CHRIS GILMOUR: Afrimat finds immense strength through diversity
Afrimat’s cost of production is significantly lower than international commodity prices, resulting in very healthy, sustainable profit margins
The Afrimat price has more than doubled, from just less than R30 per share to the current level of just more than R60 in the past two years. It took time for investors to buy into Afrimat’s positive story, but Afrimat management stuck faithfully to its script, turning out strong results, even during the height of the pandemic in 2020. They have now been rewarded with a share price that more accurately reflects what is happening in the various underlying businesses.
They also believe in, and understand, the value of communicating properly with the investment community. Their twice-yearly presentations, augmented by an annual investor day in August, are full of information and management is always available to answer questions from all-comers. ..