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ARI
ARIM
ARI - African Rainbow - Interim Results for the six months ended
31 December 2007
African Rainbow Minerals Limited
(Incorporated in the Republic of South Africa)
(Registration Number 1933/004580/06)
JSE Share code: ARI
ISIN: ZAE000054045
("ARM" or "the Company")
INTERIM RESULTS
for the six months ended 31 December 2007
Highlights
* Headline earnings increased by 35% to R741 million
* Headline earnings per share increased by 34% to 353 cents per share
* EBITDA increased by 38% to R1 740 million
* Record volumes in Manganese Ore, Iron Ore, Chrome Ore and Thermal Coal
* 9% increase in PGM sales
* All projects are progressing on schedule and within budget
* Khumani Iron Ore Mine (10 million tonnes per annum);
* Nkomati Nickel expansion (20 500 tonnes per annum); and
* Goedgevonden Coal project (6.7 million tonnes per annum)
* Modikwa achieves a safety record of 2 million fatality free shifts
The Board of Directors of ARM is delighted to announce the Company`s record
results thereby continuing to deliver on its stated strategies of organically
and efficiently growing ARM into a globally competitive diversified mining
company. ARM continues to be well positioned to participate in the local and
global merger and consolidation opportunities.
Headline earnings, for the period, have increased by 35% to R741 million or 353
cents per share for the six months ended 31 December 2007 (2006: R548 million or
264 cents per share). The period under review has been characterised by strong
commodity prices across the businesses and a 4% stronger average Rand/US dollar
exchange rate at R6.94/US dollar. In addition, these results have been impacted
by solid volume increases from the ferrous assets held through Assmang Limited
(Assmang) and sales volumes which were maintained at the Platinum and Nickel
operations.
Operational highlights for the period include (100% basis):
* 37% increase in manganese ore sales to 1.4 million tonnes;
* 18% increase in iron ore sales to 3.3 million tonnes;
* 12% increase in manganese alloy sales to 122 thousand tonnes;
* 55% increase in domestic thermal coal sales to 7 million tonnes;
* 9% increase in PGM sales to 243 thousand ounces;
* 177% increase in chrome ore sales to 653 thousand tonnes; and
* first copper production from TEAL in the Democratic Republic of Congo (DRC).
Basic earnings for the period amounted to R870 million (2006: R560 million)
which include a R135 million gain from the receipt of the final tranche payment
on the sale of 50% of Nkomati Nickel to Norilsk Nickel during 2005.
These interim results for the six months ended 31 December 2007 have been
prepared in accordance with International Financial Reporting Standards (IFRS).
Contribution to headline earnings (unaudited)
Commodity group six months ended 31 December
R million 2007 2006 % change
Platinum 206 198 4
Nkomati nickel and chrome 150 200 (25)
Ferrous metals 574 261 120
Coal 6 24 (75)
Exploration: TEAL (121) (39) (210)
Corporate: finance costs (45) (73) 38
Corporate: other (29) (23) (26)
ARM headline earnings 741 548 35
Accounting considerations affecting earnings figures include:
* The period-on-period comparison of the Platinum segmental contribution to
headline earnings by Two Rivers Platinum Mine is distorted by the inclusion in
this period of interest charged on its shareholders` loans. The net reduction to
Platinum attributable earnings is R28 million. There is a corresponding gain in
the corporate segment and thus there is no impact on the ARM consolidated
results.
* The TEAL results were fully absorbed by ARM in this period with no allocation
to minorities, which would have amounted to R42 million (2006: R23 million
allocated to minorities). The total expense incurred by TEAL amounted to R121
million.
* The ARM Coal attributable results for the period to December 2006 are not
comparable with the current period results, as the accounting adjustments
relating to purchase price allocation and related amortisation as well as
imputed interest on loans were only finalised and processed after December 2006.
Attributable cash operating profit for the six-month period to December 2007 of
R170 million (2006: R136 million) more clearly reflects the comparative
performance.
The operational volume increases, together with ARM`s organic growth projects,
are in line with the Company`s strategy of growth to double production from 2005
levels by 2010 in key commodities with high margin operations. ARM has
established a diversified commodity exposure, providing the Company with varied
pricing, volume and stage of mine development exposure.
ARM`s organic growth projects with its partners remain on schedule and within
budget, having spent R1.4 billion (attributable to ARM) on capital expenditure
over the period. Khumani Iron Ore Mine is the first project to begin ramping up
with export sales from Khumani of ore processed through its own plant planned by
the end of financial year 2008. Nkomati Nickel and Goedgevonden Thermal Coal
projects are both on track for full production by 2011. ARM continues to develop
partnerships and relationships in South and Southern Africa. ARM`s commitment to
grow its South and Southern African mining businesses is clearly demonstrated by
its increasing investments in Africa through TEAL.
ARM continues to focus on operational cost containment through this growth
phase, costs being a significant determinant of management`s remuneration.
Operational cost changes are in line with the planned growth, as ARM`s mining
production ramps up. The new and modern operations continue to incorporate best
practices from ARM and its joint venture partners, using new technology, more
open cast mining and better positioning with regard to infrastructure and
logistics.
ARM`s balance sheet remains robust with net debt (excluding partner loans) of
R2.1 billion in 2007 and net gearing of 20%. ARM`s earnings before interest,
tax, depreciation and amortisation (excluding exceptional items) (EBITDA) margin
for the period under review is 44%, with strong EBITDA growth of 38% to R1 740
million (2006: R1 265 million).
The national power shortage, which manifested itself during the past few weeks,
has somewhat impacted production and processing at most of ARM`s operations.
There has been a compensating price spike for the majority of ARM`s commodities.
ARM`s operations are shallow relative to the majority of other South African
mines and make significant use of diesel as an energy source, in addition to
their electricity requirements. This significantly reduces the safety and
operational risks that may arise due to power cuts. ARM is reviewing all its
operations to ensure that production is maximised in the most efficient and
profitable manner at a 90% average level of power supply.
Harmony
ARM`s interest in the gold sector is held through a 16% stake in Harmony.
During December 2007, Graham Briggs was appointed as Chief Executive Officer of
Harmony.
Harmony reported an earnings loss from continuing operations for the quarter
ended 31 December 2007 of 43 cents per share (quarter ended 30 September 2007:
30 cents per share loss) and an increase in cash operating profit of 43% to R450
million (quarter ended 30 September 2007: R315 million). Gold production for the
period was 8% lower at 12 403 kilograms (quarter ended 30 September 2007: 13 523
kilograms), with cash costs for the period flat at R133 324/kg.
Harmony continues to focus on ensuring that the quality of the portfolio of
assets improves, as the Company invests in longer life, higher grade mines. The
Company has begun to deliver on plans related to cost control, as illustrated
this quarter where it has been able to maintain flat unit cash costs, despite
lower gold production. An agreement to dispose of 60% of certain uranium and
gold assets of the Randfontein, Cooke Section, for a purchase consideration of
US dollar 252 million has been entered into. Harmony plans to secure an
international partner for the development of the Papua New Guinea (PNG) assets.
