Johannesburg, South Africa — MININGREVIEW.COM — 14 August 2008 – African Rainbow Minerals Limited (ARM) – a diversified South African mining company which owns ferrous and base metals, platinum and coal operations and holds a significant interest in the gold mining sector – expects its headline earnings per share to increase for the 12 months ended 30 June 2008 to between 1 700 and 2 000 cents per share, compared to 580 cents per share in the year to 30 June 2007.
Releasing a trading statement for the 12 months to 30 June 2008 here today, the company added that basic earnings per share were expected to be in the range of 1 900 and 2 300 cents per share, compared to 586 cents a share in the year to 30 June 2007.
In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited, a listed company is required to publish a trading statement as soon as it is satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported on next will differ by at least 20% from those of the previous corresponding period.
The ARM trading statement pointed out that results for the 12 months to June 2008 had been significantly impacted by the following sales volume and commodity price increases – volume increases in platinum group metals (PGMs), manganese ore and chrome ore; and commodity price increases, mainly during the second half of the financial year, in PGMs, ferrous ores and alloys, especially manganese, and in local and export thermal coal.
It added that these positive impacts had been slightly offset by lower nickel prices, increased exploration spending through TEAL in Africa and significant increases in certain operational costs. In addition, sales of ferromanganese alloys had been lower as a result of reduced production because of the smelter accident at Cato Ridge Works on 24 February 2008.
The company pointed out that this trading statement had not been reviewed or reported on by the external auditors of ARM, and that ARM’s full year results would be released on Monday 1 September 2008.