AFRIMAT LIMITED - Trading update and trading statement for the six-month period ended 31 August 2026

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


TRADING UPDATE AND TRADING STATEMENT FOR THE SIX-MONTH PERIOD ENDED 31 AUGUST 2026

Trading update


Since listing in 2006, Afrimat has never faced trading conditions as challenging as those
experienced during the six months ended 31 August 2026 ('the period') and this is reflected
in a significantly weaker financial performance.


The primary driver of the decline in profitability during the period was iron ore. Export revenue
was adversely impacted by a combination of a stronger Rand and significantly higher shipping
costs (49.1%) due to disruptions from the Iran conflict. As a result, average mine-gate revenue
per ton was down by 16.4%.


Domestic iron ore was adversely affected in Q1 as a domestic customer, drew on non-Afrimat
stockpiles it had secured previously, leading to lower and irregular sales volumes. Similarly,
the temporary shutdown of ferrochrome smelters reduced anthracite demand, resulting in low
sales volumes. Volume trends in domestic iron ore began to recover in Q2. However, domestic
iron ore volumes remained 36.5% below the comparative period.


Afrimat's aggregates and fly ash operations performed strongly, supporting the original
rationale for the acquisition of the Lafarge quarries. Ongoing efficiency drives, effective
marketing, strong client retention, and sound operational performance delivered margin
expansion and strong operating profit growth. For FY2022 - FY2026, these operations
delivered a compound annual growth rate of 36.3% in operating profit and a FY2026 operating
profit margin of 18%. The operating profit margin improved further during this reporting period,
notwithstanding fuel price increases linked to geopolitical disruptions.


In contrast, despite Afrimat investing significantly in strengthening engineering and
management capacity and in making lasting repairs to the cement operation with interventions
aimed at improving long-term performance; the operation continued to incur an operating loss
during the early part of the period.


During the period, the Group focused on cash generation through the disposal of non -core
assets (brick and block businesses), the conclusion of the Competition Commission-mandated
divestitures and converting surplus iron ore stockpiles into cash. This has reduced the debt-
to-equity position to below 50%. The Group targets a level closer to 25% and debt reduction
therefore remains a focus.


The Group continues to add diversified capacity, including the new MECA III manganese
allocation (240,000 tons per annum for seven years, with the first vessel already shipped) and                                                                                              
the addition of the Doornfontein iron ore deposit (which will replace Demaneng and provide a
low stripping ratio and high-quality direct-shipping ore).

Trading statement


In terms of paragraphs 6.26 to 6.30 of the JSE Limited Listings Requirements, a listed
company is required to publish a trading statement as soon as it is reasonably certain that the
financial results for the period to be reported on next will differ by at least 20% from the financial
results of the previous corresponding period.


The Company hereby advises that for the period ended 31 August 2026:


  '    earnings per share ("EPS") is expected to be between 0.1 cents and 5.2 cents,
       representing a decrease of between 95% and 100% compared to EPS of 102.7 cents
       reported for the period ended 31 August 2025; and


  '    headline loss per share ("HLPS") is expected to be between 60 cents and 55 cents
       compared to headline earnings per share of 101.9 cents reported for the period ended
       31 August 2025.


The difference between EPS and HLPS is primarily attributable to profits recognised on the
completion of Competition Commission-mandated divestitures and disposal of non-core
assets, which are excluded from headline earnings.

Reporting date


The financial information on which this trading statement is based has not been reviewed or
reported on by the Company's auditors.


The Company's interim financial results are expected to be released on or about 22 October
2026. At that time, management will update the market in greater detail regarding the
performance for the interim period and provide an outlook for the remainder of the financial
year.


Cape Town
7 October 2026

Sponsor
Valeo Capital (Pty) Ltd





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Date: 07/10/2026 07:15:00

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