Interim report
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CONSISTENTLY DELIVERING Afrimat Limited (‘Afrimat’ or ‘the Company’ or ‘the Group including its subsidiaries’) | (Incorporated in the Republic of South Africa) (Registration number: 2006/022534/06) | Share code: AFT | ISIN code: ZAE000086302 Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026 Operating profit R255,2 million Group revenue R5,1 billion Operating profit margin of 5,0% Profit before tax R137,7 million Net asset value (‘NAV’) per share 2 899 cents
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Commentary Introduction The Group’s performance remained under pressure in the first half of the 2027 financial year. 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’). This is reflected in a significantly weaker financial performance. The period was characterised by a significant decline in the profitability of the Iron Ore business and continued operational challenges in Cement, in contrast to an excellent performance from the Aggregates business. Management remained focused on optimising the portfolio and protecting the balance sheet. Loss-making operations were closed, disposed of or restructured. The divestiture of the operations required by the Competition Commission as a condition of the Lafarge acquisition (‘divested operations’) was completed on 1 June 2026. The resulting portfolio is more focused, and the benefits are visible in the improved underlying margins of the Aggregates business. While earnings declined, cash generated from operations improved, supported by successful working capital initiatives. Net debt reduced and the net debt:equity ratio improved, reflecting management’s continued attention to cash preservation during this period of operational pressure. Financial results Group revenue decreased by 4,3% to R5,1 billion (August 2025: R5,3 billion), mainly due to lower revenue in the Iron Ore and Cement businesses, which was partly offset by growth in Aggregates and higher anthracite export volumes. Operating profit decreased by 32,8% to R255,2 million (August 2025: R379,8 million), at an operating profit margin of 5,0% (August 2025: 7,1%). Operating profit includes a once-off profit of R95,5 million on the disposal of the divested operations (refer to note 13.1). The decline was driven primarily by the Bulk Commodities segment, where operating profit decreased from R445,1 million to R8,6 million, and by the wider operating loss in the Cement business. These headwinds were partially offset by the strong performance of Aggregates and a 30,6% reduction in centralised shared services costs to R194,0 million (August 2025: R279,5 million), largely attributable to the elimination of legacy information system costs. Finance costs increased by 11,8% to R166,0 million (August 2025: R148,4 million). The effective tax rate increased since no deferred tax asset was recognised in respect of the tax losses incurred in the Cement business. Profit after tax decreased by 87,0% to R22,6 million (August 2025: R173,5 million). Earnings per share decreased to 2,6 cents (August 2025: 102,7 cents) and the Group reported a headline loss per share of 58,0 cents (August 2025: headline earnings per share of 101,9 cents). The larger decline in headline earnings reflects the exclusion of the profit on the disposal of businesses, including divested operations as well as the disposal of non-core assets. Cash generated from operations increased by 21,1% to R433,1 million (August 2025: R357,7 million). The improvement was primarily driven by disciplined working capital management. The Group incurred capital expenditure of R247,6 million during the period. Proceeds of R158,0 million from the disposal of businesses supported the repayment of borrowings. Net debt decreased to R2,1 billion (February 2026: R2,2 billion) and the net debt:equity ratio improved to 46,0% (February 2026: 50,2%). All bank covenants remain within the limits set by the lenders. Operational review The Group’s operating units are positioned to deliver outstanding service to customers, and the diversified portfolio provides a degree of resilience against volatile local business conditions. The product range is wide and diversified and is made up of Construction Materials consisting of aggregates, concrete-based products, fly-ash and cement; Industrial Minerals consisting of limestone, dolomite and industrial sand; and Bulk Commodities consisting of iron ore, anthracite and manganese. The Services segment consists of external logistical and mining services, while the Future Materials and Metals segment is made up of phosphate and rare earth elements. Construction Materials Revenue increased by 0,2% to R2,8 billion and operating profit more than doubled to R421,7 million (August 2025: R194,1 million). The Aggregates and Fly-ash components delivered an excellent first-half performance. Revenue increased by 5,3% to R2,0 billion (August 2025: R1,9 billion) and operating profit increased by 76,8% to R567,8 million (August 2025: R321,2 million), at an operating profit margin of 27,8% (August 2025: 16,6%). 1 AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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The improvement was driven by the improved operational efficiencies and cost discipline at the ex-Lafarge quarries, a deliberate focus on higher-margin products, the completion of capital projects that improved plant capacity and efficiency, and increased ballast and boulder sales, including emergency flood repair work in the Western Cape. The closure, disposal and restructuring of loss-making operations contributed further to the improvement. These results were achieved despite rising fuel prices that led customers to postpone projects and prolonged wet weather in the Eastern Cape. The Cement business remained loss-making, with an operating loss of R146,1 million (August 2025: R127,1 million). Revenue decreased by 11,1% to R776,3 million, as sales volumes declined by 9,0%. Clinker production for the period increased by 12,0%. Bulk Commodities The Bulk Commodities segment came under significant pressure during the period. Revenue decreased by 3,3% to R1,8 billion and operating profit decreased to R8,6 million (August 2025: R445,1 million). The iron ore and manganese mines’ revenue decreased by 7,9% to R1,2 billion (August 2025: R1,3 billion) as increased export iron ore and manganese volumes largely offset lower domestic volumes. Operating profit decreased to R11,3 million (August 2025: R403,5 million), primarily due to lower domestic sales volumes, weaker realised export prices, higher mining costs and the lower margin nature of manganese sales. Iron ore export revenue was adversely impacted by a stronger Rand and significantly higher shipping costs (49,1%) due to disruptions resulting from the Iran conflict. As a result, average mine-gate revenue per tonne was down by 16,4%. Nkomati Anthracite Mine’s revenue increased by 9,2% to R543,0 million (August 2025: R497,2 million), supported by significantly higher export volumes. It reported an operating loss of R2,7 million (August 2025: operating profit of R41,6 million), impacted largely by the closure of ferrochrome smelters, which are slowly starting up again. Production was managed in line with demand. Plant throughput has returned to previous levels, which leaves the operation well placed to increase production once additional smelters open. Total sales volumes increased by 18,2% to 234 051 tonnes. Iron ore – domestic Domestic sales volumes decreased by 36,5% to 527 696 tonnes (August 2025: 830 662 tonnes), adversely affected in Q1 as a domestic customer drew on non-Afrimat stockpiles it had secured previously, leading to lower and irregular sales volumes. Domestic iron ore volume trends began to recover in Q2. Iron ore – international Export volumes increased by 29,9% to 514 809 tonnes (August 2025: 396 384 tonnes), including 