ARM to spend R10bn to 2014, FY earnings surge
By: Loni Prinsloo
31st August 2011
JOHANNESBURG (miningweekly.com) − Diversified miner African Rainbow Minerals (ARM) saw a surge in earnings during its 2011 financial year and said that it intended to spend R10-billion up to 2014 to ensure further growth.
The miner, which has an interest in iron-ore, platinum, coal, chrome, manganese and nickel, reported a 94% increase in headline earnings to R3.32-billion, or 1 559c a share, compared with headline earnings of R1.71-billion, or 807c a share, the previous year.
Cash generated from its operation increased to R5.9-billion from R3.9-billion the previous year and the company reported a robust balance sheet of R2.59-billion, excluding its partner loans.
Chairperson Patrice Motsepe said that the company would continue with an aggressive growth strategy, which would largely be funded through its operational cash flow and existing funding sources.
Over the past three years, ARM had spent R9.5-billion on capital expenditure and Motsepe said that the company was confident about the long-term future of the minerals that the group mines.
During its 2011 financial year, ARM completed its Khumani iron-ore expansion project, its Nkomati nickel mine expansion and ramped up the Goedgevonden coal mine to full production.
It said that the Konkola North copper project in Zambia was progressing on budget and on schedule to produce first copper in December 2012.
“ARM has made structural changes to its exploration division to sharpen the company’s focus on identifying and assessing quality business opportunities in sub-Saharan Africa,” the company noted in a statement.
Its copper exploration assets under ARM Exploration, including a 30% shareholding in the Kalumines copper project and a 50% shareholding in the Lusaka and Kabwe project, would be moved into the ARM copper division.
The group would also explore for manganese, platinum-group metals, nickel and base metals in Mozambique to the cost of $7-million a year as per an agreement with Mozambican exploration company Rovuma Resources.
An experienced exploration team had been established that would be guided by Jan Steenkamp.
Starting September 1, Michael Schmidt would take over from Andre Wilkens as ARM CEO.
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