ARM earnings hit by weak commodity prices

Image courtesy stock.xchnge (bizior)

Image courtesy stock.xchnge (bizior)

African Rainbow Minerals’ (ARM) headline earnings plunged 58 % to R1.744 billion in the year to end-June, hit by falling commodity prices, with sales down seven % to R9.26 billion.

“The reduction in headline earnings was largely as a result of a decline in average realised US dollar prices for iron ore, manganese ore, platinum, nickel, export thermal coal and copper,” ARM said as it reported a fall in headline earnings per share to R8.03 from the previous year’s R19.00.

The miner, which declared an annual dividend of R3.50 per share, down from R6.00, said that although commodity price weakness was expected to continue for the foreseeable future, it remained positive about a future recovery in commodity prices.

ARM reported basic earnings of R104 million, down from R3.3 billion previously, knocked by special items before tax of R1.7 billion relating to its Harmony gold mine investment.




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