African Rainbow Minerals reports 19% rise in annual profit

African Rainbow Minerals (ARM) reported a 19% increase in annual headline earnings for the financial year ending June 30, reaching R3.2 billion. The growth was primarily driven by a recovery in the platinum group metals (PGM) sector, where higher dollar-denominated basket prices helped offset losses and declines in other divisions.

While the PGM segment saw significant improvements at operations such as Two Rivers and Modikwa, the company’s coal division recorded a loss of $26.6 million due to declining coal prices. Additionally, the iron ore division saw a 41% decline in headline earnings, impacted by lower realized prices and reduced sales volumes at Beeshoek.

In response to the performance, ARM increased its final dividend to R7 per share. The company is also moving forward with a $948 million investment to modernize its Bokoni platinum operations and is resuming nickel mining at Nkomati, supported by an agreement with Boliden. ARM also benefited from its investment in Harmony Gold, which saw doubled dividend receipts due to higher gold prices.