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AFRICAN RAINBOW MINERALS LIMITED - Provisional results for the year ended 30 June 2014

Release Date: 04/09/2014 07:05
Code(s): ARI     PDF:  
Wrap Text
Provisional results for the year ended 30 June 2014

African Rainbow Minerals Limited            
Incorporated in the Republic of South Africa
Registration number 1933/004580/06          
ISIN code: ZAE000054045                     


PROVISIONAL RESULTS
For the year ended 30 June 2014

Shareholder information                                                 
Issued share capital at 30 June 2014                         216 747 811 shares      
Market capitalisation at 30 June 2014                           ZAR40.5 billion      
Market capitalisation at 30 June 2014                            USD3.8 billion      
Closing share price at 30 June 2014                                     R187.03      
12-month high (1 July 2013 – 30 June 2014)                              R239.90      
12-month low (1 July 2013 – 30 June 2014)                               R143.00      
Average daily volume traded for the 12 months                    447 224 shares      
Primary listing                                                     JSE Limited      
JSE Share Code                                                              ARI      
ADR ticker symbol                                                         AFRBY      


Investor relations
Jongisa Magagula
Corporate Development and Head of Investor Relations
Telephone: +27 11 779 1300
Fax: +27 11 779 1312
E-mail: jongisa.magagula@arm.co.za

Betty Mollo
Manager: Investor Relations and Corporate Development
Telephone: +27 11 779 1300
Fax: +27 11 779 1312
E-mail: betty.mollo@arm.co.za

Company secretary
Alyson D'Oyley, BCom, LLB, LLM
Telephone: +27 11 779 1300
Fax: +27 11 779 1318
E-mail: alyson.doyley@arm.co.za

Salient features

-   Headline earnings increased by 10% to R4.11 billion.
    Headline earnings per share increased from 1 735 cents to 1 900 cents
    per share.

-   Increased dividend declared of 600 cents per share (F2013: 510 cents).

-   Basic earnings were negatively impacted by exceptional items of
    R819 million, the largest of which related to a R510 million unrealised
    mark-to-market loss after tax on the Harmony investment.

-   ARM Platinum's contribution to headline earnings increased 68% to
    R883 million. The ARM Ferrous contribution increased from R3.19 billion
    in F2013 to R3.74 billion in F2014.

-   Costs were well controlled at the Nkomati, Dwarsrivier and
    Two Rivers mines.

-   The Lubambe Mine continued with its production ramp-up and produced
    23 791 tonnes copper (F2013: 14 871 tonnes).

-   The Sakura Ferroalloys Project commenced construction; R790 million
    has been spent to date. Full production of 170 000 tonnes ferromanganese
    is expected in F2017.


Headline earnings and dividends (cents per share)                 EBITDA margins (%)
Please refer to website www.arm.co.za                             Please refer to website www.arm.co.za


ARM operational review
The ARM Board of Directors (the Board) is pleased to report a 10% increase in ARM's headline earnings for the financial
year ended 30 June 2014 (F2014) to R4.11 billion. The increase was primarily due to a significant improvement in ARM
Platinum's headline earnings and a 17% increase in the ARM Ferrous headline earnings.

ARM Platinum headline earnings increased by 68% due to an excellent performance from the Nkomati and Two Rivers
mines. A combination of improved sales volumes, a weaker Rand versus the US Dollar and a strong operational
performance saw the Nkomati and Two Rivers mines increase headline earnings by 91% and 88% respectively. Modikwa
Mine experienced a challenging year with lower production volumes and contributed R64 million to headline earnings
(F2013: R96 million).

ARM Ferrous headline earnings of R3.74 billion were positively impacted by higher US Dollar prices realised for lumpy iron
ore and high-grade manganese ore. These higher prices were achieved despite difficult conditions in the global iron ore
and manganese ore markets in the second half of the financial year. The Rand, which weakened 17% against the US Dollar
contributed significantly to ARM Ferrous' profitability. The positive impact of higher Rand prices was however partially offset
by lower iron ore and manganese ore sales volumes.

ARM Copper reported a headline loss of R309 million as the Lubambe Mine continued its ramp-up to full production.
Commissioning challenges in the vertical shaft have delayed ramp-up. These challenges have been addressed and the
mine is now targeting full production in the 2016 financial year (F2016).

Despite the GGV Mine contributing positively to headline earnings, ARM Coal reported a headline loss of R120 million due
to lower export prices and operational challenges at the Participating Coal Business (PCB).

The provisional results for the year ended 30 June 2014 have been prepared in accordance with International Financial
Reporting Standards (IFRS) and the disclosures are in accordance with IAS 34: Interim Financial Reporting.

Rounding of figures may result in minor computational discrepancies on the tabulations.

Contribution to headline earnings
Commodity group                               12 months ended 30 June
                                                    Reviewed
                                    Reviewed    and restated
R million                               2014            2013      % change
Platinum Group Metals (PGMs)             439             295            49      
Nkomati nickel and chrome                444             232            91      
ARM Platinum                             883             527            68      
Ferrous metals                         3 736           3 194            17      
Coal                                   (120)             148             –      
Copper                                 (309)           (135)             –      
Exploration                             (81)            (88)             8      
Gold                                       –              64             –      
Corporate and other                      (1)              27             –      
ARM headline earnings                  4 108           3 737            10      

These results have been achieved in conjunction with ARM's partners at the various operations; Anglo American Platinum
Limited (Anglo Platinum), Assore Limited (Assore), Impala Platinum Holdings Limited (Implats), Norilsk Nickel Africa (Pty)
Ltd (Norilsk), Glencore Operations South Africa (Glencore), Vale S.A. (Vale) and Zambian Consolidated Copper Mines
Investment Holdings (ZCCM-IH).


Quality growth continues
In the year under review sales volumes increases were as follows:
- 236% increase in copper sales from 9.9 thousand tonnes to 33.3 thousand tonnes;
- 52% increase in Nkomati Mine chrome concentrate from 225 thousand tonnes to 342 thousand tonnes;
- 16% increase in GGV export coal from 3.40 million tonnes to 3.93 million tonnes;
- 15% increase in PCB Eskom coal sales from 1.65 million tonnes to 1.90 million tonnes;
- 7% increase in PGMs from 786 thousand ounces to 842 thousand ounces;
- 7% increase in manganese alloy sales from 260 thousand tonnes to 279 thousand tonnes; and
- 1% increase in nickel sales from 21 580 tonnes to 21 718 tonnes.

In addition, Two Rivers Mine started producing chrome concentrate as a by-product in October 2013 and sold 161 thousand
tonnes in the year under review.

Post commissioning of the vertical shaft at the Lubambe Copper Mine in November 2013, a number of challenges were
experienced with throughput in the ore passes and the main tips in the East Decline. These have since been addressed.
As a result tonnes milled at the Lubambe Mine increased by 49% and copper produced was up 60% compared to the
corresponding period. Recoveries in the concentrator plant also continued to improve increasing by 9% to an average of
77.6% for the year. The mine remains on track to achieve steady state production of 45 000 tonnes per annum in F2016.

The Lubambe Extension Area Project situated 6km from the current mining area may provide for expansion of the Lubambe
Mine. Additional surface drilling completed in the Extension Area in 1H F2014 has indicated that the ore body extends even
further east than originally expected. An updated AMEC E&C Services Inc (AMEC) statement released on 27 February
2014 increased the Extension Area indicated and inferred resources from 105 million to 134 million tonnes at an in-situ
grade of 4.07%.

The ARM and Assore Boards of Directors have approved the Black Rock Mine Expansion Project which is expected to
increase manganese ore production from 3.2 million to 4.6 million tonnes per annum. The project involves the exploitation
of the Seam 2 resource within the Nchwaning lease area to improve cost-effective extraction of high-grade manganese.
The project is divided into two phases namely the upgrade/modernisation of the current mine and the expansion phase.
Ramp-up of the expansion phase will be synchronised with expansion of the manganese ore export channel through the
Port of Ngqura. To date R900 million of the first phase project capital expenditure has been spent and a further R1.7 billion
has been committed.

The Sakura Ferroalloys Project in Malaysia is also progressing well and remains on track to achieve the steady state of
170 000 tonnes per annum in F2017. Capital expenditure to 30 June 2014 was R790 million.


Operational efficiencies
ARM remains focused on ensuring that all operations are below the 50th percentile of each commodity's global cost curve.
ARM maintains its focus on cost control across all the operations.

