6th Feb 2006 13:58
African Rainbow Minerals Limited(Incorporated in the Republic of South Africa)(Registration number 1933/004580/06)JSE Share code: ARI & LSE Share code: AGMISIN: ZAE000054045("ARM" or the "Company")ARM - TRADING UPDATE - in respect of the six month period ended 31 December2005In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited("the JSE") a listed company is required to publish a trading statement as soonas it is satisfied that a reasonable degree of certainty exists that thefinancial results for the period to be reported on next will differ by at least20% from those of the previous corresponding period.The ARM group results for the six months to December 2005 have been negativelyimpacted by market conditions in its ferrous metals division. Shareholders arereferred to the trading update released by Assmang in this regard, dated 26January 2006. Sales volumes and metal prices have been negatively affected inparticular for manganese ore, ferromanganese and ferrochrome alloys.The significant increase in platinum group metal ("PGM") prices during thereporting period has impacted positively on the ARM operating results for itsproportionate interest in the Modikwa platinum mine. Following the sale of 50%of Nkomati Nickel Mine ("Nkomati") to Lion Ore, effective 30 June 2005, resultsfor this reporting period will only reflect 50% of the profits from thisoperation whereas in the comparative 6 month period the Nkomati profits wereaccounted for on a 100% basis.Furthermore, ARM shareholders are reminded of the fact that the interest heldin Harmony Gold Mining Company Limited ceased to be equity accounted witheffect from 30 November 2004.In light of the above, ARM announces that it expects headline earnings pershare to increase for the 6 months ended 31 December 2005 to between 60 and 68cents per share (December 2004: 9 cents per share). Basic earnings per sharefor the same period are expected to be between 110 and 130 cents per share(December 2004: 117 cents per share).This trading statement has not been reviewed or reported on by ARM"s externalauditors. The Company"s results will be released on 20 February 2006.By order of the board6 February 2006Sponsor : Deutsche Securities (SA) (Proprietary) LimitedENDSENDAFRICAN RAINBOW MINERALS LTDRelated Shares:
Argo Blockchai.