110 140 tonnes exported through an allocation on the General Freight Business (‘GFB’) rail line in July and August. Although the increased volumes supported revenue generation and enabled the monetisation of excess inventory, profitability was materially lower due to weaker realised export prices, rising mining and processing costs as Demaneng approaches end of life, and the low margin nature of the GFB export tonnes. Doornfontein, a newly acquired lower-cost deposit, will replace Demaneng. Manganese Afrimat secured a seven-year MECA III allocation of 240 000 tonnes per annum via the Coega Manganese Export Terminal near Gqeberha. The first vessel under this allocation departed on 4 August 2026, carrying 59 635 tonnes. Including these tonnes, total manganese volumes increased to 240 433 tonnes (August 2025: 76 337 tonnes). Afrimat expects to fill one vessel per quarter for the remainder of the financial year. Anthracite – domestic In August 2025, structural economic impediments in the local economy led to the temporary shutdown of all ferrochrome smelters. The smelters and the National Energy Regulator of South Africa reached agreements in April 2026 with the approval of a reduced electricity tariff for smelters. Some ferrochrome smelters have reopened, and others are ramping up. As a result of the shutdown, domestic sales lagged previous levels, with volumes amounting to 83 118 tonnes (August 2025 volumes: 136 216 tonnes). Anthracite – international Export volumes increased to 150 933 tonnes (August 2025: 61 862 tonnes), due to additional ports and shipments being secured, although subdued export prices resulted in marginal contributions. Industrial Minerals Revenue reduced by 20,0% to R216,4 million (August 2025: R270,6 million) and operating profit decreased by 5,2% to R21,3 million (August 2025: R22,5 million). The operating profit margin improved to 9,8% (August 2025: 8,3%). Performance improved in the second quarter after a challenging first quarter. Demand from customers in the steel, ferrochrome and chemical sectors remained below traditional levels, and continued pressure from imported products reduced volumes. This was partly offset by a strong recovery, supported by construction aggregate and road-building material sales, and by a good agricultural lime season. The focus on equipment reliability, cost control and energy efficiency continues to contribute positively to earnings. 2AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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Commentary (continued) Future Materials and Metals Revenue increased by 12,9% to R60,6 million (August 2025: R53,7 million), with an operating loss of R19,7 million (August 2025: R24,8 million). Production at Glenover was stopped during the second quarter due to an extremely high price of sulphuric acid. The Glenover resource comprises both a rare earth stream and an iron phosphate stream. Rare earth has been successfully recovered from a rare earth-rich slag, and the iron phosphate stream produces an Fe-P alloy, a feed source with potential to produce battery precursor material. On the technical front, development work continues to advance, with positive results achieved across key stages of the process, including efficiency improvements. Commercially, momentum continues to build among prospective partners, with strategic parties actively contributing to validation efforts and ongoing engagement scheduled in the months ahead. Business development The Group’s business development team remains a key component of the strategy. The team continues to identify opportunities in existing markets, as well as in anticipated new high-growth areas in southern Africa. Changes to Mineral Resources and Mineral Reserves Afrimat’s statement of Mineral Resources and Mineral Reserves as at 28 February 2026 is produced in accordance with the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves (‘SAMREC’). It should be noted that the Mineral Resources are reported inclusive of the Mineral Reserves. There has been no material change to Afrimat’s Mineral Resources and Mineral Reserves as disclosed in the integrated annual report for the financial year ended 28 February 2026, other than depletion due to continued mining activities at the operations and the acquisition of the Doornfontein iron ore deposit during the period. A full exploration programme has been initiated at Doornfontein, and a SAMREC-compliant Mineral Resource and Mineral Reserve statement for the deposit is expected to be published in the integrated annual report for the 2027 financial year. B-BBEE Afrimat’s BEE shareholding, which includes shares held by the Afrimat BEE Trust and previously held shares recognised in terms of paragraph 3.8 of the B-BBEE COGP , equates to 22,99%. Notwithstanding the fully empowered ownership structure aligned with the Mining Charter requirements, the Group remains committed to continuously advancing all aspects of B-BBEE. Afrimat embraces a bottom-up approach to transformation with a strong focus on sustained training, skills development and all-round employee upliftment. Dividend In light of the results for the period and the Group’s continued focus on reducing debt and preserving cash, the Board has resolved not to declare an interim dividend for the six months ended 31 August 2026 (August 2025: 20,0 cents per share). Prospects The Aggregates business is expected to maintain its improved performance, supported by a more focused portfolio, the benefits of completed capital projects and continued demand from rail maintenance and infrastructure work. Rising fuel costs as a result of the Iran conflict and delays in public-sector project payments remain risks to demand and profitability. With Kiln 3 back in operation from 1 September 2026, the Cement business is expected to benefit from improved clinker availability. Management remains focused on plant reliability and throughput, and demand for low-carbon, high-quality cement remains strong. The investigation into strategic alternatives continues and the market will be updated as soon as possible. Iron ore export volumes recovered well towards the end of the period, but realised prices remain under pressure from high shipping costs and a stronger Rand. The Doornfontein resource will replace the mined-out Demaneng mine. Initially mined as a Direct Shipping Ore, this will keep overall mine costs lower than they currently are at Demaneng and provide a strong moat around this part of the business. The first iron ore from Doornfontein is expected in the last quarter of F2027. 3 AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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Domestic iron ore demand is expected to stabilise in the region of 90 000 to 100 000 tonnes per month. Nkomati’s lower cost base leaves it well placed if volumes improve as more smelters come online, supported by the Group’s export strategy. The Industrial Minerals segment will benefit from the reopening of the ferrochrome smelters, as well as import protection, which the Government seems to be moving towards. Against a global backdrop of tight supply and growing demand for secure, diversified sources of critical minerals, the strategic case for the Glenover project remains positive. Updates will be shared with the market as work progresses. Despite the difficult trading environment, management is confident the Group’s diversified foundation is sound. Afrimat will continue to prioritise cash generation, debt reduction and operational reliability, positioning it to deliver improved returns as conditions recover. These financial statements may contain forward-looking statements that have not been reviewed or reported on by the Company’s auditors. On behalf of the Board FM Louw AJ van Heerden Chairman Chief Executive Officer 21 October 2026 4AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Unaudited six months ended 31 August 