African Rainbow Minerals annual profit drops 13% on higher costs

African Rainbow Minerals posted a 13% drop in its full-year profit on Thursday, hurt by lower iron ore and platinum group metal (PGM) prices and higher mining costs.

The company’s headline earnings per share (HEPS) – the most common profit measure in South Africa – fell to R57.87 for the year ended June 30 from R66.88 last year.

The diversified miner said its iron ore division was negatively impacted by lower average realised US dollar prices, lower sales volumes and higher freight rates.

Platinum group metal prices also came off record highs seen during the first part of 2021.

The decline in iron ore and PGM earnings was partially offset by high coal and manganese prices, ARM said.

Costs rose across the company’s operations, driven by increases in the prices of diesel, freight, explosives and other goods.

ARM declared a final dividend of R20 per share, bringing the total to R32 per share for the year.

Read the Sens here.

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