AECI is an explosives and mining chemicals group based in South Africa. This year, AECI referred to 2024 as “the year of transition,” focusing a portion of the year on shifting to a new business model. This transition had expected effects on stock market performance, with the current AECI share price of R91.78.
Take a look at these essential data to help you decide whether an investment in AECI is worthwhile.
In this article, we discuss the AECI share price data, the company’s overall financial health, the share price outlook, and its business nature.
AECI Share Price in Rand Data (JSE:AFE) Today
AECI is listed on the Johannesburg Stock Exchange (JSE) as AFE (JSE:AFE). It has a decent performance on the JSE, with an average daily trading volume of 249,772.
As of writing, the current market capitalization is ZAR 9,653,821,692, with a P/E ratio of 11.52.
The earnings per share for the trailing twelve months (EPS-TTM) are 794.18, with a dividend yield of 2.39%.
Refer to the table below for AECI share price data
| Market capitalization | 9,653,821,692 |
| Price range | R 91.78 – R 93.00 |
| EPS-TTM | 794.18 |
| P/E Ratio | 11.52 |
| Dividend Yield | 2.39% |
| Issued Shares | 105,517,780 |
| Authorized Shares | 180,000,000 |
| Daily Trading Volume | 249,772 |
AECI Financial Health
This year was challenging for AECI, not because production was lax but because of an aggressive rollout of new operating models.
The Group reported a decline in the domestic market, a 4% decline in revenue, and an 18% drop in EBITDA. This decrease is primarily attributed to lower ammonia prices, reduced sales volume, and a bigger supply.
While revenue declined, AECI reported a positive free cash flow of R82 million. Additionally, CEO Holger Riemensperger noted that the transition period has “strengthened our management structure, improved efficiencies, and positions us well to achieve our strategic ambitions.”
Since 2022, AECI has been clear about its strategic goals for the next eight years. The Group targets to double profitability by 2026 (based on Fiscal Year 2022 results) and attain a global market position of #3 in Mining by 2030.
According to its interim FY 2024 report, the company is on track for its goals, even with the decline in revenue and EBITDA. As of writing, the AECI has reported that an R400 million EBITDA has been achieved and recorded an R800 million growth in projects.
Meanwhile, business lines are now transitioning to a digitalized platform and a new operating model, as well as selling secondary investments.
In November 2024, AECI Limited announced the sale of its wholly-owned subsidiary, Much Asphalt Proprietary Limited. It also concluded its investment in the AECI Animal Health business.
The Group stated that this transaction was part of “AECI’s strategy to streamline operations and enhance efficiency.” Much Asphalt was sold to Old Mutual Private Equity and Sphere Investments for an estimated R1.1 billion.
AECI Share Price Forecast and Outlook
Looking forward, AECI aims to focus on core businesses in Mining and chemicals and position itself to reach targets by 2026.
Regarding mining production, the Group saw signs of recovery in ammonia prices in the second half of 2024 and expects further improvement in the upcoming year.
Additionally, new Transnet rails were mentioned to have improved storage-to-rail ammonia supply. The continued operations of the new rails continue to boost operational efficiency.
New business lines will also expand globally, with new contracts in Asia Pacific. According to the AECI, new business in this region has boosted bulk explosives volume by 24% and electronics by 44%. Meanwhile, expanding operations in Central Africa will continue to drive growth.
The Group expects that dividend yield will increase by 2%- 5%, EBITDA will increase by more than 250%, and EBITDA margin will be 13% to 15%.
What is AECI Limited?
AECI is a diversified group with international businesses in Chile, Australia, Peru, Brazil, Argentina, the Democratic Republic of Congo, Cuba, Indonesia, and Central and South Africa.
The Group has a diverse commodity portfolio, with interests in Platinum Group Metals (PGMs), Gold, Coal, Copper, Diamonds, Iron Ore, and Uranium. Moreover, it provides services for water treatment, plant health, food and beverage, infrastructure, and general industrial sectors.
The AECI group of companies includes African Explosives Limited, Improchem Limited, Chemical Initiatives Limited, DetNet Limited, Acacia, and Sans Fibres Limited.
Additionally, the Group employs over 7,000 employees and has ranked the 8th best employer in South Africa.
Holger Riemensperger has held the dual positions of Group Chief Executive Officer and Executive Director of AECI since May 2023. He also served as the acting CEO of AECI Mining after Mark Kathan’s resignation in October 2023.
According to the AECI website, Riemensperger has extensive experience in the Mining, chemicals, agricultural, and manufacturing industries.
How to Invest in AECI Limited?
- Select “AFE” as the purchase you want to make. AECI Limited is listed as AFE on the Johannesburg Stock Exchange (JSE:AFE).
- Find a broker that offers access to the JSE. Selecting the right broker is crucial when you want to start investing. Find one that is compatible with your investment style.
- Review the broker’s trading conditions. Research and consult other investors to avoid brokers that may exploit your capital. If possible, join a sincere community of traders such as CommuniTrade to find the right brokers and help you make favorable decisions.
- Open an investment account. Register and verify your account. This gives you a convenient way to view and buy stocks via your broker’s website.
- Identify the right order. Stocks come in order types. Your account will allow you to view which orders your broker offers.
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