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Higher platinum group metals (PGM) prices are expected to lift African Rainbow Minerals’ (ARM) full-year headline earnings, despite pressure on its iron ore business from a stronger rand.The diversified miner said on Friday headline earnings for the year to end-June are expected to increase by 12%-22% to R3.02bn-R3.29bn, from R2.7bn a year earlier.Headline earnings per share are expected to rise to 1,544c to 1,682c, from 1,379c previously.ARM said the increase was mainly driven by higher PGM prices, though this was partly offset by lower iron ore prices as the rand strengthened against the dollar.The company is expected to release the results on September 4.The expected improvement comes as it prepares to invest more in its platinum portfolio.In July, the company approved a R15.2bn investment in the development of its Bokoni platinum project in Limpopo after the completion of a definitive feasibility study.The project will involve the refurbishment of an existing 60,000-tonne-a-month concentrator and the construction of a new 120,000-tonne-a-month concentrator. First production is targeted for the first half of the 2028 financial year.ARM expects the expanded Bokoni operation to reach steady-state production of about 350,000-400,000 ounces of PGMs a year from 2032.The investment follows a difficult period for Bokoni. ARM suspended mining and milling at the operation in 2025 as it reassessed the mine’s economics and development plan.The company has also approved the restart of open-pit mining and nickel concentrate production at Nkomati in Mpumalanga, which has been on care and maintenance since 2021.The restart is expected to require about R753m in capital and follows an offtake agreement with Swedish metals producer Boliden. ARM said the agreement provides a route to market for the nickel concentrate once production resumes.The Bokoni and Nkomati decisions are part of ARM’s plans to return assets to production and expand its exposure to PGMs and nickel.Business Day
