ARM’s Motsepe emphasises importance of honesty, integrity, governance, meritocracy

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.

The founder and chairperson of diversified mining company African Rainbow Minerals (ARM) on Friday, September emphasised the importance of companies behaving in a manner that reflects integrity, honesty, governance and respect for legality and due process.

"It's important for us to create value for shareholders. It's equally, if not more important, that we do so in a legal manner, in an ethical manner, and that's what has always been the culture of ARM," Dr Patrice Motsepe pointed out during the Johannesburg Stock Exchange-listed company's presentation of 19% higher headline earnings of R3.2-billion. (Also watch attached Creamer Media video.)

Net cash improved 54% to R10.2 billion, and a final dividend of R7 per share was declared.

"We've always had a commitment to all stakeholders. We're a company that, being South African, has a duty to reflect meritocracy, the best of our people from all backgrounds and cultures – black people, white people, coloured people, and Indian people.

"Everybody must feel that this is their company, not in terms of what we say, but in terms of our track record and how our employees and management feel that we behave, and also a duty to the country to provide jobs and uplift," said Motsepe, ahead of ARM CEO Phillip Tobias stating that he is "very pleased" that the ARM board has approved a R15.2-billion capital outlay on what he described as the host of South Africa's second-largest platinum group metals (PGM) resource, the Bokoni PGM project, which has a 6.3-year payback.

Restart of the Nkomati nickel mine has also won board thumbs up. "The restart is a low-risk, immediately executable opportunity that leverages existing infrastructure and re-establishes South Africa's only primary nickel producer," Tobias reported.

Existing infrastructure is supporting execution involving capital of approximately R1.9-billion over two years.

Regarding safety, Tobias expressed pride at achieving a fatality free year and "we remain committed to achieving zero harm".

ARM finance director Tsundzukani Mhlanga pointed to the significant increase in cash generation to R4.2-billion: "Last year, same time, we generated cash of R45-million versus R4.2 billion – quite a marked increase."

ARM Platinum headline earnings increased by more than 200% as did those of Two Rivers platinum group metals (PGM) mine and Modikwa PGM mine.

Nkomati mine, which sold 28 111 t of chrome concentrate, reported headline earnings of R39-million.