An increase in the average dollar prices of most of the commodities JSE-listed African Rainbow Minerals (ARM) produces contributed to an estimated 272% to 288% year-on-year increase in its headline earnings per share for the six months ended December 31.
This translates into headline earnings per share of between 867c and 903c for the period, based on the weighted average number of shares in issue of 189-million. Headline earnings reported for the comparative period of 2015 were R507-million, or 233c a share.
Most operations, except the Goedgevonden coal mine and the Nkomati nickel mine, also achieved below-inflation unit cost increases.
For this reason, the company noted that its basic earnings would be negatively impacted. “This is mainly attributable to an impairment of the Nkomati assets of R711-million after tax, an attributable impairment of the Modikwa platinum mine assets of R734-million after tax and noncontrolling interest and an attributable impairment loss on investment of R422-million within the Assmang joint venture related to the sale of Dwarsrivier,” the company noted.
However, ARM still expects to narrow its basic loss per share by between 69% and 75% to between 115c and 140c.
The basic loss reported for the comparable period was R996-million, while the basic loss per share was 458c.
ARM will release its interim financial results on March 16.