[miningmx.com] — African Rainbow Minerals said on Wednesday its headline earnings surged and it would seek growth opportunities on the continent as it reaps the rewards of the global commodity boom.
Investors gave its results the thumbs up, with its shares adding 3.45% to R186.42, compared with a 1.4% rise in the JSE’s blue-chip Top 40-index.
ARM, which has interests in nickel, coal, iron ore, platinum, chrome and manganese, said it planned to spend more than R10bn over the next three years on expansion projects.
Executive chairperson Patrice Motsepe said at a results presentation that the company was looking at Mozambique, Zimbabwe and the Democratic Republic of Congo for growth.
“We have ambitious plans to grow, but we have to be focused; we can’t be all over the world,” Motsepe said.
The company said during the year to end-June it completed the expansion of its Khumani iron ore project to 16 million tonnes per year from 10 million tonnes and that its Goedgevonden coal mine was at full production.
It also said its Konkola North copper project in Zambia was progressing on budget and on schedule to produce its first copper in December 2012.
ARM said the mine was expected to produce 45,000 tonnes of copper per annum, with full production seen by 2015. There was also potential to increase output at the mine to 100,000 tonnes per year, it said.
EARNINGS SURGE
ARM said headline earnings per share for the full year to end-June rose to 1,559c from 807c a year earlier.
Sales for the year rose 35% to R14.9bn.
The company said it expected commodity prices to remain strong in the medium term, lifted by demand from China, India and other emerging economies.
“In addition it is likely that supply constraints from producers will also bolster prices,” it said in a statement.
ARM declared a dividend of 450c per share, more than double the 200c paid out last year.
