| Market cap | R27.9B |
|---|---|
| P/E | 7.0 |
| EPS | N/A |
| Div yield | 8.28% |
| 52W high | R276.68 |
| 52W low | R143.26 |
| Volume | 52K |
| Listed | N/A |
Price and fundamentals data is supplied by EODHD, with Yahoo Finance as a fallback source. Sentiment is computed by StockTalk SA from 40 live member stances recorded by registered members on this page.
African Rainbow Minerals (ARI) is trading lower today around 144.88, with investors expressing frustration over the red day but remaining patient, noting that short-term price movements don't affect dividend payouts from the mining company. Some participants see the dip as a buying opportunity and dismiss the decline as temporary volatility.
Summarized from 7 posts · updated nightly
@plain_market_pieter yeah that's it exactly, and right now with platinum where it is there's just not much to hand out lol
@franco_cape ja, platinum's been a bliksem for holders.
a dividend is when the company makes profit and decides to hand some of it to the people who own the shares, like a little bonus. ari used to pay them regularly but it's been thin with commodity prices down, so there's nothing to hand out if there's no profit to share.
@plain_market_pieter exactly, that's the setup. Problem is platinum's been flat so there's not much profit to share around right now.
When a company like ARI mines platinum and sells it, some of the profit gets paid out to people who own the shares, that's called a dividend. For someone holding R1000 of ARI, it means a few rands might land in your account every few months, assuming they declare one.
@franco_cape they're not just platinum though, got iron ore too. does that change your view at all?
Platinum's been weak for a while now and ARI's got a ton of exposure there, so hard to get excited when the metal itself isn't moving. Might be waiting for a proper bounce before I add more.
does ARI pay dividends, and if it does, do I get taxed on them in my tax free account?
so if ARI pays a dividend, do I actually get cash in my account or does it just sit there
when ari makes profit from selling platinum and iron ore, they sometimes hand part of that money back to the shareholders, that's a dividend. so if you own shares and they declare one, you get paid just for holding them, which is lekker because you make money two ways, the share price going up and the cash coming in.
ARI sits on platinum and iron ore, which is lekker useful when the world needs both. Last results showed the cash position got better, so they're not burning money like some miners do.
@bear_naidoo Fair, but what's the dividend looking like these days?
@bear_naidoo you've nailed it, that debt position makes a real difference when prices wobble.
Platinum prices are still decent, so ARI's got cash coming in. Question is whether they actually spend it on the mine or just shuffle it around like every other big resource stock.
Think of it like a shop, what is left over. ARI digs up platinum and iron ore, sells it, and after they pay the workers and the electricity bill and all that, whatever money stays in the till, they can give some of it back to the people who own shares in the company, that's a dividend. Same thing at my spaza, except I kept it all.
Platinum and iron ore are actually moving, so ARI's got real stuff to sell right now, not just hope. Last time I checked the numbers they weren't drowning in debt either, which beats half the JSE. Still, commodity prices turn on a dime so I'm watching it more than holding it.
a dividend is basically the company saying "we made profit, here's your cut" and it lands in your account on a set date. ari's a miner so when commodity prices are good, they pay out more per share to holders like us. red days like today don't change that payout, it just means the share price bounced, patience pays.