African Rainbow Minerals (ARM) has announced to shareholders that it anticipates a substantial decrease in earnings for the 2023 financial year.
- ARM released a trading statement, as required by JSE Listing Requirements, stating that there is a reasonable degree of certainty that the upcoming financial results will differ by at least 20% from the previous corresponding period.
- The company projects a decrease in headline earnings between 18% and 27% for FY2023 compared to the previous year.
- Additionally, basic earnings are expected to decline by approximately 33% to 42% for the same period.
- ARM attributes the decline in headline earnings to lower commodity prices and reduced production and sales volumes.
- The company faced logistics challenges, leading to increased unit costs that surpassed already elevated cost inflation.
- However, the impact on earnings was partially offset by the weaker exchange rate between the South African rand and the US dollar.
ARM’s financial results for the year ending on 30 June 2023 will be disclosed on 4 September 2023, providing more detailed information about the factors contributing to the earnings decrease.