Johannesburg, South Africa — MININGREVIEW.COM — 30 August 2010 – South African diversified miner African Rainbow Minerals (ARM) has reported a 26% drop in full-year headline earnings, hit by a strong rand and lower prices for iron ore and manganese, but says it’s confident that China, India and Brazil will drive future demand for ferrous commodities.
In a statement released here, the company “’ which has interests in nickel, coal, iron ore, platinum, chrome and manganese “’ said headline earnings per share for the full year had fallen to 807 cents from 1 094 cents in the previous period.
“ARM’s headline earnings were negatively impacted by both lower U.S. dollar commodity prices, especially in iron ore and manganese, as well as the strengthening of the average rand exchange rate against the dollar by 16%,” it added.
Sales for the year rose for all of its commodities except for thermal coal sold domestically.
The company said it was confident demand from the steel manufacturing industry in China, India and Brazil would drive demand for ferrous commodities, while supply growth remained constrained by infrastructure limitations.
“Our three new mines which are currently ramping up are coming into steady state production at an opportune time,” ARM said, referring to its growth projects underway.
During the year, ARM completed expansion of its Khumani iron ore mine to 10Mtpa, commissioned a 375 000 tpm plant at the Nkomati nickel operations, and its Goedgevonden coal mine is ramping up to its name plate capacity of saleable 6.7Mtpa.
The company said it saw a capital spend of about R10 billion over the next three years to June 2013.
ARM declared a dividend of 200 cents per share, up from 175 cents in the previous period.