Diversified resource group African Rainbow Minerals (ARM) reported an almost 50% decline in annual earnings, mainly due to a decrease in the average realised export dollar iron ore prices and increased costs at its unprofitable Bokoni platinum mine.
The group said it had decided to suspend early-ounces mining operations at Bokoni at the end of the 2025 financial year and was working on a plan to unlock the mine’s substantial resources.
It said on Friday headline earnings for the year to end-June fell 47% to R2.7bn, or R13.79 per share. Revenue increased by 1% to R13.03bn. A final dividend of R6 per share was declared, down from R9 a year ago.
ARM said the marginal increase in the average dollar 6E platinum group metals (PGMs) basket price and the slightly higher manganese ore and alloy prices were offset by lower thermal coal prices, lower average realised export iron ore prices and a stronger average rand-dollar exchange rate.
Unit cash costs growth for PGMs and iron ore improved, increasing in line with inflationary cost increases.
In its various units, ARM Ferrous headline earnings were 31% lower at R3.47bn, 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 dollar iron ore prices, lower local sales volumes and the stronger rand.
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 R1.3bn, wider than the previous year’s R910m loss, largely due to higher operational losses at Bokoni.
ARM Coal’s earnings fell 88% to R47m, driven mainly by a reduction in the realised coal price as well as lower saleable volumes from Goedgevonden and the participative coal business.
Bokoni Mine reported a headline loss of R1.4bn. During the year it ramped up its operations; however, it was negatively affected by operational challenges, high fixed costs associated with early ounce production and increased mechanised development costs.
The early ounces project was approved in 2023 as a precursor to the larger 240,000 kilotonnes per month production rate project, however, weaker PGM markets led to the deferral of the project. Early ounces could not deliver economies of scale, resulting in suspension of ore mining and milling at the end of the 2025 financial year.
“To limit expenditure, a decision was taken to suspend early ounces mining operations at Bokoni at the end of financial year 2025. We are now advancing capital development of the larger mine in a way that ensures its long-term sustainability,” the company said.
ARM said Bokoni’s future lay in a higher grade, smaller-scale development path.
“By revising the mining method, we aim to maximise ore grade and revenue per tonne, while maintaining capital efficiency. The revised plan targets an initial 120ktpm operation, with phased expansion to 240ktpm. A feasibility study for the 120ktpm development is under way and is expected to be completed in early 2026, after which an investment decision will be made,” it said.
“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,” it said.
During the year ARM announced a series of strategic transactions involving its 50% stake in the joint venture, Assmang. These include the permanent closure of the Cato Ridge Works plant, effective from end-August.
Assmang will also dispose of its 54.36% stake in Sakura Ferroalloys to Assore, resulting in a cash distribution of R900m to ARM.
ARM also entered into a subscription agreement to acquire 25.8-million shares of Surge Copper Corp through a nonbrokered private placement for a total consideration of about C$4.5m (R57.3m). This follows ARM’s earlier exercise of its rights under an investor agreement, in which it purchased 1.6-million shares in a top-up offering.
On completion of the private placement, ARM’s shareholding will increase to 68.7-million shares, representing 19.9% of the company on a nondiluted basis. Surge Copper has made strong progress on the prefeasibility study, which remains on track for completion in 2026.
ARM said the PGM market had seen strong sales in the first half of the year, especially in China and North America. US tariffs posed a risk to PGM prices for the remainder of the year; however, that could be partially mitigated by a renewed interest in internal combustion engines in the US market, it said.
The coal market had shifted from tight market conditions in 2022 to oversupply in 2025. A material rebound in prices was not expected before 2027, it said.
Despite the commodity market volatility, ARM remained optimistic about the medium to long-term outlook for the mining sector. Encouraging signs of recovery in key markets, improving financial conditions and infrastructure investment reinforced that view, it said.
“With a portfolio of quality, long-life assets and world-class ore bodies, ARM is well-positioned to navigate the uncertain commodity and market environment. We continue to strengthen resilience by driving productivity, improving cost efficiency and optimising capital allocation,” it said.
ARM’s share price was down as much as 7% at one stage on Friday, before recovering to end 3.8% lower at R181.88. Year to date its share price is up 18%.
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