ARM’s key performance indicators cover both financial and non-financial elements of our business. Indicators for the preceding four years are included for comparison. The financial key performance indicators are based on segmental analysis and include all the ARM divisions. The definitions for the indicators are included where appropriate.
HEPS increased by 10% from 1 735 cents per share to 1 900 cents per share. The increase in headline earnings was primarily due to a 68% improvement in the ARM Platinum contribution and a 17% increase in the ARM Ferrous contribution to headline earnings.
Headline earnings comprise earnings adjusted for items of capital nature. This is then divided by the weighted average number of shares in issue to arrive at headline earnings per share.
The segmental analysis EBITDA margin remained constant at 36%. The EBITDA was positively affected by a 17% weakening of the Rand versus the US Dollar and higher palladium prices. These were partially offset by lower US Dollar prices realised for platinum, rhodium, copper, nickel, chrome concentrate, ferromanganese and export coal together with higher than inflation cost increases at the iron ore, manganese, Modikwa and coal operations.
The EBITDA margin is the segmental analysis earnings before interest, taxation, depreciation and amortisation, excluding exceptional items and income from associates and joint ventures, divided by segmental analysis sales.
Segmental analysis capital expenditure attributable to ARM decreased from R3.5 billion in F2013 to R2.9 billion in F2014. The main capital expenditure items in the year under review related to the Lubambe Mine as it ramps up, equipment purchased for the Beeshoek Village Pit, waste removal at the East Pit, completion of the Khumani Mine Wet High Intensity Magnetic Separation (WHIMS) plant, modernisation of the Black Rock Mine and the recapitalisation of Modikwa Mine.