2024-03-10 10:24:05 ET
African Rainbow Minerals Limited (AFBOF)
Q2 2024 Earnings Conference Call
March 08, 2024, 4:00 AM ET
Company Participants
Thabang Thlaku - Investor Relations and New business Development
Patrice Motsepe - Executive Chairman
Phillip Tobias - Chief Executive Officer
Tsundzukani Mhlanga - Finance Director
Michael Schmidt - Board of Directors
Thando Mkatshana - Chief Executive, ARM Platinum
Andre Joubert - Chief Executive, ARM Ferrous
Conference Call Participants
Martin Creamer - Mining Weekly
Thobela Bixa - Nedbank CIB
Bruce Williamson - Integral Asset Management
Nicholas Witten - Standard Bank Securities
Leroy Mnguni - HSBC
Xolisile Nene - Absa Bank
Presentation
Thabang Thlaku
Hi. Good morning, everyone. And welcome to the African Rainbow Minerals Results Presentation for the Six Months ended 31 December, 2023. Please note, this is a hybrid presentation, so we would like to thank everybody who's dialed in, but more importantly, the people who've made an effort to come be here with us in-person.
At the end of this presentation, we will go into Q&A. So if you've dialed in over webcast, please post your questions, while the presentation is going on.
Please help me welcome our Executive Chairman of African Rainbow Minerals, Dr. Patrice Motsepe, over to you Chair.
Patrice Motsepe
Thank you. Good morning. It's good to see Martin Creamer. You're becoming younger and younger and my favorite. Somebody was telling me many years ago, there were people who make us all proud. Martin Creamer is the salt of the earth. Where's David Mackay, my other favorite person. He's not here. Okay. Pass my regards to him. Who does he work for now? He works for you, Martin. Pass my regards to him and all my wonderful favorite people.
I'm going to go as quickly as possible through the results, because you've got the documentation, my gratitude to the board members who are here. So thank you so much, Brian, for coming, and all the other board members who are here and thank the media. Our partners are here as well. Who's here from our partners? Mike, I saw Impala, Anglo Platinum. I saw Sumitomo and who else? Yeah. Well, the ones that I'm told you. Thank you so much.
As I said, the results are self-explanatory. I was in a meeting a week or so ago, and there was a presentation that the results were good in a very difficult environment. In fact, very good, in a very demanding environment. You will see from the presentation the impact that the prices of the commodities that we mine, particularly PGMs have had on our results. But I think it's during these challenging periods that the benefits of being diversified comes to the fore. And more importantly, that having a world-class management team, Philip is doing excellent work as our new CEO and Tsu and Mike Schmidt and Andre Joubert, Thando and Thabang and the rest of the team, I saw [indiscernible] and in every single one of the management team. I mean, we are very fortunate to really have world-class South Africans who are as good as the best in the world. Okay?
The headline earnings decreased for the first half, decreased by 43%, and you'll see what the primary causes were to R$3 billion. And we've declared an interim dividend of per share. In order to be a truly globally competitive company, you've got to deliver good results at the heart of which paying dividends is part of our policy and part of our commitment. And side by side with that, we are a growing company. We've got some exceptional world-class assets that we are mining. But we also have to take a 3, 5, 7, 10-year perspective of what would continue to make African Rainbow Minerals a globally competitive company.
ARM Ferrous, there was an increase of 12%. Headline earnings at ARM Ferrous, the PGM said, essentially because of the price decrease of 121%, and ARM Coal went down by 85%. We are committed to sustainability. We are committed to partnering and confronting climate change. And our policies are part of what we call a just and a fair transition. And if you look at the slide, it indicates the impact of the decrease in platinum, the headline earnings, the impact that platinum had. And Andre Joubert continues to do good work. David is here, is on the mine. David is at the -- okay, that's good....
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African Rainbow Minerals Limited (AFBOF) Q2 2024 Earnings Call Transcript