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African Rainbow Minerals Limited
(Incorporated in the Republic of South Africa)
(Registration number 1933/004580/06)
JSE Share code: ARI
ISIN: ZAE000054045
(“ARM” or the “Company”)
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2024
(1H F2025) AND CASH DIVIDEND DECLARATION
This short form announcement is the responsibility of the board of
directors of ARM (the "Board") who acknowledge their responsibility
to ensure the integrity of the interim results.
The details contained in this announcement are only a summary of
the information in the full announcement and do not contain full
details of the Company’s financial performance and position or
other relevant information about the business for the six months
under review. Any investment decisions by investors and/or
shareholders should therefore be based on the full announcement
published on the Company’s website at www.arm.co.za and which is
available on the following link:
https://senspdf.jse.co.za/documents/2025/jse/isse/ARIM/HY2025.pdf
The full announcement is also available for inspection free of
charge during business hours (excluding weekends and public
holidays) from Friday, 07 March 2024 at the registered office of
ARM at ARM House, 29 Impala Road, Chislehurston, Johannesburg. In
addition, copies of the full announcement may be requested by
emailing the Company’s investor relations department on
thabang.thlaku@arm.co.za
Salient features
Financial
• Headline earnings for the six months ended 31 December
2024 (1H F2025) decreased by 49% to R1 520 million or
R7.75 per share (1H F2024: R2 955 million or R15.07 per
share)
• An interim dividend of R4.50 per share is declared (1H
F2024: R6.00 per share)
• We maintained a robust financial position, with net cash
of R6 073 million at 31 December 2024 (30 June 2024: R7
197 million)
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• Basic earnings were R1 394 million or R7.11 per share
(1H F2024: R1 216 million or R6.20 per share) and include
attributable impairments of R136 million after tax (1H
F2024: R1 739 million after tax).
Safety and Health
• Regrettably, Mr Tshepo Tebele was fatally struck by a
winch rope during a night shift cleaning operation at
Modikwa Platinum Mine (Modikwa). We extend our deepest
condolences to his family, friends and colleagues
• Group lost-time injury frequency rate (LTIFR) increased
to 0.32 per 200 000 man-hours 1H F2024: 0.24) and group
total recordable injury frequency rate (TRIFR) increased
to 0.52 (1H F2024: 0.50).
Operational
• Iron ore production volumes were lower in 1H F2025 when
compared to 1H F2024 mainly due to reduced offtake from
ArcelorMittal South Africa (AMSA)
• Unit costs remained under pressure due to lower
production volumes and above-inflation increases in
costs at the iron ore and coal operations
• PGM production volumes rose marginally due to an
increase in ounces at Bokoni Platinum Mine (Bokoni),
however, mining development costs were higher due to the
mine being in ramp-up phase, leading to higher
operational losses
• The lower average realised export iron ore prices and
stronger rand/US dollar exchange rate were partially
offset by higher manganese ore and alloy prices.
Environmental and Social
• Construction of ARM Platinum’s 100MW solar photovoltaic
(PV) facility is progressing on schedule, with the first
power delivery expected in August 2025
• The definitive feasibility study for renewable energy at
ARM Ferrous was completed in December 2024. Various
funding models and energy mix options are being reviewed
• The water supply deficit from Vaal Central Water Board
(VCWB) continues to pose a risk to the Khumani Mine
operations.
Growth
• Post 31 December 2024, mechanised development for
expansion at Bokoni was scaled back, due to the weak PGM
price environment, shifting focus to conventional
stoping to reduce operational losses. The ramp-up of
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mechanised development for expansion will depend on a
sustained price recovery.
Safety and Health
Our operations remain committed to safety. There was an increase
of 33% in the group LTIFR to 0.32 per 200 000 man-hours (1H F2024:
0.24). Similarly, the TRIFR* increased by 4% to 0.52 (1H F2024:
0.50). Continuous efforts are in place to strengthen safety
measures and improve overall safety performance.
* TRIFR includes the number of fatal injuries, number of lost-time
injuries, and number of medical treatment cases.
