South African billionaire Patrice Motsepe’s ARM surpasses expectations with $280 million H1 2023 profit

African Rainbow Minerals (ARM), a South Africa-based diversified mining group led by Patrice Motsepe, has reported outstanding financial results for the first half of its 2023 fiscal year, as its earnings exceeded analysts’ expectations during the period under review.

According to its half-year financial statements, the leading mining group, which holds strategic positions in iron, coal, copper, gold, platinum, and other precious metal mining projects and was founded by Motsepe in 1997 as South Africa’s first Black-owned mining company, saw its earnings exceed the R5.1 billion ($280 million) mark during the half-year period.

Figures contained in the recently published financial statement reveal that its headline earnings, the primary profit measure in South Africa, rose by 40 percent from R3.69 billion ($203.1 million) in the first half of its 2022 fiscal year to R5.17 billion ($284 million) at the end of the first six months of its 2023 fiscal year.

This double-digit increase in the group’s earnings during the first six months of its 2023 fiscal year can be attributed to the surge in revenue from R7.7 billion ($423.8 million) to R9.37 billion ($515.7 million), thanks to higher coal and manganese prices in the global commodity market.

The leading miner, in which Motsepe holds a 40-percent ownership, reported that its coal division experienced a significant increase of 300 percent in headline earnings.

The surge can be attributed to higher thermal coal prices, which offset the impact of poor rail performance on export volumes.

While ARM reported a 54-percent increase in earnings from manganese, driven by firmer prices, its iron ore division recorded a 12 percent decline in headline earnings due to lower prices and a 15-percent drop in export sales, which the company attributed to rail logistics challenges.

The group’s impressive earnings have led to the declaration of a gross dividend of R14 ($0.77) per share for the six months ended Dec. 31, 2022. The dividend will be payable on Mon., April 3, 2023, to shareholders recorded in the company’s books at the close of business on Fri., March 31, 2023.