ARM doubles earnings due to higher iron ore and PGM prices

African Rainbow Minerals in its trading Statement for the six months ended 31 December 2020 says headline earnings for 1H F2021 are expected to increase by between 129% and 138% compared to R2 155 million in the corresponding six months ended 31 December 2019 (1H F2020) to between R4 935 million and R5 129 million.

The increased earnings were underpinned by higher iron ore and platinum group metals (PGM) prices coupled with an increase in export iron ore sales volumes. Headline earnings per share are expected to be between 2 529 cents and 2 640 cents (1H F2020: 1 114 cents).

Basic earnings for 1H F2021 are expected to increase by between 123% and 133% to between R4 754 million and R4 968 million (1H F2020: R2 132 million). The 1H F2021 basic earnings per share are expected to be between 2 446 and 2 546 cents (1H F2020: 1 102 cents).