Our business | Business strategy | Performance | Governance structures | Governance overview | Annual financial statements | Shareholder information | AFRIMAT integrated annual report 2023 | ||
CONSISTENTLY DELIVERING
Integrated annual report
2023
Our business | Business strategy | Performance | Governance structures | Governance overview | Annual financial statements | Shareholder information | AFRIMAT integrated annual report 2023 |
Contents
- 1 Performance for the year
- 2 About this report
1 Our business
- 4 Business overview
- 8 Value creation through the use of capitals
10 Stakeholders
12 Chairman's Report
14 CEO's Report
17 CFO's Report
Business overview
Page 4
2 Business strategy
- Share performance
- Group strategy, material issues and key risks
3 Performance
- Five-yearreview
- Operational reviews
Governance structures | Page 33 | ||
4 Governance structures
- Corporate governance
- Directorate
- Board and Executive Committee structure
- Risk management
39 Assurance
5 Governance overview
- 42 Social, Ethics & Sustainability Committee Report
- 45 Ethical leadership and compliance
- 46 Environmental responsibility
- 48 Managing climate change
- 51 Safe and reliable operations
- 54 People management
- 57 Transformation
- 62 Mineral Resources Register
- 70 Remuneration Report
- 76 Technology and Systems
Statements of | Page 88 | ||
Financial Position | |||
6 Annual Financial Statements
- 78 Directors' Responsibility Statement
- 78 Declaration by the Company Secretary
- 79 Audit & Risk Committee report
- 81 Independent Auditor's Report
- 85 Directors' Report
- 87 Statements of Profit or Loss and Other Comprehensive Income
- 88 Statements of Financial Position
- 89 Statements of Changes in Equity
- 90 Statements of Cash Flows
- 91 Notes to the Annual Financial Statements
145 Analysis of Shareholders
7 Shareholder information
- Notice of AGM
- Form of proxy
- Definitions
- Shareholders' diary
- Contact details
Afrimat's full suite of reports can be accessed from the links below:
Notice of Annual | Commodities | ||
General Meeting 2023 | resource register | ||
King IVTM | New | ESG report |
application register | 2023 |
Afrimat is committed to applying
ESG principles to create value for
stakeholders. | E | S | G |
Navigation toolkit | |||
Read more page reference | More info on website |
Some of the following United Nations Sustainable Development Goals ('SDGs') are addressed in this report:
Our business | Business strategy | Performance | Governance structures | Governance overview | Annual financial statements | Shareholder information | AFRIMAT integrated annual report 2023 |
1
Financial performance
Balance sheet | Net debt:equity | Operating profit | Return on net operating | |||
remains strong | ratio 4,4% | margin 19,6% | assets 24,0% | |||
Operating profit | HEPS | Total dividends per share | NAV per share | Net cash from operating | Share price at year-end | ||||
margin 19,6% | 457,6 cents | (cents) 150 cents | 2 591 cents | activities 987 319 (R'000) | 5 388 cents | ||||
CAGR 18,2% | CAGR 16,7% | CAGR 25,9% | CAGR 24,5% | CAGR 16,5% | |||||||||||||||||||||||||||||||
35 | 600 | 200 | 3 500 | 1 200 000 | 7 000 | ||||||||||||||||||||||||||||||
30 | 500 | 542,9 | 180 | 186 | 3 000 | 1 000 000 | 6 000 | 6 650 | |||||||||||||||||||||||||||
160 | |||||||||||||||||||||||||||||||||||
25 | 28,7 | 987 319 | |||||||||||||||||||||||||||||||||
23,7 | 400 | 441,7 | 457,6 | 140 | 148 | 150 | 2 500 | 2 591 | 800 000 | 410 484 | 5 000 | 5 388 | |||||||||||||||||||||||
20 | 120 | 2 000 | 2 170 | 767 580 | 4 000 | 4 430 | |||||||||||||||||||||||||||||
300 | 347,7 | 117 | 600 000 | 736 555 | |||||||||||||||||||||||||||||||
15 | 18,2 | 19,6 | 100 | 1 500 | 1 761 | 676 810 | 3 000 | ||||||||||||||||||||||||||||
15,9 | 200 | 234,1 | 80 | 81 | 2 925 | 2 850 | |||||||||||||||||||||||||||||
400 000 | |||||||||||||||||||||||||||||||||||
10 | 60 | 1 000 | 1 030 | 1 246 | 2 000 | ||||||||||||||||||||||||||||||
5 | 100 | 40 | 500 | 200 000 | 1 000 | ||||||||||||||||||||||||||||||
20 | |||||||||||||||||||||||||||||||||||
0 | 0 | ||||||||||||||||||||||||||||||||||
0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||
'19 | '20 | '21 | '22 | '23 | '19 | '20 | '21 | '22 | '23 | ||||||||||||||||||||||||||
'19 | '20 | '21 | '22 | '23 | '19 | '20 | '21 | '22 | '23 | '19 | '20 | '21 | '22 | '23 | '19 | '20 | '21 | '22 | '23 |
Since 2009, Afrimat's share price rose 2 649% and over the
past five years it is up 84% - during the time when most other companies felt the pain of an economic deterioration.