2026 R’000 Unaudited six months ended 31 August 2025 R’000 Change % Audited year ended 28 February 2026 R’000 Revenue 5 099 323 5 330 059 (4,3) 10 009 050 Cost of sales (4 379 051) (4 289 057) 2,1 (8 257 794) Gross profit 720 272 1 041 002 (30,8) 1 751 256 Operating expenses (622 526) (646 185) (3,7) (1 341 386) Other income 34 722 18 302 64 803 Other net gains and losses 29 020 (31 169) 51 045 Profit on disposal of businesses/subsidiary (refer note 13.1, 13.2 and 13.3) 95 481 – 10 548 Movement in expected credit loss allowance (1 795) (2 122) (12 574) Operating profit 255 174 379 828 (32,8) 523 692 Finance income 45 367 34 624 86 113 Finance costs (165 955) (148 441) (317 487) Share of profit of equity-accounted investments 3 121 – – Profit before tax 137 707 266 011 (48,2) 292 318 Income tax expense (115 088) (92 546) (135 247) Profit for the period 22 619 173 465 (87,0) 157 071 Profit attributable to: Owners of the parent 4 031 156 293 121 742 Non-controlling interests 18 588 17 172 35 329 22 619 173 465 157 071 Other comprehensive income Items that may be subsequently reclassified to profit or loss Exchange differences on translation of foreign operations 64 (1 784) (4 571) Items that will not be reclassified to profit or loss Net change in fair value of equity instruments at fair value through other comprehensive income (11) 5 712 Income tax effect relating to these items 2 (1) (154) Other comprehensive income/(loss) for the period, net of tax 55 (1 780) (4 013) Total comprehensive income for the period 22 674 171 685 (86,8) 153 058 Total comprehensive income attributable to: Owners of the parent 4 086 154 513 117 729 Non-controlling interests 18 588 17 172 35 329 22 674 171 685 153 058 Earnings per share: Earnings per ordinary share (cents) (refer note 6) 2,6 102,7 (97,4) 80,0 Diluted earnings per ordinary share (cents) (refer note 6) 2,6 101,8 (97,4) 79,3 5 AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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Reconciliation of Headline Earnings/(Loss) Unaudited six months ended 31 August 2026 R’000 Unaudited six months ended 31 August 2025 R’000 Change % Audited year ended 28 February 2026 R’000 Profit attributable to owners of the parent 4 031 156 293 121 742 Profit on disposal of property, plant and equipment attributable to owners of the parent (31 765) (1 735) (70 910) Profit on disposal of businesses/subsidiary (refer note 13.1, 13.2 and 13.3) (95 481) – (10 548) Impairments (refer note 3) – – 118 207 Total income tax effects of adjustments 34 356 468 (12 770) Headline earnings/(loss) (88 859) 155 026 (157,3) 145 721 Headline earnings/(loss) per ordinary share (‘HEPS’/‘HLPS’) (cents) (58,0) 101,9 (156,9) 95,8 Diluted HEPS/(HLPS) (cents) (57,5) 101,0 (156,9) 95,0 6AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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Condensed Consolidated Statement of Financial Position Unaudited six months ended 31 August 2026 R’000 Unaudited six months ended 31 August 2025 R’000 Audited year ended 28 February 2026 R’000 Assets Non-current assets Property, plant and equipment (refer note 4) 5 308 211 5 568 784 5 310 085 Intangible assets 238 971 250 344 244 656 Investment in joint venture 3 121 – – Other financial assets (refer note 8) 189 792 178 090 195 576 Deferred tax 283 391 284 412 327 206 Inventories 199 705 206 275 200 839 Total non-current assets 6 223 191 6 487 905 6 278 362 Current assets Inventories 1 634 964 1 407 342 1 603 460 Other financial assets (refer note 8) – 310 – Current tax receivable 13 509 4 810 15 785 Trade and other receivables (refer note 10) 1 213 201 1 670 385 1 464 712 Cash and cash equivalents 775 288 489 311 451 142 Total current assets 3 636 962 3 572 158 3 535 099 Disposal group assets held for sale (refer note 13.4) – 82 891 87 492 Total assets 9 860 153 10 142 954 9 900 953 Equity and liabilities Equity Stated capital 922 748 858 555 858 555 Treasury shares (refer note 5) (136 809) (129 903) (130 128) Net issued stated capital 785 939 728 652 728 427 Other reserves (71 949) (71 062) (84 143) Retained earnings 3 751 126 3 831 601 3 765 738 Attributable to equity holders of the parent 4 465 116 4 489 191 4 410 022 Non-controlling interests 82 091 43 356 63 953 Total equity 4 547 207 4 532 547 4 473 975 Liabilities Non-current liabilities Other financial liabilities (refer note 11) 46 659 72 932 59 534 Borrowings (refer note 9) 826 590 182 531 935 833 Other liability 13 092 21 031 27 056 Provisions 310 667 283 561 300 406 Deferred tax 302 003 378 515 354 658 Total non-current liabilities 1 499 011 938 570 1 677 487 Current liabilities Other financial liabilities (refer note 11) 32 682 37 019 40 861 Borrowings (refer note 9) 1 379 484 2 266 700 1 418 509 Current tax payable 48 427 26 483 29 612 Trade and other payables 1 773 766 2 021 086 1 997 073 Bank overdraft 579 576 309 469 240 796 Total current liabilities 3 813 935 4 660 757 3 726 851 Disposal group liabilities held for sale (refer note 13.4) – 11 080 22 640 Total liabilities 5 312 946 5 610 407 5 426 978 Total equity and liabilities 9 860 153 10 142 954 9 900 953 7 AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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Condensed Consolidated Statement of Cash Flows Unaudited six months ended 31 August 2026 R’000 Unaudited six months ended 31 August 2025 R’000 Audited year ended 28 February 2026 R’000 Cash flows from operating activities Cash generated from operations (refer note 16) 433 086 357 733 831 353 Finance income received 45 367 34 624 86 113 Dividends received 2 2 3 Finance costs paid (155 696) (137 933) (298 152) Tax paid (102 982) (119 517) (237 598) Net cash inflow from operating activities 219 777 134 909 381 719 Cash flows from investing activities Acquisition of property, plant and equipment (247 578) (219 974) (381 127) Proceeds on disposal of property, plant and equipment 47 064 15 154 116 996 Proceeds on disposal of businesses (refer note 13.1, 13.2 and 13.3) 158 000 – 16 652 Purchase of other financial assets (5 932) (36 466) (40 963) Repayments from other financial assets 10 711 25 896 34 137 Net cash outflow from investing activities (37 735) (215 390) (254 305) Cash flows from financing activities Repurchase of Afrimat shares (refer note 5) (111) (15 611) (15 837) Proceeds from equity raise 50 000 – – Proceeds from borrowings (refer note 9.2) 3 006 504 802 2 107 050 Repayment of borrowings (refer note 9.2) (186 550) (96 193) (1 777 148) Withdrawn funds in overdraft (refer note 9.2) 34 077 866 575 924 870 Repayment of bank overdraft (refer note 9.2) (53 684) (740 899) (840 814) Capital elements of lease payments (refer note 9.2) (5 806) (15 751) (26 926) Repayment of other financial liabilities (17 038) (436 912) (447 752) Dividends paid (refer note 15.2) (20 570) (29 189) (64 012) Net cash (outflow)/inflow from financing activities (196 676) 36 822 (140 569) Net decrease in cash, cash equivalents and bank overdrafts (14 634) (43 659) (13 155) Cash, cash equivalents and bank overdrafts at the beginning of the period 210 346 223 501 223 501 Cash, cash equivalents and bank overdrafts at the end of the period 195 712 179 842 210 346 8AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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Condensed Consolidated Statement of Changes in Equity Stated capital R’000 Treasury shares R’000 Other reserves R’000 Retained earnings R’000 Non- controlling interests R’000 Total equity R’000 Balance at 1 March 2025 857 851 (123 713) (77 000) 3 698 942 32 180 4 388 260 Total comprehensive income Profit for the period – – – 156 293 17 172 173 465 Other comprehensive loss for the period – – (1 780) – – (1 780) Net change in fair value of equity instruments at fair value through other comprehensive income – – 5 – – 5 Income tax effect – – (1) – – (1) Exchange differences on translation of foreign operations – – (1 784) – – (1 