In the period under review the Nkomati and Dwarsrivier mines achieved a reduction in their unit production costs by 3% and
2% respectively, while Two Rivers Mine managed to keep unit production costs flat relative to the corresponding period.
Cost increases of 10% at the iron ore operations were marginally above inflation.

Unit production costs increased by more than inflation at the manganese alloy, manganese ore, Modikwa, GGV and PCB
operations. Cost containment plans are continually being evaluated.

Higher than inflation increases in electricity tariffs were the main drivers behind cost escalation at the manganese alloy
operations. ARM and Assore are currently reviewing the strategy for the smelters.

Above inflation wage increases together with longer distances being travelled from the shaft infrastructure to working areas
(due to the age of the mine) contributed to the 14% increase to unit costs at the manganese ore operations.

Industrial action, safety related stoppages (due to Section 54s and a fatality) together with lower grades at Modikwa Mine
resulted in lower PGM production which was the main reason for the 20% increase in unit production costs at Modikwa.

Lower saleable production at the GGV and PCB operations was the main reason for the marked increase in unit production
costs. GGV Mine production decreased due to lower Run of Mine (ROM) and in-pit inventory being available in F2014
relative to the corresponding period. PCB has built up a stockpile of approximately 2 million tonnes mainly for the
commissioning of the new Tweefontein Optimisation Project (TOP) Coal Handling Processing Plant which is expected to be
commissioned in September 2014. The three old plants at Tweefontein are being wound down which has led to decreased
saleable production at PCB. Unit production costs are expected to reduce substantially in the next financial year when the
TOP plant has been commissioned.


Exploration in Africa
In the year under review ARM continued to fund exploration in Mozambique as part of its agreement with Rovuma
Resources Limited (Rovuma). Rovuma has so far identified numerous occurrences of copper/zinc, nickel/copper/PGE,
chromite/nickel and graphite mineralisation in Northern Mozambique. As part of the agreement, ARM will have exclusive
rights to exercise options to purchase prospecting and/or mining rights to the resources.


Changes to resources and reserves
There has been no material change to ARM's mineral resources and reserves as disclosed in the Integrated Annual Report
for the financial year ended 30 June 2013, other than depletion due to continued mining activities and increased resources
at the Lubambe Extension Area.

The Lubambe Extension target area has increased the indicated and inferred resources to 134 million tonnes at an in-situ
grade of 4.07% total copper based on an updated report released by AMEC on 27 February 2014. Drilling in this area
is continuing.

Financial commentary
Headline earnings for the year to 30 June 2014 at R4 108 million were 10% or R371 million higher than the prior year
headline earnings (F2013: R3 737 million). This equates to headline earnings per share of R19.00/share (F2013:
R17.35/share).

The Board declared an increased annual dividend of R6.00 per share (F2013: R5.10 per share) after the year-end.

ARM's basic earnings for F2014 were R3 289 million (F2013: R1 634 million) and were negatively impacted by exceptional
items of R819 million after tax (F2013: R2 103 million loss after tax). The largest exceptional item relates to the unrealised
mark-to-market loss of R510 million after tax on the Harmony investment made through the income statement. Other
exceptional items mainly comprise smelter and pelletising plant impairments in ARM Ferrous as well as impairments of
plant and equipment in ARM Coal. The reconciliation of basic earnings to headline earnings is provided in note 5 of the
financial statements.

As disclosed in the 2013 Integrated Annual Report and the 31 December 2013 Interim Results report, the new accounting
standard, IFRS 11: Joint Arrangements, became effective 1 July 2013. The adoption of the new standard requires a change
in the manner in which joint arrangements should be accounted for and prior period comparative IFRS results must be
restated to reflect a consistent application of the new accounting policy. This change has primarily impacted the manner
in which ARM accounts for its investment in Assmang, which ARM jointly manages and controls with its partner, Assore.
Assmang is no longer proportionately consolidated because IFRS 11 requires arrangements classified as joint ventures
to be accounted for using the equity method. ARM's share of its joint ventures is now disclosed as single line items in the
consolidated Income Statement as “income from joint ventures” and as “investment in joint ventures” on the consolidated
Statement of Financial Position. The consolidated Cash Flow Statement now only includes a single line for dividends
received from joint ventures.

A full reconciliation of the effect of the changes resulting from the adoption of IFRS 11 is provided in note 14 to the
financial statements. The derivation of the statement of financial position value for the investment in joint venture
is reflected in note 6 to the financial statements.

While the change in accounting policy has a significant impact on the presentation of the consolidated financial statements,
there is no impact on headline earnings, basic earnings or net assets. The segment reporting has been expanded to include
more detail on the ARM Ferrous (Assmang) results.

Sales for the year increased by 36.3% to R10.00 billion (F2013 restated: R7.34 billion).

The average gross profit margin of 25% (F2013 restated: 20%) is higher than the prior corresponding period largely due
to improved profit margins at Nkomati and Two Rivers. The margins achieved at each operation may be ascertained from
the detailed segment reports provided in note 3 to the financial statements as well as in the write-ups for each operation.

Earnings were positively impacted by the weakening of the Rand against the US Dollar. The F2014 average Rand/US
Dollar of R10.36/USD was 17% weaker than the average of R8.83/USD for F2013. For reporting purposes the closing
exchange rate was R10.63/USD.

Realised US Dollar commodity prices for platinum, rhodium, copper, nickel, chrome concentrate, ferromanganese and
export coal, were lower than in F2013; export iron ore and manganese ore prices remained constant and palladium prices
were higher than in F2013.

ARM's earnings before interest, tax, depreciation and amortisation (EBITDA) excluding exceptional items and income from
associates and joint ventures amounted to R2 620 million, which is 32% higher than that achieved in F2013 as restated.

The detailed segmental contribution analysis is provided in note 3 to the financial statements.

-   The ARM Ferrous contribution to ARM's headline earnings amounted to R3 736 million (F2013 restated: R3 194 million).
    This is an increase of 17% over the F2013 result and is largely due to the increased contributions from all its divisions.
-   The ARM Platinum contribution, which includes the results of Nkomati Mine, was R883 million and represents a
    significant 68% improvement to the R527 million contribution for F2013. Improved results were achieved at Two Rivers
    and Nkomati driven by strong operational performances and good cost control.
-   The ARM Coal result reduced by R268 million to a headline loss of R120 million (F2013: R148 million profit) as a result
    of reduced earnings from the PCB coal operations.
-   The ARM Copper result was a headline loss of R309 million (F2013: R135 million headline loss). In the comparative
    period, costs at the new Lubambe Copper Mine were capitalised to the end of April 2013. This result includes interest
    on shareholders' loans of R131 million. The mine is in the process of ramping up to full production.
-   The ARM Exploration costs amounted to R81 million (F2013: R88 million) and were largely expended on exploration at
    Rovuma in Mozambique as well as on staff costs.
-   The ARM Corporate, other companies and consolidation segment shows a negative contribution to headline earnings
    of R1 million for the year as compared to a positive contribution of R27 million for F2013.
-   ARM did not receive any dividends from its investment in Harmony during the year (F2013: R64 million).

The net cash/(debt) position at 30 June 2014 amounts to net debt of R1 352 million as compared to the net restated debt
position of R2 027 million at 30 June 2013. This positive change mainly occurred within the net cash position at ARM
Corporate.

-   Cash generated from operations increased by R508 million from a restated R1 565 million to R2 073 million despite
    working capital requirements of R959 million resulting from the increased activity levels at operations.
-   Capital expenditure reduced to R1 165 million for the year (F2013 restated: R1 538 million) and was mainly expended
    within ARM Platinum and ARM Copper. Capital expenditure in ARM Ferrous was R1 753 million (F2013 restated:
    R1 951 million).
-   Net cash at 30 June 2014 excluding partner loans (Anglo American Platinum: R114 million, Vale/ARM Joint Venture:
    R452 million and Glencore: R1 426 million) amounted to R640 million as compared to R13 million at 30 June 2013
    restated.

The consolidated ARM total assets of R36.5 billion (F2013 restated: R33.8 billion) include the marked-to-market
valuation of ARM's investment in Harmony of R1.98 billion (F2013: R2.27 billion) at a share price of R31.15 per share
(F2013: R35.75 per share). Changes in the value of the investment in Harmony, to the extent that they represent a
significant or prolonged decline below the cost of the investment, are adjusted through the Income Statement, net of tax.
Gains above the cost are accounted for, net of deferred capital gains tax, through the Statement of Comprehensive Income.

