African Rainbow Minerals Reports 47% Earnings Decline Amid Platinum Losses

African Rainbow Minerals (ARM), controlled by billionaire Patrice Motsepe, reported a 47% decline in headline earnings to approximately R2.7 billion for the fiscal year ending June 30, 2025, driven primarily by lower iron ore prices and increased costs at its Bokoni platinum mine. Revenue saw a modest 1% increase to R13.1 billion, supported by higher manganese prices and steady platinum group metals output, but operational challenges led to significant losses, including an impairment charge at Bokoni. The company declared a reduced final dividend of R6 per share, totaling R10.50 for the year, reflecting tighter cash flows despite maintaining a strong net cash position of around R6.6 billion. ARM’s iron ore and coal segments experienced sharp profit declines, while manganese operations more than doubled profits due to higher prices and sales volumes. Additionally, the company has suspended early mining at Bokoni to focus on long-term sustainability and is advancing renewable energy projects, even as safety concerns and environmental initiatives remain a focus.