African Rainbow Minerals (ARI) H2 2025 earnings summary

Executive summary

• Headline earnings fell 47% to ZAR 2.7 billion, mainly due to lower iron ore prices and increased costs at Bokoni.

• Dividend of ZAR 6 per share declared, maintaining a consistent payout policy and strong net cash position of ZAR 6.6 billion at year-end.

• Segmental performance was mixed, with significant losses in Platinum and lower earnings in Ferrous and Coal.

• Strategic focus on cost control, operational efficiency, and disciplined capital allocation.

Financial highlights

• Group headline earnings declined 31%, driven by a 15% reduction in USD prices, with ARM Ferrous down 31%, ARM Platinum down 42%, and ARM Coal down 88%.

• Dividends received from investments fell by 10% to ZAR 4.5 billion, while Harmony dividends rose 45% to ZAR 240 million.

• EBITDA margins for iron ore decreased from 50% to 41%, while manganese alloys and ore remained negative.

• Operating cash generation dropped 97% to ZAR 45 million, reflecting lower commodity prices and increased working capital.

Outlook and guidance

• Focus remains on cost control, quality production, and disciplined capital allocation.

• CapEx guidance for FY2026 increased marginally to ZAR 4.5 billion, with normalized sustaining CapEx of ZAR 4 billion per annum through FY2028.

• Growth investments include Surge Copper and ongoing evaluation of Nkomati and Bokoni assets.