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African Rainbow Minerals Ltd. said it expects stronger earnings for the first half of its 2026 financial year, signaling improved profitability ahead of the release of its interim results next month.
In a trading statement for the six months ended Dec. 31, 2025, the South African mining company said headline earnings are expected to increase by between 5 percent and 15 percent compared with the same period a year earlier. That would place headline earnings for the period at between R1.596 billion and R1.748 billion, up from R1.52 billion in the prior comparable period.
The company also said headline earnings per share are expected to come in between 814 cents and 891 cents, compared with 775 cents per share in the six months ended Dec. 31, 2024.
The stronger outlook was even more pronounced on basic earnings, which ARM said are expected to rise by between 65 percent and 75 percent. Based on that guidance, basic earnings for the period are projected at between R2.3 billion and R2.44 billion, compared with R1.394 billion in the prior year period.
Basic earnings per share are expected to be between 1,173 cents and 1,244 cents, up from 711 cents per share a year earlier, according to the statement.
The gap between headline and basic earnings is closely watched by investors because headline earnings strip out certain once off items and can offer a clearer view of underlying operating performance, while basic earnings capture a broader accounting picture. The company did not provide additional detail in the trading statement on the operational drivers behind the expected increase.
Still, the ranges suggest ARM is entering the second half of its financial year with momentum, at least on an earnings basis, after a period in which mining companies have faced mixed commodity prices, operating cost pressure and investor scrutiny over capital discipline.
Trading statements are commonly used by listed South African companies to alert shareholders when earnings are expected to move materially before full results are published. They are designed to help the market prepare for the scale and direction of changes in financial performance.
ARM said its financial results for the first half of the 2026 financial year will be released on March 6, 2026. Investors will be watching that report for more detail on which business units drove growth, how margins held up, and whether management signals confidence for the rest of the year.
