Release Date: March 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Given the current gold cycle, is an 18% payout ratio suitable for Harmony, and what are the plans for underperforming assets? A: Patrice Motsepe, Executive Chairman, suggested that specific questions about Harmony should be directed to Harmony's management. Regarding underperforming assets, CEO Velile Phillip Tobias mentioned a review process is underway, with actions such as labor rationalization at Modikwa and strategic decisions at Bokoni to reduce costs and improve efficiency.
Q: What are the options for Beeshoek if ArcelorMittal pulls the plug on the contract? A: Andre Joubert, CEO of ARM Ferrous, explained that Beeshoek is landlocked and relies solely on ArcelorMittal as a customer. The mine is currently reviewing various options due to the significant impact of reduced offtake from ArcelorMittal.
Q: What is the outlook for ARM's iron ore business, especially in terms of unit costs and export sales volumes? A: Andre Joubert noted that the forecast for iron ore volumes has been adjusted due to planned shutdowns for maintenance on the Transnet line. The unit cost increase is attributed to higher stripping ratios and maintenance costs, particularly at Beeshoek.
Q: Has ARM abandoned the narrow reef boring technology at Bokoni? A: Michael Schmidt, Executive for Growth and Strategic Development, confirmed that ARM is advancing with narrow reef boring technology. Trials are ongoing, and the technology is expected to improve safety, cost-effectiveness, and profitability.
Q: What is ARM's strategy regarding the rest of Africa and potential secondary listings? A: CEO Velile Phillip Tobias stated that ARM's strategy focuses on delivering competitive returns and creating sustainable value. Tsundzukani Mhlanga, Finance Director, mentioned that ARM is open to considering a secondary listing to raise its corporate profile and access foreign markets.
Q: What is ARM's view on the rhodium market and the manganese grading issue at Black Rock? A: Thando Mkatshana, CEO of ARM Platinum and ARM Coal, noted that rhodium prices have been flat, with recent increases possibly due to shifts in demand. Andre Joubert confirmed that the manganese grading issue at Black Rock has been addressed, with improved mining discipline and quality.
Q: What are the maintenance costs at Bokoni, and when is the PGM market expected to turn? A: Velile Phillip Tobias indicated that Bokoni's care and maintenance costs range between ZAR30 million and ZAR34 million per month. The timing of a PGM market turnaround remains uncertain, but ARM is focusing on responsible investment and cost management.
Q: What is the timeline for Surge Copper, and when will ARM start spending CapEx on this asset? A: Michael Schmidt explained that the pre-feasibility study for Surge Copper is expected within two years, with further development contingent on study outcomes. Significant CapEx spending is not anticipated in the immediate future.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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