ARM platinum sector buffers manganese ore, coal decline

JOHANNESBURG – African Rainbow Minerals (ARM), chaired by billionaire Patrice Motsepe, said on Friday that its platinum division had helped cushion the company from the decline in manganese ore, manganese alloys and thermal coal prices during the six months to December 2019.

ARM, the diversified JSE-listed company, said that its platinum headline earnings soared by 193percent to R489million from R167m in the previous six months as both the Two Rivers and Modikwa mines doubled headline earnings compared to the corresponding period.

Average realised platinum, palladium and rhodium prices increased by 9percent, 58percent and 97percent, respectively.

However, headline earnings for the ferrous division fell by 13percent to R1.8billion in 2019 and as a result of lower seaborne thermal coal prices, the coal division recorded a headline loss R101m from headline earnings of R65m a year earlier.

ARM’s chief executive, Mike Schmidt, said that ARM’s financial position was robust and closed the half-year at a net cash position of R2.86bn at the end of December, from R2.9bn a year earlier, and R2.6bn at the end of June 2019.