Diversified mining firm African Rainbow Minerals (ARM), chaired by billionaire Patrice Motsepe, expects its annual headline earnings to soar 138 percent, underpinned by higher iron ore and platinum group metals (PGM) prices, coupled with an increase in export iron ore and PGM sales volumes.
The firm, which yesterday issued a trading statement for the year to June 30, said headline earnings were likely to increase by between 130 percent and 138 percent compared to the corresponding financial year to June 30, 2020, to between R12.73 billion and R13.2bn.
Headline earnings per share were expected to rise to between 6 555 cents and 6 783c from 2 850c in the prior year, while basic earnings were likely to increase by between 210 percent and 220 percent to between R12.3bn and R12.9bn.
However, the firm said its basic earnings included an attributable impairment after tax of R169 million of Assmang’s equity-accounted investment in Sakura Ferroalloys, as previously reported in the company’s interim results for the six months to December 31, 2020, as well as impairments to the South African manganese alloy businesses.
Its basic earnings per share were, therefore, expected to be between 6 330c and 6 534c. Basic earnings compared to the prior year included an attributable impairment after tax of ARM Coal assets of R1.52bn.