The ARM balance sheet at 31 December 2007 reflects a marked-to-market investment
in Harmony of R4 484 million, which is based on a Harmony share price of R70
(2006: R111). Changes in the value of the investment in Harmony are accounted
for by ARM through the statement of changes in equity, and the investment is
reflected at market value in the balance sheet.
Harmony announced its results for the quarter ended 31 December 2007 on 15
February 2008 and these can be viewed on www.harmony.co.za.
Broad-based Economic Empowerment (BBEE) Trust
The Trust, established in April 2005, has allocated Units to its beneficiaries
having an income value of the equivalent of 10% of ARM`s issued share capital.
The beneficiaries of the Trust currently includes five broad-based provincial
upliftment trusts, a broad-based women upliftment trust, various church groups,
trade union representatives and will, in the future, include several community,
business and traditional leaders.
In the period of almost three years since the establishment of the Trust and
with two years remaining to repay the funding raised for the Trust to acquire
the ARM shares, the beneficiaries have started receiving funds from
distributions made by the Trust. On 18 February 2008, an amount of approximately
R8 million was distributed to the beneficiaries. This amount is derived from a
portion of the ARM dividend received by the Trust during October 2007. ARM views
this as a significant step towards the fulfilment of the objectives of the
Trust, which is to improve the living conditions of the poor and unemployed and
to uplift rural communities and women.
Operational Review
ARM Ferrous
The ARM Ferrous operations, which are held through its 50% investment in
Assmang, consist of three divisions, namely: iron ore, manganese and chrome.
Assore Limited, our partner in Assmang, owns the remaining 50%.
Assmang reported an increase of 69% in its turnover for the six months to 31
December 2007 to R4.4 billion (2006: R2.6 billion). Headline earnings increased
substantially by 118% to R1 146 million (2006: R525 million).
Assmang headline earnings contribution
100% basis six months ended 31 December
R million 2007 2006 % change
Iron ore division 264 260 2
Manganese division 776 244 218
Chrome division 106 21 405
Total 1 146 525 118
Headline earnings attributable to ARM (50%) 574 261 120
The increase in headline earnings is primarily attributed to increased sales
volumes and prices for iron ore, manganese ore and alloys, as well as chrome ore
and charge chrome. ARM expects the existing strong demand for its products to
continue, supported by material increases in US dollar contract prices for iron
ore, manganese and chrome ore and alloys.
Assmang product sales
100% basis six months ended 31 December
Thousand tonnes 2007 2006 % change
Iron ore division 3 286 2 783 18
Manganese ore* 1 434 1 046 37
Manganese alloys* 122 109 12
Charge chrome 115 107 7
Chrome ore* 116 69 68
* Excluding intra-group sales
The planned cost increases at the Beeshoek iron ore operations during the period
under review were mainly due to the higher cost of road transport from Khumani
iron ore mine to Beeshoek iron ore mine and reduced production tonnages at
Beeshoek.
Assmang capital expenditure
100% basis six months ended 31 December
R million 2007 2006
Iron ore division 1 366 483
Manganese division 163 87
Chrome division 55 87
Total 1 584 657
The major portion of the capital expenditure of R1 584 million (2006: R657
million) was spent on the ongoing infrastructure development of the new Khumani
Iron Ore Mine amounting to R1 307 million. In addition R52 million was spent on
the rebuild of a furnace at the Cato Ridge Works ferromanganese smelter.
During the period under review Assmang obtained a R1.4 billion term loan
facility to assist with funding the completion of the Khumani Iron Ore Mine. At
31 December 2007, R200 million had been drawn against this facility.
Logistics
Assmang has finalised a 20-year contract with Transnet for an allocation of 10
million tonnes per annum to be exported through the port of Saldanha. Transnet
and other industry role players are currently evaluating and negotiating the
next capacity expansion project from 47 million tonnes per annum to 60 million
tonnes per annum.
Assmang and Transnet are currently finalising manganese ore allocation increases
above the current Assmang allocation of 1.85 million tonnes per annum through
Port Elizabeth.
Khumani Iron Ore Mine
Mining commenced at Khumani in May 2007 and the first product from processing
through its own plant is expected during April 2008. The project is funded from
Assmang operational cash flows and debt facilities. Khumani Iron Ore Mine is on
schedule for full commissioning by the end of June 2008 and a subsequent ramp-up
to full production of 10 million tonnes per annum by 2010.
Further expansion to increase to 20 million tonnes export production per annum
is being investigated. This second phase of expansion is subject to the
successful conclusion of negotiations with Transnet and will be submitted to the
Assmang board and shareholders for consideration later this calendar year.
ARM Platinum
ARM Platinum consists of three operating mines.
The first mine is Modikwa Platinum Mine, where ARM Platinum has an effective
41.5% economic interest and the local communities have an 8.5% economic
interest. The remaining 50% is held by Anglo Platinum. Two Rivers Platinum Mine
is the second mine and ARM owns 55%. Its partner Impala Platinum owns 45%. The
third mine, Nkomati Mine, is a 50:50 joint venture partnership with Norilsk
Nickel, which produces nickel in concentrate and chrome ore.
ARM Platinum continues to enjoy strengthening PGM pricing and is approaching
steady state production at both platinum operations. Nkomati Nickel has
decreased its contribution to ARM headline earnings due to lower volumes and a
lower received US dollar nickel price.
ARM Platinum`s contribution to headline earnings decreased by 11% to R356
million for the six months to 31 December 2007 (2006: R398 million). The six
months to 31 December 2007 have seen total PGM sales increase by 9% to 243
thousand ounces as Modikwa and Two Rivers build up to full production levels.
ARM expects improved operational performance and strong PGM prices in the second
half of financial year 2008.
ARM Platinum capital expenditure
Capital expenditure increased by 14.7% from R484 million to R555 million, to
sustain and grow production in the following areas:
Modikwa Platinum Mine - North shaft decline extension
Two Rivers Platinum Mine - 40 000 tonnes per month north decline development
Nkomati Nickel and Chrome Mine - Commissioning the 100 000 tonnes per month MMZ
plant
ARM Platinum capital expenditure
100% basis six months ended 31 December
R million 2007 2006
Modikwa Platinum Mine 164 99
Two Rivers Platinum Mine 185 228
Nkomati Nickel and Chrome Mine 206 157
Total 555 484
Modikwa Platinum Mine
Modikwa`s cash operating profit was R495 million for the six months ended
December 2007 (2006: R491 million), while attributable headline earnings
contribution increased by 7% to R108 million.
