African Rainbow Minerals ferrous headline earnings 31% lower

October 31, 2025October 28, 2025 admin PGM metals

African Rainbow Minerals provided a summary of the information in the condensed reviewed results for the financial year.

Financial salient features:

Headline earnings for the year ended 30 June 2025 (F2025) decreased by 47% to R2 695 million or R13.79 per share (F2024: R5 080 million or R25.91 per share)
Revenue for the year ended 30 June 2025 increased by 1% to R13 027 million(F2024: R12 921 million)
ARM maintained a robust financial position, with net cash of R6 609 million at 30 June 2025 (30 June 2024: R7 197 million).

Operational:

The marginal increase in the average US dollar 6E platinum group metals (PGM) basket price and the marginally higher manganese ore and alloy prices was offset by lower thermal coal prices, lower average realised export iron ore prices and a stronger average rand/US dollar exchange rate
Unit cash costs growth for PGMs and iron ore improved, increasing in line with inflationary cost increases.

Growth:

To limit expenditure, a decision was taken to suspend early ounces mining operations at Bokoni at the end of F2025. We are now advancing capital development of the larger mine in a way that ensures its long-term sustainability. We remain confident in our approach to unlock value from Bokoni’s exceptional resource base while exercising strict capital discipline considering the ongoing PGM price uncertainty
Implementation of a hedging collar transaction over 24% of ARM’s equity in Harmony
Closure of Cato Ridge Works and Alloys, disposal of certain land assets of Assmang and Assmang’s interest in Sakura
ARM has increased its stake in Surge Copper Corp to 19.9% through a private placement and earlier top-up purchase, strengthening its position as Surge advances its pre-feasibility study scheduled for completion in 2026.

ARM Ferrous headline earnings were 31% lower at R3 472 million (F2024: R5 058 million), driven by a 36% decrease in headline earnings in the iron ore division. This was partially offset by a 120% increase in headline earnings in the manganese division.

Lower headline earnings in iron ore division were mainly driven by a decrease in the average realised export US dollar iron ore prices, lower local sales volumes as well as the stronger Rand/US dollar exchange rate.

Higher headline earnings in the manganese division were driven by an increase in manganese ore sales volumes and average manganese ore sales prices.

ARM Platinum reported a headline loss of R1.3 billion (F2024: R910 million loss), largely due to higher operational losses at Bokoni.

Two Rivers Mine headline earnings increased by 20% to R202 million (F2024: R168 million), mainly due to a 2% improvement in the average PGM rand basket price. The mine’s production decreased marginally, while unit cash costs (rand per 6E PGM ounce) increased by 5%.

Modikwa Mine reported a headline loss of R43 million (F2024: R121 million loss). The mine’s production decreased by 3%, while unit cash cost (rand per 6E PGM ounce) increased by 3%.

Bokoni Mine reported a headline loss of R1.4 billion (F2024: R566 million). In the current year Bokoni ramped up its operations, however, it was negatively impacted by operational challenges, high fixed costs associated with the early ounce production and increased mechanised development costs.

Nkomati Mine reported an attributable headline loss of R55 million (F2024: R391 million). The headline loss decreased due to the F2024 headline loss being negatively impacted by an increase in rehabilitation liabilities relating to water management costs.

ARM Coal headline earnings decreased by 88% to R47 million (F2024: R391 million), driven mainly by a reduction in the realised coal price as well as lower saleable volumes from GGV and PCB.

GGV Mine’s headline earnings were R134 million (F2024: R331 million). PCB recorded a headline loss of R87 million (F2024: R60 million headline earnings).

ARM Corporate and Other (including Gold) reported headline earnings of R558 million (F2024: R762 million). Included in ARM Corporate and Other are dividends received from Harmony of R240 million (F2024: R166 million) and management fees received from Assmang of R1 366 million (F2024: R1 503 million).

Machadodorp Works headline loss of R94 million (F2024: R221 million) related to research on developing energy-efficient smelting technology.