Safety
The safety and health of our people remains a key imperative for ARM. Despite ongoing efforts to ensure that the highest
safety standards are maintained at all our operations, regrettably a surveyor was fatally injured in an accident at the
Modikwa Mine on 3 June 2014.

The ARM Board of Directors and management extend their deepest condolences to the family, friends and colleagues of
Mr Hendricks.

In the period under review ARM's number of Lost Time Injuries (LTIs) decreased 29% from 149 in F2013 to 106 in F2014.
The Lost Time Injury Frequency Rate (LTIFR) therefore reduced from 0.48 (per 200 000 man hours) in F2013 to 0.37
(per 200 000 man hours) in F2014.

Safety achievements
- In the period under review ARM's number of Lost Time Injuries (LTIs) decreased 29% from 149 in F2013 to 106 in
   F2014. The Lost Time Injury Frequency Rate (LTIFR) therefore reduced from 0.48 (per 200 000 man hours) in F2013
   to 0.37 (per 200 000 man hours) in F2014.
- Khumani Mine completed four million fatality-free shifts during March 2014.
- Black Rock Mine completed three million fatality-free shifts during June 2014.
- Dwarsrivier Mine completed two million fatality-free shifts during November 2013.
- Beeshoek Mine completed eighteen consecutive months without a lost time injury. This mine has been fatality-free
  since March 2003.
- On 21 May 2014, Nkomati Mine completed 365 consecutive days without a lost time injury.
Safety figures and statistics in this report are presented on a 100% basis and currently exclude the ARM Coal operations.

ARM Ferrous
ARM Ferrous headline earnings increased 17% from R3 194 million in F2013 to R3 736 million in F2014.


ARM Ferrous headline earnings (on 100% basis)

                                              12 months ended 30 June      
                                                          Reviewed                 
                                      Reviewed        and restated                 
R million                                 2014                2013   % change      
Iron ore division                        6 356               5 531         15      
Manganese division                       1 058                 940         13      
Chrome division                            128                   1       >100      
Total                                    7 542               6 472         17      
ARM share                                3 771               3 237         16      
Consolidation adjustments                 (35)                (43)         19      
Total per IFRS financial statements      3 736               3 194         17      


The improved headline earnings were mainly as a result of increased sales. ARM Ferrous sales (on 100% basis) increased
11% driven by higher US Dollar prices realised for lumpy iron ore and high-grade manganese ore together with a 17%
weakening of the Rand. US Dollar prices for iron ore fines and low-grade manganese ore were lower as oversupply of both
products in the market put prices under pressure.

Iron ore export sales volumes were 3% lower mainly due to interrupted water supply experienced at the Khumani Mine
in the first half of the financial year. The mine is currently working with the Gamagara Water Board to ensure a long-term
solution to the water supply issues in the area. Local iron ore sales from the Beeshoek Mine remained constant at 2 million
tonnes.

Manganese ore sales volumes decreased 5% to 2.7 million tonnes due to reduced local sales.

Manganese alloy sales volumes however increased marginally to 279 thousand tonnes. The manganese alloy market
remains under pressure and as a result the ARM Ferrous smelters continued to produce at below capacity. ARM and
Assore are currently reviewing the strategy for the smelters and have since implemented a number of cost saving changes
at the smelters to ensure that they preserve cash.

Chrome ore sales volumes decreased by 6% to 988 thousand tonnes, while chrome alloy sales volumes decreased by 58%
to 32 thousand tonnes as Cato Ridge sold the remaining chrome alloy stockpiles.

ARM Ferrous sales volumes (on 100% basis)
100% basis                                 12 months ended 30 June      
Thousand tonnes                    2014                2013   % change      
Iron ore                         15 640              16 070        (3)      
Manganese ore*                    2 708               2 856        (5)      
Manganese alloys                    279                 260          7      
Charge chrome                        32                  77       (58)      
Chrome ore*                         988               1 054        (6)      
* Excluding intra-group sales.                                              


ARM Ferrous production volumes (on 100% basis)
                                   12 months ended 30 June    
Thousand tonnes                    2014               2013    % change      
Iron ore                         16 054             16 103           –      
Manganese ore                     3 358              3 199           5      
Manganese alloys                    346                332           4      
Charge chrome                        22                 23         (4)      
Chrome ore                        1 014              1 033         (2)      

Despite lower sales volumes the unit cost of sales increases for the iron ore division were marginally above inflation.
Khumani Mine's production unit costs increased 10.6% driven by higher than inflation wage increases and higher
maintenance costs consistent with an ageing fleet. Beeshoek Mine production unit cost increases were in line with inflation.

Unit production cost increases at the manganese ore operations continued to be above inflation mainly due to higher than
inflation wage increases and increased distances travelled between shaft infrastructure and underground work areas.
Capital expenditure to upgrade the mine and reduce distances to and from work areas has already been approved as part
of the Manganese Ore Expansion Project.

Manganese alloys unit production costs at Cato Ridge Works increased by 1%. Machadodorp Works unit production costs
increased by 55% due to lower production volumes as the smelter reduced to a one-furnace operation.

Unit production costs increased by only 2% for chrome ore due to benefits realised from an operational efficiency
programme. Unit costs at the Chrome Metal Recovery Plant (MRP), which recovers the final chrome metal entrapped in
the historically produced ferrochrome slag, decreased by 7%.

ARM Ferrous cost and EBITDA margin performance                                
                                                   On-mine                   
                                  Cost of       production                   
                               sales unit   cost unit cost       EBITDA      
Commodity group               cost change           change       margin      
                                        %                %            %      
Iron ore*                               8               10           54      
Manganese ore                          13               14           34      
Manganese alloys                       20               12            5      
Chrome ore                            (4)              (2)           14      


* Excluding the Khumani Mine housing element.
ARM Ferrous capital expenditure was 10% lower at R3.64 billion (F2013: R4.06 billion). The main capital expenditure items
in iron ore included equipment procured for the Beeshoek Mine's planned Village Pit and the East Pit waste removal. In
addition, final completion and commissioning of the Wet High Intensity Magnetic Separation (WHIMS) plant, the railway
line deviation around the King Pit and the off-grade 2 plant design work contributed to the majority of Khumani Mine's
capital expenditure. At Black Rock Mine, the major capital expenditure related to underground mining equipment, waste
development, the Gloria vent shaft pre-sink and other preparation and early works for the Black Rock Expansion Project.
At Dwarsrivier Mine capital was spent on the mine optimisation project, north underground shaft and plant equipment.

ARM Ferrous capital expenditure (on 100% basis)                                     
                                                  12 months ended 30 June      
                                                                 Reviewed      
                                                  Reviewed   and restated      
R million                                             2014           2013      
Iron ore                                             2 058          2 709      
Manganese                                            1 340          1 216      
Chrome                                                 244            132      
Total                                                3 642          4 057      


Logistics
ARM Ferrous exported 13.6 million tonnes of iron ore in F2014. During the period Assmang assisted a new iron ore
producer to export iron ore through the Khumani Iron Ore mine facilities in close co-operation with Transnet Freight Rail.

Manganese ore export sales were approximately 2.6 million tonnes. The manganese ore rail export channel to Port
Elizabeth continued to operate under difficult conditions. ARM Ferrous exported manganese ore via Durban, using a
combination of rail and road transport. Some test consignments were also done through the Multi-Purpose Terminal in
Saldanha by making use of opportunistic rail capacity on the iron ore export line.

Assmang and Transnet continue to engage regarding future export capacity and growth for both iron ore and manganese
ore. To this effect, Transnet concluded its feasibility study to expand the manganese ore export capacity to 12 million tonnes
per annum through the Port of Ngqura by February 2019 and to 16 million tonnes per annum by October 2020.

Projects
Beeshoek Iron Ore Mine
The Beeshoek Village Pit Project, which will enable Beeshoek Mine to sustain production of approximately 3 million tonnes
per annum for at least 12 years, has been identified as the future ore resource for the Beeshoek Mine. The project is
estimated to cost approximately R3 billion over five years. To date R510 million of this has been spent purchasing the
required mining fleet. The fleet has been delivered to site. Commissioning and training will commence to enable the mine
to start with the removal of the overburden from November 2014. The removal of the required overburden is expected to
take place over a five-year period with the first ore being accessed from January 2016.

