ARM chairperson Patrice Motsepe
Photo by: Duane Daws
JOHANNESBURG (miningweekly.com) – The headline earnings of the black-controlled JSE-listed diversified mining company African Rainbow Minerals (ARM) increased 66% to R2.34-billion in the six months to December 31.
Headline earnings a share of the company headed by executive chairperson Patrice Motsepe were 1 084c, up on the 654c a share in the second half of 2012.
Basic earnings of R1.71-billion were hit by exceptional items of R627-million, which included a R510-million loss on ARM’s investment in Harmony Gold, which reported an operating loss of R125-million for the six months to December 31.
ARM Ferrous the company’s iron-ore and manganese arm - held in Assmang, which is controlled jointly by ARM and Assore - contributed R2.15-billion to headline earnings, which was 108% higher on the back of higher dollar iron-ore prices and the weaker rand.
ARM Platinum's contribution to headline earnings increased from R299-million to R363-million, despite lower dollar prices for platinum-group metals (PGMs) and nickel.
Increased sales volumes were achieved in iron-ore, PGMs, nickel, manganese alloys, export coal from Goedgevonden mine, chrome concentrate and copper.
Lower unit production costs were achieved at the Nkomati nickel mine but costs rose at the Dwarsrivier and Two Rivers mines albeit at a rate lower than inflation.
Copper concentrate specification and late vertical shaft commissioning issues have been resolved at the Lubambe copper mine.
Earthworks have begun at the Sakura manganese alloy-smelting project.