The Gaza Post | The News of Palestine – Cape Town
African Rainbow Minerals (ARM) – chaired by billionaire Patrice Motsepe – has increased headline earnings 204% to R3 196 million, its provisional results for the year ended June 30 2017 show.
Headline earnings per share were 1 684 cents compared to 494 cents in the previous corresponding financial year.
The dividend declared increased by 189% to 650 cents per share. This is the highest dividend to date and is ARM’s eleventh consecutive annual dividend, the company said in a Sens statement released on Thursday.
Basic earnings were R1 372 million – compared to a basic loss of R565m in the 2016 financial year – and include an attributable impairment previously reported in the interim results for the six months ended 31 December 2016 of the Nkomati Mine assets of R711m after tax.
It also includes an attributable impairment previously reported regarding the Modikwa Mine assets of R734m after tax and an attributable partial impairment reversal of the Lubambe Mine assets of R144m.
ARM said higher dollar prices were realised for all the commodities in its portfolio and cost containment initiatives yielded good results.
ARM’s financial position has strengthened, it said. At 30 June 2017 ARM was in a net debt position of R1 271 million compared to net debt of R4 235 million at 30 June 2016.
ARM and Vale announced the disposal of their 80% interest in the Lubambe Mine for a purchase consideration of $97m. ARM’s interest in Two Rivers will increase to 54% on execution of the Two Rivers’s amended mining right which is imminent.
ARM and Glencore Operations SA are in discussions concerning the restructuring of the ARM Coal partner loans to improve ARM’s debt obligations in terms of these loans.
ARM said in its statement that it remains committed to creating and maintaining a safe and healthy work environment for all employees. There have been no fatalities at any of the ARM operations since May 2015, resulting in ARM being fatality-free for the past two financial years.
By noon ARM shares were up 0.95% at R113.06.
Source : fin 24