784) Total comprehensive income – – (1 780) 156 293 17 172 171 685 Transactions with owners of the parent Contributions and distributions Share-based payment expense for the period – – 7 449 – – 7 449 Deferred taxation on share-based payments – – (172) – – (172) Purchase of treasury shares (refer note 5) – (15 611) – – – (15 611) Settlement of employee Share Appreciation Rights exercised, Forfeitable Share Plan vested and reserve transfer, net of tax 704 9 421 441 (441) – 10 125 Dividends paid (refer note 15.2) – – – (23 193) (5 996) (29 189) Total contributions and distributions 704 (6 190) 7 718 (23 634) (5 996) (27 398) Total transactions with owners of the parent 704 (6 190) 7 718 (23 634) (5 996) (27 398) Balance at 31 August 2025 858 555 (129 903) (71 062) 3 831 601 43 356 4 532 547 Balance at 1 March 2025 857 851 (123 713) (77 000) 3 698 942 32 180 4 388 260 Total comprehensive income Profit for the year – – – 121 742 35 329 157 071 Other comprehensive loss for the year – – (4 013) – – (4 013) Net change in fair value of equity instruments at fair value through other comprehensive income – – 712 – – 712 Income tax effect – – (154) – – (154) Exchange differences on translation of foreign operations – – (4 571) – – (4 571) Total comprehensive income – – (4 013) 121 742 35 329 153 058 Transactions with owners of the parent Contributions and distributions Share-based payment expense for the year – – (3 750) – – (3 750) Deferred taxation on share-based payments – – (182) – – (182) Purchase of treasury shares (refer note 5) – (15 837) – – – (15 837) Settlement of employee Share Appreciation Rights exercised, Forfeitable Share Plan vested and reserve transfer, net of tax 704 9 422 802 (802) – 10 126 Dividends paid (refer note 15.2) – – – (54 144) (9 868) (64 012) Total contributions and distributions 704 (6 415) (3 130) (54 946) (9 868) (73 655) Non-controlling interest disposed of: – Afrimat Hemp Proprietary Limited (refer note 13.2) – – – – 6 312 6 312 Total changes in ownership interests – – – – 6 312 6 312 Total transactions with owners of the parent 704 (6 415) (3 130) (54 946) (3 556) (67 343) Balance at 28 February 2026 858 555 (130 128) (84 143) 3 765 738 63 953 4 473 975 9 AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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Stated capital R’000 Treasury shares R’000 Other reserves R’000 Retained earnings R’000 Non- controlling interests R’000 Total equity R’000 Balance at 1 March 2026 858 555 (130 128) (84 143) 3 765 738 63 953 4 473 975 Total comprehensive income Profit for the period – – – 4 031 18 588 22 619 Other comprehensive income for the period – – 55 – – 55 Net change in fair value of equity instruments at fair value through other comprehensive income – – (11) – – (11) Income tax effect – – 2 – – 2 Exchange differences on translation of foreign operations – – 64 – – 64 Total comprehensive income – – 55 4 031 18 588 22 674 Transactions with owners of the parent Contributions and distributions Share-based payment expense for the period – – 13 663 – – 13 663 Deferred taxation on share-based payments – – (47) – – (47) Purchase of treasury shares (refer note 5) – (111) – – – (111) Issue of stated capital 68 899 (18 899) – – – 50 000 Settlement of employee Share Appreciation Rights exercised, Forfeitable Share Plan vested and reserve transfer, net of tax (4 706) 12 329 (1 477) 1 477 – 7 623 Dividends paid (refer note 15.2) – – – (20 120) (450) (20 570) Total contributions and distributions 64 193 (6 681) 12 139 (18 643) (450) 50 558 Total transactions with owners of the parent 64 193 (6 681) 12 139 (18 643) (450) 50 558 Balance at 31 August 2026 922 748 (136 809) (71 949) 3 751 126 82 091 4 547 207 10AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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Notes 1. Basis of preparation The unaudited condensed consolidated interim financial results (‘financial statements’) for the six months ended 31 August 2026 (‘the period’) are prepared in accordance with the requirements of the JSE Limited (‘JSE’) Listings Requirements (‘the Listings Requirements’) for interim results, the requirements of the Companies Act, the framework concepts and the measurement and recognition requirements of IFRS® Accounting Standards and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and also IAS 34: Interim Financial Reporting. The accounting policies applied in the preparation of the financial statements are in terms of IFRS ® Accounting Standards and are consistent with those accounting policies applied in the preparation of the previous consolidated annual financial statements for the year ended 28 February 2026. These financial statements have not been audited or reported on by Afrimat’s auditors, PricewaterhouseCoopers Inc., and have been prepared under the supervision of the Chief Financial Officer (‘CFO’), PGS de Wit CA(SA). 2. Segment information The segments of the Group have been identified by business segment. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the executive directors. Aggregation of segments has been determined on the basis of product outputs with similar attributes; by considering the nature of products and services, production processes and the type or class of customer for the product and services. There are five main operational segments based on the market use of products. The principal services and products of each of these segments are as follows: Construction Materials: Comprises aggregates, concrete-based products, fly-ash and cement; Industrial Minerals: Comprises limestone, dolomite and industrial sand; Bulk Commodities: Comprises iron ore, manganese and anthracite; Future Materials and Metals: Comprises phosphate; and Services: Comprises external logistical and mining services. Centralised shared services costs comprise central head office functions, corporate costs, and other support services that are not directly attributable to the operating segments. These costs are not allocated to the operating segments, as they are managed on a consolidated basis. Split six months ended 31 August 2026 % Unaudited six months ended 31 August 2026 R’000 Split six months ended 31 August 2025 % Unaudited six months ended 31 August 2025 R’000 Split year ended 28 February 2026 % Audited year ended 28 February 2026 R’000 Revenue External revenue Construction Materials 55,3 2 815 935 52,7 2 809 991 54,9 5 496 937 – Aggregates 2 039 587 1 936 323 3 936 061 – Cement 776 348 873 668 1 560 876 Industrial Minerals 4,2 216 431 5,1 270 580 4,8 476 548 Bulk Commodities 34,6 1 765 135 34,2 1 824 824 32,7 3 268 166 – Iron Ore and Manganese* 1 222 118 1 327 630 2 434 499 – Anthracite 543 017 497 194 833 667 Future Materials and Metals 1,2 60 608 1,0 53 676 1,6 164 264 Services* 4,7 241 214 7,0 370 988 6,0 603 135 5 099 323 5 330 059 10 009 050 Inter-segmental revenue Construction Materials 10,9 59 268 5,6 52 852 9,6 103 494 – Aggregates 15 642 42 986 53 513 – Cement 43 626 9 866 49 981 Industrial Minerals 1,4 7 803 0,4 3 314 1,0 10 748 Bulk Commodities 0,1 450 0,3 2 956 0,3 3 684 – Iron Ore and Manganese 182 – – – Anthracite 268 2 956 3 684 Future Materials and Metals – – – – – – Services 87,6 477 882 93,7 876 168 89,1 961 773 545 403 935 290 1 079 699 11 AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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Split six months ended 31 August 2026 % Unaudited six months ended 31 August 2026 R’000 Split six months ended 31 August 2025 % Unaudited six months ended 31 August 2025 R’000 Split year ended 28 February 2026 % Audited year ended 28 February 2026 R’000 2. Segment information (continued) Total revenue Construction Materials 50,9 2 875 203 45,7 2 862 843 50,5 5 600 431 – Aggregates 2 055 229 1 979 309 3 989 574 – Cement 819 974 883 534 1 610 857 Industrial Minerals 4,0 224 234 4,4 273 894 4,4 487 296 Bulk Commodities 31,3 1 765 585 29,1 1 827 780 29,5 3 