South African billionaire Patrice Motsepe's ARM expects earnings to rise up to 22%

African Rainbow Minerals expects headline earnings to rise between 12 and 22 percent for the year to June, as higher platinum group metals prices offset a weaker performance from its iron ore business.

The diversified miner founded by Patrice Motsepe told shareholders on Friday that headline earnings would come in between $188.4 million and $205.2 million (R3.02 billion to R3.29 billion), against $168.4 million (R2.7 billion) a year earlier. Headline earnings per share are expected to rise to between 1,544 cents and 1,682 cents from 1,379 cents.

ARM attributed the improvement mainly to higher PGM prices, partly cancelled out by lower iron ore prices as the rand strengthened against the dollar. Results are due on Sept. 4.

The trading update arrives as the company commits close to a billion dollars to rebuilding its platinum position.

ARM approved a $948.2 million (R15.2 billion) investment in July to develop the Bokoni platinum project in Limpopo, following completion of a definitive feasibility study. The programme covers refurbishment of an existing concentrator processing 60,000 tonnes a month and construction of a new plant handling 120,000 tonnes a month.

First production is targeted for the first half of the 2028 financial year, with steady-state output of about 350,000 to 400,000 ounces of PGMs a year expected from 2032.

The commitment reverses a decision taken barely a year ago. ARM suspended mining and milling at Bokoni in 2025 while it reassessed the mine's economics and development plan, and the metals market has moved substantially since.

The company has also approved restarting open-pit mining and nickel concentrate production at Nkomati in Mpumalanga, which has sat on care and maintenance since 2021. That will require about $47 million (R753 million) in capital and follows an offtake agreement with the Swedish producer Boliden, which gives ARM a route to market for the concentrate once production resumes.

Both decisions form part of a strategy to return idled assets to production and increase the group's exposure to platinum group metals and nickel.

Motsepe founded ARM in 1997 after buying low-producing gold mine shafts from AngloGold and turning them profitable, having become the first Black partner at the Johannesburg law firm Bowman Gilfillan in 1994. He stepped down from his executive role at the company in February and remains its largest shareholder.

Forbes ranks him eighth among Africa's wealthiest people with a net worth of $4.3 billion, and he was the first Black African to appear on its billionaires list in 2008. He also serves as president of the Confederation of African Football and as a FIFA vice president, and told an interviewer this week that Gianni Infantino's future should be decided at next March's election rather than through pressure to resign.

His investment firm African Rainbow Capital is separately defending a $195 million (R3.4 billion) claim brought by the Pula Group in Tanzania. Pula abandoned its South African appeal in July and is pursuing the case there.