African Rainbow Minerals (ARI) H1 2025 earnings summary

Executive summary

• Headline earnings for 1H F2025 declined by 49% to R1.52 billion (R7.75/share), with an interim dividend of R4.50 per share, down from R6.00–R9.00 per share in 1H F2024.

• Net cash position at 31 December 2024 was R6.1 billion, down from R7.2 billion at the end of F2024.

• Basic earnings rose 15% to R1,394 million, mainly due to lower impairments compared to prior period.

• Financial position remains robust despite lower earnings and cash generation.

• Safety performance deteriorated: LTIFR up 33% to 0.32; one fatality at Modikwa Platinum Mine.

Financial highlights

• Headline earnings dropped 49% year-over-year to R1.52 billion; basic earnings include R136 million in impairments after tax.

• Dividends received from Assmang fell 17% to R2.5 billion; no distributions from ARM Coal (previously R153 million).

• Total segmental capital expenditure for 1H F2025 was R2.14 billion, down 51% from R4.36 billion in 1H F2024.

• EBITDA for the period was R70 million (1H F2024: R781 million).

• Net asset value per share: 23,436 cents (1H F2024: 22,418 cents).

Segment performance

• ARM Ferrous headline earnings fell 33% to R1.9 billion; iron ore export and local sales volumes declined 2% and 9% respectively.

• ARM Platinum loss widened to R689 million from R282 million; Bokoni Mine loss increased, while Two Rivers and Modikwa also underperformed.

• ARM Coal headline earnings decreased 11% to R182 million; GGV Mine's saleable production fell 7% and on-mine costs rose 14%.

• Manganese ore production rose 13%, but export sales volumes dropped 4–6%; headline earnings up over 200% due to higher prices.

• EBITDA margins improved for iron ore (from 41% to 53%) and manganese ore (from 28% to 31%), but declined for PGMs and coal.