African Rainbow Minerals, founded and backed by billionaire Patrice Motsepe, on Friday posted a 19% increase in annual profit.<\/p>\n\n\n\n
The result came as strong platinum group metal prices offset the impact of lower income from its coal, iron ore and manganese divisions.<\/p>\n\n\n\n
The diversified\u00a0South\u00a0African miner’s headline earnings came in at R3.201 billion in the year ended June 30, compared with R2.695 billion previously.<\/p>\n\n\n\n
ARM said it will pay a final dividend of 700 cents per share, up from 600 cents per share last year.<\/p>\n\n\n\n
The company’s PGM operations swung back to profit with R1.345 billion in headline earnings against last year’s R1.288 billion loss, after metal prices rose by more than 50% compared to the previous year.<\/p>\n\n\n\n
Its ferrous division, which consists of iron ore and manganese, reported a 42% decline in headline earnings to R2.028 billion.<\/p>\n\n\n\n
Income from the iron ore division was impacted by a 75% collapse in sales volumes at the Beeshoek Mine, which was mothballed last November.<\/p>\n\n\n\n
Headline earnings at ARM’s other iron ore mine, Khumani, also decreased significantly due to a stronger rand, despite higher export volumes. <\/p>\n\n\n\n
Manganese income was also hurt by lower mineral prices and the stronger rand.<\/p>\n\n\n\n
The coal unit made a R428 million loss, against last year’s R47 million profit, mainly due to lower prices.<\/p>\n\n\n\n
ARM said in July it was undertaking a phased R15.2 billion upgrade of its Bokoni platinum operations, as well as a resumption of nickel mining at Nkomati.<\/p>\n\n\n\n
The Bokoni project is expected to reach its peak in 2032, producing between 350,000 and 400,000 ounces of PGMs annually, doubling ARM’s current output.<\/p>\n\n\n\n
ARM is restarting open-pit mining operations and nickel concentrate production at Nkomati, which was idled in 2021. <\/p>\n\n\n\n
Nkomati will produce 56,065 tons annually after agreeing \u200can off-take deal with Sweden’s Boliden.<\/p>\n","protected":false},"excerpt":{"rendered":"
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