African Rainbow Minerals Limited (ARM) is a leading South African diversified mining and minerals company. For investors interested in investing in ARM, the current African Rainbow Minerals share price ranges between R161.11 to R166.86.
ARM was founded by Patrice Motsepe, South Africa’s first black billionaire, and has a wide range of interests in platinum group metals, iron, coal, copper, and gold.
Below, we discuss the African Rainbow share price in 2024, the company’s financial health, and leadership.
African Rainbow Minerals Share Price Data
The current market capitalization of African Rainbow Minerals is approximately R 37.5 billion and is included in the Top 40 companies in South Africa by market cap.
It is listed as ARI on the Johannesburg Stock Exchange (JSE:ARI).
The current price range is at R161.11 and R166.86, with a dividend yield of 8.98%. Last October 2024, investors received a total dividend of R15 per share, down from the R26 per share in 2023.
The current top shareholders of ARM include PIC, ARM Broad-Based Economic Empowerment Trust, Opilac Proprietary Limited, Coronation Asset Management, Allan Gray Proprietary Limited, BlackRock Inc, JP Morgan Securities, and Ninety One SA Proprietary Limited.
Refer to the table below for share price data.
| Market capitalization | R37,521,765,604 |
| Price range | R161.11 – 166.86 |
| EPS-TTM | 2589.3 |
| Dividend Yield | 8.98% |
| Authorized shares | 500 million |
| Issued shares | 224,667,778 |
Share Price Forecast
African Rainbow Minerals will likely focus on their expansion to mining and processing copper in newly acquired investments in Canada.
Additionally, ARM announced that they will “maximize the equity in Harmony,” as 2024 earnings showed that Harmony Gold’s performance in F2024 did not reflect in ARM’s earnings nor its free cash flow.
In a statement, executive chairman Motsepe said that they are “very confident that in the medium-to-long term, prices will stabilize,” referring to the drop in prices for iron, manganese, chrome, nickel, coal, and platinum group metals.
Overall Financial Health
For the year-ended June 2024, the African Rainbow Minerals reported a decrease in sales from R 14.7 million in 2023 to R 11.4 million in 2024. ARM also reported a decrease in headline earnings by 43%, largely caused by the decline in the platinum group metal USD prices.
Meanwhile, basic earnings per share also fell from R 41.21 to R16.04.
In the previous fiscal year 2023, ARM had delivered an upsetting 62% decrease to earnings, and a 27% decline in Earnings Per Share over the last three years.
In a nutshell, the mining company hasn’t been performing at its best recently but the entire South African mining industry has had to deal with major drops in mineral prices for 2024. For instance, Impala Platinum also flagged USD 1bn impairments after a price plunge on metal.
Read more: The South African Mining Industry: Performance, Challenges, and Investment Outlook
On a positive note, ARM has been able to maintain their diversified assets, as well as maintaining relatively safer mining operations.
They were also able to successfully acquire 15% of the Canadian company Surge Copper Corporation. Additionally, ARM’s 20% investment in Harmony Gold will be maintained.
What is African Rainbow Minerals?
African Rainbow Minerals Limited is a distinguished mining company based in South Africa. Its main interests are mining platinum, platinum group metals (PGMs), iron, coal, and copper.
It has operations in South Africa and Malaysia.
It currently owns 20% of Harmony Gold, which is among the top 20 biggest mining companies in the world.
A short history
African Rainbow Minerals Limited is the first black-owned mining company in South Africa. It was founded and established by Africa’s first black millionaire, Patrice Motsepe in 1997. He currently serves as the executive chairman.
By 2003, ARM had entered a merger with Harmony Gold and Anglovaal, and became the largest business group owned and managed by black entrepreneurs.
CEO Philip Tobias
In 2023, ARM CEO Mike Schmidt stepped down after an 11-year run and was replaced by Philip Tobias.
The two had worked closely before, and Tobias had worked at ARM as COO since 2021.
Tobias is a mining engineer with over 28 years of experience in the mining industry and managed capital projects at Harmony Gold Mining. He also held executive positions at Anglo American Platinum and Gold Fields prior.
Contact
The ARM corporate headquarters can be found at ARM House 29 Impala Road, Chislehurston, Sandton 2196.
There official contact number is +27 11 779 1300.
How to Invest in African Rainbow Minerals Shares
- Find a broker that offers access to JSE. Selecting the right broker is crucial when you want to start investing. Find one that is compatible with how you want to invest.
- Review the broker’s trading conditions. Research and consult other investors to avoid brokers that may exploit your capital. If possible, join a verified community of traders such as CommuniTrade. A community can help you find the right brokers and make favorable decisions.
- Open an investment account. Register and verify your account. This gives you a convenience way to view and buy stocks via your broker’s website.
- Select ARI as the stock you want to buy. African Rainbow Minerals are listed as ARI on the Johannesburg Stock Exchange. Alternatively, it may also appear as JSE:ARI.
- Identify the right orders. Stocks come in order types and your account will allow you to view which orders your broker offers.
- Plan your next step. Take a look at other featured stock investments by TradersUnited.
