being too conser vative with cash can be detrimental to a company, and by putting the cash to work, the company will be attempting to address the imbalance without making the company financially vulnerable.
Van Heerden noted changes they have detected in the government’s much-publicised infrastructure drive. “The t rend i s t hat i nfrastr uct ure projects are being focused on the rural areas, so projects are smaller. These smaller projects are being carried out by smaller companies, with a strong focus on service delivery.”
On the company’s African plans, Afrimat has now exited Namibia and has instead decided to enter Mozambique. “We have partnered with a local company up in Pemba on a small commercial quarry, which is already operational. This will be linked to the development of the liquefied natural gas terminal that is planned there,” says Van Heerden. The company has also been awarded a mining permit for an aggregates quarry in the Nelspruit area. So despite the prevailing gloom, the future looks rosy for the company.
Andries van Heerden