ARM headline earnings up 19%, dividend declared

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 headline earnings of diversified mining company African Rainbow Minerals (ARM) increased by 19% to R3 201-million in the financial year ended June 30 on mainly higher dollar platinum group metals (PGM) basket prices.

Revenue increased by 25% to R16 323-million and the dividend from Harmony Gold was a 113%-higher R512-million.

ARM Platinum headline earnings increased by 200%-plus, as did those of Two Rivers PGM mine and Modikwa PGM mine.

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

ARM's overall net cash improved by R3 562-million to R10 171-million and the board of the company headed by CEO Phillip Tobias declared a final dividend of R7 a share.

The group recorded zero fatalities, which is seen as a significant milestone, with the last fatality-free year recorded in FY2017. Lost-time injury frequency rate improved by 9% to 0.29 per 200 000 person hours and the total recordable injury frequency rate regressed by 11% to 0.56.

ARM FERROUS

ARM Ferrous headline earnings decreased by 42% to R2 028-million on lower contributions from the iron-ore and manganese divisions.

The iron-ore division's headline earnings decreased by 41% and the manganese division's by 68%. The cessation of production at Beeshoek mine resulted in local sales volumes falling to 0.5-million tonnes.

The reduction in sales volumes, retrenchment costs of R124-million, an increase in the rehabilitation provision of R191-million and care-and-maintenance costs of R92-million collectively had a significant negative impact on headline earnings.

Headline earnings at Khumani mine decreased significantly on mainly the average realised rand strengthening by 7%, partially offset by 180 000 t higher export sales volumes.