Johannesburg - African Rainbow Minerals, a South African producer of iron ore, coal and platinum, said any of its assets that won’t make money within the next three years will be placed “under review” as the company’s earnings plunged due to low commodity prices.
ARM has cut costs and capital expenditure at its array of operations in a bid to remain profitable, the Johannesburg company said in a statement on Thursday. Headline earnings fell 40 percent to R1.05 billion ($75 million) in the year to June 30 from 12 months earlier.
One of its strategic goals for the coming year is “placing under review those operations which do not have the ability to operate profitably in the next three years”, ARM said.
The company is already considering options “to maximise value” at the loss-making Lubambe copper mine in Zambia, of which it owns 40 percent, it said. ARM recently sold its 50 percent stake in the Dwarsrivier chrome mine for R450 million.
ARM reduced its annual dividend 36 percent to R2.25 a share, it said.
BLOOMBERG