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Johannesburg - African Rainbow Minerals [JSE:ARI] has reported a 10% rise in headline earnings for the year ended June 30.
The diversified mining and minerals company was founded by billionaire Patrice Motsepe, who is also the executive chairperson.
"We are really pleased with the current results", ARM CEO Mike Schmidt told Fin24 in a video interview on Thursday.
It reported a 10% jump in headline earnings from R3.737bn to R4.11bn.
"The increase was primarily due to a significant improvement in ARM Platinum’s headline earnings and a 17% increase in the ARM Ferrous headline earnings," the company said in a statement.
ARM's platinum’s contribution to headline earnings increased 68% to R883m, while the ferrous contribution increased from R3.19bn to R3.74bn.
Schmid said one of the highlights of year is probably the non-ferrous attributes coming to the table.
"We have also declared a record dividend for the year", said Schmid.
It increased its dividend declared to 600 cents per share from 510 cents the previous year.
He said one of the challenges that the group faced was the reduction
of coal prices. "They have gone down significantly over the year".
ARM Coal reported a headline loss of R120m due to lower export prices and operational challenges at the participating coal business (PCB).
However, Schmid is optimistic about the group's PCB.
"We expect a significant turnaround in the PCB operation, which is transforming from a primarily underground operation into a surface operation."
He said currently 80% of the ore is coming from open caste, adding that it is also busy commissioning a new modern plant, called the top project.
"[It] will add significant value and reduce the costs coming out of that operation over the next year", said Schmid.
Watch: African Rainbow Minerals lifts earning
- Fin24
