Wrap Text
Condensed Reviewed Results for the financial year ended 30 June 2025 and Cash Dividend Declaration
African Rainbow Minerals Limited
(Incorporated in the Republic of South Africa)
(Registration number 1933/004580/06)
JSE Share code: ARI
ISIN: ZAE000054045
("ARM" or the "Company")
CONDENSED REVIEWED RESULTS FOR THE FINANCIAL YEAR ENDED 30 JUNE
2025 AND FINAL CASH DIVIDEND DECLARATION
This short form announcement is the responsibility of the board of
directors of ARM (the "Board") who acknowledge their responsibility
to ensure the integrity of the condensed group financial results.
The details contained in this announcement are only a summary of
the information in the condensed reviewed results for the financial
year ended 30 June ("full announcement") and do not contain full
details of the Company's financial performance and position or other
relevant information about the business for the financial year under
review. Any investment decisions by investors and/or shareholders
should therefore be based on the full announcement published on the
Company's website at www.arm.co.za and which is available on the
following link:
https://senspdf.jse.co.za/documents/2025/jse/isse/ARIM/FY2025.pdf
The full announcement is also available for inspection free of charge
during business hours (excluding weekends and public holidays) from
Friday, 05 September 2025 at the registered office of ARM at ARM
House, 29 Impala Road, Chislehurston, Johannesburg. In addition,
copies of the full announcement may be requested by emailing the
Company's investor relations department on thabang.thlaku@arm.co.za
Salient features
Financial:
- Headline earnings for the year ended 30 June 2025 (F2025)
decreased by 47% to R2 695 million or R13.79 per share (F2024:
R5 080 million or R25.91 per share)
- Revenue for the year ended 30 June 2025 increased by 1% to
R13 027 million(F2024: R12 921 million)
- A final dividend of R6.00 per share is declared (F2024: R9.00
per share), this brings the total dividend for F2025 to
R10.50 per share (F2024: R15.00 per share)
- ARM maintained a robust financial position, with net cash of
R6 609 million at 30 June 2025 (30 June 2024: R7 197 million).
Operational:
- The marginal increase in the average US dollar 6E platinum
group metals (PGM) basket price and the marginally higher
manganese ore and alloy prices was offset by lower thermal coal
prices, lower average realised 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.
Safety and Health:
- Regrettably, there were three fatalities recorded at our
operations during the period. We extend our deepest condolences
to the deceased employees' families, friends and colleagues
- The group's lost-time injury frequency rate(LTIFR) regressed to
0.31 per 200 000 man-hours (F2024: 0.22)
- The group total recordable injury frequency rate (TRIFR)
regressed to 0.51 (F2024: 0.50).
Environmental:
- Water supply to Khumani Mine remained consistent during the
second half of the year with no significant operational
disruptions caused by water shortages
- As at the end of June 2025, construction of the solar plant for
ARM's platinum operations reached completion. Electricity from
this plant will be supplied to the mining operations through a
Power Purchase Agreement (PPA) by Q2 F2026.
Growth:
- To limit expenditure, a decision was taken to suspend early
ounces mining operations at Bokoni at the end of F2025. We are
now advancing capital development of the larger mine in a way
that ensures its long-term sustainability. We remain confident
in our approach to unlock value from Bokoni's exceptional
resource base while exercising strict capital discipline
considering the ongoing PGM price uncertainty
- Implementation of a hedging collar transaction over 24% of ARM's
equity in Harmony
- Delisting of ordinary shares following a share buyback and
transfer of ARM treasury shares within the group
- Closure of Cato Ridge Works and Alloys, disposal of certain
land assets of Assmang and Assmang's interest in Sakura
- ARM has increased its stake in Surge Copper Corp to 19.9%
through a private placement and earlier top-up purchase,
strengthening its position as Surge advances its pre-
feasibility study scheduled for completion in 2026.
Safety performance
ARM remains committed to ensuring a safe and healthy work environment
for all employees and to achieve our goal of zero harm. TRIFR(1)
regressed by 2% to 0.51 (F2024: 0.50) and the group LTIFR regressed
by 41% to 0.31 per 200 000 man-hours (F2024: 0.22).
