PDSNET Market Snapshot

Afrimat (AFT) is an open-pit mining company that supplies composites, construction materials and other commodities to a range of industries in Southern Africa. Until the end of 2015, Afrimat was one of the best performing shares on the JSE. The share broke up out of a 3-year sideways pattern which included the COVID-19 crisis.

The company benefited from rising iron ore prices due to supply constraints in Brazil and rising demand from China. On 17th August 2020, the company announced that it had bought a mining exploration company (Coza Mining) involved in looking for iron and manganese in the Northern Cape for R300m.

On 20th March 2022 the company announced that its listing had been moved from Basic Materials Construction and Materials to the General Mining sector which better reflected its business.  In its results for the year to 28th February 2026 the company reported revenue up 20,3% and headline earnings per share (HEPS) up 32,5%. The company said, "Afrimat remains profitable, with operating profit which increased by 9.6% to R523,7 million (FY2025: R477,7 million).

The increase in the cost of sales is primarily due to higher-than-normal repairs and maintenance in the Cement business to improve the performance of the plant". In a pre-close update on the first quarter the company reported, "...reduced Rand-denominated iron ore export revenues at mine gate, driven by a stronger Rand, lower international iron ore prices and significantly higher shipping rates".

Like all commodity companies, Afrimat's shares have declined with the drop in commodity prices, but this company is well diversified making it less risky. The share has broken down through support at around 3400c and looks to fall further. We suggest waiting for a clear break up through the long-term downward trendline before investigating further. 

Gold Fields (GFI) is a relatively high-cost international gold mining house with a single mine in South Africa - South Deep. South Deep was bought by Gold Fields in 2006 and it has struggled to make the mine profitable, pouring in a total of R32bn (R22bn purchase price plus R10bn in development costs) into it over the past 14 years.

Brett Kebble once described South Deep as, "The world's most expensive long drop...". South Deep is 3 kilometres deep and a very difficult mine with many technical complications, but it is the second largest unmined gold resource in the world - hence Gold Field's persistence. Gold Fields is working with an independent power producer (IPP) to build a 50MW project in SA.

The company has spent a total of $502m over the past two years to ensure that Damang and Gruyere (international operations) would produce 2 million ounces a year for the next ten years. South Deep now has R800m less in costs and R400m less in capital expenditure. The company is focusing on bringing the new Salares Norte gold mine in Chile into production.

On 11th July 2022 the company said that it would list on the Toronto Stock Exchange and that it would adopt a dividend policy of paying between 30% and 45% of profits out.  Its protracted investment in South Deep is definitely beginning to pay off with output expected to rise by about 25% over the next 4 years. On 12th August 2024 the company announced that it had acquired the remaining 50% of Osisko Mining for $1,57bn (R29bn).

In its results for the six months to 30th June 2026 the company reported attributable profit up 81% and headline earnings per share (HEPS) of 208c (US) compared with 115c in the previous period. The company said, "During the six months ended 30 June 2026, 61% of adjusted free cash flow(1) was paid to shareholders and the Company stepped up its share buy-back programme and completed share repurchases of US$300 million between March and July 2026". Technically, the share is volatile and subject to shifts in the international price of gold, but it has been in a strong upward trend over the past five years.

It remains a volatile commodity play. It was added to the Winning Shares List (WSL) on 4th February 2025 at a price of 32915c. It has subsequently risen to 76609 (25-8-26) after some profit taking.

Northam (NPH) is a fully empowered platinum mining company which operates in the Bushveld complex. In the current difficult legislative environment where the 3rd mining charter is regarded as unfriendly from an investment point of view, Northam is probably the only mining house which is buying up new properties.

It has come to an arrangement with Anglo American to exploit a property adjacent to its Zondereinde mine (the deepest platinum mine in South Africa). It has also bought Eland Platinum from Glencore for R175m which it intends to re-start at a cost of R2bn. On 29th October 2019, the company announced the acquisition of Maroelabult for R20m which is west of the Eland mine with an analogous ore body.

This accelerated the bringing to production of Eland and required very little capital. With the Eland mine, Northam got a concentrator plant which can process up to 250 000 tons a month. In return, Glencore got the right to market all of Northam's chrome. Zondereinde is a deep-level mine which has all the problems associated with mining at depth, while Booysendal is a shallow mechanised mine which is much easier to manage.