The project also involved the relocation of the Beeshoek Mine personnel from the mine village to Postmasburg. To this
extent 300 houses are in the process of being built and approximately 80% of the workforce has already been successfully
relocated.


Manganese Ore Expansion Project
The review of the initial scope for the Black Rock Expansion Project was successfully completed in October 2013. The
project was then approved by the ARM and Assore Boards of Directors. The project which enables the successful extraction
of ore from the Nchwaning Seam 2 ore body, thus expanding the product mix that can be offered to the market will see
Black Rock Mine expanding production output from 3.2 million to 4.6 million tonnes per annum. This will enable Black Rock
Mine to participate in future increases in export rail capacity.

The project value approved is R6.7 billion of which R0.9 billion has been spent to date and a further R1.7 billion has been
committed. The project is currently on schedule and within budget.


Sakura Ferroalloys Project
The ground breaking ceremony for the Sakura Project took place during February 2014. The site clearing has been
completed and civil works have commenced. Steel erection is underway and all major contracts have been put in place.
A turnkey contract had been signed with Metix to construct the furnaces. The project remains on track to commence
production in the latter part of 2015, and achieve steady state production of 170 000 tonnes per annum in F2017.

Assmang owns 54% of Sakura and to date has contributed approximately 75% of its share of the project capital of
USD328 million. Capital expenditure to date has been R790 million.

This project is treated, for accounting purposes, as a joint venture in Assmang and as a result its capital expenditure is not
included in the consolidated results.

The ARM Ferrous operations, held through its 50% investment in Assmang, consist of three divisions: iron ore, manganese
and chrome. Assore Limited, ARM's partner in Assmang, owns the remaining 50%.

ARM Platinum
ARM Platinum's attributable headline earnings increased by R356 million (68%) to R883 million driven by improved
performance at Nkomati and Two Rivers, coupled with an increase in Rand metal prices.

The Nkomati and Two Rivers mines achieved a substantial increase in earnings, while Modikwa's poor performance
stemmed from the cessation of mining at the Hill shaft, a week long industrial action stoppage during March 2014, Section
54 stoppages in the last six months and a fatality in June 2014.

PGM production (on 100% basis including Nkomati) increased to 841 581 6E ounces (F2013: 786 254 6E ounces).
Nkomati's nickel production decreased by 1% to 22 874 tonnes (F2013: 23 220 tonnes). Two Rivers delivered a 7%
increase in PGM production.

US Dollar prices were lower than the corresponding period but a 17% weakening of the Rand against the US Dollar
compensated for the depressed PGM prices, resulting in the Rand basket prices for Modikwa and Two Rivers increasing
by more than 10% to R322 789/kg (F2013: R287 424/kg) and R330 214/kg (F2013: R298 384/kg) respectively. The Rand
nickel spot price increased 49% over the last 12 months.

The tables below set out the relevant price comparison:

Average US Dollar metal prices                                                               
                                          Average for the 12 months ended 30 June      
                                                 2014               2013       % change      
Platinum                         USD/oz         1 431              1 550            (8)      
Palladium                        USD/oz           752                680             11      
Rhodium                          USD/oz           986              1 090           (10)      
Nickel                            USD/t        15 488             16 245            (5)      
Copper                            USD/t         7 029              7 632            (8)      
Chrome concentrate (CIF)          USD/t           141                147            (4)      
Average Rand metal prices                                                                    
                                          Average for the 12 months ended 30 June      
                                                 2014               2013       % change      
Platinum                           R/oz        14 823             13 684              8      
Palladium                          R/oz         7 787              6 001             30      
Rhodium                            R/oz        10 219              9 621              6      
Nickel                              R/t       160 452            143 447             12      
Copper                              R/t        72 818             67 390              8      
Chrome concentrate (CIF)            R/t         1 458              1 294             13      


Nkomati's unit cash cost increased by 5% to R308 per tonne (F2013: R292 per tonne) while the C1 unit cash cost net of
by-products, reduced by 3% to USD4.81/lb (F2013: USD4.98/lb) of nickel produced. Two Rivers managed to keep its unit
cash cost constant at R5 266/6E PGM ounce (F2013: R5 244/6E PGM ounce). Modikwa's unit cash cost increased by 20%
to R7 545/6E PGM ounce (F2013: R6 275/6E PGM ounce) due to the 13% decrease in production at the mine.

Capital expenditure at ARM Platinum operations (on 100% basis) was R1.1 billion (R731 million attributable). Modikwa's
major capital items include construction of the Mainstream Inert Grinding (MIG) plant, deepening of North shaft, the sinking
of South 2 shaft, and the replacement of mining equipment. Of the capital spent at Two Rivers, 28% is associated with fleet
replacement. The balance was incurred in the deepening of the Main and North declines. Nkomati's capital expenditure
relates to increased waste stripping activities and to sustain operations.

ARM Platinum capital expenditure (on 100% basis)                                   
                                                 12 months ended 30 June      
                                              Reviewed          Reviewed      
R million                                         2014              2013      
Modikwa                                            570               286      
Two Rivers                                         317               498      
Nkomati                                            258               189      
Total                                            1 145               973      


Modikwa Mine
Modikwa Mine's attributable headline earnings decreased by 33%. Lower output resulting from safety stoppages, industrial
action and a decrease in the head grade resulted in a reduction in earnings and an increase in unit costs.

An increased stoping width due to geological features, and the processing of Merensky ore purchased from Two Rivers,
resulted in a 5% decline in the plant feed grade. PGM production declined by 13% to 281 706 6E ounces (F2013: 324 626
6E ounces). As a result, unit costs increased by 15% to R1 010 per tonne milled (F2013: R876 per tonne milled) and by
20% to R7 545 per 6E PGM ounce (F2013: R6 275 per 6E PGM ounce).

Modikwa Mine operational statistics (on 100% basis)                                     
                                                                12 months ended 30 June      
                                                                       2014         2013   % change      
Cash operating profit                             R million             332          428       (22)      
Tonnes milled                                            Mt            2.10         2.33       (10)      
Head grade                                          g/t, 6E            5.06         5.35        (5)      
PGMs in concentrate                              Ounces, 6E         281 706      324 626       (13)      
Average basket price                               R/kg, 6E         322 789      287 424         12      
Average basket price                             USD/oz, 6E             969        1 012        (4)      
Cash operating margin                                     %              14           17                 
Cash cost                                          R/kg, 6E         242 577      201 752         20      
Cash cost                                           R/tonne           1 010          876         15      
Cash cost                                           R/Pt oz          19 095       15 897         20      
Cash cost                                          R/oz, 6E           7 545        6 275         20      
Cash cost                                        USD/oz, 6E             728          711          2      
Headline earnings attributable to ARM (41.5%)     R million              64           96       (33)      


Two Rivers Mine
Headline earnings at Two Rivers increased by 88%. PGM ounces produced increased by 7% driven by an increase in
tonnes milled of 3% and improved plant recoveries and efficiencies. This combined with enhanced Rand basket prices and
chrome sales, resulted in a 47% increase in cash operating profit.

Unit cash costs remained constant at R5 266 per 6E ounce (F2013: R5 244 per 6E ounce). The entire Merensky stockpile
was sold to Modikwa Mine during the year. There was a 132 632 tonne increase in the UG2 ROM stockpile to a total of
437 960 tonnes of ore (F2014: 305 328 tonnes).

Two Rivers commenced chrome concentrate sales in October 2013, with a total of 160 951 tonnes being sold during
the period under review.

Two Rivers Mine operational statistics                                             
100% basis                                                       12 months ended 30 June      
                                                                     2014           2013   % change      
Cash operating profit                            R million          1 486          1 011         47      
–  PGMs                                          R million          1 424          1 011         41      
–  Chrome                                        R million             62              –          –      
Tonnes milled                                           Mt           3.28           3.17          3      
Head grade                                         g/t, 6E           4.01           4.02          –      
PGMs in concentrate                             Ounces, 6E        374 681        350 443          7      
Chrome concentrate sold                             Tonnes        160 951              –          –      
Average basket price                              R/kg, 6E        330 214        298 384         11      
Average basket price                            USD/oz, 6E            991          1 051        (6)      
Cash operating margin                                    %             40             35                 
Cash cost                                         R/kg, 6E        169 314        168 594          –      
Cash cost                                          R/tonne            602            579          4      
Cash cost                                          R/Pt oz         11 271         11 331        (1)      
Cash cost                                         R/oz, 6E          5 266          5 244          –      
Cash cost                                       USD/oz, 6E            508            594       (14)      
Headline earnings attributable to ARM (55%)      R million            375            199         88      


Nkomati Mine
Nkomati Mine continued its excellent performance generating a 91% increase in headline earnings. Nickel production
decreased by 1% to 22 874 tonnes. Chrome concentrate sales increased by 52% to 341 809 tonnes (F2013: 224 754
tonnes).

