By:Miningweekly

JSE-listed African Rainbow Minerals has warned that its headline earnings for the first half of the 2025 financial year are expected to be between 45% and 55% lower year-on-year, at between R1.33-billion and R1.63-biillion.

Headline earnings a share are therefore expected to be between R6.78 and R8.29.

The company attributes the decrease in headline earnings for the first half of financial year 2025 primarily to a 22% reduction in the average realised dollar iron-ore prices, lower iron-ore and manganese ore sales volumes, higher cash costs and a stronger rand:dollar exchange rate.

This was partially offset by higher platinum group metals production.

Basic earnings for the period are, however, expected to increase by between 8% and 18% to between R1.31-billion and R1.44-billion.

Basic earnings a share are expected to be between R6.70 and R7.32 and include an impairment of property, plant and equipment at Beeshoek of R96-million after tax; an impairment of Assmang’s investment in Sakura Ferroalloys of R36-million with no tax effect; and an impairment of property, plant and equipment at Cato Ridge Works of R4-million after tax.

The company says the increase in basic earnings is mostly attributable to the lower impairments in the first half of the current financial year when compared with the first half of the 2024 financial

The company’s financial results for the interim period will be released on March 7