JOHANNESBURG (miningweekly.com) – JSE-listed African Rainbow Minerals (ARM) on Wednesday informed shareholders that its headline earnings for the six months ended December 31, at R1.05-billion, were likely to be at least 45% lower than the R2.34-billion reported in the first half of the prior financial year.
Similarly, headline earnings a share of 488c would be at least 45% lower than the 1 084c reported in the six months ended December 2013.
The decrease in headline earnings was largely attributable to the fall in US dollar export commodity prices in comparison with those achieved in the previous period, especially for iron-ore.
ARM’s basic earnings for the six months to December 31, were, meanwhile, expected to be negatively impacted by an unrealised mark-to-market loss on its Harmony Gold investment, owing to the fall in Harmony’s share price below the previously reported level of R25.90 a share.
Based on Harmony’s current share price of about R18.44 a share, the basic earnings for the period to December 31 would be reduced by an income statement charge of about R385-million after tax. This calculation would, however, only be finalised based on Harmony’s share price on December 31.
Accordingly, ARM announced that its basic earnings for the six months to end December 31, at R943-million, were likely to be at least 55% lower than the R1.71-billion reported in the first half of the prior financial year.
Basic earnings a share of 437c were also likely to be at least 55% lower than the 794c reported in the prior corresponding period.
ARM’s interim results would be released in March.