African Rainbow Minerals posts record earnings, doubles dividend
(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.