The African Rainbow Minerals (ARM) Board of Directors (the Board) announces a 15% increase in headline earnings for the six months ended 31 December 2017 to ZAR1 945 million.
This increase was mainly as a result of improved headline earnings from the Manganese Division, ARM Coal, Modikwa Mine and ARM Copper.
As part of ARM’s commitment to shareholder returns, ARM declared a maiden interim dividend of 250 cents per share.
ARM Ferrous headline earnings from continuing operations of ZAR1 765 million were 26% higher, driven mainly by a 131% increase in headline earnings from the Manganese Division.
Significant improvement in the Manganese Division’s earnings was mainly due to increased manganese ore and alloy sales volumes, proportionately more high-grade manganese ore being sold (which resulted in higher average realised manganese ore prices) as well as a 69% increase in manganese alloy prices.
ARM Ferrous headline earnings, including discontinued operations of ZAR1 779 million in 1H F2017 included a non-recurring amount of ZAR378 million relating to the sale of ARM’s effective 50% stake in the Dwarsrivier Mine.
ARM Platinum headline earnings increased by 26% to ZAR226 million as Modikwa Mine improved from a headline loss of zaR54 million in 1H F2017 to headline earnings of zaR36 million.
Two Rivers Mine headline earnings were 16% lower at ZAR173 million mainly as a result of a decrease in PGM volumes due to a reduction in grades at the mine.
Nkomati Mine reported reduced headline earnings as a result of lower sales volumes due
to shipment delays. Chrome concentrate sales volumes at Nkomati Mine increased by 105%, however, the average US Dollar price realised for chrome concentrate was 62% lower.
ARM Coal headline earnings were R160 million.
Goedgevonden (GGV) Mine contributed headline earnings of R35 million, while the PCB operations contributed headline earnings of ZAR125 million.
ARM Copper, which is disclosed as a discontinued operation in the period under review, recorded a headline loss of ZAR6 million for the period.