ARM to ‘critically review’ unprofitable operations
by Agency Staff,
2016-03-11 12:51:48.0
AFRICAN Rainbow Minerals, the diversified mining company controlled by billionaire Patrice Motsepe, said it will "critically review" unprofitable operations after all its units except its steel making-commodities division suffered half-year losses.
Headline earnings for the six months to December 31 fell 51% to R507m from the year-earlier period, aided by a R599m profit from its ferrous unit that includes iron ore, manganese and chrome, the company said on Friday.
All of African Rainbow’s other divisions, including platinum, coal and copper, reported losses for the period, the company said.
"African Rainbow is critically reviewing nonperforming operations and assessing whether these have the potential to achieve improved results in the future," it said.
The company would cut costs, improve mines and seek to ensure "that where shareholder funding is required, this is minimised".
The company would not seek money from shareholders, but could need to fund some operations with its venture partners, CEO Mike Schmidt said before an investor presentation in Johannesburg.
It would continue to pay dividends, chairman Mr Motsepe said at the presentation.
Mining companies globally have had their margins eroded by a slump in commodity prices, caused by supply gluts and a slowdown in economic growth in China, the largest consumer.
The stock, which has more than doubled this year, was down 0.9% to R102.05 by 11.14am.
Bloomberg
Patrice Motsepe. Picture: TREVOR SAMSON
AFRICAN Rainbow Minerals, the diversified mining company controlled by billionaire Patrice Motsepe, said it will "critically review" unprofitable operations after all its units except its steel making-commodities division suffered half-year losses.
Headline earnings for the six months to December 31 fell 51% to R507m from the year-earlier period, aided by a R599m profit from its ferrous unit that includes iron ore, manganese and chrome, the company said on Friday.
All of African Rainbow’s other divisions, including platinum, coal and copper, reported losses for the period, the company said.
"African Rainbow is critically reviewing nonperforming operations and assessing whether these have the potential to achieve improved results in the future," it said.
The company would cut costs, improve mines and seek to ensure "that where shareholder funding is required, this is minimised".
The company would not seek money from shareholders, but could need to fund some operations with its venture partners, CEO Mike Schmidt said before an investor presentation in Johannesburg.
It would continue to pay dividends, chairman Mr Motsepe said at the presentation.
Mining companies globally have had their margins eroded by a slump in commodity prices, caused by supply gluts and a slowdown in economic growth in China, the largest consumer.
The stock, which has more than doubled this year, was down 0.9% to R102.05 by 11.14am.
Bloomberg
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