ARM leans on PGMs as coal, iron ore disappoint

AFRICAN Rainbow Minerals (ARM) benefited from a sharp recovery in its platinum business in its 2026 financial year, helping offset a swing into losses at coal and a steep decline in iron ore earnings.Headline earnings increased 19% to R3.2bn for the year to end-June, from R2.7bn previously. ARM said the increase was primarily driven by higher dollar PGM basket prices, partially offset by lower average realised rand iron ore prices and lower local sales volumes at Beeshoek.The diversified miner, chaired now in a non-executive capacity by billionaire Patrice Motsepe, increased its final dividend to R7 a share from R6, taking the total dividend for the year to R12 a share from R10.50. Net cash improved by R3.6bn to R10.2bn.ARM also benefited from its investment in Harmony Gold. Dividends received from the gold miner more than doubled to R512m from R240m thanks to higher gold prices. Harmony’s headline earnings per share increased 87% during the year.Lift off for PGMsARM Platinum’s headline earnings increased to R1.35bn from a R1.29bn loss in the previous year, mainly due to stronger dollar PGM basket prices.Higher PGM prices drove a sharp improvement across ARM Platinum. Two Rivers’ headline earnings rose to R1.2bn from R202m as its average rand PGM basket price improved by 56%, while Modikwa swung to headline earnings of R683m from a R43m loss as its basket price increased by 54%.ARM’s 50% investment in Assmang was also an important contributor. ARM Ferrous, which comprises Assmang’s iron ore and manganese divisions, contributed headline earnings of R2.03bn, although this was 42% lower than the R3.47bn reported previously.The iron ore division’s headline earnings fell 41% to R1.88bn. The end of production at Beeshoek resulted in lower local sales volumes, while retrenchment costs, a higher rehabilitation provision and care and maintenance costs also weighed on earnings.ARM said iron ore market conditions were expected to remain weak, with softer prices and compressed high-grade premiums expected to weigh on SA exporters. It cited ample supply, elevated Chinese port stocks and broadly flat global demand.Coal swings into lossCoal was a further weak spot. ARM Coal reported a headline loss of R428m compared with earnings of R47m previously, mainly due to a decrease in the realised coal price and the stronger rand.Goedgevonden recorded a headline loss of R73m compared with earnings of R134m, while the Participative Coal Business reported a R355m headline loss, widening from R87m.ARM said the thermal coal market had undergone a “structural decline” despite some short-term resilience. It expects prices to remain subdued over the medium term due to weaker demand, robust supply and higher renewable energy output.The post ARM leans on PGMs as coal, iron ore disappoint appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com