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African Rainbow Minerals Ltd., the South African diversified miner controlled by billionaire Patrice Motsepe, posted a sharp drop in annual earnings as weaker iron ore prices and mounting losses at its Bokoni platinum mine dragged results lower.
Headline earnings fell 47% to R2.7 billion ($146 million) in the year ended June 30, the Johannesburg-based company said Friday. That compares with R5.1 billion a year earlier. Revenue edged up 1% to R13 billion, supported by higher manganese prices and steady platinum group metals output.
The miner declared a final dividend of R6 a share, down from R9 last year, bringing the total payout for the year to R10.50. The cut reflects tighter cash flows, even as ARM maintained a strong net cash position of R6.6 billion.
Iron ore slump, manganese resilience
The group’s iron ore division bore the brunt of commodity weakness, with earnings plunging 36% as export prices softened and a stronger rand eroded dollar revenues. ARM Ferrous headline earnings fell 31% to R3.5 billion. By contrast, manganese operations more than doubled profit, buoyed by firmer ore and alloy prices and stronger sales volumes.
Platinum operations remained under pressure. Bokoni Mine, which ARM has been attempting to reposition as a long-term growth asset, reported a R1.4 billion headline loss, up from R566 million a year earlier. ARM suspended early mining operations at Bokoni at year-end to conserve capital and focus on developing the larger, higher-grade sections of the orebody.
“Bokoni’s scale remains compelling, but we’re sequencing investment carefully given the ongoing uncertainty in PGM prices,” management said.
Safety and sustainability setbacks
The results were overshadowed by safety concerns. ARM recorded three fatalities across its operations during the year, with lost-time injury frequency worsening to 0.31 per 200,000 man-hours. The company said independent investigations had been completed and remedial measures are underway.
On the environmental front, ARM reported progress at its renewable projects. Construction of a solar plant to supply electricity to its platinum mines was completed in June, with power expected to flow in early 2026 under a purchase agreement.
Strategic shifts
ARM reshaped its portfolio during the year, closing the Cato Ridge Works smelter and selling stakes in land and the Sakura Ferroalloys venture, generating R900 million in cash. The company also expanded its copper exposure, raising its stake in Canada’s Surge Copper Corp. to 19.9% as the junior pushes ahead with a pre-feasibility study.
The group entered into a hedging collar over 24% of its Harmony Gold stake, giving it downside protection while retaining upside exposure. Harmony contributed R240 million in dividends to ARM’s results.
Outlook
Despite earnings pressure, ARM underlined its resilience, with no debt at its key Assmang joint venture and healthy group cash reserves. Still, management warned of continued volatility in global commodity markets, particularly in iron ore and platinum.
“We are advancing capital development of Bokoni in a way that ensures its long-term sustainability while exercising strict capital discipline,” ARM said.
Shares of ARM have been broadly stable this year, reflecting investor caution over platinum prices but support from its diversified base in manganese and iron ore.
