Patrice Motsepe’s African Rainbow Minerals to pay its first interim dividend

The mining group reported a profit of R1.9bn from a loss of R283m, it had included several one-off write-downs in the year-earlier period

March 16, 2018 at 08:14 am

Patrice Motsepe’s African Rainbow Minerals (ARM) will pay its first interim dividend since it listed in 2007.

ARM declared a maiden interim dividend of R2.50 in its results for the six months to end-December released on Friday morning.

The group has for the past decade paid only one final dividend per year, which was R6.50 for its 2017 financial year.

ARM reported it turned to a profit of R1.9bn from a loss of R283m in the matching period. Its interim results in the comparative period included several one-off write-downs.

Interim revenue remained nearly flat at R5bn from R4.95bn.

Motsepe, who is the group’s executive chairman, attributed the group’s 15% growth in headline earnings to R1.95bn to its manganese division, ARM Coal, Modikwa Mine and ARM Copper.

The manganese division managed to more than double its contribution to headline earnings to R1.77bn thanks to selling more ore at a 69% higher price.

ARM Platinum headline earnings increased by 26% to R226m as Modikwa Mine improved from a headline loss of R54m in the matching period to headline earnings of R36m.

ARM Coal headline earnings grew to R160m from R99m.

ARM Copper, which was accounted for as a discontinued operation, narrowed its headline loss to R6m from R72m.