The recovery in platinum group metals (PGM) prices has boosted Patrice Motsepe’s African Rainbow Minerals (ARM) amid weaker performances from iron ore, manganese and coal operations.
The mining company reported a 25% increase in revenue to R16.3-billion, while headline earnings increased 19% to R3.2-billion for the year ended June 2026.
This improvement was attributed to stronger PGM prices, which helped ARM Platinum move from an R1.29-billion headline loss in the previous financial year to R1.25-billion headline earnings.
Key operations drive platinum recovery
Two Rivers and Modikwa are at the centre of the turnaround, delivering R1.2-billion and R683-million in headline earnings, respectively.
The average PGM rand basket price at Two Rivers increased by 56%, while Modikwa recorded a 54% increase.
Ferrous division struggles amid mine closure
This came as the other part of the ARM portfolio struggled as the ARM Ferrous, which includes iron ore and manganese operations dropped headline earnings by 42% to R2-billion compared to R3.5-billion in the previous year.
Iron ore headline earnings declined by 41%, while manganese earnings dropped 68%.
The iron ore business was particularly affected by the cessation of production at Beeshoek Mine, which was placed on care and maintenance in October 2025.
“The cessation of production at Beeshoek Mine resulted in local sales volumes decreasing to 0.5-million tonnes (F2025: 2-million tonnes).
“The reduction in sales volumes, retrenchment costs of R124-million, an increase in the rehabilitation provision of R191-million and care and maintenance costs of R92-million collectively had a significant negative impact on headline earnings,” ARM said.
Currency pressure and coal deficit
Khumani Mine’s earnings were also hit by the stronger rand, although higher export sales volumes provided some relief.
The manganese business faced similar currency pressure, together with lower manganese ore and alloy export prices.
ARM’s coal business also deteriorated sharply, swinging to a headline loss of R428-million from earnings of R47-million. The group said the coal decline was mainly caused by lower realised coal prices and the stronger rand.
Dividends raised for shareholders
Despite these pressures, the mining company increased its final dividend to R7 a share from R6, taking a total dividend for the year to R12 a share compared with R10.50 in the previous year.
- African Rainbow Minerals (ARM) reported a 25% revenue increase to R16.3-billion and a 19% headline earnings growth to R3.2-billion for the year ended June 2026, driven by higher platinum group metals (PGM) prices.
- ARM Platinum moved from an R1.29-billion headline loss to R1.25-billion in earnings, with Two Rivers and Modikwa mines contributing R1.2-billion and R683-million, respectively.
- ARM Ferrous division's headline earnings dropped 42% to R2-billion due to iron ore and manganese declines, impacted by Beeshoek Mine's closure and associated costs.
- Coal operations swung to a headline loss of R428-million from a R47-million profit, mainly due to lower coal prices and a stronger rand.
- ARM raised its final dividend to R7 a share from R6, bringing the total dividend for the year to R12 a share compared to R10.50 the previous year.
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Two Rivers and Modikwa are at the centre of the turnaround, delivering R1.2-billion and R683-million in headline earnings, respectively.
Iron ore headline earnings declined by 41%, while manganese earnings dropped 68%.
“The Beeshoek
“The
ARM's coal business also deteriorated sharply, swinging to a headline loss of R428-million from earnings of R47-million. The
Despite these pressures, the mining company increased its final dividend to R7 a share from R6, taking a total dividend for the year to R12 a share compared with R10.50 in the previous year.
