- The South African steel industry is facing its greatest challenge since the events of the financial crisis of 2008/09, as international steel-to-raw material price spreads remain under pressure, and countries rush to protect their steel industries against unfair trade and policy practices
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- Commencement of the Longs Business wind-down implementation plan (initially scheduled to start by the end January 2025) has been delayed by approximately one month to enable:
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- Fulfilment of the higher-than-anticipated outstanding order book (prioritising automotive and other customers)
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- continuing discussions with the South African Government on the future of the Longs Business, with an announcement expected in the second half of February 2025
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- Extended operations have been enabled through funding support of R380 million from the IDC in the form of a shareholder loan.
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- H2 2024 crude steel production levels up 12% due to improved asset utilisation in the Flats Business
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- Sales volumes down 6% to 2,3 million tonnes (crude steel production down 6% to 2,6 million tonnes)
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- Realised and steel prices are down 4% (down 3% in US Dollar terms)
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- Raw material basket (RMB) flat in Rand terms (international RMB down 13% in Rand terms)
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- Value Plan added R910 million (2023: R2 093 million)
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- Fixed costs up 2% to R6 783 million (2023: R6 619 million), in support of additional maintenance and environment cost
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- Operational EBITDA loss - before the Longs Business wind down charge, severance packages charge and the write-down of inventory – of R1 816 million (2023: R56 million profit), includes R670 million of losses relating to the Q2 2024 Blast Furnace instability and R1 514 million of inventory disposal losses in support of improved liquidity
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- Operational EBITDA loss (before wind down and impairment charges) for the Longs Business amounted to R1,1 billion (2023: R0,6 billion)
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- Longs Business wind down charge, severance packages charge, write down of inventory and impairment charges amount to R1 813 million (2023: R2 115 million of impairment charges)
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- Headline loss of R5 102 million (2023: R1 890 million)
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- Net borrowings before the capitalisation of multi-year accrued interest and fees payable (R1,355 million) to the ArcelorMittal group, were flat for the last three quarters at R3 756 million (2023: R3 215 million); R5 111 million after accruals capitalisation
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- Continued support from the ArcelorMittal group with shareholder loan (included in net borrowings) increased to R5,055 million (2023: R3 700 million), and now fully sub-ordinated (2023: R2 700 million sub-ordinated)
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- As a non-adjusting subsequent event, the outstanding R950 million at year-end of the R1 000 million secured short-term loan received from the IDC in June 2024, was restructured with the final settlement extended from 1 June 2025 to 1 September 2026. This excludes the R380 million IDC shareholder loan to enable the extended operations of the Long Business for approximately one additional month
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- The Company continues to advance the bankability of its high-payback investment portfolio, which includes addressing its balance sheet resilience through a potential recapitalization
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| Short-Form Announcement |
| This short-form announcement is the responsibility of the board of directors of ArcelorMittal South Africa and is a summarised version of the Group’s full announcement and as such, it does not contain complete details about the Group’s results. This short-form announcement is itself not reviewed but extracted from the reviewed condensed consolidated financial statements which were reviewed by Ernst & Young Inc. who issued an unmodified review conclusion on the reviewed consolidated financial statements for the year ended 31 December 2024. |
| There review conclusion report can be obtained from the Company’s registered office and on the Group’s website at https://southafrica.arcelormittal.com/InvestorRelations/AnnualResults.aspx. Any investment decisions by investors and or shareholders should be made after taking into consideration the full announcement. The full results announcement is available for viewing at https://senspdf.jse.co.za/documents/2025/JSE/ISSE/ACL/AMSA-FYE24.pdf and on the Group’s website at https://southafrica.arcelormittal.com/InvestorRelations/AnnualResults.aspx. The full announcement is available for inspection, at no charge, at the registered office (ArcelorMittal South Africa Limited, Room N3-7, Main Building, Delfos Boulevard, Vanderbijlpark) and the offices of the sponsor (Absa Bank Limited (acting through its Corporate and Investment Banking Division), 15 Alice Lane, Sandton), from 09:00 to 16:00 on business days. |
| Copies of a full announcement can be requested from the registered office by contacting (016) 889 2352. The short-form announcement has not been audited or reviewed by the Company’s auditors. |
| For the full document click the link below: |
| ArcelorMittal South Africa Limited |
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