Make Kitco Your Homepage

African Rainbow Minerals posts record earnings, doubles dividend

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - African Rainbow Minerals (ARM), a leading South African diversified mining and minerals company, reported today that despite Covid-19-related global economic challenges and uncertainty, the company achieved record headline earnings of R5 039 million (or R25.87 per share) for the half-year period ended 31 December 2020 (1H F2021).

The company said that 134% increase in headline earnings compared to the corresponding six months ended 31 December 2019 (1H F2020) was underpinned by higher US dollar iron ore and platinum group metals prices, coupled with increased export iron ore and manganese ore sales volumes.

ARM Platinum segment’s headline earnings increased by R1 532 million to R2 021 million (1H F2020: R489 million) underpinned by higher US dollar prices for platinum group metals.

The Two Rivers and Modikwa mines benefited from a 35% and 162% increase in average realised US dollar palladium and rhodium prices, respectively. Rhodium comprised 45% and 47% of Modikwa and Two Rivers basket prices respectively.

ARM Ferrous segment’s headline earnings were 60% higher at R2 955 million (1H F2020: R1 848 million) driven by a 99% increase in headline earnings in the iron ore division. This was partially offset by a 69% decrease in headline earnings in the manganese division.

For 1H F2021, the company’s board approved and declared an interim dividend of 1 000 cents per share (gross) (1H F2020: 500 cents per share). The amount to be paid is approximately R2 244 million.

African Rainbow Minerals is a leading South African diversified mining and minerals company with long-life, low unit cost operations. ARM mines and beneficiates iron ore, manganese ore, chrome ore, platinum group metals, nickel and coal. ARM also produces manganese and chrome alloys, and has an investment in gold through its shareholding in Harmony.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.