Regrettably, there were 3 fatalities recorded in F2025 (F2024:1).
On the 29th of November 2024, Mr Tshepo Tebelo was fatally injured in
a winch-related incident at Modikwa Mine.
On the 27th of December 2024, Mr William Kodibona succumbed to injuries
related to an underground rigging accident at Bokoni Mine.
On the 18th of April 2025, Mr Stanley Kgotlayame Mongale, was fatally
injured in a fall of ground (FOG) incident at Black Rock Mine.
We extend our deepest condolences to the affected family members,
friends and colleagues of the deceased.
Support and counselling were provided to all affected families and
colleagues of the deceased through the employee assistance programme.
Independent root cause investigations were undertaken.
Continuous efforts are in place to strengthen safety measures and
improve overall safety performance.
Safety achievements in F2025 included:
- Two Rivers Platinum Mine achieved 3 million fatality-free shifts
over ~2 years.
- Khumani Mine achieved 6 million fatality-free shifts over ~9
years.
- Beeshoek Mine achieved 6 million fatality-free shifts over ~22
years.
(1) TRIFR includes the number of fatal injuries, the number of lost-time
injuries, and the number of medical treatment cases.
Financial performance
Headline earnings for F2025 decreased by 47% to R2 695 million or
R13.79 per share (F2024: R5 080 million or R25.91 per share). The
decline in headline earnings was mainly due to a decrease in the
average realised export US dollar iron ore prices and increased
mechanised development costs at Bokoni.
The average realised rand strengthened by 3% versus the US dollar to
R18.15/US$ compared to R18.70/US$ in F2024. For reporting purposes,
the closing exchange rate at 30 June 2025 was R17.77/US$ (30 June
2024: R18.25/US$).
ARM Ferrous headline earnings were 31% lower at R3 472 million
(F2024: R5 058 million), driven by a 36% decrease in headline
earnings in the iron ore division. This was partially offset by a
120% increase in headline earnings in the manganese division.
Lower headline earnings in iron ore division were mainly driven by
a decrease in the average realised export US dollar iron ore prices,
lower local sales volumes as well as the stronger Rand/US dollar
exchange rate.
Higher headline earnings in the manganese division were driven by
an increase in manganese ore sales volumes and average manganese
ore sales prices.
ARM Platinum reported a headline loss of R1.3 billion (F2024:
R910 million loss), largely due to higher operational losses at Bokoni.
Two Rivers Mine headline earnings increased by 20% to R202 million
(F2024: R168 million), mainly due to a 2% improvement in the average
PGM rand basket price. The mine's production decreased marginally,
while unit cash costs (rand per 6E PGM ounce) increased by 5%.
Modikwa Mine reported a headline loss of R43 million (F2024: R121
million loss). The mine's production decreased by 3%, while unit
cash cost (rand per 6E PGM ounce) increased by 3%.
Bokoni Mine reported a headline loss of R1.4 billion (F2024:
R566 million). In the current year Bokoni ramped up its operations,
however, it was negatively impacted by operational challenges, high
fixed costs associated with the early ounce production and increased
mechanised development costs.
For more detail and a table showing the mark-to-market adjustments
at Two Rivers, Modikwa and Bokoni mines, refer to page 14 of the
full announcement.
Nkomati Mine reported an attributable headline loss of R55 million
(F2024: R391 million). The headline loss decreased due to the F2024
headline loss being negatively impacted by an increase in
rehabilitation liabilities relating to water management costs.
ARM Coal headline earnings decreased by 88% to R47 million (F2024:
R391 million), driven mainly by a reduction in the realised coal
price as well as lower saleable volumes from GGV and PCB.
GGV Mine's headline earnings were R134 million (F2024: R331
million). PCB recorded a headline loss of R87 million (F2024:
R60 million headline earnings).
Refer to pages 19 and 20 of the full announcement for a detailed
analysis of the GGV and PCB operational profit performance.
ARM Corporate and Other (including Gold) reported headline earnings
of R558 million (F2024: R762 million). Included in ARM Corporate
and Other are dividends received from Harmony of R240 million (F2024:
R166 million) and management fees received from Assmang of
R1 366 million (F2024: R1 503 million).