The Rand nickel spot price increased by 49% from 1 July 2013 to 30 June 2014 contributing significantly to Nkomati Mine's
cash operating profit of R1.8 billion, a 54% increase from the corresponding period.

The large increase of 67% in PGM's produced was as a result of a positive historical adjustment to the PGMs produced.
This adjustment relates to a correction of a backlog in shipment settlements which have now been finalised. This is a once-
off adjustment and does not affect Nkomati Mine's earnings. Going forward PGM produced from Nkomati Mine is expected
to be approximately 135 000 PGM ounces produced per annum.

Nkomati Mine achieved a 3% reduction in C1 unit cost to USD4.81/lb net of by-products (F2013: USD4.98/lb).

Nkomati Mine operational statistics (on 100% basis)                                     
                                                                  12 months ended 30 June      
                                                                     2014            2013   % change      
Cash operating profit                             R million         1 813           1 178         54      
–  Nickel Mine                                    R million         1 656           1 054         57      
–  Chrome Mine                                    R million           157             124         27      
Cash operating margin                                     %            30              26          –      
Tonnes milled                                      Thousand          7.93            7.59          4      
Head grade                                         % nickel          0.39            0.41        (5)      
Nickel on-mine cash cost per tonne milled           R/tonne           308             292          5      
Cash cost net of by-products*                        USD/lb          4.81            4.98        (3)      
Contained metal                                                                                           
Nickel                                               Tonnes        22 874          23 220          1      
PGMs                                                 Ounces       185 194         111 185         67      
Copper                                               Tonnes        10 116           9 877          2      
Cobalt                                               Tonnes         1 133           1 101          3      
Chrome concentrate sold                              Tonnes       341 809         224 754         52      
Headline earnings attributable to ARM (50%)       R million           444             232         91      
   

* This reflects US Dollar cash costs net of by-products (PGMs, Copper, Cobalt and Chrome) per pound of nickel produced.

Projects
Modikwa Mine
The North shaft deepening project is slightly behind project schedule. It is anticipated that the backlog will be caught up
during the next two quarters. Construction activities are on schedule. Development and construction at the South 2 project
has progressed well and is slightly ahead of project schedule.

The installation of a Mainstream Inert Grinding (MIG) mill, to enhance PGM recoveries, was commissioned on schedule.
Ramp-up will continue during Q1 F2015.


Two Rivers Mine
The transfer of prospecting rights from Implats to Two Rivers Mine in respect of portions of the farms Kalkfontein,
Tweefontein and Buffelshoek is awaiting approval from the Department of Mineral Resources.

On completion of a feasibility study on the extraction of UG2 ore from the deeper southern strike extent of the Main Decline,
further optimisation of the ore extraction method will be evaluated.

The ARM Platinum division comprises:
- Three operating mines:
   - Modikwa Mine – ARM Mining Consortium has an effective 41.5% interest in Modikwa Mine where local communities
      hold an 8.5% effective interest. The remaining 50% is held by Anglo American Platinum.
   - Two Rivers Mine – an incorporated joint venture with Implats, with ARM holding 55% and Implats 45%.
   - Nkomati Mine – a 50:50 partnership between ARM and Norilsk Nickel Africa.
- Two projects:
   - the “Kalplats Platinum Project” in which ARM Platinum holds 46% and Platinum Australia (PLA) holds 44%, with
      Anglo American holding 10%.
   - the “Kalplats Extended Area Project” in which ARM Platinum and PLA each have a 50% interest.

ARM Coal
ARM Coal's attributable cash operating profit decreased by 39% from R822 million to R505 million in F2014. Headline
earnings decreased from R148 million in F2013 to a headline loss of R120 million in F2014.

The decline in ARM Coal headline earnings was mainly due to lower US Dollar coal prices, a 3% decrease in export sales
volumes, together with significant increases in costs at both the GGV and PCB operations. The negative impact of this was
however partially offset by the weaker Rand.

ARM Coal attributable profit analysis                                                     
                                                     12 months ended 30 June      
                                               Reviewed        Reviewed                     
R million                                          2014            2013       % change      
Cash operating profit                               505             822           (39)      
Less: Interest paid                               (276)           (211)           (31)      
Amortisation                                      (368)           (364)            (1)      
Fair value adjustments                             (27)            (40)             33      
(Loss)/profit before tax                          (166)             207              –      
Less: Tax                                            46            (59)              –      
Headline (loss)/earnings attributable to ARM      (120)             148              –      


Goedgevonden Coal Mine
Run of Mine (ROM) and saleable production at the GGV Mine were respectively 2% and 11% lower mainly due to a mining
shovel catching fire and being out of operation for two months, an increase in the mine strip ratio and the impact of an
industrial action stoppage.

An improvement in performance by Transnet Freight Rail (TFR) resulted in a 16% increase in export sales volumes from
GGV Mine. Eskom however curtailed buying of additional coal, resulting in a reduction of 30% in Eskom sales volumes.

GGV attributable cash operating profit decreased by 11% from R417 million to R373 million. Attributable export revenue
was R76 million higher than F2013 as a combined result of increased sales volumes, and a weaker Rand Dollar exchange
rate but was negatively impacted by R181 million due to lower US Dollar export coal prices. Attributable Eskom revenue
was R56 million lower than in F2013 following the reduction in coal purchases by Eskom.

On-mine saleable unit costs increased 22% to a normalised steady state level of R208 per tonne. In F2013, GGV processed
significant ROM and in-pit inventory which was on stockpile from the previous year. The unit production costs in F2013
were therefore lower as they benefited from processing this stockpile.

GGV headline earnings decreased by 25% to R122 million in line with the decrease in cash operating profit.

Goedgevonden Mine operational statistics (on 100% basis)                 
                                                                  12 months ended 30 June      
                                                                   2014          2013     % change      
Total production and sales                                                                                   
Saleable production                                      Mt        7.29          8.16         (11)      
Export thermal coal sales                                Mt        3.93          3.40           16      
Eskom thermal coal sales                                 Mt        3.17          4.52         (30)      
Attributable production and sales                                                                       
Saleable production                                      Mt        1.90          2.12         (10)      
Export thermal coal sales                                Mt        1.02          0.90           13      
Eskom thermal coal sales                                 Mt        0.82          1.18         (31)      
Average received coal price                                                                             
Export (FOB)                                      USD/tonne       79.98         91.00         (12)      
Eskom (FOT)                                         R/tonne      198.92        187.57            6      
On-mine saleable cost                               R/tonne      208.10        171.20           22      
Cash operating profit                                                                                   
Total                                             R million       1 450         1 603         (10)      
Attributable (26%)                                R million         373           417         (11)      
Headline earnings attributable to ARM             R million         122           162         (25)      


Goedgevonden Mine attributable profit analysis                                    
                                                           12 months ended 30 June      
                                                   Reviewed     Reviewed                       
R million                                              2014         2013     % change      
Cash operating profit                                   373          417         (11)      
Less: Interest paid                                    (87)         (86)          (1)      
Amortisation                                          (103)         (94)         (10)      
Fair value adjustments                                 (14)         (11)         (27)      
Profit before tax                                       169          226         (25)      
Less: Tax                                              (47)         (64)           27      
Headline earnings attributable to ARM                   122          162         (25)      


Participating Coal Business (PCB)
PCB attributable cash operating profit decreased from R405 million to R132 million and the attributable headline loss
increased from R14 million in F2013 to R242 million in F2014.

F2014 attributable revenue was R290 million lower due to a 9% decrease in export sales volumes and a 27% decrease in
export coal prices. Lower export prices were as a result of an overall decline in market prices together with lower quality
coal being supplied in response to changes in market demand dynamics. A weaker Rand versus US Dollar and an increase
in Eskom and domestic sales volumes partially offset the negative impact of these decreases.

Saleable production volumes were 5% lower following a strategic decision to downsize high-cost underground sections
and shut down a high-cost Coal Handling Processing Plant (CHPP). In addition, the average yield reduced by 7% due to a
change in the mix of the qualities of the coal being fed into the plant.

