Miningweb: ARM weathers iron ore and coal pain with manganese gains, solar projects, and cash resilience

Key topics:Headline earnings fall to R2.7bn; dividend cut to R10.50 per shareBokoni Mine losses deepen, but manganese earnings surge 120%Safety setbacks and three fatalities overshadow year; solar project completed for platinum minesSign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.Support South Africa’s bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..BizNews Reporter.African Rainbow Minerals (ARM) has released its results for the financial year ended 30 June 2025, showing a steep 47% drop in headline earnings. The group reported R2.7 billion (R13.79 per share), down from R5.1 billion (R25.91 per share) the previous year. The fall was mainly due to weaker iron ore prices and higher costs at the Bokoni Mine.Despite the earnings slump, group revenue edged up slightly, 1% higher at R13 billion compared to R12.9 billion in 2024. ARM remains financially stable, holding net cash of R6.6 billion, though this was down from R7.2 billion a year earlier. Cash generated from operations fell sharply to R45 million, largely due to increased working capital requirements.Dividend declaredIn line with lower profits, ARM cut its dividend. Shareholders will receive a final payout of R6.00 per share, bringing the total dividend for the year to R10.50 per share (around R1.25 billion in total). This compares with R15.00 per share in 2024.Mixed commodity pricesThe year was marked by a patchy commodities market. Platinum group metals (PGMs) saw a small uptick in prices, while manganese also strengthened. However, thermal coal and iron ore prices dropped. A stronger Rand (averaging R18.15 against the dollar, up 3%) further reduced export earnings.Divisional performanceFerrous division: Earnings fell 31% to R3.5 billion, largely due to a 36% drop in iron ore earnings. This was partly cushioned by a 120% surge in manganese earnings, driven by better prices and higher sales.Platinum division: Posted a loss of R1.3 billion, worse than the R910 million loss the previous year. The Bokoni Mine alone recorded a R1.4 billion loss as ramp-up costs and operational challenges mounted. By contrast, Two Rivers Mine improved earnings by 20% to R202 million.Coal division: Earnings collapsed 88% to just R47 million as coal prices and sales volumes weakened.Corporate and other (including gold): Delivered R558 million, supported by dividends from Harmony Gold and fees from joint venture Assmang.Overall, basic earnings were just R330 million (R1.69 per share), compared with R3.1 billion the previous year. This included large impairments of R2.4 billion, mostly linked to Bokoni.Safety and environmentThree worker fatalities at different operations overshadowed the year. ARM extended condolences to the families and said counselling was provided. Its safety record slipped slightly, with injury frequency rates worsening compared to 2024. Still, some operations achieved significant milestones, including Khumani and Beeshoek mines, each recording 6 million fatality-free shifts.On the environmental front, ARM completed a solar plant for its platinum operations in June 2025, with electricity supply expected from 2026. Water supply to Khumani Mine remained stable.Strategic movesTo conserve cash, ARM suspended early ounces mining at Bokoni and shifted focus to long-term capital development. The mine is targeting a phased ramp-up to 240,000 tonnes per month.Other strategic steps included:Hedging 24% of its Harmony Gold shares (18 million shares) to raise funding while keeping partial upside exposure.Repurchasing and cancelling over 16 million shares, reducing total issued shares to about 209 million.Through Assmang, closing the Cato Ridge Works plant, selling land assets worth R453 million, and disposing of its stake in Sakura Ferroalloys, which resulted in a R900 million cash inflow for ARM.Increasing its stake in Canadian junior miner Surge Copper to nearly 20%, with a feasibility study expected in 2026.OutlookARM enters the new financial year facing a challenging market but with a strong balance sheet and several strategic initiatives underway. Management emphasised continued focus on cost control, operational efficiency, and long-term growth projects.

Miningweb: ARM weathers iron ore and coal pain with manganese gains, solar projects, and cash resilience

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