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African Rainbow Minerals

OTCPK:AFRB.Y
Snowflake Description

Flawless balance sheet, undervalued and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AFRB.Y
OTCPK
ZAR31B
Market Cap
  1. Home
  2. US
  3. Materials
Company description

African Rainbow Minerals Limited, through its subsidiaries, operates as a diversified mining and minerals company in South Africa and Papua New Guinea. The last earnings update was 80 days ago. More info.


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AFRB.Y Share Price and Events
7 Day Returns
0%
OTCPK:AFRB.Y
-1.1%
US Metals and Mining
-0.7%
US Market
1 Year Returns
27.9%
OTCPK:AFRB.Y
-28.1%
US Metals and Mining
3%
US Market
AFRB.Y Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
African Rainbow Minerals (AFRB.Y) 0% -9.8% - 27.9% 90.8% -34.8%
US Metals and Mining -1.1% -10.7% -6.8% -28.1% 8.5% -18.9%
US Market -0.7% -2% 2.4% 3% 39.2% 42%
1 Year Return vs Industry and Market
  • AFRB.Y outperformed the Metals and Mining industry which returned -28.1% over the past year.
  • AFRB.Y outperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
AFRB.Y
Industry
5yr Volatility vs Market

AFRB.Y Value

 Is African Rainbow Minerals undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of African Rainbow Minerals to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for African Rainbow Minerals.

OTCPK:AFRB.Y Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OTCPK:AFRB.Y
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 0.97
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.97 (1 + (1- 28%) (6.85%))
1.012
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.01
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.012 * 5.96%)
8.76%

Discounted Cash Flow Calculation for OTCPK:AFRB.Y using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for African Rainbow Minerals is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

OTCPK:AFRB.Y DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (ZAR, Millions) Source Present Value
Discounted (@ 8.76%)
2019 5,536.42 Est @ 35.9% 5,090.39
2020 6,973.23 Est @ 25.95% 5,894.91
2021 8,297.13 Est @ 18.99% 6,449.00
2022 9,467.75 Est @ 14.11% 6,766.02
2023 10,480.33 Est @ 10.7% 6,886.26
2024 11,350.79 Est @ 8.31% 6,857.34
2025 12,103.67 Est @ 6.63% 6,723.09
2026 12,764.78 Est @ 5.46% 6,519.08
2027 13,357.37 Est @ 4.64% 6,272.14
2028 13,900.85 Est @ 4.07% 6,001.47
Present value of next 10 years cash flows ZAR63,459.72
OTCPK:AFRB.Y DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ZAR13,900.85 × (1 + 2.73%) ÷ (8.76% – 2.73%)
ZAR236,731.67
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ZAR236,731.67 ÷ (1 + 8.76%)10
ZAR102,205.19
OTCPK:AFRB.Y Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ZAR63,459.72 + ZAR102,205.19
ZAR165,664.91
Equity Value per Share
(ZAR)
= Total value / Shares Outstanding
= ZAR165,664.91 / 193.33
ZAR856.9
OTCPK:AFRB.Y Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in OTCPK:AFRB.Y represents 0.07229x of JSE:ARI
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.07229x
Value per Share
(Listing Adjusted, USD)
= Value per Share (ZAR) x Listing Adjustment Factor
= ZAR 856.90 x 0.07229
$61.95
Value per share (USD) From above. $61.95
Current discount Discount to share price of $11.64
= -1 x ($11.64 - $61.95) / $61.95
81.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price African Rainbow Minerals is available for.
Intrinsic value
>50%
Share price is $11.64 vs Future cash flow value of $61.95
Current Discount Checks
For African Rainbow Minerals to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • African Rainbow Minerals's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • African Rainbow Minerals's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for African Rainbow Minerals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are African Rainbow Minerals's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:AFRB.Y PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in ZAR ZAR21.51
JSE:ARI Share Price ** JSE (2019-05-02) in ZAR ZAR161.01
United States of America Metals and Mining Industry PE Ratio Median Figure of 46 Publicly-Listed Metals and Mining Companies 9.72x
United States of America Market PE Ratio Median Figure of 3,088 Publicly-Listed Companies 17.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of African Rainbow Minerals.

