African Rainbow Minerals (ARI) H1 2026 (Q&A) earnings summary

Executive summary

• Headline earnings for the six months ended 31 December 2025 increased by 10% to R1,669 million, with basic earnings up 69% to R2,353 million, driven by higher PGM prices and a gain on the Nkomati acquisition; interim dividend declared at R5.00 per share.

• Net cash position improved to R8,464 million at 31 December 2025 from R6,609 million a year earlier, with no debt at ARM Ferrous.

• Safety performance improved significantly, with zero fatalities and lower LTIFR and TRIFR rates.

• Major strategic transactions included the closure of Cato Ridge Works, disposal of Sakura Ferroalloys, and acquisition of full ownership of Nkomati Mine.

Financial highlights

• Segmental headline earnings: ARM Platinum swung to R704 million profit (>200% increase), ARM Ferrous declined 34% to R1,236 million, and ARM Coal posted a R271 million loss (>200% decrease).

• Dividends received from Assmang decreased 4% to R2.4 billion, while Harmony dividends rose 66% to R116 million.

• EBITDA margins improved for PGMs (from -14% to 8%) and iron ore (from 28% to 36%), but declined for manganese alloys and coal.

• Revenue for the period was R7,857 million, with gross profit of R2,620 million and EBITDA of R4,503 million.

• Headline earnings per share rose to 866 cents; basic earnings per share increased to 1,220 cents.

Segment performance

• Domestic coal sales at GGV declined 15% year-over-year, PCB down 3%, with revised lower guidance for local sales volumes due to reduced Eskom demand; some coal diverted to export markets at better prices.

• ARM Platinum: Two Rivers and Modikwa both saw lower PGM production (down 2% and 3% respectively), but headline earnings increased by over 200% each, driven by higher PGM prices.

• ARM Ferrous: Iron ore sales volumes fell 14% due to Beeshoek Mine ceasing sales to AMSA; Khumani Mine's unit cash costs rose 11%.

• Nkomati chrome plant generates ZAR 20–25 million/month revenue, subsidizing care and maintenance; chrome production to peak at 11,000 tons/month by April, with annual profit expected at ZAR 100 million from 500,000 tons.

• Beeshoek signed a 1.2 million ton iron ore contract over 12 months at 100,000 tons/month, starting February, to clear stockpiles at a lower price (ZAR 800/ton vs previous ZAR 1,221/ton).