The decrease in saleable production impacted on on-mine costs which increased 21% to R396 per tonne. PCB has
stockpiled approximately 2.1 million tonnes of ROM coal for commissioning of the new TOP CHPP which will commence in
September 2014. This stockpile will benefit PCB unit costs in the next financial year. The transformation from underground
mining to opencast mining is on schedule and is expected to result in an improvement in saleable production and unit costs.

Participating Coal Business operational statistics (on 100% basis)                 
                                                                                12 months ended 30 June      
                                                                        2014            2013   % change      
Total production sales                                                                                       
Saleable production                                       Mt           12.07           12.71        (5)      
Export thermal coal sales                                 Mt            8.90            9.81        (9)      
Eskom thermal coal sales                                  Mt            1.90            1.65         15      
Local thermal coal sales                                  Mt            0.69            0.45         53      
Attributable production and sales                                                                            
Saleable production                                       Mt            2.44            2.57        (5)      
Export thermal coal sales                                 Mt            1.80            1.98        (9)      
Eskom thermal coal sales                                  Mt            0.38            0.33         15      
Local thermal coal sales                                  Mt            0.14            0.09         56      
Average received coal price                                                                                  
Export (FOB)                                       USD/tonne           67.78           83.88       (19)      
Eskom (FOT)                                          R/tonne          202.81          157.70         29      
Local (FOR)                                          R/tonne          347.04          262.24         32      
On-mine saleable cost                                R/tonne          395.64          326.29         21      
Cash operating profit                                                                                        
Total                                              R million             654           2 005       (67)      
Attributable (20.2%)                               R million             132             405       (67)      
Headline loss attributable to ARM                  R million           (242)            (14)          –      


Participating Coal Business attributable profit analysis                                   
                                                      12 months ended 30 June      
                                                    Reviewed        Reviewed                       
R million                                               2014            2013         % change      
Cash operating profit                                    132             405             (67)      
Less: Interest paid                                    (189)           (125)             (51)      
Amortisation                                           (265)           (270)                2      
Fair value adjustments                                  (13)            (29)               55      
(Loss) before tax                                      (335)            (19)                –      
Less: Tax                                                 93               5             >100      
Headline loss attributable to ARM                      (242)            (14)                –      
  

Projects
Tweefontein Optimisation Project
Construction at the project is progressing according to schedule and within budget with 83% of the cost of R8.2 billion
having been committed as at the end of June 2014. The truck and shovel opencast equipment have been commissioned
and mining has commenced while commissioning of the coal handling and processing plant will commence in H1 F2015
reaching full production by the end of F2015.


ARM's economic interest in PCB is 20.2%. PCB consists of two large mining complexes situated in Mpumalanga. ARM has
a 26% effective interest in the GGV Mine situated near Ogies in Mpumalanga.

Attributable refers to 20.2% of PCB and 26% of GGV Mine whilst total refers to 100%.

ARM Copper
Lubambe Copper Mine is continuing with its ramp-up to full production to produce 45 000 tonnes of copper in concentrate
in F2016. The main vertical shaft was commissioned in November 2013. After commissioning, throughput constraints were
experienced in the refurbished shaft rock pass systems as well as through the main tips at the East Decline. The rock pass
systems were corrected to facilitate better flows at the vertical shaft and a mineral sizer was installed at the main ore tip of
the East Decline to cater for the slabbing nature of the ore encountered in stoping operations. By 30 June 2014, 1 558 390
tonnes of copper bearing ore had been milled which was 49% higher than the previous year and yielded 23 791 tonnes of
copper which was 60% more than F2013. Copper recovery from the concentrator plant was 6% better than the previous
reporting period and was 77.6% for the year on average.

ARM Copper operational statistics  (on 100% basis)                                     
                                                                   12 months ended 30 June      
                                                                     2014             2013   % change      
Waste development                                      Metres       9 415           11 434       (18)      
Ore development                                        Metres       9 365            9 396          –      
Ore development                                        Tonnes     484 280          596 783       (19)      
Ore stoping                                            Tonnes     954 999          403 178       >100      
Ore tonnes mined                                       Tonnes   1 439 279          999 961         44      
Tonnes milled                                          Tonnes   1 558 390        1 046 559         49      
Mill head grade                                      % copper        1.95             1.92          –      
Concentrator recovery                                       %        77.6             71.4          –      
Copper concentrate produced                            Tonnes      57 009           40 331         41      
Copper concentrate sold                                Tonnes      82 458           27 502       >100      
Contained metal                                                                                            
Copper produced                                        Tonnes      23 791           14 871         60      
Copper sold                                            Tonnes      33 323            9 943       >100      
Headline loss attributable to ARM (40%)             R million       (309)            (135)                 


The Lubambe Copper Mine
All copper concentrate held in stock from the previous financial year has been sold to smelters in Zambia and to the international
export market. Lubambe Mine further agreed to buy back the off-specification concentrate delivered to Mopani Copper Mine in
F2013. This concentrate was sold on the export market and Mopani Mine was refunded in full for payments received. Concentrate
quality issues have been resolved during the year and new off-take agreements are in place to treat the full production from
Lubambe at Konkola Copper Mines (KCM) and Chambishi Copper Smelter (CCS) both situated in Zambia.

Mechanised access development is progressing well with ore drive development on schedule. Longitudinal Room and
Pillar (LRP) stoping methods continue to be utilised to extract the copper bearing ore from underground. Poor ground
conditions are still being experienced in certain places and have delayed one of the main transfer tips in the East Limb. The
stoping dilution is a concern and the mining layouts are being modified to improve the milling head grade.

Operational efficiency and equipment utilisation are receiving the required level of attention to improve output and reduce
unit costs.

All other project capital work regarding outstanding underground and surface infrastructure work was completed on
schedule and within budget. The relocation of informal settlements on the potential subsidence area of the mine is now
completed. The first 80 families were moved in March 2014 and are settling in well.

Projects
The Lubambe Extension Project
Following the initial resource estimate done by the joint venture and the subsequent promising results from the initial
feasibility study of the Lubambe Extension Area done in 2012, it was decided to re-evaluate the resource estimate. AMEC,
an engineering project management and consultancy company specialising in ore reserve assessments, was again
commissioned to do this for the JV and the results increased the total resource (Inferred and Indicated) from 75.7 million
tonnes at a total copper grade of 2.81% to 134.0 million tonnes at a total copper grade of 4.07%.

In order to take the feasibility study to the next level, a full hydrogeological study is required. During the year the contract
for large diameter hydrological drilling was concluded. Drilling commenced in August 2013 and progress was good until the
tri-cone bit got stuck at a depth of 570 metres in November 2013. After numerous attempts to re-establish the hole it was
decided by the contractor to drill a new hole which is expected to be completed by October 2014.

ARM owns 100% of ARM Copper. ARM Copper owns 50% of the Vale/ARM Joint Venture. The effective interest of ARM in
the Lubambe Copper Mine is 40% and ZCCM-IH has a 20% shareholding.

ARM Strategic Services and Exploration
ARM actively pursues new mineral opportunities in Africa and elsewhere in the world based on commodities within ARM's
current portfolio. These include iron and manganese ore, copper, PGMs, nickel and coal, including their various by-
products. ARM will seek to partner with organisations that will complement its core competencies and strengths.

ARM's minimum requirement is that potential partners have successfully completed methodological target generation
and concept-driven exploration, and have recorded discovery success. ARM will consider investing in such projects or
companies and in partnership would undertake further exploration, studies and evaluation and investments further down
the mining value chain.

On 29 April 2014 ARM announced that Assmang had entered into a conditional share subscription agreement with
IronRidge Resources Limited (IronRidge). One of the conditions of the subscription agreement was the admission of
IronRidge to the Alternative Investment Market (AIM) of the London Stock Exchange plc through a GBP25 million capital
raising. IronRidge was not successful in securing the GBP25 million. Assmang is therefore in discussion with IronRidge to
consider alternative proposals. Any new proposal will be reconsidered by ARM.

The agreement with Rovuma Resources Limited, a Mozambican exploration company, is ongoing. Rovuma explores in
northern Mozambique and has identified numerous occurrences of copper/zinc, nickel/copper/PGE, chromite/nickel and
graphite mineralisation.