OTCPK:AFRB.Y PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= JSE:ARI Share Price ÷ EPS (both in ZAR)

= 161.01 ÷ 21.51

7.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • African Rainbow Minerals is good value based on earnings compared to the US Metals and Mining industry average.
  • African Rainbow Minerals is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does African Rainbow Minerals's expected growth come at a high price?
Raw Data
OTCPK:AFRB.Y PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.49x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
-0.2%per year
United States of America Metals and Mining Industry PEG Ratio Median Figure of 25 Publicly-Listed Metals and Mining Companies 0.62x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

OTCPK:AFRB.Y PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.49x ÷ -0.2%

-31.63x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • African Rainbow Minerals earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on African Rainbow Minerals's assets?
Raw Data
OTCPK:AFRB.Y PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in ZAR ZAR135.86
JSE:ARI Share Price * JSE (2019-05-02) in ZAR ZAR161.01
United States of America Metals and Mining Industry PB Ratio Median Figure of 103 Publicly-Listed Metals and Mining Companies 1.46x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
OTCPK:AFRB.Y PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= JSE:ARI Share Price ÷ Book Value per Share (both in ZAR)

= 161.01 ÷ 135.86

1.19x

* Primary Listing of African Rainbow Minerals.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • African Rainbow Minerals is good value based on assets compared to the US Metals and Mining industry average.
X
Value checks
We assess African Rainbow Minerals's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. African Rainbow Minerals has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

AFRB.Y Future Performance

 How is African Rainbow Minerals expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-0.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is African Rainbow Minerals expected to grow at an attractive rate?
  • African Rainbow Minerals's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • African Rainbow Minerals's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • African Rainbow Minerals's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:AFRB.Y Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:AFRB.Y Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts -0.2%
OTCPK:AFRB.Y Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 14.6%
United States of America Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average 20.2%
United States of America Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 5.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:AFRB.Y Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in ZAR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:AFRB.Y Future Estimates Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 4,461
2022-06-30 4,373
2021-06-30 12,056 8,345 5,355 3
2020-06-30 11,043 9,341 5,716 5
2019-06-30 9,251 4,801 4,951 5
OTCPK:AFRB.Y Past Financials Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income *
2018-12-31 8,319 5,053 4,115
2018-09-30 8,333 4,684 4,431
2018-06-30 8,346 4,314 4,747
2017-12-31 8,156 3,402 3,551
2017-09-30 8,157 3,348 2,491
2017-06-30 8,158 3,294 1,431
2016-12-31 8,008 2,050 2,013
2016-09-30 8,086 1,710 1,606
2016-06-30 8,164 1,370 1,199
2016-03-31 8,756 1,764 -1,129

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • African Rainbow Minerals's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • African Rainbow Minerals's revenue is expected to grow by 14.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OTCPK:AFRB.Y Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from African Rainbow Minerals Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:AFRB.Y Future Estimates Data
Date (Data in ZAR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 22.77 22.77 22.77 1.00
2022-06-30 22.32 22.32 22.32 1.00
2021-06-30 27.58 32.94 24.81 4.00
2020-06-30 29.39 36.13 21.17 5.00
2019-06-30 25.54 29.18 18.60 3.00
OTCPK:AFRB.Y Past Financials Data
Date (Data in ZAR Millions) EPS *
2018-12-31 21.51
2018-09-30 23.20
2018-06-30 24.90
2017-12-31 18.68
2017-09-30 13.12
2017-06-30 7.54
2016-12-31 10.12
2016-09-30 7.80
2016-06-30 5.63
2016-03-31 -5.25

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • African Rainbow Minerals is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess African Rainbow Minerals's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
African Rainbow Minerals has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

AFRB.Y Past Performance

  How has African Rainbow Minerals performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare African Rainbow Minerals's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • African Rainbow Minerals's year on year earnings growth rate has been positive over the past 5 years.
  • African Rainbow Minerals's 1-year earnings growth is less than its 5-year average (15.9% vs 19.8%)
  • African Rainbow Minerals's earnings growth has not exceeded the US Metals and Mining industry average in the past year (15.9% vs 44%).
Earnings and Revenue History
African Rainbow Minerals's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from African Rainbow Minerals Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:AFRB.Y Past Revenue, Cash Flow and Net Income Data
Date (Data in ZAR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 8,319.00 4,115.00 617.00
2018-09-30 8,332.50 4,431.00 617.00
2018-06-30 8,346.00 4,747.00 617.00
2017-12-31 8,156.00 3,551.00 603.00
2017-09-30 8,157.00 2,491.00 603.00
2017-06-30 8,158.00 1,431.00 603.00
2016-12-31 8,008.00 2,013.00 759.00
2016-09-30 8,086.00 1,606.00 759.00
2016-06-30 8,164.00 1,199.00 759.00
2016-03-31 8,755.50 -1,129.00 894.50
2015-12-31 8,766.00 -1,693.00 914.00
2015-09-30 9,014.50 -794.50 914.00
2015-06-30 9,263.00 104.00 914.00
2015-03-31 9,745.00 1,240.00 997.00
2014-12-31 10,227.00 2,376.00 1,080.00
2014-09-30 10,115.50 2,832.50 1,080.00
2014-06-30 10,004.00 3,289.00 1,080.00
2014-03-31 9,190.00 2,615.50 953.50
2013-12-31 8,376.00 1,942.00 827.00
2013-09-30 7,859.00 1,788.00 827.00
2013-06-30 7,342.00 1,634.00 827.00
2013-03-31 13,476.00 2,221.00 234.50
2012-12-31 12,381.00 2,808.00 226.00
2012-09-30 14,955.50 3,123.00 226.00
2012-06-30 17,530.00 3,438.00 226.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • African Rainbow Minerals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • African Rainbow Minerals used its assets more efficiently than the US Metals and Mining industry average last year based on Return on Assets.
  • African Rainbow Minerals has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess African Rainbow Minerals's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
African Rainbow Minerals has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

