ARM to invest in growth

GETTING BIGGER: ARM executive chairman Patrice Motsepe says the company is going through a significant and aggressive growth phase. Pic. Simon Mathebula. 03/03/2007. © ST.
GETTING BIGGER: ARM executive chairman Patrice Motsepe says the company is going through a significant and aggressive growth phase. Pic. Simon Mathebula. 03/03/2007. © ST.

Diversified mining group African Rainbow Mineral (ARM) plans to spend more than R5billion with its partners on capital expansion across its operations.

Diversified mining group African Rainbow Mineral (ARM) plans to spend more than R5billion with its partners on capital expansion across its operations.

"This is a company going through a very significant and aggressive growth phase," ARM executive chairman Patrice Motsepe said at the group's results presentation yesterday.

The group is aiming to double its production in key commodities from 2005 levels by 2010.

ARM surprised the market by declaring a maiden dividend of R1,50 per share, its first since it was created out of the merger of ARM Gold, Harmony and Avmin in 2003.

The share jumped more than 5percent to R123,45 after the results were posted.

Motsepe said while the group was spending hugely it was also committed to future divided payments. "You cannot claim to be a globally competitive company if you do not declare dividends," Motsepe said.

Having taken the group "to the next level", Motsepe said the dividend was not a once off payment. Acknowledging that high commodity prices were one of the drivers of the group's record results, he said the high commodity price cycle was expected to continue. - I-Net Bridge

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