JSE-listed diversified mining firm, African Rainbow Minerals (ARM), this week said headline earnings for the six months ended 31 December this year are likely to be 45 percent less than those of the previous comparable period.
The decrease in headline earnings is largely attributable to the fall in US Dollar export commodity prices in comparison to those achieved in the previous period, especially for iron ore, partially offset by a weaker exchange rate during the period, it said in the company’s latest trading update.
South African companies use headline earnings to measure their profitability.
The company’s chairman is billionaire Pratrice Motsepe, who is the richest African person in South Africa and among Africa’s top billionaires.
ARM has a long-life, low unit cost operations and significant growth opportunities.
ARM mines and processes iron ore, manganese ore and alloys, chrome ore and alloys, platinum group metals, copper, nickel and coal. ARM also has an investment in gold through its shareholding in Harmony. ARM’s strategy is focused on quality growth within its portfolio of assets and ensuring that all ARM’s operations are positioned below the 50th percentile of each commodity’s global cost curve.
This is achieved, in conjunction with ARM’s joint venture partners, through volume growth and continuous improvement in operational efficiencies.