Rating Release

Agusto & Co. hereby affirms the “A-” rating assigned to African Non-Ferrous Industries Limited

The rating expires on 30 June 2024.

Agusto & Co. hereby affirms the “A-” rating assigned to African Non-Ferrous Industries Limited (“African Non-Ferrous Industries”, “ANFIL” or “the Company”). The rating reflects the relative stability in the Company’s overall financial performance despite the challenging operating environment. This is evidenced by its good and sustainable profitability and cash flow positions, which are supported in part by the steady growth in production and sales volume. The rating is further supported by the Company’s off-take agreement with offshore customers for its high-quality lead which also commands a premium in international markets in addition to ANFIL’s moderate leverage position. The rating also considers the experienced management team as well as the substantial financial and technical support that the Company receives from African Industries Group (AIG) – a leading player in the metals manufacturing industry with a long track record of business operations and a well-diversified portfolio in Nigeria. However, the rating is constrained by the Company’s working capital which requires improvement, a concentrated ownership profile and a weak governance structure which requires more strengthening to align with global standards. The rating is further mitigated by ANFIL’s susceptibility to fluctuations in the global commodities market and the ongoing inflationary pressures in Nigeria, which have a negative effect on margins.

African Non-Ferrous Industries Limited is a leading producer and exporter of high-purity refined lead in Nigeria. ANFIL has a fully integrated Lead manufacturing plant with 30,000 metric tonnes per annum capacity located in Ogijo, Ogun State. ANFIL generates revenue predominantly from the sale of refined lead to various commodity trading and metals manufacturing companies in North America, the Middle East, Asia and Europe.