South Africa’s ARM suspends operations at Bokoni platinum mine due to declining earnings and a $125m impairment charge. Basic earnings dropped to R330m, headline earnings to R2.69bn. Lower commodity prices affected the company’s financials. ARM acquired Bokoni in 2022 for R3.5bn, aiming to refocus on future production sustainability.

ARM’s decision to suspend operations at Bokoni was influenced by delays in ramping up mining operations and changes in methodology. Despite increased platinum group metal concentrate production, cash costs rose by 48% to $2,051/oz. A feasibility study is underway to assess a new development strategy for the mine’s high-quality resources, prioritizing long-term returns.

Initially acquired from Anglo American and Atlatsa Resources, Bokoni had been under care and maintenance since 2017 due to financial losses. ARM aimed to expand operations but faced challenges amid market downturns. The company is now focusing on ore reserve development to support sustainable future production at the platinum mine.

Read more at Yahoo Finance: African Rainbow Minerals halts operations at Bokoni platinum mine