African Rainbow Minerals (ARM), which is expecting headline earnings for full year to June 2024 to plunge by at least 40%, has effected board changes that will see Alexander Komope Maditsi and Wilson Mangisi Gule stepping down from different positions while David Collen Noko and Bongani Nqwababa have been roped in as new appointments to the board.
Maditsi will be stepping down from the position of lead independent non-executive director of ARM while Mangisi Gule will cease to be a director for the company.
ARM said in a statement yesterday that although Maditsi was also stepping down from the positions of chairman of the nomination and non-executive directors’ committee with effect from September 3, he was continuing to serve as independent non-executive director for the board of ARM.
Noko, already an independent non-executive director of the company has now been appointed as lead independent non-executive director while he will also take up the position of member of the nomination committee which he will also chair after stepping from the investment and technical committee.
“David has over 40 years’ experience in mining, engineering and manufacturing and served as an executive at two global mining companies. I am confident that he will continue to contribute to the success of the Company in his new role,” said Patrice Motsepe, chairman of ARM.
Nqwababa will assume chairmanship of the company’s investment and technical committee. With extensive previous financial and mining roles that include position of chief finance officer for JSE companies, Motsepe said ARM was looking to tap into Nqwababa’s vast experience.
In March, ARM said its immediate priority was to conserve cash while ramping up production on a phased basis, from the installed capacity of 60 000 tonnes per month by leveraging and enhancing existing infrastructure.
This was after basic earnings due to impairments in ARM for the half-year period to December 2023 decreased by 72% to R1.2 billion and included attributable impairments from some of its mines.
The company will release its full year financials tomorrow morning. It has cautioned that headline earnings for the full year to June 2024 will be lower by between 40 and 50% compared to the previous year to between R4.4 billion and R5.3bn.
ARM and Norilsk Nickel Africa (NNAf) concluded a purchase and sale agreement for the acquisition by ARM of NNAf’s 50% participation interest for a cash consideration of R1m. This resulted in ARM taking over NNAf’s share of the obligations and liabilities relating to the Nkomati Mine’s assets.
“ARM’s exposure to PGMs, a segment currently grappling with depressed prices, has weighed heavily on its overall performance. However, the strength of the iron ore division, pillowed by higher realised prices and increased sales volumes, has provided a crucial counterbalance,” said one analyst.
BUSINESS REPORT