African Rainbow Minerals Profit Rises 19% As Platinum Prices Strengthen

South African diversified miner African Rainbow Minerals (ARM) has reported a 19% increase in annual headline earnings, supported by a strong recovery in platinum-group metal (PGM) prices that helped offset weaker performance from its coal, iron ore and manganese operations.

ARM recorded headline earnings of R3.201 billion for the year ended June 30, 2026, compared with R2.695 billion a year earlier. The company also increased its final dividend to R7 per share, from R6 previously.

The company’s PGM operations returned to profitability, generating R1.345 billion in headline earnings, compared with a R1.288 billion loss in the previous year. ARM attributed the turnaround largely to metal prices rising by more than 50% year on year.

However, the ferrous division, comprising iron ore and manganese, saw headline earnings fall 42% to R2.028 billion. Iron ore performance was particularly affected by the mothballing of the Beeshoek mine, which resulted in a 75% decline in sales volumes. Earnings from the Khumani mine also weakened because of the stronger rand, despite higher export volumes.

The manganese business was hit by lower mineral prices and currency pressures, while ARM’s coal division swung to a R428 million loss, compared with a R47 million profit a year earlier, mainly because of weaker coal prices.

ARM is nevertheless positioning itself for longer-term growth. The company has approved a phased R15.2 billion expansion of its Bokoni platinum operations, with the project expected to reach peak production in 2032 at between 350,000 and 400,000 ounces of PGMs annually, potentially doubling ARM’s current PGM output.

The miner is also restarting open-pit mining and nickel concentrate production at Nkomati, which was placed on care and maintenance in 2021. The operation is expected to produce about 56,065 tonnes annually under an offtake agreement with Sweden’s Boliden.

ARM’s latest results highlight the growing importance of platinum prices to South Africa’s mining sector, while its investment in Bokoni and the restart of Nkomati signal a broader strategy to strengthen production and diversify its mineral portfolio.