271 850 – Iron Ore and Manganese* 1 222 300 1 327 630 2 434 499 – Anthracite 543 285 500 150 837 351 Future Materials and Metals 1,1 60 608 0,9 53 676 1,5 164 264 Services* 12,7 719 096 19,9 1 247 156 14,1 1 564 908 5 644 726 6 265 349 11 088 749 Operating profit Construction Materials 93,9 421 744 29,4 194 062 52,3 509 777 – Aggregates 567 836 321 178 694 845 – Cement (146 092) (127 116) (185 068) Industrial Minerals 4,7 21 310 3,4 22 483 4,2 40 576 Bulk Commodities 1,9 8 558 67,5 445 138 45,6 444 513 – Iron Ore and Manganese 11 258 403 546 605 061 – Anthracite (2 700) 41 592 (160 548) Future Materials and Metals (4,4) (19 741) (3,7) (24 826) (3,1) (30 748) Services 3,9 17 280 3,4 22 502 1,0 9 832 449 151 659 359 973 950 Centralised shared services costs (193 977) (279 531) (450 258) 255 174 379 828 523 692 Operating profit margin on external revenue (%) Construction Materials 15,0 6,9 9,3 – Aggregates 27,8 16,6 17,7 – Cement (18,8) (14,5) (11,9) Industrial Minerals 9,8 8,3 8,5 Bulk Commodities 0,5 24,4 13,6 – Iron Ore and Manganese* 0,9 30,4 24,9 – Anthracite (0,5) 8,4 (19,3) Future Materials and Metals (32,6) (46,3) (18,7) Overall contribution 5,0 7,1 5,2 * The comparative external revenue for the six months ended 31 August 2025 has been reclassified from the Bulk Commodities segment (Iron Ore) to the Services segment. Revenue of R335,7 million relates to transport services rendered by Afrimat Logistics to customers of the Iron Ore operations and billed through Iron Ore. This revenue is now presented in the Services segment, which renders the service, in line with the information reviewed by the chief operating decision-maker. The presentation is consistent with that applied in the audited annual financial statements for the year ended 28 February 2026. The reclassification has no impact on Group revenue. 12AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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Notes (continued) Unaudited six months ended 31 August 2026 R’000 Unaudited six months ended 31 August 2025 R’000 Audited year ended 28 February 2026 R’000 2. Segment information (continued) Assets Construction Materials 3 504 445 3 423 875 3 510 863 – Aggregates 1 985 192 2 098 028 1 941 574 – Cement 1 519 253 1 325 847 1 569 289 Industrial Minerals 455 211 448 036 440 796 Bulk Commodities 3 389 588 3 867 301 3 620 726 – Iron Ore and Manganese 1 928 864 2 179 047 2 038 236 – Anthracite 1 460 724 1 688 254 1 582 490 Future Materials and Metals 763 098 836 673 794 781 Services 153 204 225 815 161 349 Unallocated 1 594 607 1 341 254 1 372 438 9 860 153 10 142 954 9 900 953 Liabilities Construction Materials 1 151 255 1 304 247 1 258 933 – Aggregates 727 039 1 004 284 726 426 – Cement 424 216 299 963 532 507 Industrial Minerals 101 936 84 382 109 001 Bulk Commodities 476 090 537 698 534 714 – Iron Ore and Manganese 320 927 292 576 263 977 – Anthracite 155 163 245 122 270 737 Future Materials and Metals 10 303 20 657 15 017 Services 190 512 274 668 233 448 Unallocated 3 382 850 3 388 755 3 275 865 5 312 946 5 610 407 5 426 978 Depreciation and amortisation Construction Materials 99 290 90 465 198 640 – Aggregates 69 861 66 999 135 872 – Cement 29 429 23 466 62 768 Industrial Minerals 16 640 17 282 32 568 Bulk Commodities 158 973 202 747 326 825 – Iron Ore and Manganese 82 480 87 357 170 111 – Anthracite 76 493 115 390 156 714 Future Materials and Metals 20 092 17 052 37 435 Services 36 177 40 983 82 348 331 172 368 529 677 816 Capital expenditure (excluding acquisitions through business combinations) Construction Materials 114 458 75 622 266 451 – Aggregates 65 540 55 387 164 442 – Cement 48 918 20 235 102 009 Industrial Minerals 863 8 695 17 782 Bulk Commodities 192 186 164 410 146 503 – Iron Ore and Manganese 162 431 28 494 9 505 – Anthracite 29 755 135 916 136 998 Future Materials and Metals 1 438 7 259 21 761 Services 20 223 25 422 26 928 Unallocated 6 668 11 616 26 248 335 836 293 024 505 673 13 AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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Unaudited six months ended 31 August 2026 R’000 Unaudited six months ended 31 August 2025 R’000 Audited year ended 28 February 2026 R’000 3. Impairments Impairment of property, plant and equipment – – 118 207 – – 118 207 No impairments were recorded in the current period. During the prior year, an impairment indicator was identified for the mining asset of Nkomati Anthracite Proprietary Limited (‘Nkomati’). The impairment loss related to the underground shaft that was placed on care and maintenance until such time that the market conditions and volumes recover, which led to the recognition of an impairment loss on the mining asset. An impairment of R118,2 million was recognised in profit or loss. Unaudited six months ended 31 August 2026 R’000 Unaudited six months ended 31 August 2025 R’000 Audited year ended 28 February 2026 R’000 4. Property, plant and equipment Land and buildings 242 688 249 440 249 787 Leasehold property 9 776 11 789 10 483 Plant and machinery 2 232 881 2 290 395 2 262 854 Motor vehicles 614 125 596 311 617 915 Office and computer equipment 30 840 34 335 36 076 Dismantling costs 21 443 23 921 22 167 Mining assets 1 707 701 1 849 200 1 623 768 Stripping assets 411 596 458 938 443 948 Right-of-use assets 37 161 54 455 43 087 5 308 211 5 568 784 5 310 085 Depreciation 325 485 362 842 666 443 Amortisation 5 687 5 687 11 373 331 172 368 529 677 816 Number of shares Unaudited six months ended 31 August 2026 Unaudited six months ended 31 August 2025 Audited year ended 28 February 2026 5. Treasury shares Opening balance 8 196 641 8 068 334 8 068 334 Utilised for Forfeitable Share Plan shares vested (244 118) (187 193) (187 193) Purchased during the period/year 4 086 310 000 315 500 Shares issued for Forfeitable Share Plan grant 685 000 – – Closing balance 8 641 609 8 191 141 8 196 641 14AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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Notes (continued) Unaudited six months ended 31 August 2026 R’000 Unaudited six months ended 31 August 2025 R’000 Audited year ended 28 February 2026 R’000 5. Treasury shares (continued) Opening balance (130 128) (123 713) (123 713) Utilised for Forfeitable Share Plan shares vested 12 329 9 421 9 422 Purchased during the period/year (111) (15 611) (15 837) Shares issued for Forfeitable Share Plan grant (18 899) – – Closing balance (136 809) (129 903) (130 128) The Afrimat BEE Trust (indirectly through Afrimat Empowerment Investments Proprietary Limited) holds, on an unencumbered basis, 6 892 390 (August 2025: 6 882 804) shares amounting to R71,6 million (August 2025: R71,3 million) representing 4,2% (August 2025: 4,3%) of the issued share capital of the Company. Afrimat Management Services Proprietary Limited (‘AMS’) shareholding is as follows: 1 546 396 (August 2025: 1 305 247) shares, as nominee for the absolute benefit of the participants of the Company’s Forfeitable Share Plan amounting to R55,0 million (August 2025: R58,5 million); and 202 823 (August 2025: 3 090) shares are held in AMS for the purposes of the Company’s Share Appreciation Rights scheme amounting to R10,2 million (August 2025: R0,2 million). Unaudited six months ended 31 August 2026 Unaudited six months ended 31 August 2025 Audited year ended 28 February 2026 6. Earnings per share Number of shares in issue Total shares in issue 162 687 195 160 297 456 160 297 456 Treasury shares (refer note 5) (8 641 609) (8 191 141) (8 196 641) Net shares in issue 154 045 586 152 106 315 152 100 815 Weighted average number of net shares in issue 153 074 563 152 178 714 152 141 598 Diluted weighted average number of shares 154 625 170 153 495 957 153 457 699 Profit attributable to ordinary shareholders (R’000) 4 031 156 293 121 742 Earnings per ordinary share (cents) 2,6 102,7 80,0 Diluted earnings per ordinary share (cents) 2,6 101,8 79,3 15 AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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Unaudited six months ended 31 August 2026 Unaudited six months ended 31 August 2025 Audited year ended 28 February 2026 7. Financial position ratios 7.1 Net asset value (‘NAV’) per share Number of shares in issue Total shares in issue 162 687 195 160 297 456 160 297 456 Treasury shares (refer note 5) (8 641 609) (8 191 141) (8 196 641) Net shares in issue 154 045 586 152 106 315 152 100 815 Shareholders’ funds attributable to owners of the parent (R’000) 4 465 116 4 489 191 4 410 022 Total NAV per share (cents) 2 899 2 951 2 899 7.2 Tangible net asset value (‘TNAV’) per share Shareholders’ funds attributable to owners of the parent (R’000) 4 465 116 4 489 191 4 410 022 Intangible assets and goodwill (R’000) (238 971) (250 344) (244 656) Total TNAV (R’000) 4 226 145 4 238 847 4 165 366 Total TNAV per share (cents) 2 743 2 787 2 739 7.3 Net debt:equity Total borrowings and other financial liabilities (R’000) 2 285 415 2 559 182 2 454 737 Overdraft less cash and cash equivalents/(surplus cash) (R’000) (195 712) (179 842) (210 346) Net debt (R’000) 2 089 703 2 379 340 2 244 391 Net debt:equity ratio (%) 46,0 52,5 50,2 Unaudited six months ended 31 August 2026 R’000 Unaudited six months ended 31 August 2025 R’000 Audited year ended 28 February 2026 R’000 8. Other financial assets Financial assets at fair value through other comprehensive income 24 880 22 050 24 441 Financial assets at fair value through profit or loss 119 664 110 516 117 629 Financial assets at amortised cost 45 248 45 834 53 506 189 792 178 400 195 576 Non-current other financial assets 189 792 178 090 195 576 Current other financial assets – 310 – 189 792 178 400 195 576 Refer note 14 for fair value disclosure of other financial assets. 16AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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Notes (continued) Unaudited six months ended 31 August 2026 R’000 Unaudited six months ended 31 August 2025 R’000 Audited year ended 28 February 2026 R’000 9. Borrowings 9.1 Capital net movement Opening balance 2 354 342 1 859 267 1 859 267 New borrowings 97 667 1 442 807 3 150 664 Finance cost 2 764 3 364 6 479 Repayments (248 804) (856 207) (2 651 367) Disposal of businesses (refer note 13.1 and 13.3) (10 014) – (582) Borrowings held for sale (refer note 13.4) – – (10 119) Borrowings previously held for sale (refer note 13.4) 10 119 – – Closing balance 2 206 074 2 449 231 2 354 342 Analysis as per Statement of Financial Position: Borrowings non-current 826 590 182 531 935 833 Borrowings current 1 379 484 2 266 700 1 418 509 2 206 074 2 449 231 2 354 342 9.2 Analysis as per Statement of Cash Flows Total opening balance borrowings 2 354 342 1 859 267 1 859 267 Borrowings raised 3 006 504 802 2 106 417 Withdrawn funds in overdraft 34 077 866 575 924 870 Borrowings raised – non-cash 60 584 71 430 119 377 Instalment sale agreements 60 315 56 982 106 738 Lease liabilities 269 14 448 12 639 Repayments (246 040) (852 843) (2 644 888) Bank overdraft (53 684) (740 899) (840 814) Instalment sale agreements and medium-term loan (186 550) (96 193) (1 777 148) Lease liabilities (5 806) (15 751) (26 926) Disposal of businesses (refer note 13.1 and 13.3) (10 014) – (582) Borrowings held for sale (refer note 13.4) – – (10 119) Borrowings previously held for sale (refer note 13.4) 10 119 – – Total closing balance borrowings 2 206 074 2 449 231 2 354 342 During the prior year, the Group activated the Accordion on the Revolving Credit Facility (‘RCF’) and on 10 April 2025 increased the borrowing amount from R1,1 billion to R1,6 billion with Standard Bank of South Africa (‘SBSA’). The facility bore interest at the three-month Jibar overnight deposit rate plus 1,6%, payable quarterly in arrears. The facility was repayable in quarterly instalments. On 27 February 2026, the Group repaid the existing RCF of R1,6 billion and entered into two new finance agreements. The first agreement is a five-year Fixed Term Amortising Loan amounting to R1,0 billion. This facility is repayable in quarterly instalments of R50,0 million each. The second agreement is a three-year RCF . This facility is also repayable in quarterly instalments. Both facilities bear interest at the three-month Jibar overnight deposit rate plus a margin of 1,6%. All facilities were fully utilised as at 31 August 2026. On 20 May 2025, the Group entered into a RCF with Investec Bank (Mauritius) Limited amounting to US$5,0 million. The utilised portion of the facility was US$442 000 as at 31 August 2026. The facility bears interest at the daily Secured Overnight Financing Rate (‘SOFR’), compounded monthly, plus a margin of 2,5%. 17 AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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Unaudited six months ended 31 August 2026 R’000 Unaudited six months ended 31 August 2025 R’000 Audited year ended 28 February 2026 R’000 10. Trade and other receivables Trade receivables – net 1 036 907 1 434 155 1 179 463 Trade receivables at fair value through profit or loss 86 133 109 828 111 570 Provision for final price adjustment (12 229) 4 083 670 Other 102 390 122 319 173 009 Total trade and other receivables 1 213 201 1 670 385 1 464 712 The provision for final price adjustment relates to the customer of Afrimat Iron Ore Proprietary Limited, Kumba International Trading S.A.R.L. In terms of the agreement, commodity prices used in the invoice issued at revenue recognition date (i.e. the designated point of delivery (FOB)) are based on the average daily prices with reference to the IODEX for the prior month. A final price adjustment is made three months following revenue recognition based on the average market price of the third- month period. The amount of revenue recognised is based on the best estimate of the amount expected to be received and therefore a monthly provision for the final price adjustment is recognised, based on the relevant forward-looking iron ore prices. Extract of forward-looking variables applicable on 31 August 2026: August 2026 Three-month/ spot July 2026 Two-month/ spot June 2026 One-month/ spot Average actual iron ore price invoiced at FOB (US$) 86 78 79 Iron ore forward price at FOB (US$) 79 68 83 Sales volume (tonnes) 134 960 109 666 79 616 Refer note 14 for further details on fair value methodology. Unaudited six months ended 31 August 2026 R’000 Unaudited six months ended 31 August 2025 R’000 Audited year ended 28 February 2026 R’000 11. Other financial liabilities Non-current liabilities Financial liabilities at fair value through profit or loss 46 659 72 932 59 534 Current liabilities Financial liabilities at fair value through profit or loss 26 273 28 454 27 341 Net capital proceeds owing to Afrimat BEE Trust participants 6 409 6 562 6 619 Other financial liabilities – 2 003 6 901 Closing balance 79 341 109 951 100 395 Financial liabilities at fair value through profit or loss relate to a deferred consideration for the acquisition of an iron ore mining resource purchased during F2025. It represents the present value of future payments determined in accordance with a formula linked to the volume of iron ore extracted, Platts index and the USD/ZAR exchange rate. 18AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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Notes (continued) Unaudited six months ended 31 August 2026 R’000 Unaudited six months ended 31 August 2025 R’000 Audited year ended 28 February 2026 R’000 12. Authorised capital expenditure Contracted, but not provided for Property, plant and equipment 874 38 896 58 450 Not yet contracted for Property, plant and equipment 290 869 116 415 406 850 Total authorised capital expenditure 291 743 155 311 465 300 Authorised capital expenditure is to be funded from surplus cash and bank financing. 