Johannesburg, South Africa — 26 February 2013 – Diversified miner African Rainbow Minerals (ARM) has revealed a 30% drop in headline earnings to R1.41 billion, with headline earnings per share falling to 654 cents, in the six months ended 31 December 2012.
Announcing its interim results here, the company said the reduction in its earnings had resulted mainly from the 46% decline in the contribution by the ARM Ferrous division. This was largely due to iron ore prices received being 28% lower in dollar terms, partly offset by an 11% weakening of the Rand/US Dollar exchange rate. Manganese earnings reduced by 51% due to lower production volumes and higher costs.
A good turnaround in earnings contribution had been achieved at Nkomati nickel mine and at ARM Coal, and higher sales volumes had been achieved in iron ore, PGMs, nickel, Dwarsrivier chrome ore and thermal coal, the results statement added. However, the positive effect of improved sales volumes had been reduced by a decline in US Dollar commodity prices, as uncertainty in global markets continued to put pressure on demand for commodities.
Executive chairman Patrice Motsepe commented that ARM’s significant sales volume growth had reduced the impact of the fall in iron ore prices. “ARM continues to deliver on its iron ore, nickel and copper growth projects,” he said, “and the Lubambe project in Zambia produced copper ahead of schedule.”
Source: African Rainbow Minerals. For more information, click here.