African Rainbow Minerals reports 47% drop in headline earnings

AFRICAN Rainbow Minerals’ (ARM) share price plunged 7.3% on Friday after it reported a 47% decline in headline earnings for the year ended 30 June 2025 to R2.7 billion, or R13.79 a share.

- EDWARD WEST

On Friday afternoon, the share price was R175.28, reflecting an 11.4% increase over the past 12 months. Revenue for the year increased by 1% to R13.1 billion. The decline in headline earnings was ascribed mainly to lower average realised export US dollar iron ore prices and increased mechanised development costs at Bokoni.

A final dividend of R6 a share was declared, down from R9 per share last year. The total dividend for the 2025 financial year came to R10.50, compared to R15 per share in 2024.

Despite the lower dividend, directors stated they maintained a robust balance sheet, with R6.61bn in cash compared to R7.2bn at the end of the 2024 year.

They noted that during the year, a marginal increase in the average US dollar platinum group metals (PGM) basket price and the marginally higher manganese ore and alloy prices were offset by lower thermal coal prices, lower export iron ore prices, and a stronger average rand/US dollar exchange rate.

Unit cash costs growth for PGMs and iron ore improved, increasing in line with inflationary cost increases.