African Rainbow Minerals, the diversified mining group founded by South African billionaire Patrice Motsepe, expects full-year headline earnings to climb as much as 22 percent, lifted by a rally in platinum group metals that helped cushion a slump in its iron ore operations.

In a trading update released Friday, the company said headline earnings for the year ended June 30 will land between R3.02 billion and R3.29 billion ($188.4 million to $205.2 million), up from R2.7 billion ($168.4 million) a year ago. Headline earnings per share are projected to rise to between 1,544 cents and 1,682 cents, compared with 1,379 cents previously.

Profit outlook improves on PGM prices

The firmer showing reflects stronger realized prices for PGMs, though gains were tempered by softer iron ore earnings and a stronger rand, which reduces the local currency value of dollar-denominated mineral sales. Full financial results are scheduled for release Sept. 4. The upbeat profit outlook coincides with an aggressive capital push by the Johannesburg-based miner to expand its footprint in key industrial metals.

In July, ARM cleared a R15.2 billion ($948.2 million) plan to build out the Bokoni platinum project in South Africa’s Limpopo province following a definitive feasibility study. The project involves overhauling an existing 60,000-tonne-a-month concentrator and building a separate facility capable of processing 120,000 tonnes monthly.

Initial output at Bokoni is slated for the first half of the 2028 financial year, with production expected to reach a steady run rate of 350,000 to 400,000 ounces a year by 2032. The rollout marks a sharp turn from last year, when ARM paused operations at the site to review its long-term viability before commodity markets shifted in its favor.

ARM restarts Nkomati nickel mine

Alongside Bokoni, the company is reviving nickel output at its Nkomati operation in Mpumalanga, which has been idled under care and maintenance since 2021. The restart will take roughly R753 million ($47 million) and follows an offtake deal with Swedish smelter Boliden, securing a buyer for the concentrate once open-pit mining resumes.

The turnaround efforts underline the legacy of Motsepe, 64, who launched ARM in 1997 by acquiring marginal gold shafts from AngloGold and cutting costs to make them profitable. A former partner at the law firm Bowman Gilfillan, Motsepe stepped down from his executive duties at the miner in February but remains its biggest shareholder.

Motsepe, who has a $3.6 billion net worth, is South Africa’s only Black billionaire and became the first Black African to appear on the Forbes billionaires list in 2008. He owns a 43.66% stake in ARM, equivalent to 91,133,393 shares. He also holds an indirect 11.8% stake in Harmony Gold, South Africa’s largest gold producer, through the company’s 2003 merger with Avmin.