African Rainbow Minerals posted a 19% increase in annual profit, as strong platinum group metal prices offset lower income from its coal, iron ore, and manganese divisions.
The African Rainbow Minerals (ARM) logo is visible at the company’s offices in Sandton, Johannesburg. Image credit: Reuters/Siphiwe Sibeko
The diversified South African miner’s headline earnings came in at R3.2bn in the year ended 30 June, compared with R2.6bn previously.
ARM said it will pay a final dividend of R7 per share, up from R6 per share last year.
The company’s PGM operations swung back to profit with R1.3bn in headline earnings against last year’s R1.2bn loss, after metal prices rose by more than 50% compared to the previous year.
No score on iron ore
Its ferrous division, which consists of iron ore and manganese, reported a 42% decline in headline earnings to R2bn.
Income from the iron ore division was impacted by a 75% collapse in sales volumes at the Beeshoek Mine, which was mothballed last November.
Headline earnings at ARM’s other iron ore mine, Khumani, also decreased significantly due to a stronger rand, despite higher export volumes. Manganese income was also hurt by lower mineral prices and the stronger rand.
The coal unit posted a R428m loss, compared with last year’s R47m profit, mainly due to lower prices.
ARM said in July it was undertaking a phased R15.2bn upgrade of its Bokoni platinum operations, as well as resuming nickel mining at Nkomati.
The Bokoni project is expected to reach its peak in 2032, producing between 350,000 and 400,000 ounces of PGMs annually, doubling ARM’s current output.
ARM is restarting open-pit mining operations and nickel concentrate production at Nkomati, which was idled in 2021. Nkomati will produce 56,065 tonnes annually after agreeing to an off-take deal with Sweden’s Boliden.
