African Rainbow Minerals H1 profit surges on improved commodity prices

JOHANNESBURG, – South African diversified mining group African Rainbow Minerals (ARM) said half-year profit nearly quadrupled, as ARM Ferrous division and the Two Rivers Platinum Mine benefited from improved commodity prices.

* Headline earnings per share, the main profit measure in South Africa that strips out once-off items, surged to 893 cents for the six months ended December 2016 from 233 cents a year earlier.

* “Headline earnings are 234 percent higher than the previous corresponding period largely due to excellent results in the ARM Ferrous division and the Two Rivers Platinum Mine,” the company said.

* Headline earnings at ARM Ferrous division rose nearly 200 percent to 1,779 million rand ($138.90 million) from 599 million rand ($46.77 million) following an increase in iron ore and manganese ore prices, the company said.

* Two Rivers achieved record PGM production of 207,147 ounces and benefited from an increase in chrome prices over the period.

* Company revenue rose to 4,950 million rand from 4,708 million rand.

* ARM, which operates joint ventures with Anglo American Platinum, Assore, Impala Platinum, Glencore and Vale, said it will continue to investigate a number of growth opportunities including merger and acquisitions, organic growth projects and development projects.

 

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