JAMIE CARR: African Rainbow Minerals’ blockbuster year
The impact of the pandemic has obliterated some sectors of the global economy, while others trot along merrily and a few find themselves drowning in loot. African Rainbow Minerals (ARM) is lucky enough to find itself in that last category, posting results that speak of a blockbuster year as increased prices of its core commodities more than offset the increase in operating expenses due to navigating a path through the health and safety implications of mining in the Covid era.
Anybody brave enough to stick some bets on at the height of pandemic panic during March last year will have made out handsomely, with ARM’s share price — which briefly dipped below R100 — bouncing back to sit a shade shy of R300. The company was helped by an 11% weakening of the rand against the dollar, and it posted headline earnings up 134% to a record R5bn. The ferrous division saw headline earnings rise 60% on the back of higher dollar iron ore prices, while the platinum group metals operations’ earni...
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