UPDATE 1-S.Africa's ARM doubles profit helped by higher metal prices

  • Reuters
  • Stock Market News
UPDATE 1-S.Africa's ARM doubles profit helped by higher metal prices
Credit: © Reuters.

(Adds lawsuit provision, gives detail)

JOHANNESBURG, Sept 7 (Reuters) - African Rainbow Minerals ARIJ.J (ARM) reported a 166 percent rise in full-year profit on Thursday helped by higher commodity prices.

Diluted headline earnings per share (HEPS) from continuing operations, which strip out certain one-off items, rose to 1,742 cents per share for the year to June 30 from a re-stated 654 cents for the previous year.

"The significant increase was mainly as a result of higher U.S. dollar prices realised for all the commodities in ARM's portfolio relative to the previous corresponding year," the company said in a statement.

ARM operates joint ventures with Anglo American Platinum AMSJ.J , Assore ASRJ.J , Impala Platinum IMPJ.J and Glencore GLEN.L .

It raised its dividend to 650 cents per share from 225 cents per share a year earlier.

The company, which sold its indirect stake in Zambia's Lubambe copper mine last month for $97 million, said it set aside a provision of 330 million rand for a possible settlement with miners who contracted lung disease.

A class action lawsuit, mostly relating to the fatal lung disease silicosis, was filed on behalf of miners in 2012 leading Harmony Gold HARJ.J , Sibanye Gold SGLJ.J , Anglo American AAL.L and Gold Fields GFIJ.J to set aside money for a possible settlement.

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