The new CEO of African Rainbow Minerals (ARM), Phillip Tobias, has outlined the challenges facing the company in its 2023 financial year. ARM reported a 21% drop in headline earnings to R8,981 million, attributing this to low prices, logistical issues, power and water supply challenges, and above-inflation costs. Tobias emphasized the importance of a cost-focused approach, technological enhancements for productivity, and improving efficiencies and outputs to increase margins.

In particular, ARM aims to work closely with Transnet to implement sustainable logistics solutions. The company plans to apply successful strategies from past projects, such as the Black Rock project, to current endeavors like the Two Rivers Merensky project and the Bokoni platinum group metals (PGMs) project.

Tobias highlighted the need for improvements in mechanization, automation, and information technology systems, especially in the PGMs sector, to optimize mining, reduce waste, and dilution.

While ARM has faced challenges, it maintains strong Ebitda margins in iron-ore, coal, and PGMs. However, manganese ore and manganese alloys have been challenged. The company also stressed the importance of optimizing rail output and considering trucking options when necessary.

Despite the volatile market, ARM recognizes the value of having a diversified portfolio and intends to adapt to market conditions while continuing to improve its operational performance.