African Rainbow Minerals, founded and backed by billionaire Patrice Motsepe, on Friday posted a 19% increase in annual profit.
The result came as strong platinum group metal prices offset the impact of lower income from its coal, iron ore and manganese divisions.
The diversified South African miner’s headline earnings came in at R3.201 billion in the year ended June 30, compared with R2.695 billion previously.
ARM said it will pay a final dividend of 700 cents per share, up from 600 cents per share last year.
The company’s PGM operations swung back to profit with R1.345 billion in headline earnings against last year’s R1.288 billion loss, after metal prices rose by more than 50% compared to the previous year.
Its ferrous division, which consists of iron ore and manganese, reported a 42% decline in headline earnings to R2.028 billion.
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 made a R428 million loss, against last year’s R47 million profit, mainly due to lower prices.
ARM said in July it was undertaking a phased R15.2 billion upgrade of its Bokoni platinum operations, as well as a resumption of 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 tons annually after agreeing an off-take deal with Sweden’s Boliden.
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