Machadodorp Works headline loss of R94 million (F2024: R221 million)
related to research on developing energy-efficient smelting
technology.
Basic earnings and impairments
Basic earnings of R330 million or R1.69 per share (F2024: R3 146
million or R16.04 per share) included attributable impairments as
follows:
An impairment of property, plant and equipment at Bokoni of
R2 209 million, with no tax effect
An impairment of property, plant and equipment at Assmang of
R139 million, after tax
An impairment of the investment in Sakura of R36 million, with no
tax effect.
Refer to note 4 of the condensed group financial statements in the
full announcement for further details on these impairments.
Financial position and cash flow
At 30 June 2025, ARM had net cash of R6 609 million (30 June 2024:
R7 197 million), a decrease of R588 million compared to the end of the
2024 financial year. This amount excludes attributable cash and cash
equivalents held at ARM Ferrous (50% of Assmang) of R3 568 million
(30 June 2024: R4 476 million). There was no debt at ARM Ferrous in either
of the reporting periods.
Cash generated from operations decreased by R1 726 million to R45
million (F2024: R1 771 million) after an outflow in working capital
of R1 214 million (F2024: R130 million outflow). This was mainly due
to an outflow in trade payables and reduction in receivables inflow.
In F2025, ARM paid R2 644 million in dividends to its shareholders,
representing the interim dividend of R4.50 and final dividend of
R9.00 per share declared for F2024 (F2024: R3 529 million
representing the interim dividend of R6.00 and F2023 final dividend
of R12.00 per share).
Net cash outflow from investing activities was R2 433 million
(F2024: R6 556 million) and included R2 658 million (F2024:
R6 292 million) additions to property, plant and equipment.
Borrowings of R62 million (F2024: R62 million) were repaid and
borrowings of R925 million were raised during the period, resulting
in gross debt of R2 035 million at 30 June 2024 (30 June 2024:
R1 129 million).
Investing in growth and the existing business
Implementation of a hedging collar transaction over 24% of ARM's equity
in Harmony
ARM implemented a hedging collar transaction involving 18 million
shares in Harmony Gold, representing 24% of its equity in Harmony, the
collar and related arrangements provides ARM with access to future
funding on efficient terms while retaining partial upside exposure.
The structure includes a put option at R234.85 and a call option at
R562.40, both maturing in June 2030.
ARM remains fully committed to Harmony as a strategic investment and
remains confident in Harmony and its management's ability to drive
growth and value for its shareholders.
Please refer to the announcement released on the Stock Exchange News
Service (SENS) on 11 June 2025 for further details.
Delisting of ordinary shares pursuant to a general repurchase and
intra-group distribution of ARM treasury shares
ARM, in accordance with the general authority granted by shareholders
at the Company's annual general meeting held on 6 December 2024, has
cumulatively repurchased and cancelled 3 239 681 ordinary shares, at
an average price of R154.27 per share, totalling approximately
R499.8 million. Additionally, ARM's subsidiary, Opilac, distributed
12 717 328 treasury shares in specie back to ARM, which were cancelled and
delisted. These actions reduced the total issued share capital to
208 710 769 ordinary shares. The cancellation of the treasury shares has
no impact on the earnings per share and headline earnings per share
of ARM.
Please refer to the announcement released on SENS on 20 June 2025 for
further details.
Closure of Cato Ridge Works and Alloys, disposal of certain land assets
of Assmang and Assmang's interest in Sakura
ARM has announced a series of strategic transactions involving its 50%
held joint venture, Assmang. These include the permanent closure of
the Cato Ridge Works plant, effective 31 August 2025. Assmang will
also sell various land, properties, and houses in Cato Ridge to Assore
S.A. PropCo Proprietary Limited for R453 million, with part of the
land designated for community benefit. Additionally, Assmang will
dispose of its 54.36% stake in Sakura Ferroalloys to Assore, resulting
in a R900 million cash distribution to ARM.
Please refer to the announcement released on SENS on 30 June 2025 for
further details.
Surge Copper
ARM has entered into a subscription agreement to acquire 25.8 million
common shares of Surge Copper Corp. through a non-brokered private
placement for a total consideration of approximately C$4.5 million.
