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ARM declares R6 dividend per share

5 Sep 2014

African Rainbow Minerals (ARM) paid an increased annual dividend after its platinum division performed strongly and the group's results were underpinned by a sound performance at its ferrous division.

ARM says that strong performances from its platinum and ferrous metals operations as turnover for these two divisions rose sharply. Image: Mining Global

The company reported basic earnings of R3.3bn against R1.6bn ilst year. It said its earnings were hit by exceptional items of R819m‚ with R510m of that coming from a mark-to-market loss on its investment in Harmony Gold (HAR).

ARM valued its holding in Harmony at R1.98bn compared with R2.27bn a year earlier because of a fall in the average share price of the gold producer for the year from R35.75 to R31.15.

The company reported a dividend of R6.00 compared with R5.10 a year earlier.

ARM reported a 10% increase in headline earnings to R4.1bn‚ driven by strong performances from its platinum division‚ which raised its headline earnings by 68% to R883m‚ and a 17% increase in headline earnings at its ferrous division - the largest profit centre for the company.

ARM Ferrous reported headline earnings of R3.7bn‚ pushed upwards by higher dollar prices for its lumpy iron ore and manganese ore.

"These higher prices were achieved despite difficult conditions in the global iron ore and manganese ore markets in the second half of the financial year. The rand‚ which weakened 17% against the dollar contributed significantly to ARM Ferrous's profitability‚" the company said.

The copper and coal businesses had a tough year. The coal division reported a headline loss of R120m compared with a profit of R148m last year. The copper division's loss deepened to R309m from R135m previously.

ARM's headline earnings per share for the year ended June were 1‚900c up from 1‚735c last year

Source: I-Net Bridge

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