave (iii) of ((iii)) which can be a very powerful move. Buy the dips is the strategy above 4840 and this level should be used as a stop-loss.
JSE:AFTLong
by Loyiso_BlaqueSoros_Mpeta
Afrimat showing a strong bounce up to R60.00Cup and Handle formed on Afrimat following the downtrend that's been extended since 2022. We then had a break above the Brim Level showing demand and buying was in play. MAs -Mixed RSI>50 But there are higher lows. Target R60.00 SMC: SSL - Order Block This Sell Side Liquidity order Block is most apparent BELOW the entire formation. We can see sweeping of sells over the last month, and the buying into it has cause the price to rocket. Afrimat is looking strong for upside.
JSE:AFTLong
by Timonrosso