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ARM declares record full-year dividend
Shareholders of African Rainbow Minerals will soon be smiling all the way to the bank. That's after the mining group declared its highest dividend yet after more than doubling annual profit. Mike Schmidt, CEO, ARM joins CNBC Africa for more.
Thu, 07 Sep 2017 07:38:15 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- ARM achieves record-high dividend after doubling annual profits
- Company's focus on safety contributes to consecutive fatality-free periods
- Optimism for future growth despite challenges in the South African mining industry
African Rainbow Minerals (ARM) has announced its highest dividend in history after more than doubling annual profits. Mike Schmidt, CEO of ARM, appeared on CNBC Africa to discuss the successful financial year and the outlook for the mining industry. Schmidt expressed confidence in the company's performance, attributing it to their strategic focus on cost efficiency, operational performance, and dealing with underperforming assets. He highlighted the importance of balancing dividends with growth, emphasizing the board's consideration of past and future performance.
Commodity prices played a significant role in ARM's profitability, although the CEO acknowledged the volatility in prices and exchange rates. Despite the uncertainty, Schmidt remained cautiously optimistic, focusing on controllable factors such as volumes, costs, and quality. He also noted the strong demand from export markets, particularly China, which prioritizes high-quality materials.
One of the standout achievements for ARM was their consecutive years of achieving a fatality-free period, a rare feat in the South African mining industry. Schmidt credited the company's relentless focus on safety as a key priority, ensuring that all operations are conducted in a safe manner to deliver consistent results. He emphasized that safety is fundamental to ARM's business.
In terms of future growth, ARM is considering both internal and external opportunities. Schmidt mentioned the criteria for potential acquisitions, including long-lived assets and low costs. Despite challenges in the South African mining industry, particularly the uncertainty around Mining Charter 3, ARM remains confident in its ability to navigate the situation through engagement with the government and industry stakeholders.
Cost efficiencies have been a focus for ARM, leading to increased productivity without job losses. Schmidt highlighted the importance of driving efficiency and productivity while also exploring growth opportunities that could potentially create more jobs. As the South African economy shows signs of improvement, ARM is poised to capitalize on positive sentiment and global optimism surrounding commodity markets.
Looking ahead to 2018, Schmidt expressed optimism about the company's position and the overall economic outlook. He mentioned the positive trends in commodity markets, especially in relation to new technologies like electric vehicles and battery technologies. With a strong focus on safety, efficiency, and growth, ARM is well-positioned to continue its success in the mining industry.
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