| Mon 3 Sep 2007, 8:01 | | ARI - ARM - Provisional Results for the financial |
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ARI
ARIM
ARI - ARM - Provisional Results for the financial year ended 30 June 2007
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")
Provisional Results for the financial year ended 30 June 2007
African Rainbow Minerals Limited (`ARM`) today announced the company`s
provisional results for the financial year ended 30 June 2007.
Highlights
- Record headline earnings, increasing 161% to R1 207 million
- First dividend declared of 150 cents per share (R315 million)
since 2004 merger transaction
- Record product sales achieved by Platinum Group Metals (PGMs),
iron ore, manganese ore and chrome ore operations
- Nkomati Nickel Expansion to 100 000 tonnes per month (tpm)
completed ahead of schedule and within budget
- Khumani Iron Ore Mine upscaled to 10 million tonnes per annum
(mtpa) with construction on schedule and within budget
- Goedgevonden Coal Project release announced with 3.2 mtpa
Richards Bay Coal Terminal (RBCT) allocation achieved
ARM today reported record results, delivering on its stated strategies of
organically and efficiently growing the company into a globally competitive
diversified mining company. Headline earnings per share have increased
significantly by 158% to 580 cents per share (2006: 225 cents per share).
The 2007 financial year has been characterised by strong commodity prices,
increased volumes, especially ferrous metals and PGMs, and a 12.5% weaker Rand /
US Dollar exchange rate.
Operational highlights for the year include:
- a 53% increase in attributable PGM production to 264 400
ounces;
- contribution of Two Rivers Platinum Mine to earnings;
- increase of 38% in manganese ore external sales to 2.3 million
tonnes;
- a 16% increase in iron ore sales to 6.9 million tonnes; and
- chrome ore sales from Nkomati Mine`s chrome project which was
released in July 2006 reached 584 000 tonnes. During the last
four months sales have averaged 80 000 tpm.
In line with the ARM strategy of increasing operational efficiencies to ensure
competitiveness of its operations, management continues to focus on operational
costs. The unit operational costs of PGMs, nickel, manganese ore and alloys,
charge chrome and coal were all below inflation.
ARM Executive Chairman Patrice Motsepe said: "ARM has achieved exceptional
results, is paying its first dividend and is delivering on its growth strategy."
Volume increases together with ARM`s organic growth projects, are in line with
the company`s strategy of growth to double production from 2005 levels by 2010
in key commodities with high margin operations. ARM`s organic growth projects
with its partners remain on schedule and within budget, having spent R2.0
billion (attributable to ARM) on capital expenditure over the period:
- Khumani Iron Ore Mine has increased to 10 mtpa, with first
export sales by 2008. The rail contract has been signed with
Transnet for the full tonnage. The first blast at Khumani
occurred in May, exposing 600 000 tonnes of ore.
- The ARM Coal Goedgevonden Project has been released and ARM
Coal has secured a 3.2 mtpa allocation at RBCT for the
project.
- The Nkomati Nickel Interim Expansion Project to 100 000 tpm is
completed. The Large Scale Expansion bankable feasibility
study has been completed for the expansion to 20 500 tonnes
nickel per annum, on average, over the life of the mine.
ARM continues to invest aggressively in building its future growth platform in
Africa. As a result, ARM`s exploration expenditure through TEAL has increased to
R126 million. During the financial year, ARM provided a US Dollar 20 million
bank guarantee to assist in securing exploration and development funding for
TEAL. In support of TEAL`s growth strategy over the next year, and subsequent to
the financial year-end, ARM has agreed to increase this guarantee to US Dollar
50 million, subject to South African Reserve Bank approval.
ARM Chief Executive Officer Andre Wilkens said: "ARM`s strategy of
competitiveness, growth and diversification remains on track. ARM owns large-
scale, good quality assets which are being developed. "
Executive Chairman Patrice Motsepe said: "ARM will continue to look at
appropriate acquisitive value adding opportunities which are fairly priced. We
believe ARM is also well positioned as partner of choice in South Africa and
Africa."
Dividends
ARM continues its programme of organic growth projects and is seeing the
benefits flowing through in its attributable earnings and cash flow. Although
substantial capital will be expended for ongoing growth, the board believes that
ARM`s net debt position is at an appropriate level, as sufficient cash flow and
facilities exist to fund developing projects.
The ARM Board of Directors has chosen to declare a dividend of 150 cents per
share (R315 million) in respect of the year ending 30 June 2007.
For all investor relations` queries, please contact:
Pieter Rorich
Executive Director: Investor Relations and New Business Development
Office: +27 11 779 1300
Mobile: +27(0)82 570 5064
E-mail: pieter.rorich@arm.co.za
or
Monique Swartz
Corporate Development Manager
Office: +27 11 779 1507
Mobile: +27(0)83 411 2881
E-mail: monique.swartz@arm.co.za
Sandton
3 September 2007
Issued by sponsor: Deutsche Securities (SA) (Proprietary) Limited
Date: 03/09/2007 08:01:01 Produced by the JSE SENS Department.
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