Bloomberg - African Rainbow
Minerals, the miner chaired by South
Africa’s richest black businessman, would
pay a record dividend this year as rising iron-ore and manganese prices boosted
earnings at its ferrous unit.
ARM would pay investors R6.50 a share, almost triple that of the previous year, and its 11th consecutive
dividend, the Johannesburg-based company said in a statement Thursday.
The company benefited from a
45% increase in prices received for exported iron ore and 93%
more for its manganese.
While ARM is “confident in
the long-term outlook for commodities,” the company said prices will “remain
volatile” this year. The rand, in which ARM pays most of its costs, has
strengthened against the dollar this year, reducing earnings.
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The stock climbed 0.8% to R112.86 a share at 9:48 a.m. in Johannesburg, bringing this year’s gain to 15% That’s helped boost the wealth of Executive Chairman Patrice Motsepe,
who owns about 40% of the company. The former lawyer turned entrepreneur
is worth about $2 billion, according to data compiled by Bloomberg.
ARM’s headline earnings
tripled to R3.2 billion ($250 million) in the year to June 30, the company
said in the statement. That was mainly due to the performance of its ferrous
division, but it also turned losses to profits at its coal and platinum
operations.
The company made a R203
million loss at its copper division and is planning to sell its stake in
the Lubambe mine in Zambia to private-equity firm EMR Capital Advisors (Pty).