ABN - South African mining firm African Rainbow Minerals (ARM) has revealed it will pay its highest dividend on record this year, after an encouraging performance in the financial year.
The diversified miner, which is chaired by South Africa’s richest black businessman Patrice Motsepe, confirmed it would pay investors R6.50 per share, almost tripling the pay out of the previous year.
The three-fold dividend increase is directly derived from the firm’s headline earnings tripling to R3.2 billion (US$250 million) in the year to June 30, predominantly from improved results at its ferrous division.
ARM’s performance was boosted by rising commodity prices, as the firm enjoyed a 45% increase in prices received for exported iron ore and 93% more for its manganese.
“ARM remains confident in the long-term outlook for commodities and as a result of its robust statement of financial position, which is relatively ungeared,” said the company.
“ARM continues to pursue both internal and external growth opportunities.”
In other news, Motsepe’s financial services firm African Rainbow Capital has completed the listing of its investment fund on the JSE, becoming the twelfth company to list on the exchange this year and bringing the total amount of capital raised to just over R76 billion.