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The founder and chairperson of diversified mining company African Rainbow Minerals (ARM) on Friday, September emphasised the importance of companies behaving in a manner that reflects integrity, honesty, governance and respect for legality and due process.

"It's important for us to create value for shareholders. It's equally, if not more important, that we do so in a legal manner, in an ethical manner, and that's what has always been the culture of ARM," Dr Patrice Motsepe pointed out during the Johannesburg Stock Exchange-listed company's presentation of 19% higher headline earnings of R3.2-billion. (Also watch attached Creamer Media video.)

Net cash improved 54% to R10.2 billion, and a final dividend of R7 per share was declared.

"We've always had a commitment to all stakeholders. We're a company that, being South African, has a duty to reflect meritocracy, the best of our people from all backgrounds and cultures – black people, white people, coloured people, and Indian people.

"Everybody must feel that this is their company, not in terms of what we say, but in terms of our track record and how our employees and management feel that we behave, and also a duty to the country to provide jobs and uplift," said Motsepe, ahead of ARM CEO Phillip Tobias stating that he is "very pleased" that the ARM board has approved a R15.2-billion capital outlay on what he described as the host of South Africa's second-largest platinum group metals (PGM) resource, the Bokoni PGM project, which has a 6.3-year payback.

Restart of the Nkomati nickel mine has also won board thumbs up. "The restart is a low-risk, immediately executable opportunity that leverages existing infrastructure and re-establishes South Africa's only primary nickel producer," Tobias reported.

Existing infrastructure is supporting execution involving capital of approximately R1.9-billion over two years.

Regarding safety, Tobias expressed pride at achieving a fatality free year and "we remain committed to achieving zero harm".

ARM finance director Tsundzukani Mhlanga pointed to the significant increase in cash generation to R4.2-billion: "Last year, same time, we generated cash of R45-million versus R4.2 billion – quite a marked increase."

ARM Platinum headline earnings increased by more than 200% as did those of Two Rivers platinum group metals (PGM) mine and Modikwa PGM mine.

Nkomati mine, which sold 28 111 t of chrome concentrate, reported headline earnings of R39-million.

"Our outlook on earnings remains positive... We continue to focus on factors that are within our control – the cost discipline, mining flexibility, and quality mining," Tobias explained.

ARM FERROUS

ARM Ferrous headline earnings decreased by 42% to R2 028-million on lower contributions from the iron-ore and manganese divisions.

The iron-ore division's headline earnings decreased by 41%, while the manganese division's by 68%. The cessation of production at Beeshoek mine resulted in local sales volumes falling to 0.5-million tonnes.

The reduction in sales volumes, retrenchment costs of R124-million, an increase in the rehabilitation provision of R191-million and care and maintenance costs of R92-million collectively had a significant negative impact on headline earnings.

Headline earnings at Khumani mine decreased significantly on mainly the average realised rand strengthening by 7%, partially offset by 180 000 t higher export sales volumes.

Manganese headline earnings declined on mainly the rand strengthening and lower manganese ore and alloy export prices.

Continued collaboration with State-owned Transnet through the Ore Users Forum and Manganese Producers Consortium advanced rail and port reforms on the Saldanha and Ngqura corridors, delivering a 1% improvement in export ...

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.

The headline earnings of diversified mining company African Rainbow Minerals (ARM) increased by 19% to R3 201-million in the financial year ended June 30 on mainly higher dollar platinum group metals (PGM) basket prices.

Revenue increased by 25% to R16 323-million and the dividend from Harmony Gold was a 113%-higher R512-million.

ARM Platinum headline earnings increased by 200%-plus, as did those of Two Rivers PGM mine and Modikwa PGM mine.

Nkomati mine, which sold 28 111 t of chrome concentrate, reported headline earnings of R39-million.

ARM's overall net cash improved by R3 562-million to R10 171-million and the board of the company headed by CEO Phillip Tobias declared a final dividend of R7 a share.

The group recorded zero fatalities, which is seen as a significant milestone, with the last fatality-free year recorded in FY2017. Lost-time injury frequency rate improved by 9% to 0.29 per 200 000 person hours and the total recordable injury frequency rate regressed by 11% to 0.56.

ARM FERROUS

ARM Ferrous headline earnings decreased by 42% to R2 028-million on lower contributions from the iron-ore and manganese divisions.

