JOHANNESBURG (miningweekly.com) – The basic earnings of South Africa’s African Rainbow Minerals (ARM) for the first half of its 2026 financial year are expected to increase by between 65% and 75% to between R2 300-million and R2 440-million, the diversified mining company stated in a Johannesburg Stock Exchange news service announcement on Tuesday, February 24.

The increase in basic earnings includes a profit on disposal of Sakura and a gain on remeasurement of ARM’s pre-existing 50% interest in Nkomati mine, which gain arose as a result of the acquisition of Norilsk Nickel Africa’s 50% interest.

Headline earnings for the period are expected to increase by between 5% and 15% compared with the corresponding six months ended 31 December 2024 to between R1 596-million and R1 748-million.

Headline earnings a share are therefore expected to be between 814c and 891c.

The headline earnings and basic earnings increases were primarily owing to an increase in the dollar-based platinum group metals basket prices at the Two Rivers and Modikwa PGM mines.

Two Rivers is a joint venture (JV) between ARM (54%) and Impala Platinum (46%) and is managed by ARM. The operation is situated on the farm Dwarsrivier on the southern part of the eastern limb of the Bushveld Complex, about 35 km south-west of Burgersfort in Limpopo province. The operation comprises three on-reef decline shafts and an upper group two concentrator plant and has a life-of-mine offtake agreement with Impala Refining Services. Through the Merensky mine project, the life-of-mine is being extended by 20 years, creating work opportunities for local communities.

Modikwa, an underground mine in the north-eastern part of South Africa north-west of Burgersfort, is a 50/50 JV with Valterra Platinum and has estimated reserves of 215.2-million tonnes of  2 g/t platinum, 1.87 g/t palladium and minor grades of gold, rhodium, ruthenium and iridium.

In addition to PGMs, ARM mines and beneficiates iron-ore, manganese ore, chrome ore, nickel and coal. It also has a strategic investment in gold through Harmony Gold Mining Company.

Dr Patrice Motsepe, ARM’s founder, this month retired from his position as executive chairperson and as an employee of the company, but will continue to be a director of the company as well as to serve as the non-executive chairperson of the board, in compliance with the stock exchange’s listings requirements.

“I look forward to continue contributing to the global competitiveness of ARM in my new capacity as non-executive chairman,” Motsepe stated in a stock exchange news service announcement, which also stated that Jacques van der Bijl has been appointed as ARM’s new COO.

“I have undertaken my new role as non-executive chairman to ensure compliance with the listings requirements. I would also like to welcome Jacques to his new role as chief operating officer of ARM. Jacques is a world-class mining engineer and has been working for ARM for many years. ARM remains committed and focused on creating value for its shareholders and benefitting its stakeholders,” Motsepe added.

David Noko will continue in his role as the company’s lead independent non-executive director.

ARMs financial results for the six months to December 31 will be released on March 6, Mining Weekly can report.