ARM Coal profits driven by increased export thermal coal prices

Significantly higher export coal prices drove a R1 178 million increase in ARM Coal headline earnings to R928 million (F2021: R250 million headline loss). ARM Coal loans owing to Glencore Operations South Africa (GOSA) were fully settled following a significant increase in operating profits at the ARM Coal operations.

ARM Coal reported headline earnings of R928 million (F2021 headline loss: R250 million).

These included a re-measurement loss of R1 256 million (F2021 re-measurement gain: R242 million) which came about as a result of accelerated repayment of the loans owing to Glencore.

Adjusted headline earnings for the ARM Coal division were R2 676 million higher at R2 184 million (F2021: R8 million adjusted headline loss) driven by increased export thermal coal prices, which were partially offset by lower sales volumes due mainly to Transnet Freight Rail (TFR) logistics challenges.

Given the significant acceleration in loan repayment of the ARM Coal loans to Glencore, a R766 million re-measurement loss is included in the GGV headline earnings. GGV Mine adjusted headline earnings, which exclude these re-measurement losses, were R761 million (F2021: R196 million adjusted headline loss).