Mining tycoon Patrice Motsepe’s ARM records 136-percent growth in headline earnings

African Rainbow Minerals (ARM) has posted a 136-percent growth in headline earnings to a record R13 billion ($913.7 million) for its 2021 financial year, which ended on June 30.

As a result, the group announced that it will pay a final dividend of R20 ($1.40) per share, resulting in a total annual dividend of R30 ($2.10) per share, up 150 percent from R12 ($0.84) per share during the previous financial year.

ARM’s ferrous headline earnings were 77-percent higher, at R7.9 billion ($555.2 million), compared to R4.4 billion ($309.2 million) in 2020, driven by higher U.S. dollar iron ore prices and increased iron ore and manganese ore sales.

Segmental earnings before interest, taxes, depreciation and amortization increased by 121 percent to R24.3 billion ($17.1 million).

Following the growth, the company was reported as saying that it will spend R5.8 billion ($407.6 million) in the 2022 financial year and R6.1 billion ($428.7 million) and R5.4 billion ($379.5 million) in subsequent financial years, amounting to a total of R17.3 billion ($1.2 billion).

As it makes plans to grow output in platinum group metals, the company has further announced a 50-percent increase in capital expenditures for its 2022 financial year during the first of three years of heightened expenditures.

African Rainbow Minerals

ARM is a South Africa-based mining company established by billionaire mining tycoon Patrice Motsepe in 2003.

The diversified mining company has operations in South Africa and Malaysia, holding positions with key commodities, including iron ore, manganese ore, platinum group metals, nickel, thermal coal and manganese alloys.

ARM further holds a strategic investment in gold through its 12.4-percent stake in Harmony Gold Mining.