Raubex delivered a mixed performance in FY25. While it produced double-digit topline growth for the fourth year in a row, margins weakened as a result of setbacks at Bauba. The chrome operations were negatively impacted by a sharp reduction in the chrome price and a weaker dollar.
Despite significant losses at Bauba, the remaining operations reported a stellar performance, delivering double-digit revenue growth and improved margins. Standout performances came from Construction Materials, which increased volumes to levels not seen since FY18, and Roads and Earthworks, which capitalised on its strong order book and improved project execution. Other positives were the continued strong performance on the Namdeb project and increased activity in the private renewable energy space.
The only blemish for the year was the operating loss incurred at Bauba, but the outlook for the chrome miner is much more positive for FY26. Raubex has improved yields to target levels during 1H26 and the newly commissioned PGM plant is expected to make a solid contribution in FY26, with the majority of that revenue expected to go to the bottom line.
Besides the expected recovery at Bauba, Raubex continues to reduce costs and push margins. Margin expansion is expected from Roads and Earthworks and any increases in Construction Materials volumes will provide a kicker to profitability. While we are wary of the chrome price falling to $200/t again or lower, the positive impact of PGMs and the continued cost rationalisation at Bauba give us confidence in a recovery in FY26.