African Rainbow Minerals (ARM) revealed on Monday (31st August) that its pgm production increased by six per cent in the 2009 financial year.

The diversified miner admitted to enduring a 12-month period that encompassed "wide-ranging and severe challenges" but still posted increased output of a record 323,259 oz.

In addition, the company confirmed that its nickel production declined by 12 per cent on a year-on-year basis to 4,495 tonnes, while external manganese ore sales were down 42 per cent to 2.15 million tonnes.

CEO Andre Wilkens expressed his delight at the results and confidence for the future, noting that the strong pgm sales indicated the prudence of investing in a diversified portfolio of assets.

He said: "The restructuring exercises implemented in FY2009 will stand ARM in good stead as the company faces a new financial year which promises to be every bit as challenging.

"It is thanks to the commitment of the entire ARM team and our world-class partners, plus our resilient mix of resources and assets, and a strong balance sheet, that ARM faces 2010 with renewed confidence."

The financial results also alluded to the completion of the Khumani 10mtpa mine on time and within budget, plus the approval of plans for an extra 6mtpa expansion.

Furthermore, the firm highlighted that commissioning has now commenced at its Goedgevonden and Nkomati mine expansion projects.

ARM has also confirmed that it is actively seeking investment opportunities in both Zimbabwe and Angola, despite previous suggestions that it will avoid spending on acquisitions.

Executive Chairman Patrice Motsepe explained at a presentation of the financial results that the depressed economic landscape provides scope for purchasing platinum juniors.

"Consensus is that it creates greater value to grow your own assets rather than go and acquire assets that may be at lower prices given the economic environment," he was quoted as saying by MoneyBiz.

Sources:

Arm’s 2009 profit drops sharply to R2,7bn (31/08/09)

ARM looking for opportunities in Zim and Angola (31/08/09)

Provisional results for the financial year ended 30 June 2009 (31/08/09)

Ÿ Adfero Ltd