African Rainbow Minerals (ARM) did several transactions in the six months to December 31, 2025, to close its 50% ferro alloys joint-venture in Assmang including the permanent closure of the Cato Ridge Works operation following a structured retrenchment process; and the execution of agreements to dispose of Cato Ridge land, properties and houses to Assore SA PropCo.
Image: Supplied
African Rainbow Minerals’ (ARM) headline earnings increased 10% for the six months to December 31, despite lower production volumes, a really strong turnaround in its platinum mining financial results and despite a loss from its coal mines.
Headline earnings came to R1,67 billion or R8,66 per share. An interim dividend of R5 per share was declared, up from R4,50 at the same time last year. A robust financial position was indicated by net cash rising to R8,46bn at December 31, versus R6,61bn at the end of June 2025.
ARM’s share price nevertheless fell 3,3% to R221,37 on the JSE Friday morning, although the price remained over 46% higher than the R150,96 it traded at a year before.
Basic earnings increased by 69% to R2,35bn or R12,20 per share and includes attributable impairments of R19m after tax, versus R136m after tax at the same time a year before.
The ARM Ferrous division’s contribution to headline earnings fell 34% to R1,24bn. Iron ore production volumes were lower mainly due to Beeshoek Mine being placed on care and maintenance in October 2025.
Unit costs remained under pressure due to lower production volumes and above-inflation increases in costs across most of the group operations.
ARM Platinum’s contribution to headline earnings shot up to R704m versus a R689m loss previously. US dollar platinum group metals (PGM) basket prices at Two Rivers and Modikwa Mines increased by 44% and 47%, respectively.
ARM Coal’s contribution to headline earnings fell over 200% to a loss of R271m versus a R182m profit driven mainly by a stronger average realised rand exchange rate combined with a significant decline in the thermal coal price.
Earnings from the Khumani Mine were impacted negatively by the stronger average realised rand to US dollar exchange rate, which led to a reduction in realised revenue from the iron ore mine.
ARM's directors said initiatives through the Ore Users Forum (OUF) and Manganese Producers Consortium (MPC) had demonstrated that collaborative partnerships were accelerating logistics reform, restoring performance and delivering competitive, cost-effective, value-accretive solutions.
At Bokoni, platinum ore reserve development at the Middelpunt Hill shaft was progressing to access high-grade stoping, supporting a ramp-up to 120 thousand tons per month (ktpm) stoping production.
Bokoni mine in Limpopo was placed under care and maintenance in 2017 as part of an Anglo American Platinum’s restructuring strategy, and ARM acquired it in 2022.
The group achieved a notable 31% decrease in greenhouse gas emissions due to energy-saving initiatives and reduced activities at Beeshoek Mine, Cato Ridge Works and Bokoni Mine.
ARM did several transactions relating to its 50% joint-venture in Assmang, including the closure of the Cato Ridge Works operation following a retrenchment process; execution of agreements to dispose of Cato Ridge land and properties to Assore SA PropCo for R453m; and selling Assmang’s 54.36% interest in Sakura Ferroalloys on November 3 for R2,1bn, with proceeds used in part to fund a special dividend of R900 million to ARM.
ARM also made progress toward its renewable energy ambitions, with construction of a 100MW solar plant completed. A power purchase agreement (PPA) was expected to deliver energy supply security and substantial environmental and financial benefits.
Despite temporary export constraints at the high voltage distribution substation, the ARM Platinum operations started receiving renewable power in December, with full 100MW export capacity expected once the grid upgrades are completed in 2026.
The MPC, an entity representing four major manganese ore producers that account for over 60% of South Africa’s exports, intended to bid for the request for quotation with Transnet as a joint venture partner, for the design, construction and operator of a new manganese ore export port at Ngqura, namely the Ngqura Manganese Ore Export Terminal.
BUSINESS REPORT