African Rainbow Minerals (ARI) is a diversified mining company controlled by Patrice Motsepe, involved in a variety of mining ventures. Its interests include platinum group metals (PGM), iron ore, manganese, chrome, coal, and copper. It also owns 12.2% of Harmony Gold.
There has been some speculation about a possible acquisition. One possibility is an involvement in the Wafi-Golpu copper and gold resource, which is jointly owned by Harmony and Australian mining company, Newcrest. Harmony is looking for help in financing its share of the development cost of this massive resource—estimated at around R21bn—so ARM could potentially be part of that solution. The company is also looking for acquisitions of "green metals" mines that produce metals used in the move to avert climate change.
In its results for the year to 30th June 2024, the company reported headline earnings down 43%. The company stated, "The decline in headline earnings was mainly due to the decline in the average US dollar 6E PGM basket price and the lower thermal coal prices. This was partially offset by a weaker average rand/US dollar exchange rate and higher average realised export iron ore prices."
In a trading statement for the six months to 31st December 2024, the company estimated that HEPS would fall to between 678c and 829c compared with 1507c in the previous period, "...due to a 22% reduction in average realised US dollar iron ore prices, lower iron ore and manganese ore sales volumes, higher cash costs and a stronger rand/US dollar exchange rate."
Technically, the share has been falling since July 2024 due to weaker commodity prices. We think that this is a good mining share that is gaining stability from its diversification into base metals—but it remains risky and volatile.
There has been some speculation about a possible acquisition. One possibility is an involvement in the Wafi-Golpu copper and gold resource, which is jointly owned by Harmony and Australian mining company, Newcrest. Harmony is looking for help in financing its share of the development cost of this massive resource—estimated at around R21bn—so ARM could potentially be part of that solution. The company is also looking for acquisitions of "green metals" mines that produce metals used in the move to avert climate change.
In its results for the year to 30th June 2024, the company reported headline earnings down 43%. The company stated, "The decline in headline earnings was mainly due to the decline in the average US dollar 6E PGM basket price and the lower thermal coal prices. This was partially offset by a weaker average rand/US dollar exchange rate and higher average realised export iron ore prices."
In a trading statement for the six months to 31st December 2024, the company estimated that HEPS would fall to between 678c and 829c compared with 1507c in the previous period, "...due to a 22% reduction in average realised US dollar iron ore prices, lower iron ore and manganese ore sales volumes, higher cash costs and a stronger rand/US dollar exchange rate."
Technically, the share has been falling since July 2024 due to weaker commodity prices. We think that this is a good mining share that is gaining stability from its diversification into base metals—but it remains risky and volatile.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.