Production output for the period under review decreased by 7% as a result of a
slower than anticipated ramp-up to normal production levels after the re-
introduction of continuous operations (conops) from June 2007. Furthermore,
Modikwa has focused on repositioning the mine for improvements in productivity
by establishing additional working panels, which is having a short-term impact
on costs but with long-term benefits. Labour relations have improved with a new
two-year wage agreement now in place, effective January 2008.
Unit cash costs increased by 23% compared to the six months period ended 31
December 2006 (10% compared to the 12 months period to 30 June 2007). Re-
capitalisation of the mechanised fleet is expected to have a favourable impact
on productivity and unit cash costs going forward.
Modikwa operational statistics
six months ended 31 December
100% basis 2007 2006 % change
Cash operating profit R million 495 491 1
Tonnes milled Million tonnes 1.23 1.31 (6)
Head grade 4E g/t 4.45 4.43 1
PGMs-in-concentrate 4E ounces 148 039 158 247 (7)
Average basket price 4E R/kg 303 113 259 227 17
Cash cost R/tonne 522 426 (23)
Cash cost R/Pt oz 9 554 7 808 (22)
Cash cost R/PGM oz 4 314 3 528 (22)
Capex R million 164 99 66
Headline earnings 108 101 7
attributable to ARM (41.5%)
Previously approved capital has advanced the down dip development of North Shaft
from 4 to 6 level and the down dip development of South Shaft is scheduled to
commence in the first half of calendar year 2008. Trial mining of the Merensky
reef produced 65 392 tonnes in the past six months and is planned to continue at
12 000 tonnes per month for the next six months.
Two Rivers Platinum Mine
Two Rivers` cash operating profit was R401 million for the six months ended 31
December 2007, while the headline earnings contribution (after interest on
shareholders` loans, tax and minorities) was R98 million.
Two Rivers operational statistics
six months ended 31 December
100% basis 2007 2006 % change
Cash operating profit R million 401 288* -
Tonnes milled Million tonnes 1.10 0.75 47
Head grade 6E g/t 3.73 4.04 (8)
PGMs-in-concentrate 6E ounces 95 355 65 552 46
Average basket price 6E R/kg 293 412 247 725 18
Cash cost R/tonne 330 284 (16)
Cash cost R/Pt oz 7 989 6 744 (19)
Cash cost R/PGM oz 3 810 3 232 (18)
Capex R million 185 228 19
Headline earnings 98** 97* -
attributable to ARM (55%)
* For the three months to December 2006
** Includes R28 million impact of interest paid on shareholders` loans after tax
and minorities
The development ore stockpile has been depleted and underground production is
expected to reach the planned steady state output of 225 000 tonnes per month
before the end of the financial year 2008.
Underground operations achieved a higher than planned waste dilution due to a
larger proportion of undulating split reef and pot holes. This has resulted in
the 8% reduction in the head grade (6E) and a 16% increase in unit cash costs.
In the last few months, Two Rivers has been achieving improved grades and
production levels.
The North Decline development and production is ahead of schedule and achieving
40 000 tonnes per month. The concentrator commissioning concerns have been
addressed and recoveries are expected to improve as Two Rivers approaches steady
state operations.
Nkomati Nickel Mine
Nkomati reported a cash operating profit of R446 million compared to R602
million in the corresponding period in the prior year. This 26% decrease in cash
operating profit was as a result of a 5% decrease in the realised dollar nickel
price, a 10% reduction in nickel in concentrate sales and a 46% reduction in PGM
sales.
The high grade Massive Sulphide Body (MSB) ore body has been effectively
depleted and the mine is ramping up production on the lower grade Main
Mineralised Zone (MMZ) ore body. This is progressing according to the mining
plan. As a result of Nkomati transforming into a high volume, low grade mine,
head grade reduced in line with plans to 0.82% Ni compared to 1.98% Ni in the
corresponding period. Mining unit costs have declined from R446 per tonne to
R321 per tonne due to the shift from underground mining to open pit operations.
Nkomati operational statistics
six months ended 31 December
100% basis 2007 2006 % change
Cash operating profit R million 446 602 (26)
Tonnes milled Thousand 460 170 171
Head grade % nickel 0.82 1.98 (59)
On-mine cash cost per tonne R/tonne 321 446 28
treated
C1 Cash cost (net of by- US$/lb (1.67) 0.11 -
products including chrome)
Capex R million 206 157 31
Metal sales
Nickel* Tonnes 2 367 2 620 (10)
PGMs* Ounces 14 742 27 525 (46)
Copper* Tonnes 1 313 1 709 (23)
Cobalt* Tonnes 123 124 (1)
Chrome ore Tonnes 537 002 166 648 222
Headline earnings R million 150 200 (25)
attributable to ARM (50%)
* Contained metals in concentrate
The 100 000 tonnes per month MMZ plant was commissioned on time and within
budget. Steady state production is expected from this plant in the first quarter
of 2008. Chrome sales have increased from 166 648 tonnes to 537 002 tonnes in
the comparable six-month period. The chrome operations` contribution to the
Nkomati Mine cash operating profit was 45% for the period under review. Looking
forward, based on existing commodity prices, the chrome contribution to Nkomati
Mine cash operating profit is expected to remain significant until the Nkomati
expansion project has ramped up to full nickel production in 2011.
A significant chrome fines stockpile of 1.5 million tonnes has been generated
from the production of the lumpy chrome. A 100 000 tonnes per month chrome fines
re-treatment plant (at a capital cost of R68 million) is being constructed to
process the resultant fines stockpile, with commissioning expected in the third
quarter of 2008.
Nkomati Nickel Expansion Project
The Phase 2 Expansion Project was released by the joint venture partners, ARM
and Norilsk Nickel in September 2007. The 375 000 tonnes per month plant is
scheduled for commissioning in September 2009. All major equipment has been
ordered and earthworks for the plant have commenced. The pre-stripping contract
for the opencast has been awarded and is expected to commence in March 2008.
Firm commitments from the South African electricity generators for the power
supply for this project have been secured. As at 31 December 2007, approximately
R677 million has been committed of the total capital expenditure requirement of
the R3.2 billion announced at project release.
Kalplats
The Kalplats PGM project, situated 330km west of Johannesburg, is a joint
venture between ARM Platinum and Platinum Australia Limited (PLA). PLA is
earning-in up to 49% of the project by completing a bankable feasibility study
and providing the right for the project to use the Panton metallurgical process.
To date, PLA has completed approximately 38 000 metres of drilling as well as
other studies as part of the feasibility study. The combined indicated and
inferred mineral resource currently contains approximately 3.5 million ounces 2E
PGMs (Pt, Pd + Au), representing an average grade of 1.4 g/t. Exploration has
also started on the Kalplats Extended Area, which is a 50:50 joint venture
between ARM Platinum and PLA.
