[Ferro-Alloys.com] African Rainbow Minerals（ARM）FY 25 Manganese Financial Results

ARM Ferrous: manganese ore operations

Manganese ore financial information (attributable basis)

Prices

The average US dollar CIF index price for high-grade manganese ore (43.5%) increased by 2% year on year. The average US dollar CIF index price for low-grade manganese ore (36.5%) decreased by 2% year on year.

Volumes

Manganese ore sales volumes increased by 1% to 4.5 million tonnes (F2024: 4.4 million tonnes).

Export sales volumes were 3.7 million tonnes (F2024: 3.7 million tonnes). Local sales volumes were higher at 0.78 million tonnes (F2024: 0.75 million tonnes) due to increased offtake from a local customer.

Production volumes at Black Rock Mine increased by 4% to 3.7 million tonnes (F2024: 3.6 million tonnes), after addressing critical skills shortage and ore quality issues.

Unit costs

Unit cash costs increased by 9% to R954 per tonne (F2024: R879 per tonne), due to inflationary increases, higher labour headcount due to the filling of key production vacancies and a higher volume of run-of-mine tonnes mined, which were partially offset by higher production volumes.

Unit cost of sales, which includes marketing and distribution costs, increased by 4%, mainly due to higher mining costs, increased net realisable value (NRV) adjustments, and higher marketing expenses. These increases were partially offset by lower freight costs as a result of reduced freight rates.

Capital expenditure and projects

Total capital expenditure for the manganese ore operations was R998 million on a 100% basis (F2024: R1 368 million) due to concerted efforts to preserve cash given the low market prices.

Manganese ore operational statistics (100% basis)

ARM Ferrous: manganese alloy operations

Manganese alloy financial information (attributable basis)

Prices

Average high-carbon ferromanganese index prices increased by 5% and medium-carbon ferromanganese prices increased by 12% year on year.

Volumes

High-carbon ferromanganese production at Sakura (100% basis) decreased to 222 000 tonnes (F2024: 230 000 tonnes) due to management action to match production to lower sales. High-carbon ferromanganese sales (100% basis) declined by 2% to 221 000 tonnes (F2024: 226 000 tonnes) due to lower offtake from customers.

High-carbon ferromanganese production at Cato Ridge Works decreased by 7% to 94 000 tonnes (F2024: 101 000 tonnes) mainly due to stopping production at the end of May 2025.

Medium-carbon ferromanganese production at Cato Ridge Alloys (100% basis) declined by 6% to 48 000 tonnes (F2024: 51 000 tonnes) due to production losses related to stopping production in May 2025, resulting in only 11 months of production.

High-carbon ferromanganese sales at Cato Ridge Works increased by 10% to 34 000 tonnes (F2024: 31 000 tonnes) due to improved manganese alloy market conditions. Medium-carbon ferromanganese sales at Cato Ridge Alloys (100% basis) decreased by 4% to 48 000 tonnes (F2024: 50 000 tonnes) due to weak market demand.

Unit costs

Unit cash costs at Sakura increased by 11% in F2025 mainly due to lower production volumes and higher ore consumption prices.

Unit cash costs at Cato Ridge Works increased by 8% in F2025 mainly due to a reduction in production output volumes, inflationary increases in ore supply costs and other raw material prices, as well as above-inflation increases in power costs.

Medium-carbon ferromanganese unit cash costs at Cato Ridge Alloys increased by 1% in F2025.

Capital expenditure

Capital expenditure at Cato Ridge Works decreased by 49% to R13 million (F2024: R26 million).

Manganese alloy operational statistics (100% basis)

Closure of Cato Ridge Works and Alloys, disposal of certain land assets of Assmang and Assmang’s interest in Sakura

ARM has announced a series of strategic transactions involving its 50% stake in the joint venture, Assmang. These include the permanent closure of the Cato Ridge Works plant, effective 31 August 2025. Assmang will also sell various land, properties and houses in Cato Ridge to Assore S.A. PropCo Proprietary Limited for R453 million, with part of the land designated for community benefit. Additionally, Assmang will dispose of its 54.36% stake in Sakura Ferroalloys to Assore, resulting in a cash distribution of R900 million to ARM.

Please refer to the announcement available on SENS on 30 June 2025 for further details.

The ARM Ferrous operations, held through its 50% investment in Assmang Proprietary Limited (Assmang), comprise the iron ore and manganese divisions. Assore South Africa Proprietary Limited (Assore), ARM’s partner in Assmang, owns the remaining 50%.

• [Editor:tianyawei]