Falling commodity prices take toll on ARM
by Agency Staff,
2016-03-11 11:15:19.0
DIVERSIFIED mining group African Rainbow Minerals (ARM) said on Friday its first-half profit halved due to much lower commodity prices, prompting layoffs and cost cuts to stay afloat.
Headline earnings per share (HEPS) in the six months to December 31 were 233c from 473c in the year-earlier period.
ARM, which has interests in platinum, iron ore, coal, copper and gold, battled lower prices in all of commodities except for chrome.
"ARM has responded proactively to the commodity price downturn and has implemented operating and capital cost reduction initiatives at all its operations," the company said.
The company operates joint ventures with Anglo American Platinum, Assore, Impala Platinum, Glencore and Vale.
ARM cut planned spending for the first half of 2016 by 15% to R1.4bn mainly from curtailments in the ferrous metals Black Rock Project, which is its most capital-intensive venture.
The company said it would cut jobs at its platinum mines Modikwa and Nkomati, Beeshoek iron ore mine and Khumani chrome mines but did not say how many positions were on the line.
The Lubambe copper mine in Zambia, a joint venture with Vale, was placed under review to lower cash requirements and preserve its resource value.
Reuters
Picture: THINKSTOCK
DIVERSIFIED mining group African Rainbow Minerals (ARM) said on Friday its first-half profit halved due to much lower commodity prices, prompting layoffs and cost cuts to stay afloat.
Headline earnings per share (HEPS) in the six months to December 31 were 233c from 473c in the year-earlier period.
ARM, which has interests in platinum, iron ore, coal, copper and gold, battled lower prices in all of commodities except for chrome.
"ARM has responded proactively to the commodity price downturn and has implemented operating and capital cost reduction initiatives at all its operations," the company said.
The company operates joint ventures with Anglo American Platinum, Assore, Impala Platinum, Glencore and Vale.
ARM cut planned spending for the first half of 2016 by 15% to R1.4bn mainly from curtailments in the ferrous metals Black Rock Project, which is its most capital-intensive venture.
The company said it would cut jobs at its platinum mines Modikwa and Nkomati, Beeshoek iron ore mine and Khumani chrome mines but did not say how many positions were on the line.
The Lubambe copper mine in Zambia, a joint venture with Vale, was placed under review to lower cash requirements and preserve its resource value.
Reuters
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