JOHANNESBURG (miningweekly.com) – The headline earnings of diversified mining company African Rainbow Minerals (ARM) increased by 19% to R3 201-million in the financial year ended June 30 on mainly higher dollar platinum group metals (PGM) basket prices.

Revenue increased by 25% to R16 323-million and the dividend from Harmony Gold was a 113%-higher R512-million.

ARM Platinum headline earnings increased by 200%-plus, as did those of Two Rivers PGM mine and Modikwa PGM mine.

Nkomati mine, which sold 28 111 t of chrome concentrate, reported headline earnings of R39-million.

ARM’s overall net cash improved by R3 562-million to R10 171-million and the board of the company headed by CEO Phillip Tobias declared a final dividend of R7 a share.

The group recorded zero fatalities, which is seen as a significant milestone, with the last fatality-free year recorded in FY2017. Lost-time injury frequency rate improved by 9% to 0.29 per 200 000 person hours and the total recordable injury frequency rate regressed by 11% to 0.56.

ARM FERROUS

ARM Ferrous headline earnings decreased by 42% to R2 028-million on lower contributions from the iron-ore and manganese divisions.

The iron-ore division’s headline earnings decreased by 41% and the manganese division’s by 68%. The cessation of production at Beeshoek mine resulted in local sales volumes falling to 0.5-million tonnes.

The reduction in sales volumes, retrenchment costs of R124-million, an increase in the rehabilitation provision of R191-million and care-and-maintenance costs of R92-million collectively had a significant negative impact on headline earnings.

Headline earnings at Khumani mine decreased significantly on mainly the average realised rand strengthening by 7%, partially offset by 180 000 t higher export sales volumes.

Manganese headline earnings declined on mainly the rand strengthening and lower manganese ore and alloy export prices.

Continued collaboration with State-owned Transnet through the Ore Users Forum and Manganese Producers Consortium advanced rail and port reforms on the Saldanha and Ngqura corridors, delivering a 1% improvement in export rail performance and enhancing the long-term competitiveness of South African producers, ARM reported in a media release to Mining Weekly.

ARM COAL

ARM Coal reported a headline loss of R428-million driven on mainly the lower realised coal price and rand strengthening.

The Goedgevonden coal mine recorded a headline loss of R73-million and PCB a headline loss of R355-million.

COPPER

ARM stated that its investment in Surge Copper supported the continued advancement of the Berg project, which the completed prefeasibility study (PFS) confirms as a large-scale copper/molybdenum development with a maiden mineral reserve supporting a 28-year mine life.

Following completion of the PFS, the project is now progressing into feasibility-level technical and environmental studies, alongside the environmental assessment and permitting process and continued engagement with First Nations.

The feasibility study report is planned for 2028, with the environmental assessment decision targeted for 2029 to 2030 and a final investment decision for 2031.