ARM agreed to continue with the option for the fourth year and to fund exploration at a cost of about USD7 million. ARM will
have exclusive rights to exercise options to purchase prospecting and/or mining rights to the resources.

ARM Exploration's headline loss for F2014 was R81 million (F2013: R88 million).

Harmony Gold Mining Company Limited (Harmony)
Harmony reported a 23% improvement to its operating loss from continuing operations, from R2 008 million (restated)
in F2013 to an operating loss of R1 549 million in F2014. The improvement was achieved despite a 5% decrease in
Harmony's realised gold price and was mainly due to a 4% increase in gold sold together with good cost control. In the year
under review Harmony achieved below inflation increases to its all-in sustaining cost. Corporate and administration costs
were reduced by 7% whilst exploration expenditure decreased by 32%.

Harmony's headline earnings from continuing operations therefore increased by R102 million to R114 million in F2014.
Basic earnings however were negatively affected by a R1.4 billion impairment most of which related to the Phakisa Mine.
The impairment of Phakisa Mine was due to the use of new revenue and cost estimates, an increase in discount rates
together with the removal of the Phakisa Mine decline project from Harmony's business plan.

Harmony continues to improve its Papua New Guinea (PNG) assets and is progressing a concept study on a scalable mine
at the Wafi Golpu Project in PNG. The modular approach to developing the Wafi Golpu is expected to require less capital
and allows for a long-life mine that will be flexible and adaptable.

The ARM Statement of Financial Position at 30 June 2014 reflects a mark-to-market investment in Harmony of R1.98 billion
(F2013: R2.27 billion) at a share price of R31.15 per share (F2013: R35.75 per share). Dividends are recognised in the
ARM Income Statement on the last day of registration following dividend declaration.

Harmony's results for the 12 months ended 30 June 2014 can be viewed on Harmony's website at www.harmony.co.za.

ARM owns 14.6% of Harmony's issued share capital.

Outlook
Volatility in currencies and commodity prices continued in the financial year with most commodities facing supply related
headwinds. There was a sharp decline in iron ore and manganese ore prices in the third quarter of the financial year.

ARM produces high quality iron ore and manganese ore which even in the currently challenging market remains in strong
demand. ARM differentiates itself by ensuring a consistent supply of high quality product, the premiums of which are
expected to increase as pollution concerns in China are addressed. Transnet's Market Demand Strategy (MDS) which will
result in an increase in bulk commodity export capacity for South Africa presents an opportunity to further optimise ARM's
iron ore and manganese ore operations.

As the United States and some European countries continue to show signs of improved economic health and China remains
supportive of demand for the commodities that we produce, ARM's diversified portfolio positions it well to participate in both
emerging and developed markets.

Appropriate capital and effort are also being allocated to improving productivity at ARM's existing operations. This is key
as part of our commitment to ensure that all operations are positioned below the 50th percentile of each commodity's
global cost curve. Improvements in efficiencies have so far been achieved through volume growth, plant optimisations and
continuous training of our people.

ARM remains confident about the future and continues to build a sustainable portfolio of mining assets that creates value
for all shareholders and stakeholders.


Dividends
The ARM Board has approved and declared an eighth annual dividend of 600 cents per share (gross) in respect of the year
ended 30 June 2014 (F2013: 510 cents per share). The amount to be paid is approximately R1 300.5 million.

This dividend is consistent with ARM's commitment, as a globally competitive company, to pay dividends and fund growth
of the Company in the future.

The dividend will be subject to Dividend Withholding Tax. In accordance with paragraphs 11.17(a)(i) to (x) and 11.17(c)
of the JSE Listings Requirements the following additional information is disclosed:
- The dividend has been declared out of income reserves;
- The South African Dividends Tax (“Dividends Tax”) rate is 15% (fifteen percent);
- There are no Secondary Tax on Companies credits utilised;
- The gross local dividend amount is 600 cents per ordinary share for shareholders exempt from the Dividends Tax;
- The net local dividend amount is 510.00000 cents per share for shareholders liable to pay the Dividends Tax;
- As at the date of this declaration ARM has 216 747 811 ordinary shares in issue; and
- ARM's income tax reference number is 9030/018/60/1.

A gross dividend of 600 cents per ordinary share, being the dividend for the year ended 30 June 2014 has been declared
payable on Monday, 6 October 2014 to those shareholders recorded in the books of the Company at the close of business
on Friday, 3 October 2014. The dividend is declared in the currency of South Africa. Any change in address or dividend
instruction to apply to this dividend must be received by the Company's transfer secretaries or registrar not later than
Friday, 26 September 2014. The last day to trade ordinary shares cum dividend is Friday, 26 September 2014. Ordinary
shares trade ex-dividend from Monday, 29 September 2014. The record date is Friday, 3 October 2014 whilst the payment
date is Monday, 6 October 2014.

No dematerialisation or rematerialisation of share certificates may occur between Monday, 29 September 2014 and
Friday, 3 October 2014, both dates inclusive, nor may any transfers between registers take place during this period.

Review by independent auditors
The financial information has been reviewed by E A L Botha, CA(SA) of Ernst & Young Inc. whose unqualified review report
will be available for inspection at the Company's registered office.

The Integrated Annual Report containing a detailed review of the operations of the Company together with the audited
financial statements will be distributed to shareholders in November 2014 and will subsequently be available on the ARM
website (www.arm.co.za).

Any reference to future financial performance included in these results has not been reviewed or reported on by ARM's
external auditors.

Signed on behalf of the board:




P T Motsepe                                              M P Schmidt
Executive Chairman                                       Chief Executive Officer

Johannesburg
4 September 2014

Group statement of financial position                                           
as at 30 June 2014                                                                                              
                                                                                           Reviewed         Reviewed      
                                                                                                           Restated*      
                                                                                               2014             2013      
                                                                                 Note            Rm               Rm      
ASSETS                                                                                                                    
Non-current assets                                                                                                        
Property, plant and equipment                                                                11 752           11 309      
Investment property                                                                              12               12      
Intangible assets                                                                               166              178      
Deferred tax asset                                                                              381              327      
Loans and long-term receivables                                                                  73               90      
Financial assets                                                                                  2                3      
Investment in associate                                                                       1 267            1 420      
Investment in joint venture                                                         6        14 305           12 506      
Other investments                                                                             2 119            2 391      
                                                                                             30 077           28 236      
Current assets                                                                                                            
Inventories                                                                                     934            1 096      
Trade and other receivables                                                                   3 291            2 290      
Taxation                                                                                          5               22      
Financial asset                                                                                   1               39      
Cash and cash equivalents                                                           7         2 150            1 965      
                                                                                              6 381            5 412      
Assets held for sale                                                                              –              191      
Total assets                                                                                 36 458           33 839      
EQUITY AND LIABILITIES                                                                                                    
Capital and reserves                                                                                                      
Ordinary share capital                                                                           11               11      
Share premium                                                                                 4 108            3 996      
Other reserves                                                                                1 258              769      
Retained earnings                                                                            21 311           19 294      
Equity attributable to equity holders of ARM                                                 26 688           24 070      
Non-controlling interest                                                                      1 511            1 393      
Total equity                                                                                 28 199           25 463      
Non-current liabilities                                                                                                   
Long-term borrowings                                                                8         2 420            3 293      
Deferred tax liabilities                                                                      1 911            1 680      
Long-term provisions                                                                            558              560      
                                                                                              4 889            5 533      
Current liabilities                                                                                                       
Trade and other payables                                                                      1 741            1 599      
Short-term provisions                                                                           479              494      
Taxation                                                                                         68               51      
Overdrafts and short-term borrowings                                                8         1 082              699      
                                                                                              3 370            2 843      
Total equity and liabilities                                                                 36 458           33 839      


* Restated after adoption of IFRS 11 Joint Arrangements (Refer note 2 and 14).