13. Business combinations Disposal of businesses 13.1 Divested operations As part of the acquisition of the Lafarge business combination during F2025, the Group was required by the Competition Commission to dispose of certain operations in order for the transaction to proceed. The condition was a prerequisite for regulatory approval and stipulates that the specified operations must be sold within a 12-month period. During the prior year, the Group entered into an agreement with SATURC Proprietary Limited to dispose of the below operations in the respective statutory entities (collectively ‘divested operations’): Kliprug Aggregates, Palmiet Aggregates, Paarl Readymix, Saldanha Aggregates & Readymix (previously reported in Afrimat CM Western Cape Proprietary Limited); Moregrove Aggregates & Readymix (previously reported in Afrimat CM Eastern Cape Proprietary Limited); and Nelspruit Aggregates & Readymix (previously reported in Afrimat Mpumalanga Proprietary Limited). The above-mentioned operations were disposed of for a total purchase consideration of R158,0 million. The Group subsequently lost effective control over these operations on 1 June 2026. The operations were previously included in the Construction Materials segment. Details of the disposal are as follows: Total 2027 R’000 Carrying amount/fair value of net assets over which control was lost Property, plant and equipment 49 598 Inventories 36 773 Accruals (3 523) Provisions (10 315) Borrowings (10 014) Net assets disposed of 62 519 Profit on disposal of businesses Consideration 158 000 Net assets disposed of (62 519) Profit on disposal 95 481 Analysis as per Statement of Cash Flows: Total cash flow on disposal of businesses 158 000 Cash inflow 158 000 19 AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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13. Business combinations (continued) 13.2 Afrimat Hemp Proprietary Limited During the prior year, the Group entered into an agreement to dispose of its total shareholding in Afrimat Hemp Proprietary Limited (‘Afrimat Hemp’) for a total purchase consideration of R2,0 million. The Group subsequently lost effective control over Afrimat Hemp on 18 September 2025. The company was previously included in the Future Materials and Metals segment. Details of the disposal are as follows: Total 2026 R’000 Carrying amount/fair value of net assets over which control was lost Property, plant and equipment 4 692 Inventories 1 859 Cash and cash equivalents 281 Non-controlling interest 6 312 Trade payables (83) Other financial liabilities (2 010) Net assets disposed of 11 051 Loss on disposal of subsidiary Consideration 2 000 Net assets disposed of (11 051) Loss on disposal (9 051) Analysis as per Statement of Cash Flows: Total cash flow on disposal of subsidiary 2 000 Less: Cash and cash equivalents disposed of (281) Cash inflow 1 719 13.3 Afrigen Proprietary Limited During the prior year, the Group entered into an agreement to dispose of 50% of its total shareholding in Afrigen Proprietary Limited (‘Afrigen’) for a total purchase consideration of R20,0 million. The Group subsequently lost effective control over Afrigen on 1 September 2025. The company was previously included in the Construction Materials segment. Details of the disposal are as follows: Total 2026 R’000 Carrying amount/fair value of net assets over which control was lost Property, plant and equipment 425 Inventories 385 Current tax receivable 720 Trade receivables 7 056 Cash and cash equivalents 5 067 Trade payables (12 670) Borrowings (582) Net assets disposed of 401 Profit on disposal of subsidiary Consideration 20 000 Net assets disposed of (401) Profit on disposal 19 599 Analysis as per Statement of Cash Flows: Total cash flow on disposal of subsidiary 20 000 Less: Cash and cash equivalents disposed of (5 067) Cash inflow 14 933 20AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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Notes (continued) 13. Business combinations (continued) 13.4 Assets and liabilities of disposal group classified as held for sale The following assets and liabilities were reclassified as held for sale: Unaudited six months ended 31 August 2026 R’000 Unaudited six months ended 31 August 2025 R’000 Audited year ended 28 February 2026 R’000 Assets classified as held for sale Property, plant and equipment – 50 234 53 742 Inventories – 32 657 33 750 Total assets of disposal group held for sale – 82 891 87 492 Liabilities directly associated with assets classified as held for sale Accruals – – (2 314) Provisions – (11 080) (10 207) Borrowings – – (10 119) Total liabilities of disposal group held for sale – (11 080) (22 640) – 71 811 64 852 As part of the acquisition of the Lafarge business combination during F2025, the Group was required by the Competition Commission to dispose of certain operations in order for the transaction to proceed. The condition was a prerequisite for regulatory approval and stipulates that the specified operations must be sold within a 12-month period. In line with this requirement, the Group committed to a plan to sell the relevant operations and actively commenced the sale process. A buyer was identified, and negotiations proceeded. As such, the criteria in IFRS 5: Non-current Assets Held for Sale and Discontinued Operations were met. The disposal group was included in the Construction Materials segment. Accordingly, the assets and liabilities of these operations were classified as a disposal group held for sale. The sale was completed during the current period, refer note 13.1. 14. Fair value estimation Fair value determination The following table presents the financial assets and liabilities that are measured at fair value: Level 1 R’000 Level 2 R’000 Level 3 R’000 At 31 August 2026 Assets At fair value through other comprehensive income Equity securities* 11 390 – – Environmental funds** – 13 490 – At fair value through profit or loss Unit trusts** – 119 664 – Trade receivables*** – 73 904 – Total assets 11 390 207 058 – Liabilities Other liability*# (13 092) – – Other financial liabilities**** – – (72 932) Total liabilities (13 092) – (72 932) 21 AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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Level 1 R’000 Level 2 R’000 Level 3 R’000 14. Fair value estimation (continued) At 31 August 2025 Assets At fair value through other comprehensive income Equity securities* 10 133 – – Environmental funds** – 11 917 – At fair value through profit or loss Unit trusts** – 110 516 – Trade receivables*** – 113 911 – Total assets 10 133 236 344 – Liabilities Other liability*# (21 031) – – Other financial liabilities**** – – (101 386) Total liabilities (21 031) – (101 386) At 28 February 2026 Assets At fair value through other comprehensive income Equity securities* 11 402 – – Environmental funds** – 13 039 – At fair value through profit or loss Unit trusts** – 117 629 – Trade receivables*** – 112 240 – Total assets 11 402 242 908 – Liabilities Other liability*# (27 056) – – Other financial liabilities**** – – (86 875) Total liabilities (27 056) – (86 875) # Other liability relates to the cash-settled Forfeitable Share Plan of the Group. * The fair value was based on quoted market prices at the end of the reporting period. ** The fair value was derived using the adjusted net asset method. The adjusted net asset method determines the fair value of the investment by reference to the fair value of the individual assets and liabilities recognised in the unit trust’s/environmental fund’s Statement of Financial Position. *** Trade receivables/payables measured at fair value relates to Afrimat Iron Ore Proprietary Limited. The fair value was determined using the three-month forward-looking iron ore prices and foreign exchange rates as at the end of the reporting period (refer note 10). **** The fair value of the other financial liability (deferred payment liability) was determined using a Level 3 discounted cash flow