This follows ARM's earlier exercise of its rights under an investor
rights agreement, where it purchased 1.6 million shares for C$0.24
million in a top-up offering. Prior to these transactions, ARM held
43.0 million shares (13.4% of Surge's issued shares), and upon
completion of the private placement, its shareholding will increase
to 68.7 million shares, representing 19.9% of the company on a non-
diluted basis. Surge Copper has made strong progress on the pre-
feasibility study, which remains on track for completion in 2026.
Please refer to the announcement released on SENS on 15 August 2025
for further details.
Bokoni Mine
Operations at Bokoni were suspended at the end of F2025, with current
mining and milling capacity proving insufficient to offset fixed costs
and sustain profitability. Ore reserve development is advancing to
support a phased ramp-up to 240 thousand tonnes per month (ktpm)
production rate, regarded as the optimum throughput to unlock
economies of scale and deliver sustainable returns.
This strategy is anchored by Bokoni's large, high-grade Mineral
Resource, which positions the mine competitively on the cost curve at
steady state production. To accelerate cash generation and reduce
funding needs, the existing 60ktpm concentrator will be restarted
ahead of the new 120ktpm plant, with timing carefully sequenced to ore
availability and ramp-up milestones.
We remain confident that this strategy is the right approach to unlock
value from Bokoni's exceptional resource base while exercising strict
capital discipline, considering ongoing commodity price uncertainty.
Capital expenditure for the divisions is shown on page 9 of the full
announcement and discussed in each division's operational
performance section from page 10 of the full announcement.
Dividend declaration
ARM aims to pay ordinary dividends to shareholders in line with our
dividend guiding principles. Dividends are at the discretion of the
board of directors, which considers the company's capital allocation
guiding principles and other relevant factors such as financial
performance, commodities outlook, investment opportunities, gearing
levels as well as solvency and liquidity requirements of the
Companies Act.
For F2025, the board approved and declared a final dividend of
600 cents per share (gross) (F2024: 900 cents per share). The amount to
be paid is approximately R1 252 million.
The dividend declared will be subject to dividend withholding tax.
In line with paragraphs 11.17(a)(i) to (x) and 11.17(c) of the JSE
Listings Requirements, the following additional information is
disclosed:
- The dividend has been declared out of income reserves
- The South African dividends tax rate is 20%
- The gross local dividend is 600 cents per ordinary share for
shareholders exempt from dividends tax
- The net local dividend is 480.00000 cents per share for
shareholders liable to pay dividends tax
- At the date of this declaration, ARM has 208 710 769 ordinary
shares in issue
- ARM's income tax reference number is 9030/018/60/1.
A gross dividend of 600 cents per ordinary share, being the dividend
for the year ended 30 June 2025, has been declared payable on Monday,
6 October 2025 to those shareholders recorded in the books of the
company at the close of business on Friday, 3 October 2025. The
dividend is declared in the currency of South Africa. Any change in
address or dividend instruction applying to this dividend must be
received by the company's transfer secretaries or registrar no later
than Friday, 3 October 2025. The last day to trade ordinary shares
cum dividend is Tuesday, 30 September 2025. Ordinary shares trade
ex-dividend from Wednesday, 1 October 2025. The record date is
Friday, 3 October 2025 while the payment date is Monday, 6 October
2025.
No dematerialisation or rematerialisation of share certificates may
occur between Wednesday, 1 October 2025 and Friday, 3 October 2025,
both dates inclusive, nor may any transfers between registers take
place during this period.
Review by independent auditor
The condensed group financial statements set out on pages 30 to 59
of the full announcement for the financial year ended 30 June 2025
have been reviewed by the Company's registered auditor, KPMG Inc.
(the partner in charge is Safeera Loonat CA(SA)) who expressed an
unmodified conclusion on these results. The full review report can
be found on page 27 of the full announcement and on www.arm.co.za.
ENDS
For all investor relations queries please contact:
Ms Thabang Thlaku
Executive: Investor Relations and New Business Development
Tel: +27 11 779 1300
E-mail: thabang.thlaku@arm.co.za
Johannesburg
5 September 2025
Sponsor: Investec Bank Limited
Date: 05-09-2025 07:05:00
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