Johannesburg – African Rainbow Minerals (ARM), chaired by billionaire Patrice Motsepe, posted record headline earnings during the six months ended December 2020 and doubled its interim dividend payout compared with a year earlier as commodity prices boosted its fortunes.
The company reported a 134% jump in headline earnings to a record R5.039 billion or R25.87 a share, compared to R2.155billion, or R11.14 a share as iron ore prices reached record highs coupled with higher platinum metal group (PGM) dollar prices and manganese ore sales volumes.
ARM declared a R10 a share interim dividend representing a R2.24billion payout during the half year ended December compared to R5 a year ago.
Chief executive Mike Schmidt said the group’s operating navigated these turbulent times well, responding in an agile and responsible manner.
“We declared an interim dividend of R10 for the first half of the 2021 financial year from R5 per share and improved our financial position, which affords ARM flexibility to opportunistically pursue value-enhancing growth prospects,” Schmidt said.
Headline earnings from ferrous was 60% higher at R2.95billion from R1.84 billion a year earlier driven by a 99% increase in headline earnings in the iron ore division.
ARM shares closed 3.89% lower at R285.61 on the JSE yesterday.
