South African diversified miner African Rainbow Minerals (ARM; JSE: ARI) said yesterday that its headline earnings in FY23 (fiscal year ended 30 June 2023) decreased by 21% to R8,981 million (~$470 million) compared to FY22.
The company explained that the decline in FY23 headline earnings was mainly due to lower commodity prices, lower production and sales volumes largely due to logistics challenges, resulting in unit costs increasing by more than already elevated cost inflation.
“Iron ore, manganese ore and thermal coal volumes were negatively impacted by logistics challenges,” the company said in a press release.
ARM added that unit production costs “remained under pressure” due to lower production volumes and above-inflation increases in the costs of explosives, diesel, electricity, consumables, and maintenance costs.
The company also declared a final dividend of R12.00 per share for FY23 (FY22: R20.00 per share).
African Rainbow Minerals is a leading South African diversified mining and minerals company with operations in South Africa and Malaysia.
ARM mines and beneficiates iron ore, manganese ore, chrome ore, platinum group metals (PGMs), nickel and coal and also has a strategic investment in gold through Harmony Gold Mining.