African Rainbow Minerals (ARM), a diversified South African mining company, has reported a 19 per cent increase in annual headline profit, supported by a strong recovery in platinum-group metal prices.
The company’s headline earnings rose to 3.201 billion South African rand ($200.3 million) for the financial year ended June 30, 2026, from 2.695 billion rand recorded a year earlier, according to Reuters.
The increase was driven mainly by higher prices for platinum-group metals (PGMs), which rose by more than 50 per cent during the year. The stronger prices helped ARM’s platinum operations recover significantly after weaker results in the previous financial year.
ARM’s PGM operations moved from a headline loss of 1.288 billion rand in the previous year to a headline profit of 1.345 billion rand during the latest financial year.
The improved performance, however, was partly offset by weaker results from the company’s ferrous and coal divisions.
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ARM’s ferrous division, which includes its iron ore and manganese operations, recorded a 42 per cent decline in headline earnings to 2.028 billion rand.
The company said the performance of its iron ore operations was affected by a 75 per cent decline in sales at the mothballed Beeshoek Mine. Earnings from the Khumani Mine were also affected by the strength of the South African rand, which reduced the value of dollar-linked revenues when converted into the local currency.
ARM’s coal operations also recorded a loss of 428 million rand during the year, compared with a profit in the previous financial year. The company attributed the weaker result mainly to lower coal prices.
Despite the mixed performance across its different businesses, ARM increased its final dividend to 7 rand per share, compared with 6 rand previously.
The company is also preparing to expand its Bokoni platinum mine as it seeks to benefit from stronger PGM prices. ARM plans to invest 15.2 billion rand in a phased upgrade of the operation.
The expansion is expected to increase Bokoni’s production to between 350,000 and 400,000 ounces a year at its peak by 2032.
ARM is also restarting nickel mining and concentrate production at its Nkomati operation. The company expects annual output of about 56,065 tonnes following an offtake agreement with Swedish metals company Boliden.
The latest results highlight the contrasting conditions facing ARM’s different mining operations. While higher PGM prices significantly improved the company’s platinum business, weaker commodity prices and operational challenges continued to affect its coal, iron ore and manganese divisions.
For ARM, the recovery in platinum-group metal prices provided a significant boost to annual earnings and helped offset declines in some of its other businesses.
The company’s latest performance also comes as it moves forward with major investments in its platinum and nickel operations, with the aim of increasing production and strengthening its mining portfolio.
ARM’s results therefore reflect both the benefits of stronger international platinum prices and the challenges facing mining companies exposed to changing commodity prices.