Afrimat is hedged against economic volatility through wide
diversification, which generates a balanced and consistent income stream.
Afrimat has a superb track record in acquiring, assimilating and then growing businesses. During the year Afrimat
acquired the shares in Glenover Phosphate Proprietary Limited, in addition to the phosphate stockpiles acquired in the prior year.
Safety is our top priority
No fatalities for 11 consecutive years
LTIFR of 0,34
(Please refer to page 51 for safety initiatives)
Advancing
E S G
sustainability
Afrimat is committed to Environmental, Social and Corporate Governance ('ESG') matters and regards sustainability as a mandatory strategic objective.
Value creation in communities
Consolidated
Broad-Based Black Economic Empowerment status attained at a level 3 (level 3 in 2022).
Skills and socioeconomic developmentspend
R50,4 million (2022:
R38,0 million).
Preferential Procurement B-BBEE score of 75,1% (2022: 63,4%) as verified by South African National Accreditation System ('SANAS') Accredited B-BBEE Rating Agency.
Certain subsidiary companies achieved a B-BBEE status of level 2.
Our business | Business strategy | Performance | Governance structures | Governance overview | Annual financial statements | Shareholder information | AFRIMAT integrated annual report 2023 | ||
2
About this report
Afrimat is a leading black empowered group with its main business and core competence in mid-tier mining and materials supply. The Group supplies industrial minerals and construction materials to a range of industries across southern Africa. In addition, Afrimat supplies bulk commodities to local and international markets. During the year, Afrimat started supplying phosphates to the agriculture sector. As of this year, it is listed in the 'General mining' sector of the JSE Main Board, previously listed in the 'Construction & Materials' sector since 2006.
Corporate information
The Group's executive directors are Andries J van Heerden (CEO), Pieter GS de Wit (CFO), Collin Ramukhubathi and Marthinus G (Gerhard) Odendaal. They can be contacted at the registered office of the Company. The Company Secretary is Catharine Burger. See contact details on the inside back cover of this integrated annual report.
The integrated annual report 2023 is available in hard copy, on request, from the Company Secretary and is also published on the Group's website www.afrimat.co.za.
Our integrated annual report 2023 contains information aimed at all our stakeholders with a specific focus on our shareholders. We are committed to providing shareholders with reliable, accurate, balanced and transparent reporting. Overall, the report is intended to give our stakeholders a better understanding of the material issues, risks and opportunities that we face in terms of business sustainability, value creation and growth over the short-term (less than 12 months), medium-term (one to three years) and long-term (beyond three years).
Scope and reporting parameters
This integrated annual report 2023 covers the financial performance and non-financial performance of the Group. Afrimat reports on the strategy, the six capitals on which it relies and the opportunities, risks and outcomes attributable to or associated with its key stakeholders, who significantly influence Afrimat's ability to create value for the year ended 28 February 2023. There has been no material change in the scope and boundary of the IAR
January 2021. Our report conforms to the requirements of local and international integrated reporting frameworks, the South African Companies Act 2008, JSE Listings Requirements and the Mining Charter. We continue to use the GRI guidelines for our sustainable development reporting. The Company applies the majority of the principles in the King IV™ Report. An explanation and summary for each principle is provided and published on the Group's website www.afrimat.co.za. This is to allow stakeholders to make an informed decision as to whether Afrimat is achieving the four good governance outcomes required by King IV™.