model, incorporating unobservable inputs including forecast Platts index pricing and USD/ZAR exchange rates over the remaining term of the liability. The model discounts expected future cash outflows using a market-related discount rate reflective of the Group’s credit risk. 22AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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Notes (continued) Unaudited six months ended 31 August 2026 R’000 Unaudited six months ended 31 August 2025 R’000 Audited year ended 28 February 2026 R’000 15. Dividends 15.1 Afrimat Limited dividends paid/declared in respect of the current year profits Interim dividend declared/paid – 32 060 33 982 Final dividend declared – – 24 041 – 32 060 58 023 15.2 Dividends cash flow Current year interim dividend paid – – 33 982 Previous year final dividend paid 20 839 24 043 24 041 Dividends received on treasury shares (719) (850) (3 879) 20 120 23 193 54 144 Dividends paid by subsidiaries to non-controlling shareholders 450 5 996 9 868 20 570 29 189 64 012 Unaudited six months ended 31 August 2026 R’000 Unaudited six months ended 31 August 2025 R’000 Audited year ended 28 February 2026 R’000 16. Cash generated from operations Profit before tax 137 707 266 011 292 318 Adjustments for: Depreciation and amortisation 331 172 368 529 677 816 Other non-cash items (6 929) 151 961 303 427 Changes in working capital: Increase in inventories (33 390) (311 341) (514 606) (Increase)/decrease in trade and other receivables 226 512 (501 094) (302 478) Increase/(decrease) in trade and other payables (221 986) 383 667 374 876 433 086 357 733 831 353 17. Events after reporting date No events have occurred between the reporting date and the date of approval of these interim financial statements that require adjustment or disclosure. 18. Going concern The directors have assessed the Group’s ability to continue as a going concern, as the current liabilities exceed current assets by R177,0 million. The directors believe that the Group has adequate cash flow resources to meet its short-term obligations. Included in current liabilities is the RCF of R600,0 million, which is repayable and redrawn on a quarterly basis in terms of the facility agreement. Although the facility extends over a three-year term, it is classified as current due to the contractual repayment cycle. Excluding the RCF from current liabilities, the Group’s current assets exceed its current liabilities, supporting the appropriateness of the going-concern basis adopted in the preparation of the consolidated interim financial statements. Additionally, the Group has access to undrawn financing facilities of R1,8 billion. Based on these factors, the directors are satisfied that the Group is in a sound financial position and that it has access to sufficient borrowing facilities to meet its foreseeable cash requirements. 23 AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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19. Contingencies Guarantees Guarantees to the value of R126,8 million (August 2025: R141,9 million) were supplied by SBSA to various parties, including the Department of Mineral and Petroleum Resources (‘DMPR’) and Eskom, during the period under review. Guarantees to the value of R190,7 million (August 2025: R298,4 million) were supplied by First National Bank Limited (‘FNB’) to various parties, including the DMPR and Eskom, during the period under review. The decrease in guarantees is primarily attributable to a guarantee of R125,0 million that was issued in respect of the acquisition of a mining resource, pending the transfer in terms of section 11. During the current period, the section 11 transfer was completed. Guarantees to the value of R0,9 million (August 2025: R0,9 million) by ABSA Bank Limited (‘ABSA’), R492,8 million (August 2025: R480,4 million) by Centriq Insurance Innovation (‘Centriq’) and RNil (August 2025: R2,7 million) by SGI Guarantee Acceptances Proprietary Limited were supplied to various parties, including the DMPR, Eskom and Chevron South Africa Proprietary Limited. The value of Centriq guarantees has increased due to the proportionate increase in quantum calculations affected by National Environmental Management Act (‘NEMA’) requirements. The majority of these guarantees are in respect of environmental rehabilitation and will only be payable in the event of default by the Group. Other A contingent liability exists due to the uncertain timing of cash flows with regard to future local economic development (‘LED’) commitments made to the DMPR in respect of companies with mining rights. These commitments are dependent on the realisation of the future agreed-upon LED projects. Future commitments amount to R29,0 million (August 2025: R33,2 million). An accrual has been raised in respect of commitments made up to the end of the reporting period. The Company received notice on 31 March 2017 from the Competition Commission that it had referred a complaint to the Competition Tribunal, alleging that the Company, through its wholly owned subsidiary, Clinker Supplies Proprietary Limited (‘Clinker’), had engaged in an abuse of dominance by allegedly charging excessive prices. After taking legal advice and considering the complaint, the Company is of the opinion that there is no merit to the complaint and will therefore vigorously defend itself before the Competition Tribunal. The Competition Commission is seeking an administrative penalty equal to 10% of affected turnover for F2016 which equates to R16,3 million. The Tribunal has indicated that the next available date for the hearing will be in the first half of 2027. During February 2023, Labour Court proceedings took place in terms of which the Association of Mineworkers and Construction Union (‘AMCU’) claims unfair dismissal of a number of Nkomati employees. The Labour Court found that the dismissals were unfair and ordered the reinstatement of the dismissed employees, as well as compensation salary deductions that were held to have been unlawful. Nkomati applied to the Labour Court for leave to appeal the judgement, but this application was dismissed by the Labour Court on 5 August 2025. Nkomati then petitioned the Labour Appeal Court for leave to appeal against the Labour Court’s decision, but the Labour Appeal Court refused Nkomati’s petition for leave to appeal on 20 August 2026. Nkomati has now approached the Constitutional Court for leave to appeal against the Labour Court judgement. The appeal proceedings have suspended the original order. The Group's estimate of the pay-out to AMCU is R5,5 million, which is based on monthly earnings of R20 000 for five months for 55 employees. 24AFRIMAT Unaudited condensed consolidated interim financial results for the six months ended 31 August 2026
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www.afrimat.co.za Directors PGS de Wit (CFO) L Dotwana* P Joubert*# R Kisten*# NAS Kruger*# (Lead Independent Director) FM Louw*# (Chairman) MG Odendaal C Ramukhubathi S Tuku*# JF van der Merwe*# JHP van der Merwe*# AJ van Heerden (CEO) * Non-executive director # Independent Executive director Registered office Tyger Valley Office Park No. 2 Corner Willie van Schoor Avenue and Old Oak Road Tyger Valley, 7530 (PO Box 5278, Tyger Valley, 7536) Sponsor Valeo Capital Proprietary Limited Unit G02, Skyfall Building, De Beers Avenue, Paardevlei, 7130 Auditor PricewaterhouseCoopers Inc. 1st Floor, Trumali Forum Building, Trumali Park Corner Trumali Street and R44 Stellenbosch, 7600 (PO Box 57, Stellenbosch, 7599) Transfer secretaries Computershare Investor Services Proprietary Limited (Registration number 2004/003647/07) Rosebank Towers, 15 Biermann Avenue Rosebank, 2196 (Private Bag X9000, Saxonwold, 2132) Company secretary C Burger Tyger Valley Office Park No. 2 Corner Willie van Schoor Avenue and Old Oak Road Tyger Valley, 7530 (PO Box 5278, Tyger Valley, 7536) Announcement date 22 October 2026