ARM Coal
ARM owns 51% of ARM Coal, which in turn owns 20% of Xstrata Coal`s South African
operations and 51% of Goedgevonden. In addition, ARM owns a direct 10% stake in
Xstrata Coal`s South African operations. ARM`s effective economic interest in
Xstrata Coal South Africa is 20.2%, and in Goedgevonden is 26%.
Cash operating profit increased by 25% to R170 million for the six months ended
31 December 2007 (2006: R136 million). In the period under review, domestic
thermal coal sales and prices increased significantly as Eskom`s requirement for
coal continued to increase. Total export thermal coal sales volumes remained
flat with a substantial increase in the US dollar price received. During the six
months under review cash flow from Xstrata Coal South Africa (excluding
Goedgevonden) was re-invested into capital expenditure and as a result no
dividend will be received in respect of the period to December 2007. A R20
million dividend was received from ARM Coal during the period under review for
the six month period to June 2007.
ARM Coal operational statistics
Six months ended 31 December
2007 2006 % change
Total sales Million tonnes 14.71 11.95 23
Export thermal coal Million tonnes 7.62 7.38 3
sales
Domestic thermal coal Million tonnes 7.09 4.57 55
sales
Attributable sales Million tonnes 3.05 2.12 44
Export thermal coal Million tonnes 1.56 1.30 20
sales
Domestic thermal coal Million tonnes 1.49 0.82 81
sales
Average received coal
price
Export (FOB) US$/tonne 51.44 42.70 20
Domestic (FOB) R/tonne 76.17 50.04 52
Cash operating profit
Total R million 834.00 734.34 14
Attributable R million 169.79 135.88 25
Headline earnings R million 6 24* (75)
attributable to ARM
* Excludes accounting adjustments as described above
Total figures as disclosed above relates to 100% of the Xstrata Coal South
Africa operations, including Goedgevonden. Attributable figures relate to ARM`s
effective 20.2% of Xstrata Coal South Africa operations and 26% of Goedgevonden.
Earnings from the coal division attributable to ARM were negatively impacted by
a number of accounting issues:
- the IFRS accounting requirement relating to imputed interest on the Xstrata
debt facilitation
- additional amortisation at the ARM level provided as a result of the IFRS
purchase price allocation rules.
Reconciliation of headline earnings to cash
operating profit (R million)
ARM attributable headline earnings reported 6
Add: Additional amortisation 15
Imputed interest on Xstrata R4 billion 15
debt facilitation
Less: Taxation (8)
ARM attributable headline earnings 28*
excluding IFRS adjustments
Add: Normal interest 40
Normal amortisation 90
Taxation 12
ARM`s attributable cash operating profit 170
* Compares to R24 million for the 6 months to December 2006 financial results
Goedgevonden Thermal Coal Project
Construction at the Goedgevonden project released during the previous financial
year is progressing well and it is expected that the project will be
commissioned on time and within budget in the first quarter of 2009.
First production from the Goedgevonden coal handling preparation plant (CHPP) is
expected during 2009 building up to steady sales levels in 2011. The capital
cost for the project is estimated at R3.2 billion (including Phase V RBCT
expansion) and at full production the mine is expected to produce 6.7 million
tonnes per annum. The mine has committed capital to date of R1.8 billion. About
half of the production will be marketed locally and the balance will be exported
through the RBCT Phase V expansion entitlement.
TEAL Exploration & Mining Incorporated (TEAL)
TEAL is 65% owned by ARM and listed on the Toronto Stock Exchange. TEAL owns
exploration assets in the DRC, Zambia and Namibia.
In the DRC, TEAL has commissioned the first phase of a mine at the Lupoto Copper
Project, which reached full production levels at the end of the 2007 calendar
year. Original production targets have been exceeded with over 11 000 tonnes of
copper concentrate grading over 25% copper being produced over the last six
months. These concentrates are sold to various customers that operate electric-
arc furnaces. The exploration drilling programme at Lupoto is in progress and a
pre-feasibility study for a mine at Lupoto is underway.
TEAL`s Board of Directors has been presented with a feasibility study for the
Konkola North Copper Project in Zambia for consideration. Within the southern
portion of the Konkola North property, TEAL is conducting an exploration
programme to confirm the large historical resource base contained within Area
`A` (107 million tonnes at 2.30% copper) and Area `A` Extension (63 million
tonnes at 2.88% copper). Initial drilling results are encouraging.
In Namibia, TEAL recently announced further high grade drilling results from its
Otjikoto Gold Project.
In line with its stated strategy, TEAL will continue to invest further capital
(through for example exploration activities and feasibility studies) in
upgrading the value of the various rights and properties owned by it in Namibia,
Zambia and the DRC.
TEAL announced its results for the period to 31 December 2007 on 14 February
2008 and these can be reviewed on www.tealmining.com.
Safety and Health
ARM, together with its partners, reported an improvement in the safety
performance at the Black Rock manganese, Dwarsrivier chrome and Modikwa platinum
mining operations and the Machadodorp chrome smelting operations.
It is with regret that management reports the occurrence of two fatalities. On 5
July 2007, Mr Khukhutje was fatally injured at the Two Rivers mine. On 14
December, Mr L Tenza passed away at the Cato Ridge Furnace. The Company extends
its sincere condolences to the bereaved families and friends of Messrs Khukhutje
and Tenza.
The following operations are to be commended for excellent safety achievements:
* Modikwa completed Two Million fatality free shifts and has achieved a fatality
free calendar year.
* Black Rock Manganese Mines achieved the milestone of Two Million fatality free
shifts and won the underground section of the DME`s Northern Cape Safety
competition for the second consecutive period.
* In the 1 000 fatality free production shift competition Dwarsrivier mine
achieved a total of 2 997 fatality free production shifts in December 2007. In
the 250 000 fatality free shift category the mine recorded 594 559 fatality free
shifts worked up to the end of the December 2007 quarter.
Outlook
ARM will continue to benefit from a very strong global commodity cycle driven in
the main by the supply side struggling to meet continued strong demand for
infrastructure development, particularly in China. Increasing volume demand will
be supported by strong US dollar prices across ARM`s product sales, particularly
with regard to bulk commodities sold mainly on contract such as iron ore,
manganese ore, chrome ore and thermal coal. All businesses are expected to
continue to benefit from a weaker Rand to the US dollar exchange rate.
ARM operations mainly consist of surface/opencast operations and relatively
shallow mines, most with decline shaft systems. The impact of electricity supply
(down to 90% of average historic usage) will be managed through more innovative
mining and operational schedules; optimising plant and furnace usage and the
application of available electricity capacity to higher margin businesses.
Dividends
The Board of Directors has decided to consider dividends on an annual basis due
to its significant growth pipeline. As a result no dividend was declared for the
six months ended 31 December 2007.