Regrettably, Mr Tshepo Tebele was fatally struck by a winch rope
during a night shift cleaning operation at Modikwa on 29 November
2024. We extend our deepest condolences to his family, friends and
colleagues. Support and counselling were provided to all affected
employees and the deceased’s family through the employee assistance
programme. The report from the independent investigation is
currently under review.
Safety achievements in 1H F2025 included:
• Beeshoek Mine completed 21 consecutive years fatality-
free
• Cato Ridge completed 17 consecutive years fatality-free
• Black Rock Mine completed 15 consecutive years fatality-
free
• Khumani Mine completed nine consecutive years fatality-
free
• Two Rivers Platinum Mine completed two consecutive years
fatality-free.
Financial performance
Headline earnings
Headline earnings for 1H F2025 decreased by 49% to R1 520 million
or R7.75 per share (1H F2024:
R2 955 million or R15.07 per share).
The average realised rand exchange rate strengthened by 4% to
R17.93/US$ compared to R18.68/US$ in 1H F2024. For reporting
purposes, the closing exchange rate was R18.86/US$ (31 December
2023: R18.33/US$).
ARM Ferrous headline earnings decreased by 33% to R1 881 million
(1H F2024: R2 821 million) driven by a decrease in headline earnings
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of the iron ore division, partially offset by an increase in
headline earnings of the manganese division.
Iron ore headline earnings were lower due to lower average realised
US dollar export prices, a stronger rand/US dollar exchange rate
and lower sales volumes.
Manganese headline earnings were higher due to higher average
realised US dollar manganese ore prices, partially offset by lower
export sales volumes and a stronger rand/US dollar exchange rate.
ARM Platinum* reported a headline loss of R689 million (1H F2024:
R282 million loss), largely due to higher operational losses at
Bokoni.
* Refer to pages 12 and 13 for further information on the mark-to-
market adjustments in ARM Platinum.
Two Rivers headline earnings decreased by 53% to R77 million (1H
F2024: R164 million). Headline earnings were negatively impacted
by a ramp-up in mining development at North shaft to open ore
reserves, together with increased finance costs.
Modikwa reported a headline loss of R103 million (1H F2024: R31
million loss) impacted by a lower rand per 6E kilogram basket price
and lower production volumes.
Bokoni reported a headline loss of R620 million (1H F2024: R341
million loss), driven mainly by lower-than-guided PGM ounce
production and increased mechanised development costs at Middelpunt
in the ramp-up of production. Production in 1H F2025 was negatively
impacted by the fall-of-ground fatality in June 2024, as previously
reported, and challenging geotechnical conditions for which
additional underground support was required.
Nkomati Nickel Mine (Nkomati) reported a headline loss of R43
million (1H F2024: R74 million loss). The mine has been on care
and maintenance since 15 March 2021.
ARM Coal headline earnings decreased by 11% to R182 million (1H
F2024: R204 million) driven mainly by lower export sales volumes
and a stronger rand/US dollar exchange rate.
ARM Corporate and other (including gold) headline earnings
decreased by 41% to R190 million (1H F2024: R324 million), driven
by a decrease in management fees received.
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Machadodorp Works reported a headline loss of R44 million (1H
F2024: R112 million loss) related to research into developing
energy-efficient smelting technology.
Basic earnings and impairments
Basic earnings increased by 15% to R1 394 million (1H F2024: R1
216 million) and included attributable impairments as follows:
• An impairment of property, plant and equipment at
Beeshoek of R96 million after tax
• An impairment of Assmang’s investment in Sakura
Ferroalloys of R36 million with no tax effect
• An impairment of property, plant and equipment at Cato
Ridge Works of R4 million after tax.
The increase in basic earnings is mostly attributable to the lower
impairments in 1H F2025 when compared to the previous corresponding
period (1H F2024: R1 739 million).
Refer note 4 of the condensed group interim financial statements
for more information on these impairments.
Financial position and cash flow
At 31 December 2024, ARM had net cash of R6 073 million (30 June
2024: R7 197 million), a decrease of R1 124 million compared to
the end of the 2024 financial year. This amount excludes
attributable cash and cash equivalents held at ARM Ferrous (50% of
Assmang) of R3 604 million (30 June 2024: R4 476 million). There
was no debt at ARM Ferrous in either of the reporting periods.
Refer to page 6 of the full announcement for a summary of dividends
received from operations.
