African Rainbow Minerals sees rise in headline earnings

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Headline earnings increased from 3.45 billion rand in 2012 to 3.74 billion rand in 2013 while headline earnings per share was at 1,735 cents in 2013 compared to 1,615 cents in 2012.

“The increased earnings were achieved despite extremely challenging global macroeconomic conditions that have adversely affected US Dollar commodity prices. The improved results were largely as a result of increased sales volumes, increasing focus on cost control and the weakening of the rand against the US dollar,” [DATA ARI:African Rainbow Minerals] (ARM) had said.

“The significantly improved contribution from the Nkomati mine of R232 million positively impacted on ARM’s headline earnings.”

ARM mines and beneficiates iron ore, manganese ore and alloys, chrome ore and alloys, platinum group metals, copper, nickel and coal. It also has an investment in gold through its shareholding in Harmony Gold.

The group reported a 71 per cent increase in nickel sales from 12.6 thousand tonnes to 21.6 thousand tonne, and a 9 per cent increase in iron ore sales from 14.8 million tonnes to 16.1 million tonnes.

ARM’s revenue increased from 18.1 billion rand in 2012 to 20.5 billion rand in 2013 and other operating income increased from 859 million rand to 960 million rand.

Sales for the year increased by 13.1 per cent from 17.5 billion rand in 2012 to 19.8 billion rand in 2013 and the board declared an increased annual dividend of 5.10 rand per share after the year-end.

The diversified mining and minerals company did however report that profit before tax decreased from 5.2 billion rand in 2012 to 2.9 billion rand in 2013.     

“ARM’s operational strategy in a flat commodity price environment remains focused on operational efficiencies, with a target to have all its operations positioned below the 50th percentile of each commodity’s respective global cost curve,” the group had said.

“Capital allocation is aimed at achieving quality growth. ARM will continue to consider quality acquisitions as part of its allocation strategy. ARM remains financially robust and its positive cash flow enables ARM to invest in growth and pay dividends.”