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Trading Statement for the six months ended 31 December 2020
African Rainbow Minerals Limited
(Incorporated in the Republic of South Africa)
(Registration number 1933/004580/06)
JSE Share code: ARI
ISIN: ZAE000054045
(“ARM” or the “Company”)
TRADING STATEMENT FOR THE SIX MONTHS ENDED 31 DECEMBER 2020
(1H F2021)
In terms of paragraph 3.4(b) of the Listings Requirements of the
JSE Limited, a listed company is required to publish a trading
statement as soon as it is satisfied that a reasonable degree of
certainty exists that the financial results for the period to be
reported on next will differ by at least 20% from those of the
previous corresponding period.
Headline earnings for 1H F2021 are expected to increase by between
129% and 138% compared to R2 155 million in the corresponding six
months ended 31 December 2019 (1H F2020) to between R4 935 million
and R5 129 million. The increased earnings were underpinned by
higher iron ore and platinum group metals (PGM) prices coupled with
an increase in export iron ore sales volumes. Headline earnings
per share are expected to be between 2 529 cents and 2 640 cents
(1H F2020: 1 114 cents).
Basic earnings for 1H F2021 are expected to increase by between
123% and 133% to between R4 754 million and R4 968 million
(1H F2020: R2 132 million). The 1H F2021 basic earnings per share
are expected to be between 2 446 and 2 546 cents (1H F2020: 1 102
cents).
Update on ARM Coal Receivable
ARM Coal in prior periods recorded an amount payable by Glencore
Operations South Africa (GOSA) to ARM Coal of R452 million (ARM's
attributable portion: R230 million) as a long-term receivable
(‘receivable’).
At the date of ARM’s previous report which was for the financial
year ended 30 June 2020, GOSA had not agreed the outstanding balance
of the receivable and ARM Coal was unable at that time to provide
sufficient evidence to validate this receivable in its accounting
records.
Details of this were included in the audited annual financial
statements ended 30 June 2020, which can be found on www.arm.co.za.
ARM has since completed the investigation and the entries which
gave rise to the long-term receivable have been identified and
agreed between ARM Coal, GGV Mine and GOSA.
The results of the investigation concluded that all the items
included in the ARM Coal long-term receivable were valid
receivables, however R283 million should have been classified as
trade and other receivables and R53 million should have been
included in the long-term borrowings rather than being netted off
against long-term receivables in the statement of financial
position.
Management proposes accounting for the above as a prior period
error in terms of IAS 8 which is being considered for approval
through the necessary governance structures. The restatement is
expected to have no impact on the statement of profit or loss and
other comprehensive income and no impact on the statement of cash
flows.
The Company’s 1H F2021 financial results will be released on
3 March 2021.
ENDS
For all investor relations queries please contact:
Jongisa Magagula
Executive Director for Investor Relations and New Business
Development.
Tel: +27 11 779 1507
E-mail: jongisa.magagula@arm.co.za
Johannesburg
16 February 2021
Sponsor: Investec Bank Limited
Date: 16-02-2021 01:45:00
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