Sharenet Sites 
Sharenet Sites
Updated trading statement in respect of the year ended 30 June 2015
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”)
Updated trading statement in respect of the year ended
30 June 2015
Shareholders are referred to the trading statement released
on the Stock Exchange News Service of the JSE Limited on 12
June 2015 whereby shareholders were advised that headline
earnings and basic earnings to be reported on for the
financial year ended 30 June 2015 (F2015) would be at least
45% and 55% lower, respectively, than those of the previous
financial year.
The Company and its directors are satisfied that a
reasonable degree of certainty exists to provide
shareholders with an update of the likely range by which the
Company’s headline earnings per share and basic earnings per
share are expected to decrease.
ARM’s F2015 headline earnings were negatively affected by a
decline in US Dollar commodity prices for most of the
commodities which ARM produces. The lower US Dollar prices
were partially offset by a weaker average Rand/US Dollar
exchange rate. Most of the operations achieved good unit
cost control.
Accordingly, ARM announces that headline earnings per share
for F2015 are expected to decrease by between 56% and 60% to
between 765 cents and 835 cents (F2014: 1 900 cents).
ARM’s F2015 basic earnings were largely impacted by the
following special items:
(i) An unrealised mark-to-market loss on the Harmony
Gold Mining Company Limited (Harmony) investment
of R543 million after tax due to the decline in
Harmony’s share price below the level at 30 June
2014;
(ii) Impairments in ARM Ferrous of R293 million after
tax primarily relating to manganese alloy furnace
closures; and
(iii) An impairment of property, plant and equipment of
R784 million (ARM’s attributable share) at the
Lubambe Copper Mine primarily as a result of a
revision to the mine plan but also due to a
decline in the short-term copper price outlook.
The revised plan places the South Limb (i.e. the
vertical shaft) on temporary care and maintenance
while management revises the mining layout for
the sand zone area. Changes made as part of the
revised plan are already yielding positive
results with an increase in head grade and a
reduction in C1 unit cash costs achieved in the
last quarter of F2015. The Lubambe Mine continues
to target full production of 45 000 tonnes per
annum which is expected to be achieved in F2019.
The higher grade Lubambe Extension Area continues
to be a significant part of the future expansion
of the mine.
The basic earnings per share are therefore expected to
decline by between 96% and 97% to between 46 cents and
53 cents (F2014: 1 521 cents).
The financial information on which this trading statement is
based has neither been reviewed nor reported on by the
external auditors of ARM.
The Company’s F2015 provisional financial results will be
released on 4 September 2015.
ENDS
For all investor relations queries please contact:
Jongisa Magagula
Corporate Development and Head of Investor Relations
Tel: +27 11 779 1507
E-mail: jongisa.magagula@arm.co.za
Johannesburg
27 August 2015
Sponsor: Deutsche Securities (SA) Proprietary Limited
Date: 27/08/2015 03:03:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
