African Rainbow Minerals Limited. JSE: ARI

ARM shares

Background of ARM

  • Owned by billionaire Patrice Motsepe, African Rainbow Minerals (ARM) is one of South Africa’s largest mining companies, with its portfolio including platinum, gold, coal, iron and copper mines, along with a strategic resources and exploration division. It is also one of the largest black-controlled mining companies in the world. The company prides itself on its diversified nature, long-life, low unit cost operations and multiple growth opportunities.

  • Motsepe established today’s ARM soon after the turn of democracy in 1994, under the name of Future Mining. By 2002, the company already had a market cap of R5 billion and on ARM shares were put up for sale on the Johannesburg Stock Exchange (JSE) under the name ARMgold Limited.

  • Through a number of key mining acquisitions in South Africa and abroad, ARM reached a market cap of R59 billion in 2008. The company owns 20% of Harmony Gold, which is the world’s 12th largest gold mining company. It has other joint ventures with Anglo American Platinum, Impala Platinum, Assore, Glencore and Vale.

  • ARM became a member of the respected International Council on Mining and Metals in 2009. Due to volatility in the mining sector, which forced retrenchments and the cutting back of operations by many South African mining companies, market cap has dropped to around R23 billion today, with ARM share price also taking a hit. The live online stocks chart shows that ARM share price dropped approximately 50% from 2011 to 2016, although the shares have slowly been making a rebound, as investors again look to buy into this historically prosperous company.

ARM Shares Growth Driver

  • ARM’s proud history of growth has been facilitated by ambitious ventures and shrewd management, as well as strong Black Economic Empowerment (BEE) credentials which have been a major driver of its success today. This has been hindered by continuing instability in the mining sector, with earnings dropping by 97% from 2014 to 2015. In May 2016, the company announced more job and capital cost reductions at most of its operations, due to soft commodity prices.

  • As the mining sector continues to struggle, ARM’s financials will likely continue to be restrained and growth will be slow, but the implementation of cost cuts will help the company to stay afloat.

ARM Investor Tip

  • ARM share price dropped from R4.73 per share in 2014 to R2.33 at the end of 2015, with investors reluctant to buy shares. Trade has been largely negative, with sell-offs of stocks a common occurrence recently. Whilst confidence in the company’s performance is still low, investment analysts have advised ARM investors to hold their position for now. ARM shares are likely to make especially strong gains after the significant drop in recent years, but the forecast is that a slow recovery process will take place. The current unpredictability of the mining sector will negatively impact on the purchase of shares.

ARM Major Shareholders

African Rainbow Minerals & Exploration Investments, Allan Gray, The ARM Broad- Based Economic Empowerment Trust, Public Investment Corporation, Kagiso Asset Management.

  • Sector

    Materials

  • Industry

    Iron & Steel

  • Sub industry

    Steel Raw Material Supplies

How to buy ARM Shares

  • ARM : How to buy ARM Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy ARM shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in ARM and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase ARM shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in ARM.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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