Johannesburg, South Africa — MININGREVIEW.COM — 01 September 2008 – South African diversified mining group African Rainbow Minerals (ARM) has almost tripled headline earnings, increased dividends by 167% and is exceeding its 2005 objective of doubling production by 2010.
Announcing the group’s provisional results for the financial year ended 30 June 2008, executive chairman Patrice Motsepe revealed the following impressive results:
- Record headline earnings increase of 232% from R1.2 billion to R4.0 billion, or 1 906 cents per share;
- Profit from operations before exceptional items increase of 169% from R2.5 billion to R6.7 billion;
- A cash balance increase by R1.6 billion to R2.6 billion;
- Market capitalisation increase of 85% from R26 billion at F2007 year end to R48 billion at 25 August 2008;
- Record sales volumes in manganese ore, chrome ore, PGMs and thermal coal;
- Substantial commissioning of Khumani Iron Ore mine and plant on time and within budget; and
- Repayment of bank debt by Two Rivers well ahead of schedule
He went on to say that operational highlights had also included: a 96% increase in Nkomati chrome ore sales to 1.2 million tonnes; a 60% increase in manganese ore external sales to 3.7 million tonnes; a 47% increase in domestic thermal coal sales to 13.2 million tonnes, and an 8% increase in attributable PGM production to 281 337 ounces
“These excellent results have been delivered in conjunction with our partners at the various operations, namely Anglo Platinum, Assore, Impala Platinum, Norilsk Nickel and Xstrata Coal,” said Motsepe. “The production and sales volume increases are especially significant this year, given the cutbacks and load shedding the operations have experienced from electricity utility Eskom. In the event that electricity cutbacks continue, ARM operations have put various mitigating and contingency plans in place at all operations to ensure minimal impact on volume production and sales,” he confirmed
Motsepe added that ARM was particularly satisfied with the progress of its projects, all of which remained on schedule and within budget. This was being achieved despite the challenges presented by cost pressures, electricity constraints and skills shortages.
CEO André Wilkens commented: “As ARM starts the new financial year, we remain confident that the company will continue to be well positioned in terms of our commodity mix, our excellent long-life low-cost operations, our future projects and expansion prospects, as well as access to resources in a region of the world which is renowned for its dominance in a number of these commodities.”