The iron-ore division's headline earnings decreased by 41% and the manganese division's by 68%. The cessation of production at Beeshoek mine resulted in local sales volumes falling to 0.5-million tonnes.

The reduction in sales volumes, retrenchment costs of R124-million, an increase in the rehabilitation provision of R191-million and care-and-maintenance costs of R92-million collectively had a significant negative impact on headline earnings.

Headline earnings at Khumani mine decreased significantly on mainly the average realised rand strengthening by 7%, partially offset by 180 000 t higher export sales volumes.

Manganese headline earnings declined on mainly the rand strengthening and lower manganese ore and alloy export prices.

Continued collaboration with State-owned Transnet through the Ore Users Forum and Manganese Producers Consortium advanced rail and port reforms on the Saldanha and Ngqura corridors, delivering a 1% improvement in export rail performance and enhancing the long-term competitiveness of South African producers, ARM reported in a media release to Mining Weekly.

ARM COAL

ARM Coal reported a headline loss of R428-million driven on mainly the lower realised coal price and rand strengthening.

The Goedgevonden coal mine recorded a headline loss of R73-million and PCB a headline loss of R355-million.

COPPER

ARM stated that its investment in Surge Copper supported the continued advancement of the Berg project, which the completed prefeasibility study (PFS) confirms as a large-scale copper/molybdenum development with a maiden mineral reserve supporting a 28-year mine life.

Following completion of the PFS, the project is now progressing into feasibility-level technical and environmental studies, alongside the environmental assessment and permitting process and continued engagement with First Nations.

The feasibility study report is planned for 2028, with the environmental assessment decision targeted for 2029 to 2030 and a final investment decision for 2031.

Some of the world's biggest money managers have rebuilt their gold holdings after prices dropped, betting that long-term drivers of the precious metal will endure even as the US Federal Reserve takes a more assertive stance on inflation.

Amundi SA, Europe's largest asset manager, bought bullion on the expectation it will return to $5 000/oz by year-end. Fund managers at Pictet Asset Management, Robeco Institutional Asset Management and Fidelity International also added to holdings cut earlier this year, during bullion's retreat from an all-time high.

"Gold is an asset that we consider to be cheap, a good hedge and reasonably liquid," said Lorenzo Portelli, head of cross-asset strategy at Amundi Investment Institute. But greater visibility over the Fed's interest-rate path would be needed, he said, before the firm would consider adding to last month's purchases.

That was a common theme in interviews with more than a dozen asset managers, whose firms manage a combined $27-trillion. Without exception, each of them – including BNP Paribas Asset Management and Manulife John Hancock Investments – had either added back gold in recent weeks or were maintaining bullish allocations.

But any breakout above gold's recent ceiling near $4 600/oz won't be smooth, many of the money managers said. Higher Treasury yields and increased bets for at least one Fed rate hike before year-end are undermining support for bullion, an asset that tends to be less favored when borrowing costs rise, because it doesn't pay interest.

Investors' resolve was tested by Fed chairperson Kevin Warsh's Aug. 28 speech at the central bank's Jackson Hole symposium, where he warned that US inflation isn't meaningfully slowing toward a 2% target – comments that triggered increased bets on monetary tightening.

So far, these potential speed bumps haven't shaken the renewed conviction of long-term investors. Gold's enduring appeal, some of the money managers said, lies in its value as a hedge within a broader investment portfolio.

"It's become a much more acceptable asset," said Arnout van Rijn, a portfolio manager for multi-asset and equity solutions at Robeco, a Dutch firm that oversees some $464 billion in assets. "It's become part and parcel of every regular or normal portfolio."

After a blistering rally backed by speculative capital took gold to an all-time high near $5 600/oz in January, the metal has spent much of this year in retreat. Elevated energy prices and inflationary shocks from the Iran war dragged it back to near $4 000/oz in June. That's when funds began to show interest.

"The downdraft to $4 000/oz, if you didn't own it already, was a very good buying time," said Michael Cuggino, president of the Permanent Portfolio Family of Funds. "The long-term macro story is still in place, and that's bullish for gold," he said, adding that "higher highs and higher lows" could be expected over time.

For Robeco's van Rijn, the catalyst for buying gold again was an acceleration in central-bank purchases during the second quarter. Official-sector demand recovered sharply between April and June, with net purchases of 289 tons the highest for any second quarter, according to the World Gold Council.

