South African miner African Rainbow Minerals (ARM) posted a steep 47% fall in full-year headline earnings, with profits sinking to 2.70 billion rand ($153 million) for the year ended June 30, compared to 5.08 billion rand a year earlier, figures released by the company revealed. The downturn was tied to weaker iron ore and coal prices, compounded by the impact of a stronger rand, Reuters reported.
ARM noted that while manganese ore and alloy sales provided some support, they were insufficient to offset losses in other segments. The group declared a final dividend of 6 rand per share, down from 9 rand last year, underscoring pressure on cash flows. The performance reflects both global commodity market volatility and currency headwinds, with the company signaling an increased focus on cost discipline and diversification to stabilize future earnings.
Industry analysts point out that ARM’s results mirror broader challenges across South Africa’s resource sector, where miners are facing a combination of lower export prices, high input costs, and energy constraints. The shift highlights growing uncertainty for investors, as resource-heavy firms remain tightly coupled to global demand cycles.