Both mines are profitable, but the empowerment structure results in Northam always reporting a loss because of the preference dividend that must be paid. Once Booysendal is complete the company should generate strong cash flows. The appointment of Mcebisi Jonas (former South African Minister of Finance) and Jean Nel (previously CEO of Aquarius Platinum) as non-executive directors has significantly added to the strength of the board.

The company has the stated intention of doubling its workforce as it strives to become a major PGM supplier in the world. With plans to increase production of PGM's over the next few years to 1 million ounces, this is probably one of the better options in the industry. In its results for the six months to 31st December 2025 the company reported sales revenue up 60% and headline earnings per share (HEPS) up over 1000% at 1524c.

The company paid a dividend of R2,8bn or 700c per share. At the end of the period the company had R2,8bn in debt with R9,3bn in cash and cash-equivalents. In a production update for the year to 30th June 2026 the company reported record chrome concentrate production of 1,69m ounces and 4E metals sold of 1,087m ounces.

The company said, "Strong production growth was recorded at Eland, with marginal improvements at Zondereinde ahead of the commissioning of 3 shaft, and at Booysendal on the back of further productivity gains". In a trading statement for the year to 30th June 2026 the company estimated that HEPS would increase to between 3 006.1c and 3 082.3c compared with 380.8c in the previous period.

The share has been in a downward trend since January 2026 but is now turning up. It remains a volatile commodity share. On 25th August 2026 the company announced that it had received an unsolicited approach from a major producer in the South African PGM industry. Valterra and Sibanye are possible suitors. 

Master Drilling (MDI) is a South African company that specialises in drilling exploration and other holes for the mining industry, and which has diversified into drilling for hydro-electrical projects and construction. The company has moved away from the South African mining industry and now provides services in North and South America, Europe and elsewhere.

It has developed a new horizontal drilling technology, or tunnel boring machine, which could revolutionise the mining industry world-wide. This technology enables the drilling of horizontal tunnels or tunnels which are inclined up or down by 12 degrees. It is much quicker and cheaper than the traditional blast and clear methods currently in use.

At the moment it requires three operators, but the company is working on a completely automated remote-controlled version. In its results for the six months to 30th June 2026 the company reported revenue up 17% and headline earnings per share (HEPS) up 4,1% (rands). The company said, "Net asset value per share in USD up 11.5% from 148 cents to 165 cents - Revenue pipeline of USD 1 062.3 million - Committed order book of USD 400.9 million".

The share trades on a price:earnings (P:E) multiple of 4,7 (25-08-2026) - which looks like good value. We regard the company's horizontal drilling technology as a potentially disruptive technology in the mining industry which extends the life of some mines and makes others viable again.

So, while this is a risky share, because it is linked to the commodities markets, it has the potential to offer strong growth because of the new technologies which it has that have the potential to revolutionise the mining industry. In our view, this is an interesting company with the potential to perform well as its new horizontal boring machine gains traction.

Grindrod (GND) is an international freight and financial services company which operates in twenty-eight countries. In mid-June 2018, Grindrod unbundled and separately listed its loss-making shipping division (Grinship - GSH). This accounts for the "cliff" in the share price at that time.

The company is now focused on its two remaining divisions - freight and financial services. Grindrod owns the North-South railway line from Beitbridge to Victoria Falls as well as port terminals at Richards Bay, Natal, Walvis Bay, Namibia, and Maputo. The company is positive on the growth of its financial services division which is about 30% of the business.

The company is focused on getting its retail banking division involved with small and medium sized businesses. The conflict in northern Mozambique is a problem for this share. The flooding in Natal caused five of their sites to be suspended for several weeks. On 6th November 2024 the company reported that it had closed down all its rail, port and terminal operations in Mozambique because of the closure of the Lebombo border post due to violence on the Mozambique side.

A few days later on 8th November 2024, the company reported that the restrictions at Lebombo had been lifted - but the event showed Grindrod's vulnerability and exposure to unrest in Mozambique. In its results for the six months to 30th June 2026 the company reported port volumes up 29% and earnings before interest taxation depreciation and amortisation (EBITDA) up 52%.

Revenue was up 19% and headline earnings per share (HEPS) was unchanged. The company said, "The prior period earnings included one-off net profits of R902.8 million relating to foreign currency translation reserves released on both the buy-up of the remaining 35% interest in the Matola terminal joint venture and the exit of the marine fuel trading joint venture".

Technically, the share has been rising since February 2022. It completed a reverse "head-and-shoulders" formation in August 2025 - which is very bullish. It has taken a knock from the war in Iran, but should recover as that situation becomes clearer. We expect the share to continue to perform well despite being volatile.