Johannesburg, South Africa — 04 September 2012 – South African diversified miner African Rainbow Minerals (ARM) has posted a slight increase in full-year earnings to 30 June 2012, boosted by higher sales across most of its commodities, but pointed out that the outlook remained challenging.
ARM “’ which has interests in nickel, coal, platinum, iron ore, chrome, copper and manganese “’ said headline earnings per share for the year had risen to R16.15, a 2% increase from R15.85.
Sales had risen18% to R17.53 billion.
Reuters quoted the company as saying that its Lubambe copper project in Zambia was progressing on time and within budget, with the commissioning of the plant expected by the end of the current financial year.
An expansion project to lift production at its Khumani iron ore mine in South Africa had been completed ahead of schedule and below budget, it continued.
Demand for commodities is expected to remain challenging in the year ahead on the back of a subdued global growth outlook, ARM warned.
“Demand fundamentals in the platinum group metals, nickel and chrome markets are expected to remain subdued in the short term due to uncertainty in the developed markets and over supply,” the company said, adding that the long-term outlook for those commodities was positive.
Outlook for its ferrous unit would depend on demand from top commodity consumer China.
ARM said it had a strong cash position and would continue to look at acquisition opportunities. The miner declared an annual dividend of 475 cents per share.
Source: Reuters Africa. For more information, click here.