Afrimat CEO upbeat on group’s interim financials despite lower iron-ore prices

I can tell you I'm sleeping well at night. It is a different scenario to where we were last year when we were exceptionally good iron-ore prices but it has been offset by a few things. All in all, the business is in a good state and I’m actually really excited about where things are heading,” he said.

Last year, Afrimat delivered exceptional results on the back of favourable iron-ore prices, which translated into strong operating cash flows.

“We've seen the iron-ore price pull back from the peaks of last year. We said at the time that was great to have that. It gave us a hell of a cash boost, but we did say that we didn't think that $220/t plus was sustainable. It has come back to what we think is a more sustainable level, which is about $100/t,” Van Heerden said.

He noted several factors that would offset the lowered iron-ore price.