ARM blames rhodium and palladium for its underperformance

African Rainbow Minerals in its Trading Statement for the six months ended 31 December 2021 says headline earnings for 1H F2022 are expected to decrease by between 24% and 33% compared to the corresponding six months ended 31 December 2020 (1H F2021) to between R3 376 million and R3 830 million (1H F2021: R5 039 million).

Basic earnings for 1H F2022 are expected to decrease by between 17% and 26% to between R3 602 million and R4 040 million (1H F2021: R4 868 million) while basic earnings per share are expected to be between 1 849 cents and 2 074 cents (1H F2021: 2 499 cents).

The decline in 1H F2022 headline earnings was mainly as a result of:

  • A portion of the ARM Platinum receivables as at 30 June 2021 being realised at lower prices following the decline in rhodium and palladium prices in the first three months of the period under review, which resulted in negative mark-to-market adjustments;
  • A strengthening of the rand versus the US dollar exchange rate; and
  • Lower average realised US dollar iron ore and palladium prices.

The financial information on which the above trading update is based has not been reviewed or reported on by ARM’s external auditors. The Company’s 1H F2022 financial results will be released on 3 March 2022.

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