Signed on behalf of the Board:
PT Motsepe AJ Wilkens
Executive Chairman Chief Executive Officer
Johannesburg
20 February 2008
Group Balance Sheets
as at 31 December 2007
Unaudited Unaudited Audited
31 December 30 June
2007 2006 2007
Note Rm Rm Rm
ASSETS
Non-current assets
Property, plant and equipment 7 983 5 740 6 892
Investment property 14 14 12
Intangible assets 217 310 217
Deferred tax assets - 23 -
Investment in associate 846 834 857
Other investments 2 4 495 7 088 6 391
13 555 14 009 14 369
Current assets
Inventories 1 069 811 853
Trade and other receivables 2 146 1 766 1 859
Cash and cash equivalents 1 185 441 1 063
4 400 3 018 3 775
Total assets 17 955 17 027 18 144
EQUITY AND LIABILITIES
Capital and reserves
Ordinary share capital 11 10 10
Share premium 3 704 3 628 3 667
Other reserves 18 2 172 1 604
Retained earnings 6 151 4 935 5 597
Shareholders` interest in capital 9 884 10 745 10 878
and reserves
Minority interest 468 217 340
Total shareholders` interest 10 352 10 962 11 218
Non-current liabilities
Long-term borrowings - interest 3 2 904 2 793 2 741
bearing
Deferred tax liabilities 1 282 1 268 1 410
Long-term provisions 201 163 178
4 387 4 224 4 329
Current liabilities
Trade and other payables 1 127 614 999
Short-term provisions 68 59 97
Taxation 414 241 198
Overdrafts and short-term 3 1 607 927 1 303
borrowings - interest bearing
3 216 1 841 2 597
Total equity and liabilities 17 955 17 027 18 144
Group Income Statements
for the six months ended 31 December 2007
Unaudited Unaudited Audited
Six months ended 31 Year
December ended
30 June
2007 2006 2007
Note Rm Rm Rm
Revenue 4 119 2 641 6 308
Sales 3 991 2 606 6 152
Cost of sales (2 319) (1 425) (3 341)
Gross profit 1 672 1 181 2 811
Other operating income 142 67 222
Other operating expenses (308) (209) (552)
Profit from operations before 1 506 1 039 2 481
exceptional items
Income from investments 52 24 51
Finance costs (209) (151) (370)
Income from associate 9 34 16
Profit before taxation and 1 358 946 2 178
exceptional items
Exceptional items 4 135 14 14
Profit before taxation 1 493 960 2 192
Taxation (526) (329) (781)
Profit for the period 967 631 1 411
Attributable to:
Minority interest 97 71 191
Equity holders of ARM 870 560 1 220
967 631 1 411
Additional information:
Headline earnings (R million) 5 741 548 1 207
Headline earnings per share 353 264 580
(cents)
Basic earnings per share 414 270 586
(cents)
Fully diluted basic earnings 408 267 577
per share (cents)
Fully diluted headline earnings 347 261 571
per share (cents)
Number of shares in issue at 210 642 208 457 209 730
end of period (thousand)
Weighted average number of 210 013 207 218 208 115
shares in issue (thousand)
Weighted average number of 213 434 209 751 211 523
shares used in calculating
fully diluted earnings per
share (thousand)
Net asset value per share 4 692 5 155 5 187
(cents)
EBITDA before exceptional items 1 740 1 265 2 903
(R million)
Dividend declared after year - - 150
end (cents)
Statement of Changes in Equity
for the six months ended 31 December 2007
Revalua-
Share tion of
capital listed
and invest- Retained
premium ments Other earnings
Rm Rm Rm Rm
Six months ended 31 December 2007
(Unaudited)
Balance at 30 June 2007 3 677 1 467 137 5 597
Basic earnings - - - 870
Net impact of revaluation of - (1 621) - -
listed investment
Revaluation of listed investments - (1 896) - -
Deferred tax on revaluation of - 275 - -
listed investments
Share based payments - - 35 -
Share options exercised 38 - - -
Sale of share in investment - - - -
Dividend paid - - - (315)
Other - - - (1)
Balance at 31 December 2007 3 715 (154) 172 6 151
Six months ended 31 December 2006
(Unaudited)
Balance at 30 June 2006 3 567 2 219 88 4 376
Basic earnings - - - 560
Net impact of revaluation of - (158) - -
listed investment
Revaluation of listed investments - (185) - -
Deferred tax on revaluation of - 27 - -
listed investments
Realignment of currency - - - -
Share based payments - - 22 -
Share options exercised 71 - - -
Other - - 1 (1)
Balance at 31 December 2006 3 638 2 061 111 4 935
Year ended 30 June 2007 (Audited)
Balance at 30 June 2006 3 567 2 219 88 4 376
Basic earnings - - - 1 220
Net impact of revaluation of - (752) - -
listed investment
Revaluation of listed investments - (880) - -
Deferred tax on revaluation of - 128 - -
listed investments
Share based payments - - 48 -
Share options exercised 110 - - -
Realignment of currency - - 1 -
Other - - - 1
Balance at 30 June 2007 3 677 1 467 137 5 597
Total
share-
holders
of Minority
ARM interest Total
Rm Rm Rm
Six months ended 31 December 2007
(Unaudited)
Balance at 30 June 2007 10 878 340 11 218
Basic earnings 870 97 967
Net impact of revaluation of (1 621) - (1 621)
listed investment
Revaluation of listed investments (1 896) - (1 896)
Deferred tax on revaluation of 275 - 275
listed investments
Share based payments 35 - 35
Share options exercised 38 - 38
Sale of share in investment - 31 31
Dividend paid (315) - (315)
Other (1) - (1)
Balance at 31 December 2007 9 884 468 10 352
Six months ended 31 December 2006
(Unaudited)
Balance at 30 June 2006 10 250 143 10 393
Basic earnings 560 71 631
Net impact of revaluation of (158) - (158)
listed investment
Revaluation of listed investments (185) - (185)
Deferred tax on revaluation of 27 - 27
listed investments
Realignment of currency - 3 3
Share based payments 22 - 22
Share options exercised 71 - 71
Other - - -
Balance at 31 December 2006 10 745 217 10 962
Year ended 30 June 2007 (Audited)
Balance at 30 June 2006 10 250 143 10 393
Basic earnings 1 220 191 1 411
Net impact of revaluation of (752) - (752)
listed investment
Revaluation of listed investments (880) - (880)
Deferred tax on revaluation of 128 - 128
listed investments
Share based payments 48 6 54
Share options exercised 110 - 110
Realignment of currency 1 - 1
Other 1 - 1
Balance at 30 June 2007 10 878 340 11 218
Cash Flow Statements
for the six months ended 31 December 2007
Unaudited Unaudited Audited
Year
Six months ended ended
31 December 30 June
2007 2006 2007
Rm Rm Rm
CASH FLOW FROM OPERATING ACTIVITIES
Cash receipts from customers 3 870 2 112 5 672
Cash paid to suppliers and employees (2 305) (1 561) (3 135)
Cash generated from operations 1 565 551 2 537
Interest received 52 20 49
Interest paid (140) (134) (295)
Dividends received - 4 -
Dividends paid to ARM shareholders (315) - -
Taxation paid (164) (89) (317)
Net cash inflow from operating 998 352 1 974
activities
CASH FLOW FROM INVESTING ACTIVITIES
Additions to property, plant and (583) (326) (913)
equipment to maintain operations
Additions to property, plant and (778) (348) (946)
equipment to expand operations
Proceeds on disposal of property, 27 - 7
plant and equipment
Proceeds on termination of agreement - 14 -
Proceeds on disposal of investment - 3 2
Received from minorities on sale of 31 - -
investment
Investment in associate - (800) (841)
Dividend received from investment in 20 - -
associate
Net cash (outflow) from investing (1 283) (1 457) (2 691)
activities
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds on exercise of share 38 71 110
options
Long-term borrowings raised 194 1 371 1 453
Long-term borrowings repaid (80) (154) (73)
Increase/(decrease) in short-term 257 31 72
borrowings
Net cash inflow from financing 409 1 319 1 562
activities
Net increase in cash and cash 124 214 845
equivalents
Cash and cash equivalents at 1 039 193 193
beginning of period
Foreign currency translation on cash (1) - 1
balances
Cash and cash equivalents at end of 1 162 407 1 039
period
Cash generated from operations per 745 266 1 219
share (cents)
Notes to the Financial Statements
for the six months ended 31 December 2007
1. Basis of preparation
The results for the half-year have been prepared in accordance with the
International Financial Reporting Standards (IFRS), on an historical cost
convention, as modified by the revaluation of available-for-sale financial
assets, and financial assets and financial liabilities (including derivative
instruments) at fair value through the income statement or the statement of
changes in equity.
