Assore, a tightly held mineral resources company, has reported record earnings for the third consecutive year.

In its results for the year ended June 2019, Assore’s earnings climbed 25% higher to R6.4bn, while earnings per share were 15% higher. Revenue was up 4% to R8.1bn and profit climbed 15% to reach R5.96bn. Dividends for the year amounted to another record of R24 per share.

Assore’s primary investment is a 50% holding in Assmang, which it controls jointly with Patrice Motsepe’s African Rainbow Minerals (ARM). 

Assmang’s headline earnings increase by 41% to R10bn due to high iron ore and manganese prices and a weak rand. This contributed R5bn or almost 80% towards Assore’s headline earnings.

The attributable profit for Assore’s Dwarsrivier chrome operations, however, declined by 41% to R516m due to lower prices for chrome ore and increased operating costs. The reduced profit was compounded by a labour strike at the mine in March this year.

Assore CEO Charles Walters said it was particularly pleasing to achieve record earnings together with a good safety performance, which aligns with the company’s objective of sustainable safety across all operations.

Looking ahead, Walters said, “continued growth in China, albeit slower than previously anticipated, should support prices for Assore’s products in the near term.”