ARM Platinum headline earnings increased by R3 524 million to R4 666 million in F2021 (F2020: R1 142 million), positively impacted by higher average realised US dollar PGM prices (particularly rhodium) coupled with a 3% increase in PGM production volumes (on 100% basis) as volumes recovered after Covid-19-related lockdowns at the end of F2020.
Headline earnings at Two Rivers Mine improved by 179% as the mine increased volumes by 15% and kept unit production costs flat year-on-year.
Modikwa Mine headline earnings were 96% higher as the benefit of higher PGM prices was partially offset by lower volumes and above-inflation unit production cost increases which were due to safety-related stoppages after the two fatal accidents and 12 days of industrial action in the first half of the financial year. Modikwa Mine production volumes and unit production costs improved in the second half of the financial year, a trend that is expected to continue as the mine ramps up production volumes.
Nkomati Mine reported attributable headline earnings of R165 million for F2021 (F2020: R704 million headline loss). Scaling down is complete and the mine is now under care and maintenance as planned and previously communicated.
ARM Coal reported an attributable headline loss of R250 million (F2020: R2 million) which included re-measurement gains of R242 million (F2020: R485 million) on partner loans. Excluding these gains, the ARM Coal headline loss was R492 million (F2020: R487 million), mainly due to lower coal sales volumes (owing to underperformance from Transnet Freight Rail) and above-inflation unit cost increases which was partially offset by higher average received coal prices.