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Reviewed interim results for the six months ended 31 December 2005

20 February 2006

African Rainbow Minerals Limited (“ARM”) (JSE : “ARI” LSE : “AGM”) today announced its interim results for the six months ended 31 December 2005. The company reported an increase in headline earnings from R19 million for the six months to 31 December 2004, to R131 million for the current reporting period. Earnings were positively affected by improved results from Modikwa and not including ARM’s share of the Harmony results (now accounted for as an investment). ARM’s results were, however, negatively affected by both the participation in only 50% of Nkomati’s earnings, following the disposal of 50% to LionOre as well as lower earnings from Assmang.

ARM Platinum benefited from strong PGM prices with Modikwa Platinum Mine reporting a significant increase in cash operating profits to R70 million at 50% ownership (2004: R8 million). Modikwa, which remains in a buildup phase, has made significant progress in changing the mining method from down dip mining with reef drives to breast (strike) mining with footwall drives. Production capacity has been increased through the improved development rate and the mine is expected to reach design capacity during the next reporting period.

Assmang Limited (“Assmang”) reported a 22% decrease in headline earnings to R275 million. The decrease in earnings for Assmang can be primarily attributed to decreases in sales volumes of manganese ore and charge chrome and a substantial price decrease for manganese alloys as a result of negative market conditions over the reporting period. ARM’s net debt to equity ratio remains at a comfortable 16% with net debt of R1.5 billion.

During the year, the company continued implementing its growth strategy through the release of the Two Rivers Platinum Project and the 8.4 million ton per annum export iron ore mine on its Bruce, King and Mokaning properties, situated in the Northern Cape Province.

ARM also successfully completed the Dwarsrivier underground chrome mine situated in Mpumalanga, ahead of schedule and below budget.

ARM also announced today that Nkomati Nickel will increase monthly production from 30 000 tons per month to 100 000 tons per month, maintaining current nickel production levels of 5 000 nickel tons per annum. The new concentrator and related mine infrastructure, which will be at a capital cost of R384 million, will form part of the final expansion project which is under review.

ARM Chief Executive Officer André Wilkens commented that, “The results further demonstrate the continued benefit of having a diversified commodity portfolio. Having made good progress in the release and development of our various projects, the company is well positioned to meet its growth strategy of doubling production in key commodities by year 2010.”

For further details, contact

Pieter Rörich
Corporate Development
Tel: +27 11 779 1476
Mobile: +27(0)82 570 5064

Corné Bobbert
Corporate Development
Tel: +27 11 779 1478
Mobile: +27(0)83 380 6614

Investor Relations

Jongisa Magagula
Head of Investor Relations and Corporate Development

Tel: +27 (0) 11 779 1300

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