AFRB.Y Health

 How is African Rainbow Minerals's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up African Rainbow Minerals's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • African Rainbow Minerals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • African Rainbow Minerals's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of African Rainbow Minerals's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from African Rainbow Minerals Company Filings, last reported 4 months ago.

OTCPK:AFRB.Y Past Debt and Equity Data
Date (Data in ZAR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 27,881.00 2,132.00 3,297.00
2018-09-30 27,881.00 2,132.00 3,297.00
2018-06-30 27,378.00 2,296.00 3,291.00
2017-12-31 24,926.00 3,021.00 1,919.00
2017-09-30 24,926.00 3,021.00 1,919.00
2017-06-30 24,040.00 2,759.00 1,488.00
2016-12-31 22,781.00 4,843.00 1,335.00
2016-09-30 22,781.00 4,843.00 1,335.00
2016-06-30 24,581.00 5,551.00 1,316.00
2016-03-31 24,581.00 5,551.00 1,316.00
2015-12-31 24,539.00 4,124.00 1,444.00
2015-09-30 24,539.00 4,124.00 1,444.00
2015-06-30 26,905.00 3,882.00 2,257.00
2015-03-31 26,905.00 3,882.00 2,257.00
2014-12-31 27,626.00 3,920.00 1,976.00
2014-09-30 27,626.00 3,920.00 1,976.00
2014-06-30 28,199.00 3,502.00 2,150.00
2014-03-31 28,199.00 3,502.00 2,150.00
2013-12-31 26,264.00 3,854.00 1,525.00
2013-09-30 26,264.00 3,854.00 1,525.00
2013-06-30 25,463.00 3,992.00 2,004.00
2013-03-31 25,463.00 3,992.00 4,671.00
2012-12-31 24,901.00 4,381.00 2,971.00
2012-09-30 24,901.00 4,381.00 2,971.00
2012-06-30 24,405.00 3,237.00 3,564.00
  • African Rainbow Minerals's level of debt (7.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (14.6% vs 7.6% today).
  • Debt is well covered by operating cash flow (237%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 13.4x coverage).
X
Financial health checks
We assess African Rainbow Minerals's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. African Rainbow Minerals has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

AFRB.Y Dividends

 What is African Rainbow Minerals's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
9.32%
Current annual income from African Rainbow Minerals dividends. Estimated to be 7.42% next year.
If you bought $2,000 of African Rainbow Minerals shares you are expected to receive $186 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • African Rainbow Minerals's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • African Rainbow Minerals's dividend is above the markets top 25% of dividend payers in United States of America (3.69%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:AFRB.Y Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 31 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OTCPK:AFRB.Y Future Dividends Estimate Data
Date (Data in ZAR) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 11.38 1.00
2022-06-30 11.16 1.00
2021-06-30 10.88 7.00
2020-06-30 11.67 10.00
2019-06-30 13.42 8.00
OTCPK:AFRB.Y Past Annualized Dividends Data
Date (Data in ZAR) Dividend per share (annual) Avg. Yield (%)
2018-10-30 15.000 10.158
2018-09-07 15.000 11.666
2018-03-16 5.000 4.508
2017-10-27 6.500 5.259
2017-09-07 6.500 5.926
2016-10-31 2.250 2.372
2016-09-08 2.250 2.620
2015-10-15 3.500 5.201
2015-09-04 3.500 5.531
2014-10-14 6.000 6.010
2014-09-04 6.000 3.947
2013-10-16 5.100 2.599
2013-09-02 5.100 2.588
2012-10-17 4.750 2.663
2012-09-03 4.750 2.913
2011-08-31 4.500 2.573
2010-10-15 2.000 1.001
2010-08-30 2.000 1.185
2009-07-15 1.750 1.059
2009-06-30 1.750 1.407

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of African Rainbow Minerals's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).
X
Income/ dividend checks
We assess African Rainbow Minerals's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can African Rainbow Minerals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. African Rainbow Minerals has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

AFRB.Y Management

 What is the CEO of African Rainbow Minerals's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mike Schmidt
COMPENSATION ZAR23,515,000
AGE 60
TENURE AS CEO 7.2 years
CEO Bio

Mr. Mike P. Schmidt has served as Chief Executive Officer of African Rainbow Minerals Limited (“ARM”) since March 2012. Mr. Schmidt joined ARM as Executive: Platinum Operations in July 2007 after 13 years with Lonmin Platinum where he was Vice President Limpopo operations at the time he left the company. Prior to that, he was employed by Hartebeestfontein Gold Mining Company. He was appointed as the Chief Executive Officer Designate of ARM and an Executive Director of the Company with effect from September 2011.

