JSE-listed African Rainbow Minerals (ARM) expects to report a 34% to 44% year-on-year increase in its headline earnings for the six months ended December 31, mainly as a result of higher earnings from its manganese and coal operations.
It states in a trading statement that headline earnings for the six-month period are likely to be between R4.95-billion and R5.32-billion, while headline earnings a share will be between R25.29 and R27.17.
Basic earnings for the period are expected to increase by between 8% and 16% to between R4.20-billion and R4.52-billion, while basic earnings a share will be between R21.47 and R23.06.
Basic earnings were impacted on by a number of impairments, including a R659-million impairment of property, plant and equipment at the Beeshoek mine; a R28-million impairment of property, plant and equipment at the Cato Ridge Works; and a R149-million impairment of the investment in Sakura Ferroalloys.
ARM will release its interim results on March 6.