Higher PGM prices, rand strength give ARM’s headline earnings a boost
Diversified miner African Rainbow Minerals (ARM) expects to report a 12% to 22% year-on-year increase in headline earnings to between R3.02-billion and R3.29-billion for the financial year ended June 30, while headline earnings a share are expected to increase to between R15.44 and R16.82.
ARM says the increase in headline earnings was primarily driven by higher US dollar platinum group metals (PGM) basket prices, partially offset by lower average realised rand iron-ore prices, reflecting the strengthening of the rand against the dollar.
Basic earnings are expected to increase by between 1 105% and 1 115% year-on-year to between R3.98-billion and R4.01-billion, while basic earnings a share are expected to increase by between 1 120% and 1 130% year-on-year to between R20.62 and R20.79.
Basic earnings include a profit on disposal of ARM’s investment in the Sakura ferroalloys business of R241-million and a gain of R462-million on the remeasurement of ARM’s pre-existing 50% interest in Nkomati.
ARM will publish its results on September 4.