CEO Compensation
  • Mike's compensation has increased by more than 20% in the past year.
  • Mike's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the African Rainbow Minerals management team in years:

7
Average Tenure
56
Average Age
  • The average tenure for the African Rainbow Minerals management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Patrice Motsepe

TITLE
Executive Chairman
COMPENSATION
ZAR31M
AGE
56

Mike Schmidt

TITLE
CEO & Director
COMPENSATION
ZAR24M
AGE
60
TENURE
7.2 yrs

Abigail Mukhuba

TITLE
Financial Director & Director
COMPENSATION
ZAR7M
AGE
39
TENURE
3.3 yrs

André Wilkens

TITLE
Executive Director of Growth & Strategic Development and Executive Director
COMPENSATION
ZAR21M
AGE
68
TENURE
7.2 yrs

Thando Mkatshana

TITLE
Executive Director
COMPENSATION
ZAR10M
AGE
49

André Joubert

TITLE
Chief Executive of Arm Ferrous
COMPENSATION
ZAR14M
AGE
56
TENURE
6.8 yrs

Johan Pistorius

TITLE
Chief Information Officer
TENURE
11.5 yrs

Jongisa Magagula

TITLE
Corporate Development & Head of Investor Relations

Princess Thwala

TITLE
Group Executive of Compliance & Stakeholder Relations

Busi Mashiane

TITLE
Group Executive of Human Resources
TENURE
4.8 yrs
Board of Directors Tenure

Average tenure and age of the African Rainbow Minerals board of directors in years:

9.3
Average Tenure
58.5
Average Age
  • The tenure for the African Rainbow Minerals board of directors is about average.
Board of Directors

Patrice Motsepe

TITLE
Executive Chairman
COMPENSATION
ZAR31M
AGE
56
TENURE
15.3 yrs

Mike Schmidt

TITLE
CEO & Director
COMPENSATION
ZAR24M
AGE
60
TENURE
7.7 yrs

Abigail Mukhuba

TITLE
Financial Director & Director
COMPENSATION
ZAR7M
AGE
39
TENURE
1.4 yrs

André Wilkens

TITLE
Executive Director of Growth & Strategic Development and Executive Director
COMPENSATION
ZAR21M
AGE
68
TENURE
16.3 yrs

Thando Mkatshana

TITLE
Executive Director
COMPENSATION
ZAR10M
AGE
49
TENURE
4.3 yrs

Alex Maditsi

TITLE
Lead Independent Non-Executive Director
COMPENSATION
ZAR2M
AGE
56
TENURE
4.2 yrs

Rejoice Simelane

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1M
AGE
66
TENURE
15.3 yrs

Bernard Swanepoel

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR829K
AGE
57
TENURE
16.3 yrs

Anton Botha

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR1M
AGE
64
TENURE
10.3 yrs

Tom Boardman

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR2M
AGE
69
TENURE
8.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess African Rainbow Minerals's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. African Rainbow Minerals has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

AFRB.Y News

Simply Wall St News

AFRB.Y Company Info

Description

African Rainbow Minerals Limited, through its subsidiaries, operates as a diversified mining and minerals company in South Africa and Papua New Guinea. It explores for platinum group metals, nickel, copper, coal, iron ore, manganese ore, chrome ore, ferro manganese, and silica manganese, as well as gold. The company is based in Sandton, South Africa.

Details
Name: African Rainbow Minerals Limited
AFRB.Y
Exchange: OTCPK
Founded:
ZAR2,158,742,901
193,329,565
Website: http://www.arm.co.za
Address: African Rainbow Minerals Limited
ARM House,
29 Impala Road,
Sandton,
Gauteng, 2196,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE ARI Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 02. Jan 1992
DB EB9 Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
OTCPK AFRB.Y SPONSORED ADR Pink Sheets LLC US USD 19. Nov 1992
Number of employees
Current staff
Staff numbers
13,218
African Rainbow Minerals employees.
Industry
Diversified Metals and Mining
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 01:55
End of day share price update: 2019/05/02 00:00
Last estimates confirmation: 2019/05/03
Last earnings filing: 2019/03/01
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.