ARM Platinum, Ferrous improve group’s earnings - CNBC Africa

ARM Platinum, Ferrous improve group’s earnings


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ARM's Nkomati mine achieved a reduction in its unit production costs. PHOTOS: African Rainbow Minerals

The South African diversified mining and minerals company, which released its results for the year ending 30 June 2014 on Thursday, saw headline earnings increase to 4.1 billion rand from 3.7 billion rand in 2013.

(READ MORE: ARM’s interim results reflect focus on cost containment)

“The ARM board of directors is pleased to report a 10 per cent increase in ARM's headline earnings for the financial year,” it said.

“The increase was primarily due to a significant improvement in ARM Platinum's headline earnings and a 17 per cent increase in the ARM Ferrous headline earnings.”

ARM also reported an increase in revenue from 8.2 billion rand in the 2013 financial year to 10.8 billion rand in 2014.

“ARM remains focused on ensuring that all operations are below the 50th percentile of each commodity's global cost curve. ARM maintains its focus on cost control across all the operations,” said the company.

“In the period under review the Nkomati and Dwarsrivier mines achieved a reduction in their unit production costs by three per cent and two per cent respectively, while Two Rivers Mine managed to keep unit production costs flat relative to the corresponding period.”

(WATCH VIDEO: African Rainbow Minerals’ 2013 interim results with CEO Mike Schmidt)

Profit before taxation grew to 4.0 billion rand in 2014 from 1.6 billion rand in 2013 while diluted basic earnings per share increased from 753 cents to 1 510 cents.

“Volatility in currencies and commodity prices continued in the financial year with most commodities facing supply-related headwinds. There was a sharp decline in iron ore and manganese ore prices in the third quarter of the financial year,” [DATA ARI:ARM] said.

“ARM remains confident about the future and continues to build a sustainable portfolio of mining assets that create value for all shareholders and stakeholders.”