African Rainbow Minerals (ARI) H1 2026 earnings summary

Executive summary

• Headline earnings for the six months ended 31 December 2025 increased by 10% to R1,669 million, with basic earnings up 69% to R2,353 million, driven by higher PGM prices and strategic asset disposals; an interim dividend of R5.00 per share was declared.

• Net cash position improved to R8,464 million at 31 December 2025, up from R6.6 billion a year earlier, with no debt at ARM Ferrous.

• Safety performance improved significantly, with zero fatalities and lower LTIFR and TRIFR rates, reflecting a strong commitment to zero harm.

• Major strategic actions included the sale of Sakura Ferroalloys, closure of Cato Ridge, and acquisition of full ownership of Nkomati Mine.

Financial highlights

• Headline earnings increased 10% year-on-year to R1,669 million, with basic earnings up 69% to R2,353 million, and headline earnings per share at 866 cents.

• Segmental capital expenditure was R2.3 billion for the six months, with significant investments in Bokoni, Modikwa, and Two Rivers mines.

• Net cash to equity ratio improved to 12.7%, with total borrowings reduced by R925 million to R1.1 billion.

• Dividends paid to shareholders totaled R1,157 million, with an interim dividend of R5.00 per share.

• EBITDA reached R4,503 million, and cash generated from operations was R1,700 million, a turnaround from an outflow in the prior period.

Outlook and guidance

• Positive earnings outlook supported by post-December 2025 recovery in manganese prices, improved rail performance, and structurally tight PGM markets.

• Capital guidance for FY2026 increased by R446 million, mainly due to higher waste stripping at Modikwa; sustaining capital expenditure for FY2027 and FY2028 expected at R3.5 billion per annum.

• Production volumes at Two Rivers expected to improve from FY2027 as mining flexibility increases and geological disturbances are overcome.

• Bokoni Mine feasibility study to complete in 2H F2026, with investment decision to follow; Surge Copper’s Berg Project pre-feasibility study on track for 2026 completion.

• The company will focus on cost control, logistics optimization, and disciplined capital allocation to navigate volatility.