https://www.miningweekly.com
Business|Energy|Exploration|Financial|Gold|Iron Ore|Mining|Platinum|Technology|Waste|Waste|Operations
Business|Energy|Exploration|Financial|Gold|Iron Ore|Mining|Platinum|Technology|Waste|Waste|Operations
business|energy|exploration|financial|gold|iron-ore|mining|platinum|technology|waste-company|waste|operations

ARM earnings soar 136%, dividend up double plus

Creamer Media picture of the executive chairperson of African Rainbow Minerals.

ARM executive chairperson Dr Patrice Motsepe

Photo by Creamer Media

6th September 2021

By: Martin Creamer

Creamer Media Editor

     

Font size: - +

JOHANNESBURG (miningweekly.com) – The headline earnings of diversified mining company African Rainbow Minerals (ARM) soared 136% to a record R13-billion in the 12 months to June 30.

The JSE-listed company, headed by executive chairperson Dr Patrice Motsepe, declared a final dividend of R20 a share, totalling R4 489-million. This took the total to R30 a share for the 2021 financial year, which is two-and-a-half times the R12 dividend paid in the company’s 2020 financial year.

ARM Platinum headline earnings quadrupled to R4 666-million from R1 142-million in the 2020 financial year, underpinned by higher prices for platinum group metals (PGMs), particularly rhodium.

ARM Ferrous headline earnings were 77% higher at R7 927-million (F2020: R4 479-million) driven by higher iron-ore prices and increased iron-ore and manganese ore sales volumes.

Segmental earnings before interest, taxes, depreciation and amortisation (Ebitda) increased by 121% to R24 321-million.

Basic earnings of R12 626-million included attributable impairments of the Assmang equity investment in Sakura Ferroalloys of R169-million, with no tax effect; fixed after-tax assets of Cato Ridge Works of R185-million; exploration assets, that were aimed at increasing Beeshoek Mine life-of-mine, of R26-million, with no tax effect; and Assmang equity investment in Cato Ridge Alloys of R48-million, with no tax effect.

Higher segmental capital expenditure of R4 105-million included R426-million of capitalised waste stripping at the iron-ore operations.

Cash generated from operations increased by R3 936-million to R7 802-million on mainly higher trade and other receivables.

Dividends received were R289-million from the Modikwa platinum business, R1 431-million from Two Rivers platinum, R4-billion from Assmang, and R82-million from Harmony Gold.

The iron-ore division benefited from a 5% increase in sales volumes and a 79% rise in the average realised dollar price for iron-ore.

Despite a 22% increase in manganese ore sales volumes, the manganese ore operations reported lower headline earnings mainly owing to the reduction in average realised US dollar prices for manganese ore as increased global supply put pressure on prices.

The Machadodorp Works headline loss was R107-million as research into developing energy-efficient smelting technology progressed.

Edited by Creamer Media Reporter

Comments

Showroom

WearCheck
WearCheck

Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...

VISIT SHOWROOM 
Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 24 May 2024
Magazine round up | 24 May 2024
24th May 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.19 0.225s - 104pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: