ARM research to develop energy-efficient smelting technologies progressed

African Rainbow Minerals reports that its iron ore division was negatively impacted by lower average realised US dollar prices, lower sales volumes, higher freight rates and the stronger rand versus US dollar exchange rate. In addition, iron ore headline earnings included a R618 million (pre- tax) negative fair value adjustment on iron ore sales (F2021: R881 million positive adjustment), of which 45% is based on confirmed prices and 55% is based on forward prices.

ARM Ferrous headline earnings decreased by 16% to R6 682 million (F2021: R7 927 million) mainly as a result of lower iron ore prices.

Higher headline earnings in the manganese division were driven by an increase in the average realised US dollar manganese ore and manganese alloy prices, partially offset by higher freight rates and the stronger rand versus US dollar exchange rate.

Machadodorp Works reported a headline loss of R164 million (F2021: R107 million) as research into developing energy-efficient smelting technologies progressed.

Segmental capital expenditure for F2022 was R4 727 million (F2021: R4 105 million). This included attributable capitalised waste stripping at the iron ore operations of R650 million (F2021: R426 million).