These consolidated financial statements are prepared in accordance with IAS 34 -
interim financial reporting.
The financial information for the half-year ended 31 December 2007 has been
prepared adopting the same accounting policies used in the most recent annual
financial statements.
The group has adopted all the new and revised standards and interpretations
issued by the International Financial Reporting Interpretation Committee (IFRIC)
of the IASB that are effective 1 January 2007. There were no financial effects
on these, only disclosure issues, that will be addressed in the June 2008 annual
report.
Unaudited Unaudited Audited
Six months ended Year ended
31 December 30 June
2007 2006 2007
Rm Rm Rm
2. INVESTMENTS
Listed
Opening balance 6 391 7 276 7 264
Investment sold - - (4)
Unrealised revaluation loss for (1 896) (185) (880)
the period
Other - (3) 11
Total carrying amount of 4 495 7 088 6 391
investments
3. BORROWINGS
Long-term borrowings are held as
follows
- African Rainbow Minerals Limited 1 258 1 251 1 253
- Assmang Limited 114 4 19
- ARM Coal (Proprietary) Limited 617 445 501
- ARM Platinum (Proprietary) Limited 184 295 236
- Two Rivers Platinum (Proprietary) 731 798 732
Limited
2 904 2 793 2 741
Overdrafts and short-term borrowings
are held as follows:
- African Rainbow Minerals Limited 18 32 20
- Assmang Limited 398 139 303
- ARM Platinum (Proprietary) Limited 112 159 116
- Teal Exploration & Mining Inc 244 - 71
- Two Rivers Platinum (Proprietary)
Limited
- Short-term borrowings 178 29 168
- Two Rivers Platinum (Proprietary)
Limited
- Implats shareholders` loan 657 568 625
1 607 927 1 303
Total borrowings 4 511 3 720 4 044
Interest of R22 million was capitalised for the half-year ended
31 December 2007 (31 December 2006: R24 million, 30 June 2007: R54 million).
Unaudited Unaudited Audited
Six months ended Year ended
31 December 30 June
2007 2006 2007
Rm Rm Rm
4. EXCEPTIONAL ITEMS
Settlement of Chambishi disposal - 14 14
Surplus on disposal of 50 per cent 135 - -
of Nkomati mine; final tranche
payment
Exceptional items per income 135 14 14
statement
Taxation - (2) (2)
Impairment of assets (6) - -
Profit on sale of property, plant - - 1
and equipment
Net exceptional items 129 12 13
5. HEADLINE EARNINGS
Basic earnings per income statement 870 560 1 220
Termination of agreement - (14) (14)
Profit on sale of property, plant and - - (1)
equipment
Surplus on disposal of 50 per cent of (135) - -
Nkomati mine
Impairment of assets 6 - -
741 546 1 205
Taxation - 2 2
Headline earnings 741 548 1 207
6. COMMITMENTS AND CONTINGENT LIABILITIES
Commitments in respect of future capital expenditure, which will be funded from
operating cash flows and by utilising debt facilities at entity and corporate
levels, are summarised below:
Approved by directors
- contracted for 1 416 2 518 2 290
- not contracted for 2 243 563 831
Total commitments 3 659 3 081 3 121
Contingent liabilities
Shareholders are advised that there have been no significant changes to the
contingent liabilities of the group as disclosed in the June 2007 annual report.