Sophie Huynh, a portfolio manager and strategist for dynamic-asset allocation at BNP Paribas, was drawn back by a fading correlation between bullion and risk assets like equities – a trend that suggests gold's traditional value as a hedge has returned after a period of speculative trading.

"The froth of gold has come off," said Huynh. Instead, the metal is being powered by "fundamental drivers such as central-bank purchases and multi-asset managers looking for portfolio hedge," she added.

That renewed appetite for gold is reflected in funds' net-long position tracked by the Commodity Futures Trading Commission, which rose in the week ended Aug. 25 to its highest level so far this year.

In one of the starkest warnings of recent weeks, Ray Dalio, the billionaire founder of Brid...

Mining Weekly Editor Martin Creamer unpacks Sibanye-Stillwater’s new projects; a six-million-ounce platinum demand opportunity from hydrogen truck fleets; and Northam Platinum wanting its Eland mine to be the first PGMs mine operating solely on renewable energy.

This audio is brought to you by Endress and Hauser, a global leader in process and laboratory measurement technology, offering a broad portfolio of instruments, solutions and services for industrial process measurement and automation.

A big part of Impala Platinum is focused on the future and on developing future strengths and competitive positioning, Implats CEO Nico Muller outlined on Thursday, September 3, when this Johannesburg Stock Exchange-listed platinum group metals (PGMs) company reported the generation of R22-billion worth of free cash flow in its financial year 2026 (FY26).

"It's very exciting for us to be in an industry supported by a constructive price environment. This is a point that we as a company have worked many years to get to.

"We have got a pipeline of opportunities, the balance sheet is very strong, we've got no debt, and we've got R37 billion-rand worth of hedging liquidity," added Muller during the FY26 results presentation covered by Mining Weekly. (Also watch attached Creamer Media video)

The R50-billion capital project programme that Implats announced in 2020 peaked around 2024 and for last two years, it has been winding down.

"So, we're now entering a new phase where we plan that, for the next five years, we'll spend about R60-billion," Implats COO Patrick Morutlwa announced.

This would, Morutlwa said, firstly enable sustainable production and secondly create strategic optionality by further increasing process capacity at the base metal refinery by 20%.

In the next five years, the company will be advancing life-of-mine (LoM) extensions, with some already approved, such as Rustenburg's Shaft 20 and Shaft 14.

"We'll also be increasing our ore reserve development," Morutlwa said. During FY26, group mineral reserves increased by 9% to 53.8-million six element (6E) ounces, reflecting the impact of approved LoM extension projects and ongoing resource conversion activities across the portfolio.

"We've got tailwinds," Morutlwa added.

Implats executive: corporate affairs Emma Townshend reported that one of the things that had changed positively over the last year and a half was the absolute focus on critical minerals - the security and surety of supply. "Then from a big demand, energy, and impetus perspective, obviously you've got AI.

"Many of you have had the benefit and the privilege of going to Shanghai Platinum Week and getting exposure to the huge diversity of industrial applications and the kind of energy and impetus behind the development of those markets. I think that's proved a really useful counter to the demand story, which has been very much about, kind of, you know, waning production over the last couple of years.

"Linked to that China story, but I think more broadly, just in terms of South African supply and the structure of the market, we are absolutely seeing growing relevance in terms of minor PGMs, and I think that is a trend that you've seen in PGM markets over time.

"But there's no doubt that the next ten to 15 years are going to be far more focused on the full basket, and particularly iridium and ruthenium, and we are a very significant producer of both. We're close to 30% of primary refined iridium production, and around 28% of refined ruthenium production," Townshend pointed out.

Implats CFO Meroonisha Kerber highlighted FY26 as an exceptional year in which Implats was able to capitalise fully on improved pricing, resulting in a 58% increase in revenue to R135.1-billion.

"We ended the period with liquidity headroom of R37-billion, which is our cash plus our undrawn facilities.

"The benefit of having a strong balance sheet is that we have the funding flexibility to really take advantage of the portfolio of assets that we have, and to fund projects that we believe are going to enhance the sustainability, the cost competitiveness, and drive long-term value.

"We have kept the balance sheet strong and resilient. We have provided shareholders with very attractive returns, and lastly, we...