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Trading statement in respect of the year ended 30 June 2016
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 ended 30 June 2016
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 financial year ended 30 June 2016
(F2016) were negatively affected by a decline in the average US
Dollar commodity prices realised for all the commodities which
ARM produces, partly offset by the positive impact of a weaker
average Rand/US Dollar exchange rate. Cost control initiatives
resulted in unit production costs at most operations being well
contained and in some instances being reduced in comparison to
the previous corresponding period (F2015).
The restructuring of the ARM Broad-Based Economic Empowerment
Trust (the Trust) was completed on 22 April 2016. As part of this
restructuring, the Trust (which previously owned 28.6 million ARM
shares) sold 12.7 million ARM shares to a wholly-owned subsidiary
of ARM. Following completion of this transaction, the number of
shares used in any calculation of “per share” information will
exclude both the ARM shares held by the wholly-owned subsidiary
and those owned by the Trust. As this change was effective from
22 April 2016 it only proportionately impacts F2016 weighted
average number of shares in issue. The weighted average number of
shares in issue at 30 June 2016 used in the calculation of per
share information included in this trading statement is therefore
212 990 000 shares (F2015: 217 232 000 shares).
Accordingly, ARM announces that headline earnings per share for
F2016 are expected to decrease by between 36% and 41% compared to
F2015 to between 475 cents and 510 cents (F2015: 803 cents).
ARM’s F2016 basic earnings were largely impacted by an
attributable impairment of the Lubambe Copper Mine assets of
R1 404 million after non-controlling interest as reported in the
results for the six months ended 31 December 2015. Basic earnings
per share are therefore expected to decline to a basic loss per
share of between 255 cents and 275 cents (F2015: 48 cents
profit).
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 F2016 provisional financial results will be
released on 8 September 2016.
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
19 August 2016
Sponsor: Deutsche Securities (SA) Proprietary Limited
Date: 19/08/2016 03:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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