ARM Platinum
Division Ferrous
Platinum Nickel metals Coal
Rm Rm Rm Rm
7. SEGMENTAL INFORMATION
Primary segmental information
Six months ended 31 December 2007
Sales
External sales 1 338 398 2 192 35
Cost of sales (782) (195) (1 287) (31)
Other operating income 2 14 40 -
Other operating expenses (8) (18) (81) -
Segment result 550 199 864 4
Income from investments 33 2 4 -
Finance cost (77) - (3) (8)
Finance cost Implats; (32) - - -
shareholders` loan Two Rivers
Finance cost ARM; shareholders` (39) - - -
loan Two Rivers
Income from associate - - - 9
Exceptional items - - - -
Taxation (132) (57) (291) 1
Minority interest (97) - - -
Contribution to earnings 206 144 574 6
Contribution to headline earnings 206 150 574 6
Other information
Segment assets 5 773 654 4 815 1 658
Gold segment assets
Consolidated total assets
Segment liabilities 2 179 60 1 131 686
Taxation
Consolidated total liabilities
Cash in/(out) flow from operating 632 165 640 52
activities
Cash in/(out) flow from investing (267) (103) (764) (116)
activities
Cash in/(out) flow from financing (80) - 189 85
activities
Capital expenditure 267 103 761 160
Amortisation and depreciation 98 10 113 1
EBITDA (before exceptional items) 648 209 977 14
Corporate
Exploration and other Total
Rm Rm Rm
7. SEGMENTAL INFORMATION
Primary segmental information
Six months ended 31 December 2007
Sales
External sales 28 3 991
Cost of sales (24) - (2 319)
Other operating income - 86 142
Other operating expenses (120) (81) (308)
Segment result (116) 5 1 506
Income from investments 1 12 52
Finance cost (5) (45) (138)
Finance cost Implats; - - (32)
shareholders` loan Two Rivers
Finance cost ARM; shareholders` - - (39)
loan Two Rivers
Income from associate - - 9
Exceptional items - 135 135
Taxation (1) (46) (526)
Minority interest - - (97)
Contribution to earnings (121) 61 870
Contribution to headline earnings (121) (74) 741
Other information
Segment assets 214 357 13 471
Gold segment assets 4 484
Consolidated total assets 17 955
Segment liabilities 310 1 541 5 907
Taxation 1 696
Consolidated total liabilities 7 603
Cash in/(out) flow from operating (141) (350) 998
activities
Cash in/(out) flow from investing (33) - (1 283)
activities
Cash in/(out) flow from financing 175 40 409
activities
Capital expenditure 63 1 1 355
Amortisation and depreciation 2 1 225
EBITDA (before exceptional items) (114) 6 1 740
ARM Platinum
Division Ferrous
Platinum Nickel metals Coal
Rm Rm Rm Rm
7. SEGMENTAL INFORMATION
(continued)
Primary segmental information
Six months ended 31 December 2006
(Unaudited)
Sales
External sales 899 393 1 298 16
Cost of sales (442) (107) (868) (8)
Other operating income - (1) 17 -
Other operating expenses (3) (1) (59) -
Segment result 454 284 388 8
Income from investments 4 1 5 -
Finance cost (55) - (2) (21)
Finance cost Implats; - - - -
shareholders` loan Two Rivers
Finance cost ARM; shareholders` - - - -
loan Two Rivers
Income from associate - - - 34
Exceptional items - - - -
Taxation (111) (85) (130) 3
Minority interest (94) - - -
Contribution to earnings 198 200 261 24
Contribution to headline earnings 198 200 261 24
Other information
Segment assets 4 388 518 3 046 1 432
Gold segment assets
Taxation - - -
Consolidated total assets
Segment liabilities 2 008 39 418 451
Taxation - - -
Consolidated total liabilities
Cash in/(out) flow from operating (7) 233 286 (13)
activities
Cash in/(out) flow from investing (222) (79) (328) (420)
activities
Cash in/(out) flow from financing 240 - 93 33
activities
Capital expenditure 251 74 315 20
Amortisation and depreciation 77 15 100 -
EBITDA (before exceptional items) 531 299 488 42
Corporate
Exploration and other Total
Rm Rm Rm
7. SEGMENTAL INFORMATION
(continued)
Primary segmental information
Six months ended 31 December
2006 (Unaudited)
Sales
External sales - - 2 606
Cost of sales - - (1 425)
Other operating income - 51 67
Other operating expenses (65) (81) (209)
Segment result (65) (30) 1 039
Income from investments 3 11 24
Finance cost - (73) (151)
Finance cost Implats; - - -
shareholders` loan Two Rivers
Finance cost ARM; shareholders` - - -
loan Two Rivers
Income from associate - - 34
Exceptional items - 14 14
Taxation - (6) (329)
Minority interest 23 - (71)
Contribution to earnings (39) (84) 560
Contribution to headline (39) (96) 548
earnings
Other information
Segment assets 137 407 9 928
Gold segment assets 7 076
Taxation - - 23
Consolidated total assets 17 027
Segment liabilities 18 1 622 4 556
Taxation - - 1 509
Consolidated total liabilities 6 065
Cash in/(out) flow from (60) (87) 352
operating activities
Cash in/(out) flow from (24) (384) (1 457)
investing activities
Cash in/(out) flow from - 953 1 319
financing activities
Capital expenditure 24 - 684
Amortisation and depreciation - - 192
EBITDA (before exceptional (65) (30) 1 265
items)
ARM Platinum
Division Ferrous
Platinum Nickel metals Coal
Rm Rm Rm Rm
7. SEGMENTAL INFORMATION
Primary segmental information
Year ended 30 June 2007 (Audited)
Sales
External sales 2 352 702 3 064 34
Cost of sales (1 083) (209) (2 021) (28)
Other operating income 1 14 78 -
Other operating expenses (12) (36) (133) -
Segment result 1 258 471 988 6
Income from investments 17 3 6 -
Finance cost (255) - (8) (26)
Income from associate - - - 16
Exceptional items - - - -
Taxation (300) (137) (320) 5
Minority interest (259) - - -
Contribution to earnings 461 337 666 1
Contribution to headline earnings 461 337 665 1
Other information
Segment and consolidated assets 5 314 584 3 842 1 519
Gold segment assets
Segment liabilities 2 194 64 849 519
Taxation
Consolidated total liabilities
Cash in/(out) flow from operating 770 568 979 (11)
activities
Cash in/(out) flow from investing (521) (199) (1 030) (892)
activities
Cash in/(out) flow from financing 212 - 244 71
activities
Capital expenditure 566 199 1 070 74
Amortisation and depreciation 165 35 203 1
EBITDA (before exceptional items) 1 423 506 1 191 23
Corporate
Exploration and other Total
Rm Rm Rm
7. SEGMENTAL INFORMATION
Primary segmental information
Year ended 30 June 2007 (Audited)
Sales
External sales - - 6 152
Cost of sales - - (3 341)
Other operating income 1 128 222
Other operating expenses (198) (173) (552)
Segment result (197) (45) 2 481
Income from investments 4 21 51
Finance cost - (81) (370)
Income from associate - - 16
Exceptional items - 14 14
Taxation (1) (28) (781)
Minority interest 68 - (191)
Contribution to earnings (126) (119) 1 220
Contribution to headline earnings (126) (131) 1 207
Other information
Segment and consolidated assets 97 408 11 764
Gold segment assets 6 380
18 144
Segment liabilities 97 1 595 5 318
Taxation 1 608
Consolidated total liabilities 6 926
Cash in/(out) flow from operating (169) (163) 1 974
activities
Cash in/(out) flow from investing (51) 2 (2 691)
activities
Cash in/(out) flow from financing 66 969 1 562
activities
Capital expenditure 51 1 1 961
Amortisation and depreciation 1 1 406
EBITDA (before exceptional items) (196) (44) 2 903
Additional information
for the six months ended 31 December 2007
The ARM platinum segment is analysed further into Two Rivers Platinum (Pty)
Limited and ARM Platinum (Pty) Limited that includes Modikwa platinum mine.
