Afrimat expects 50 to 60% rise in earnings per share to end February 2019
CAPE TOWN - Industrial and construction open pit mining group Afrimat said yesterday that it expected earnings per share to be 331.4 cents to 353.5c per share in the year to end-February 2019, reflecting an increase of 50 to 60percent over the previous year.
Headline earnings per share were expected to be 337.1c to 360.5c per share, reflecting an increase of between 44 to 54percent on the previous year. The results are expected to be published on May 20.
The impact of the Covid-19 lockdown on the group was dampened by the partial re-opening of the Demaneng iron ore mine, and certain industrial minerals operations early in the lockdown period.
From April 20, as gazetted by the government, industries in the mining and quarrying sector were granted permission to resume operations. In addition, South Africa moved from Level 5 to Level 4 restrictions on May 1, 2020. In terms of Level 4 restrictions, open-cast mining may scale up from a baseline of 50percent to full employment. All Afrimat mines were able to operate at full capacity.
However, due to the restrictions on certain markets, operations were being ramped up according to market demand and in line with regulations from government, and therefore certain Afrimat mines were not operating at full capacity. Afrimat’s share price gained 6.39percent on the JSE yesterday, closing at R25.94. The share traded at as much as R33.50 early in January this year, fell sharply in March from R31 per share, along with a global slump in share prices, but recovered to trade around R25 a share since April.