Materiality
The legitimate interests of all our key stakeholders were taken into account in determining information that is considered to be material for inclusion in this report. Afrimat defines strategic matters as those which are most material to the formulation and execution of strategy and those that have the potential to significantly affect Afrimat's ability to create stakeholder value and contribute to the future sustainability of the Group.
Risk management
Risk is inherent in all Afrimat's business activities. We are committed to identify, assess and prioritise risks in order to minimise, monitor and control the probability and impact of unfortunate events to support the achievement of our objectives.
Refer to page 37 for the risk management report.
forward-looking statements. The Company disclaims any intention and assumes no obligation to update or revise any forward-looking statement even if new information becomes available as a result of future events or for any other reason.
Board responsibility statement
The Board, assisted by the Audit & Risk and Social, Ethics & Sustainability Committees, acknowledges its responsibility for ensuring the integrity of the integrated annual report, and has applied its collective mind in the preparation thereof. The Board believes that the report has, in all material respects, been presented in accordance with the IIRC's Framework. The Afrimat Board approved this integrated annual report and authorised its release on 22 June 2023.Combined assurance
A combined assurance model is used to provide Afrimat with assurance obtained from management, internal and external assurance providers. PricewaterhouseCoopers Inc. are the auditors of Afrimat and provided an unmodified opinion after auditing our consolidated annual financial statements 2023. The extracts from the annual financial statements in this integrated annual report are from audited information but not audited.
The Group's financial, operating, compliance and risk management controls are assessed by the Group's internal audit function, which is overseen by the Audit & Risk Committee.
compared to the prior year or to historical financial data.
For more information, see the annual financial statements on pages 78 to 144.
Frameworks applied
In compiling this report, Afrimat considered the legislative requirements for reporting and the International Integrated Reporting Framework, issued in
Forward-looking disclaimer
This integrated annual report 2023 contains forward-looking statements that, unless otherwise indicated, reflect the Company's expectations as at 28 February 2023. Actual results may differ materially from the Company's expectations if known and unknown risks or uncertainties affect the business, or if estimates or assumptions realise differently. The Company cannot guarantee that any forward-looking statement will materialise and, accordingly, readers are cautioned not to place undue reliance on these
Francois Louw | Andries van Heerden |
Chairman | CEO |
22 June 2023 |
Our business | Business strategy | Performance | Governance structures | Governance overview | Annual financial statements | Shareholder information | AFRIMAT integrated annual report 2023 | ||
1
Our business
Construction Materials
Glen Douglas Dolomite solar plant
Upon assessing the way forward in light of the current energy crisis in South Africa, Afrimat has identified the wholly-owned subsidiary, Glen Douglas Dolomite Proprietary Limited as the perfect operation to run on solar power. This is due to the fact that Glen Douglas Dolomite has one of the highest power usages in the Group and has the space available for the addition of the solar plant.
Solar power installations offer a wide range of environmental advantages that contribute to sustainability and help mitigate the impacts of climate change. Here are some of the key environmental benefits of solar power installations:
Renewable and Clean Energy
Solar power is a renewable and clean source of energy that does not produce any harmful greenhouse gas emissions, air pollution, or water pollution during its operation.
Reduced Carbon Footprint
One of the significant environmental advantages of solar power installations is the reduction of carbon footprint.
Conservation of Natural Resources
Solar power installations help in conserving natural resources. Fossil fuels such as coal, oil, and gas are finite resources that are extracted from the earth's crust and can deplete over time.
Improved Air and Water Quality
Solar power installations help in improving air and water quality. Burning fossil fuels for energy production releases harmful pollutants into the air and water, leading to air pollution and water contamination.
Biodiversity Conservation
Solar power installations have minimal impact on biodiversity compared to other forms of energy generation.
Construction Materials
3
Open pit mining and processing of aggregates products
Concrete brick and block manufacturing and readymix concrete batching
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Disclaimer
Afrimat Limited published this content on 26 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 June 2023 12:50:33 UTC.