JOHANNESBURG (miningweekly.com) – JSE-listed Africa Rainbow Minerals (ARM) expects its headline earnings for the year ending June 30 to fall by at least R1.8-billion year-on-year, owing to the decline in US dollar commodity prices compared with prices in the previous comparable period, particularly for iron-ore.
Headline earnings a share were also anticipated to be lower, dropping by at least 45% year-on-year.
However, the lower US dollar prices were partially offset by a weaker rand:dollar exchange rate during the period.
ARM’s basic earnings were also expected to be negatively impacted by an unrealised mark-to-market loss on its Harmony Gold investment, owing to a decline in the Harmony share price of R21.61 a share, as well as an impairment of an operating furnace at Machadodorp Works.
The miner also noted that its basic earnings for the year could be at least 55%, or R1.8-billion, lower than the R3.2-billion reported in 2014.
The company’s results would be released in September.