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JOHANNESBURG, FEB 27 – African Rainbow Minerals
, a South African diversified mining group, said on
Monday its earnings increased by 24 percent as sales volumes for
all of its key commodities rose.
Sales were 30 percent higher at 8.72 billion rand with
volume increases in iron ore, manganese ore, manganese alloys,
platinum group metals, nickel, chrome concentrate and thermal
coal, which is sold to power utility Eskom.
The company is targeting growth through the development of
its four major projects in iron ore, nickel, coal and copper.
Key among these is the ramp up of production of iron ore to 16
million tonnes per annum at the Khumani Mine in South Africa.
Nickel production at Nkomati is being increased to 20,500
tonnes per annum and the Goedgevonden Mine is moving towards 7.0
million tonnes per annum.
Copper output at the Konkola North Copper project in
Democratic Republic of Congo is forecast to be 45,000 tonnes per
annum at full production.
“We are making substantial progress with our growth
projects and are excited about government’s stated commitment to
allocate huge resources to upgrade rail, port and electricity
infrastructure,” said ARM Executive Chairman Patrice Motsepe.
ARM warned of above inflation increases particularly in
labour, electricity and diesel but it believes that commodity
prices will remain robust over the medium to long term.
Headline earnings per share were 912 cents for the six
months to end December from 734 cents a year ago.
Headline earnings are the main profit gauge in South Africa
and strip out certain one time items.
ARM’s share price is up around 11 percent in the year to
date, outpasing a 7.3 percent rise in the Johannesburg bourse’s
benchmark Top-40 index.
(Reporting by Sherilee Lakmidas. editing by Ed Stoddard)
