JSE-listed miner, African Rainbow Minerals (ARM), posted a profit explosion in the six months ended December last year on the back of outstanding performance from some of its core units, it said on Friday.
Group headline earnings – a measure of profits in South African companies -surged 66 percent to R2.3 billion ($216.5m) in the period under review boosted by ARM Ferrous and ARM Platinum operations.
ARM Ferrous headline earnings shot up 108 percent lifted by superior US Dollar iron ore prices and the 19 percent slump of the Rand, the South African currency, against the US Dollar, the hard currency.
ARM Platinum headline earnings surged higher on a robust performance at the Two Rivers Platinum Mine and sustained advancement at the Nkomati Nickel Mine, ARM said.
This was despite the fact that the South African mining sector is currently negatively impacted by the rising costs of labour, fuel and power shortages.
The miner said it is also chasing value growth in the current portfolio of its assets and acquisitions to further improve cost performance.
ARM’s acquisition norm follows the niche, diversified South African mining company’s strategy of being an owner- operator of long-life, low unit cost mines.