African Rainbow Minerals expects interim earnings to surge by 138%
JOHANNESBURG - AFRICAN Rainbow Minerals (ARM), chaired by billionaire Patrice Motsepe, expects headline earnings to surge by up to 138 percent during the six months to the end of December, driven by strong metal prices.
ARM said headline earnings would increase by up to R5.12 billion compared with R2.15bn a year earlier, underpinned by higher iron ore and platinum group metals prices.
Headline earnings a share are expected to be up to R26.40, compared with R11.14 a year earlier. Basic earnings for the period are expected to increase by between 123 and 133 percent to between R4.75bn and R4.96bn, from R2.132bn a year earlier. Basic earnings per share are expected to be between R24.46 and R25.46, from R11.02 a year earlier.
ARM said it had completed an investigation into long-term receivable amounts from Glencore Operations South Africa to ARM Coal of R452 million ,with ARM’s attributable portion being R230m.
“The investigation concluded that all the items included in the ARM Coal longterm receivable were valid receivables. However, R283m should have been classified as trade and other receivables, and R53m should have been included in the long-term borrowings rather than being netted off against long-term receivables in the statement of financial position,” said ARM.
ARM’s results for the six months to December are scheduled to be released on March 3.