Two Rivers Modikwa Platinum
Platinum Rm Rm Rm
SEGMENTAL INFORMATION
Six months ended 31 December 2007
(Unaudited)
Sales
External sales 768 570 1 338
Cost of sales (423) (359) (782)
Other operating income 2 - 2
Other operating expenses (2) (6) (8)
Segment result 345 205 550
Income from investments 26 7 33
Finance cost (53) (24) (77)
Finance cost Implats; shareholders` (32) - (32)
loan Two Rivers
Finance cost ARM; shareholders` loan (39) - (39)
Two Rivers
Taxation (74) (58) (132)
Minority interest (75) (22) (97)
Contribution to earnings 98 108 206
Contribution to headline earnings 98 108 206
Other information
Segment assets 3 341 2 432 5 773
Segment liabilities 1 744 435 2 179
Cash in/(out) flow from operating 426 206 632
activities
Cash in/(out) flow from investing (185) (82) (267)
activities
Cash in/(out) flow from financing (24) (56) (80)
activities
Capital expenditure 185 82 267
Amortisation and depreciation 56 42 98
EBITDA (before exceptional items) 401 247 648
Six months ended 31 December 2006
(Unaudited)
Sales
External sales 366 533 899
Cost of sales (113) (329) (442)
Other operating expenses (2) (1) (3)
Segment result 251 203 454
Income from investments 2 2 4
Finance cost (18) (37) (55)
Finance cost Implats; shareholders` - - -
loan Two Rivers
Finance cost ARM; shareholders` loan - - -
Two Rivers
Taxation (65) (46) (111)
Minority interest (73) (21) (94)
Contribution to earnings 97 101 198
Contribution to headline earnings 97 101 198
Other information
Segment assets 2 239 2 149 4 388
Segment liabilities 1 470 538 2 008
Cash in/(out) flow from operating (179) 172 (7)
activities
Cash in/(out) flow from investing (170) (52) (222)
activities
Cash in/(out) flow from financing 319 (79) 240
activities
Capital expenditure 198 53 251
Amortisation and depreciation 29 48 77
EBITDA (before exceptional items) 280 251 531
Iron ore Manganese Chrome Ferrous Attribu-
table
Pro forma analysis of division division division Total to ARM
the
ferrous segment on a Rm Rm Rm Rm Rm
100% basis
SEGMENTAL INFORMATION
Six months ended 31
December 2007
(Unaudited)
Sales
External sales 1 149 2 459 776 4 384 2 192
Other operating 10 62 19 91 40
income
Other operating (54) (77) (42) (173) (81)
expenses
Operating profit 368 1 204 155 1 727 864
Earnings 264 776 106 1 146 574
Headline earnings 264 776 106 1 146 574
Other information
Segment assets 4 584 3 288 1 934 9 806 4 815
Segment liabilities 2 077 (815) 1 062 2 324 1 131
Taxation 429 856 260 1 545 -
Cash in/(out) flow 387 774 (6) 1 155 640
from operating
activities
Cash in/(out) flow (1 312) (163) (52) (1 527) (764)
from investing
activities
Cash in/(out) flow 870 (577) 75 368 189
from financing
activities
Capital expenditure 1 366 163 55 1 584 761
Amortisation and 85 91 50 226 113
depreciation
EBITDA (before 453 1 295 205 1 953 977
exceptional items)
Six months ended 31
December 2006
(Unaudited)
Sales
External sales 864 1 097 635 2 596 1 298
Other operating 1 52 1 54 17
income
Other operating (35) (58) (45) (138) (59)
expenses
Operating profit 365 380 31 776 388
Earnings 260 244 21 525 261
Headline earnings 260 244 21 525 261
Other information
Segment assets 2 494 2 016 1 630 6 140 3 046
Segment liabilities 1 106 (472) 1 276 1 910 418
Cash in/(out) flow 138 129 154 421 286
from operating
activities
Cash in/(out) flow (483) (87) (86) (656) (328)
from investing
activities
Cash in/(out) flow 650 (399) (65) 186 93
from financing
activities
Capital expenditure 483 87 87 657 315
Amortisation and 80 77 43 200 100
depreciation
EBITDA (before 445 457 74 976 488
exceptional items)
Contact details and administration
Registered Office
ARM House
29 Impala Road
Chislehurston
Sandton 2196
PO Box 786136
Sandton
2146
Telephone: +27 11 779 1300
Telefax: +27 11 779 1312
E-mail: ir.admin@arm.co.za
Website: http://www.arm.co.za
Investor Relations
Pieter Rorich
Executive Director: Investor Relations and New Business Development
Telephone: +27 11 779 1476
E-mail: pieter.rorich@arm.co.za
Monique Swartz
Manager: Investor Relations and New Business Development
Telephone: +27 11 779 1507
E-mail: monique.swartz@arm.co.za
Corne Bobbert
Corporate Development
Telephone: +27 11 779 1478
E-mail: corne.bobbert@arm.co.za
Company Secretary
Pat Smit
Telephone: +27 11 779 1480
E-mail: patricia.smit@arm.co.za
Transfer Secretaries
Computershare Investor Services 2004 (Pty) Limited
Ground Floor, 70 Marshall Street
Johannesburg 2001
PO Box 61051
Marshalltown
2107
Telephone: +27 11 370 5000
Telefax: +27 11 688 5222
E-mail: web.queries@computershare.co.za
Website: http://www.computershare.co.za
Directors
PT Motsepe (Executive Chairman)
RP Menell (Deputy Chairman)*
AJ Wilkens (Chief Executive Officer)
F Abbott
Dr MMM Bakane-Tuoane**
JA Chissano (Mozambican)**
WM Gule
MW King**
AK Maditsi**
KS Mashalane
JR McAlpine**
PC Rorich
Dr RV Simelane**
MV Sisulu**
JC Steenkamp
ZB Swanepoel*
*Non-executive
**Independent non-executive
Shareholder information
Issued shares as at 31 December 2007 (thousand) 210 642
Market capitalisation as at 31 December 2007 R32.02 billion
Share price as at 31 December 2007 R152.00
Daily average volume traded 312 453
Primary listing JSE Limited
Ticker symbol `ARI`
Forward looking statements
Certain statements in this presentation constitute "forward looking statements"
within the meaning of Section 27A of the US Securities Act of 1933 and Section
21E of the US Securities Exchange Act of 1934.
Such forward looking statements involve known and unknown risks, uncertainties
and other important factors that could cause the actual results, performance or
achievements of the company to be materially different from the future results,
performance or achievements expressed or implied by such forward looking
statements. Such risks, uncertainties and other important factors include among
others: economic, business and political conditions in South Africa; decreases
in the market price of commodities; hazards associated with underground and
surface mining; labour disruptions; changes in government regulations,
particularly environmental regulations; changes in exchange rates; currency
devaluations; inflation and other macro-economic factors; and the impact of the
AIDS crisis in South Africa. These forward looking statements speak only as of
the date of publication of these pages.
The company undertakes no obligation to update publicly or release any revisions
to these forward looking statements to reflect events or circumstances after the
date of publication of these pages or to reflect the occurrence of unanticipated
events.
Sandton
20 February 2008
Sponsor to ARM:
Deutsche Securities (SA) (Proprietary) Limited
Date: 20/02/2008 07:05:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
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