Cash generated from operations decreased by R1 547 million to R1
098 million outflow (1H F2024: R449 million inflow), which includes
an outflow in working capital of R1 598 million (1H F2024: R786
million outflow), mainly due to an outflow of trade payables.
In 1H F2025, ARM paid R1 765 million in dividends to its
shareholders, representing a final dividend of R9.00 per share
declared for F2024 (1H F2024: R2 353 million or R12.00 per share).
Net cash outflow from investing activities was R914 million (1H
F2024: R3 036 million) and included expansionary capital of R640
million. The decrease in outflow was mainly due to reduced Merensky
project expenditure at Two Rivers and lower expansionary capital
at Bokoni.
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Net borrowings increased by R998 million (1H F2024: R49 million
repaid) during the period, resulting in gross debt of R2 134 million
at 31 December 2024 (30 June 2024: R1 129 million) mainly as a
result of a syndicated facility at Two Rivers.
Investing in growth and our existing business
Bokoni Mine
Post 31 December 2024, high-cost mechanised development has been
significantly scaled back, in response to the sustained weak PGM
price environment and the lack of near-term recovery indicators.
Production will shift focus from lower grade on-reef mechanised
development to higher grade conventional stoping, increasing feed
grade and PGM ounce production at the UG2 concentrator plant. The
higher PGM production obtained from conventional mining will lower
unit cash costs and reduce operational losses at Bokoni. The ramp-
up of mechanised development will depend on a sustained PGM price
recovery.
Existing operations
We continued to invest in our existing operations with segmental
capital expenditure of R2 140 million for the period (1H F2024: R4
358 million). The decrease in capital expenditure was mainly due
to the Merensky project at Two Rivers Mine included in 1H F2024.
Capital expenditure for the divisions is discussed in each
division’s operational performance section from page 8 in the full
announcement.
Dividend declaration
ARM aims to pay ordinary dividends to shareholders in line with our
dividend guiding principles. Dividends are at the discretion of the
board of directors (the board) which considers the company’s capital
allocation guiding principles as well as other relevant factors such
as financial performance, commodities outlook, investment
opportunities, gearing levels as well as solvency and liquidity
requirements of the Companies Act.
For 1H F2025, the board approved and declared an interim dividend
of 450 cents per share (gross)
(1H F2024: 600 cents per share). The amount to be paid is
approximately R1 011 million.
The dividend declared will be subject to dividend withholding tax.
In line with paragraphs 11.17(a) (i) to (x) and 11.17(c) of the JSE
Listings Requirements, the following additional information is
disclosed:
• The dividend has been declared out of income reserves
• The South African dividends tax rate is 20%
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• The gross local dividend is 450 cents per ordinary share
for shareholders exempt from dividends tax
• The net local dividend is 360 cents per share for
shareholders liable to pay dividends tax
• At the date of this declaration, ARM has 224 667 778
ordinary shares in issue
• ARM’s income tax reference number is 9030/018/60/1.
A gross dividend of 450 cents per ordinary share, being the dividend
for the six months ended 31 December 2024, has been declared payable
on Monday, 7 April 2025 to those shareholders recorded in the books
of the company at the close of business on Friday, 4 April 2025. The
dividend is declared in the currency of South Africa. Any change in
address or dividend instruction applying to this dividend must be
received by the company’s transfer secretaries or registrar not
later than Friday, 4 April 2025. The last day to trade ordinary
shares cum dividend is Tuesday, 1 April 2025. Ordinary shares trade
ex-dividend from Wednesday, 2 April 2025.
No dematerialisation or rematerialisation of share certificates may
occur between Wednesday, 2 April 2025 and Friday, 4 April 2025 both
dates inclusive, nor may any transfers between registers take place
during this period.
Scope of independent auditor
The financial results for the six months ended 31 December
2024 have not been reviewed nor audited by the company’s
registered auditor, KPMG Inc. (the partner in charge is S
Loonat CA(SA)).
ENDS
For all investor relations queries please contact:
Thabang Thlaku
Executive: Investor relations and new business development
Office: +27 11 779 1300
Email: thabang.thlaku@arm.co.za
Johannesburg
7 March 2025
Sponsor: Investec Bank Limited
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