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AFRICAN RAINBOW MINERALS LIMITED - Trading statement in respect of the year ending 30 June 2015

Release Date: 12/06/2015 16:09
Code(s): ARI     PDF:  
Wrap Text
Trading statement in respect of the year ending 30 June 2015

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”)


Trading statement in respect of the year ending 30 June 2015


In terms of paragraph 3.4(b) of the Listings Requirements of
the JSE Limited, a listed company is required to publish a
trading statement as soon as it is satisfied that a
reasonable degree of certainty exists that the financial
results for the period to be reported on next will differ by
at least 20% from those of the previous corresponding
period.


ARM’s headline earnings for the year ending 30 June 2015 are
currently anticipated to be at least 45% (R1 849 million)
less than those for the same period in the previous
financial year.


Headline earnings per share are anticipated to be at least
45% (855 cents) less than those for the same period in the
previous financial year.



Headline earnings reported for the year ended 30 June 2014
were R4 108 million, while headline earnings per share were
1 900 cents.


The decrease in headline earnings is largely due to the
decline in US Dollar commodity prices compared to those
achieved in the previous comparable period, especially for
iron ore. The lower US Dollar prices are partially offset by
a weaker Rand/ US Dollar exchange rate during the period.


ARM’s basic earnings are currently expected to be negatively
impacted by:
     (i)     an unrealised mark-to-market loss on the
             Harmony Gold Mining Company Limited (“Harmony”)
             investment due to a decline in the Harmony
             share price below the level reported as at 31
             December 2014 of R21.61 per share, below which
             further mark-to-market adjustments through the
             income statement would be required; and
       (ii)    the impairment of an operating furnace at
               Machadodorp Works as reported for the six
               months ended 31 December 2014.


Basic earnings reported for the year ended 30 June 2014 were
R3 289 million, while basic earnings per share were 1 521
cents. Accordingly, ARM announces that basic earnings for
the year ending 30 June 2015 are anticipated to be at least
55% (R1 809 million) less than those for the same period in
the previous financial year. Basic earnings per share are
anticipated to be at least 55% (837 cents) less than those
for the same period in the previous financial year.

Shareholders are advised that a further trading statement
will be issued as soon as there is a reasonable degree of
certainty as to the likely range within 20%, by which the
Company’s headline earnings per share and basic earnings per
share are expected to decrease.


The financial information on which this trading statement is
based has neither been reviewed nor reported on by the
external auditors of ARM.


The Company’s provisional    results   will   be   released   in
September 2015.


ENDS


For all investor relations queries please contact:


Jongisa Magagula
Corporate Development and Head of Investor Relations
Tel:      +27 11 779 1300
E-mail:   jongisa.magagula@arm.co.za


Johannesburg
12 June 2015

Sponsor: Deutsche Securities (SA) Proprietary Limited

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