ARM incurred various impairments for the period under review, including a R1.07-billion impairment of property, plant and equipment at Two Rivers
Diversified miner African Rainbow Minerals (ARM) says it expects its headline earnings for the six months ended December 31 to have decreased by between 40% and 50% year-on-year to between R2.59-billion and R3.10-billion.
Headline earnings per share (HEPS) are expected to be between R13.19 and R15.83.
The decrease in headline earnings and HEPS was primarily owing to a 43% decline in average dollar platinum, palladium, rhodium, iridium, ruthenium and gold (6E) platinum group metals basket prices, as well as lower thermal coal prices.
This was partially offset by a weaker average rand:dollar exchange rate and higher average realised export iron-ore prices.
Further, basic earnings for the six-month period are expected to decrease by between 70% and 80% to between R878-million and R1.32-billion, while basic earnings a share are expected to be between R4.48 and R6.71.
ARM incurred various impairments for the period under review, including a R1.07-billion impairment of property, plant and equipment at Two Rivers; a R376-million impairment of property, plant and equipment at the Modikwa platinum mine; a R288-million impairment of property, plant and equipment at the Beeshoek iron-ore mine; and a R5-million impairment of property, plant and equipment at Cato Ridge ferromanganese works.
ARM’s financial results for the six-month period will be released on March 8.