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.