Afrimat is facing a difficult first half, with management expecting HY1 2027 earnings to be materially affected by a lower iron ore prices, a stronger Rand, sharply higher shipping costs, fuel inflation, weather disruption and weak domestic iron ore demand. International iron ore is particularly pressured because lower US-dollar prices and higher freight costs are reducing Rand-denominated realised prices at the mine gate. The construction materials business is expected to be the most meaningful contributor to HY1 revenue and profitability, with aggregates benefiting from widespread infrastructure, road, rail, water and renewable energy spending. Cement remains challenging because of an overtraded market.
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