ARM sees drop in headline earnings

THE global slowdown in commodities and higher costs at Teal Exploration and Mining saw African Rainbow Minerals report a 42 percent drop in headline earnings to R2,3billion in the year to June, from R4billion previously.

THE global slowdown in commodities and higher costs at Teal Exploration and Mining saw African Rainbow Minerals report a 42 percent drop in headline earnings to R2,3billion in the year to June, from R4billion previously.

ARM directors said the global slowdown in demand for resources dominated three quarters of the year under review. The slowdown resulted in lower US dollar commodity prices and reduced sales volumes in most of the commodities in which the group is invested, especially manganese ore.

But sales volumes of platinum group metals and iron ore increased to offset the poor sales in other areas.

ARM responded to the slowdown by driving down production volumes and costs and focusing on key capital expenditure while delaying other projects. However, chairperson Patrice Motsepe said ARM was "financially robust and continues to invest significant funds to grow the company despite the massive global economic crisis". - Marcia Klein

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