Group income statement
for the year ended 30 June 2014

                                                                                            Reviewed        Reviewed
                                                                                                           Restated*
                                                                                                2014            2013
                                                                                    Note          Rm              Rm
Revenue                                                                                       10 863           8 209
Sales                                                                                         10 004           7 342
Cost of sales                                                                                (7 531)         (5 866)
Gross profit                                                                                   2 473           1 476
Other operating income                                                                           961             992
Other operating expenses                                                                     (1 763)         (1 294)
Profit from operations before exceptional items                                                1 671           1 174
Income from investments                                                                          119             131
Finance costs                                                                                  (259)           (199)
Loss from associate**                                                                          (374)            (14)
Income from joint venture***                                                                   3 549           3 063
Profit before taxation and exceptional items                                                   4 706           4 155
Exceptional items excluding tax                                                        4       (616)         (2 457)
Profit before taxation                                                                         4 090           1 698
Taxation                                                                               9       (546)              84
Profit for the year                                                                            3 544           1 782
Attributable to:
Non-controlling interest                                                                         255             148
Equity holders of ARM                                                                          3 289           1 634
                                                                                               3 544           1 782




Additional information
Headline earnings (R million)                                                          5       4 108          3 737
Headline earnings per share (cents)                                                            1 900          1 735
Basic earnings (R million)                                                                     3 289          1 634
Basic earnings per share (cents)                                                               1 521            759
Diluted headline earnings per share (cents)                                                    1 886          1 723
Diluted basic earnings per share (cents)                                                       1 510            753
Number of shares in issue at end of year (thousands)                                         216 748        215 625
Weighted average number of shares in issue (thousands)                                       216 268        215 357
Weighted average number of shares used in calculating diluted
 earnings per share (thousands)                                                              217 784        216 914
Net asset value per share (cents)                                                             12 313         11 163
EBITDA (R million)                                                                             2 620          1 982
Dividend declared after year end (cents per share)                                               600            510
* Restated after adoption of IFRS 11 Joint Arrangements (Refer note 2 and 14).
** Impairment included in loss from associate R132 million (F2013: R nil).
*** Impairment included in income from joint venture R187 million (F2013: R112 million).

Group statement of comprehensive income
for the year ended 30 June 2014

                                                                                                                          Total
                                                                              Available-                                 share-         Non-
                                                                                for-sale                 Retained       holders    controlling
                                                                                reserve         Other    earnings        of ARM       interest        Total
Group                                                                                Rm           Rm           Rm             Rm            Rm           Rm
For the year ended 30 June 2013    
(Restated Reviewed)*    
Profit for the year to 30 June 2013                                                    –           –       1 634          1 634            148        1 782
Other comprehensive income that may be    
reclassified to the income statement in    
subsequent periods    
 Reclassification adjustment due to impairment    
  of available-for-sale listed investment                                           (170)          –           –          (170)              –        (170)
 Deferred tax on above                                                                31           –           –             31              –           31
Net impact of revaluation of listed investment                                     (139)           –           –          (139)              –        (139)
Foreign exchange movements on loans   
 to a foreign Group entity                                                             –          57           –             57              –           57
Deferred tax on unrealised foreign exchange  
 movements on loans to a foreign Group entity                                          –         (16)          –           (16)              –         (16)
Cash flow hedge reserve                                                                –         (32)          –           (32)              –         (32)
Foreign currency translation reserve movement                                          –         227           –            227              –          227
Total other comprehensive (loss)/income                                            (139)         236           –             97              –           97
Total comprehensive (loss)/income for the year                                     (139)         236       1 634          1 731            148        1 879
    
For the year ended 30 June 2014    
(Reviewed)    
Profit for the year to 30 June 2014                                                    –           –       3 289          3 289            255        3 544
Other comprehensive income that may be    
reclassified to the income statement in    
subsequent periods    
 Revaluation of listed investment                                                   334            –           –            334              –          334
 Deferred tax on above                                                              (62)           –           –           (62)              –         (62)
Net impact of revaluation of listed investment                                      272            –           –            272              –          272
Cash flow hedge reserve                                                               –           31           –             31              –           31
Foreign currency translation reserve movement                                         –           73           –             73              –           73
Total other comprehensive income                                                    272          104           –            376              –          376
Total comprehensive income for the year                                             272          104       3 289          3 665            255        3 920
* Restated after adoption of IFRS 11 Joint Arrangements (Refer note 2 and 14).    

Group statement of changes in equity                                                       
for the year ended 30 June 2014                                                                                      
                                                                                  Share                                                 Total                              
                                                                                capital   Available-                                   share-          Non-                
                                                                                    and     for-sale                   Retained       holders   controlling                     
                                                                                premium      reserve       Other*      earnings        of ARM      interest          Total      
Group                                                                                Rm           Rm           Rm            Rm            Rm            Rm             Rm      
Balance at 30 June 2012                                                                                                                                                         
(Restated Reviewed)**                                                             3 948          139          432        18 681        23 200         1 205         24 405      
Profit for the year to 30 June 2013                                                   –            –            –         1 634         1 634           148          1 782      
Other comprehensive (loss)/income                                                     –        (139)          236             –            97             –             97      
Total comprehensive (loss)/income                                                                                                                                               
for the year                                                                          –        (139)          236         1 634         1 731           148          1 879      
Share-based payments                                                                  –            –          133             –           133             –            133      
Share options exercised                                                              27            –            –             –            27             –             27      
Bonus and performance shares                                                                                                                                                    
issued to employees                                                                  32            –         (32)             –             –             –              –      
Dividend paid                                                                         –            –            –       (1 021)       (1 021)             –        (1 021)      
Contribution by ZCCM                                                                  –            –            –             –             –            40             40      
Balance at 30 June 2013                                                                                                                                                         
(Restated Reviewed)                                                               4 007            –          769        19 294        24 070         1 393         25 463      
Profit for the year to 30 June 2014                                                   –            –            –         3 289         3 289           255          3 544      
Other comprehensive income                                                            –          272          104             –           376             –            376      
Total comprehensive income                                                                                                                                                      
for the year                                                                          –          272          104         3 289         3 665           255          3 920      
Share-based payments                                                                  –            –          167             –           167             –            167      
Share options exercised                                                              62            –            –             –            62             –             62      
Bonus and performance shares                                                                                                                                                    
issued to employees                                                                  50            –         (50)             –             –             –              –      
Dividend paid                                                                         –            –            –       (1 102)       (1 102)             –        (1 102)      
Dividend paid to Impala Platinum                                                      –            –            –             –             –         (236)          (236)      
Acquisition of non-controlling interest                                                                                                                                         
in Kalumines***                                                                       –            –            –         (170)         (170)            99           (71)      
Sale of subsidiary                                                                    –            –          (4)             –           (4)             –            (4)      
Balance at 30 June 2014                                                                                                                                                         
(Reviewed)                                                                        4 119          272          986        21 311        26 688         1 511         28 199      
*  Other reserves consist of the following:                                       
                                                                                   2014         2013         2012    
                                                                                     Rm           Rm           Rm
General reserve                                                                      28           32           32                                                       
Insurance contingency                                                                14           14           14                                                       
Share-based payments                                                                569          452          351                                                       
Cash flow hedge reserve                                                               –         (31)            1                                                       
Foreign exchange on loans to                                                                                                                                            
foreign Group entity                                                                 61           61           20                                                       
Foreign currency translation reserve                                                328          255           28                                                       
Premium paid on purchase of                                                                                                                                             
non-controlling interest                                                           (14)         (14)         (14)                                                       
Total                                                                               986          769          432                                                       
** Restated after adoption of IFRS 11 Joint Arrangements (Refer note 2 and 14).
*** Part of the assets held for sale at 30 June 2013. 
                                               


Group statement of cash flows                                                                                     
for the year ended 30 June 2014                                                                                   
                                                                                            Reviewed      Reviewed      
                                                                                                         Restated*      
                                                                                                2014          2013      
                                                                                    Note          Rm            Rm      
CASH FLOW FROM OPERATING ACTIVITIES                                                                                     
Cash receipts from customers                                                                   9 950         7 618      
Cash paid to suppliers and employees                                                         (7 877)       (6 053)      
Cash generated from operations                                                        10       2 073         1 565      
Interest received                                                                                 99            62      
Interest paid                                                                                  (113)         (115)      
Dividends received                                                                                 1            64      
Dividends received from joint venture                                                          1 750         1 500      
Dividend paid to non-controlling interest – Impala Platinum                                    (236)             –      
Dividend paid                                                                                (1 102)       (1 021)      
Taxation paid                                                                                  (395)         (286)      
Net cash inflow from operating activities                                                      2 077         1 769      
CASH FLOW FROM INVESTING ACTIVITIES                                                                                     
Additions to property, plant and equipment to maintain operations                              (724)         (544)      
Additions to property, plant and equipment to expand operations                                (409)       (1 063)      
Proceeds on disposal of property, plant and equipment                                            118             1      
Proceeds on disposal of subsidiary                                                                 1             –      
Transfer of cash on disposal of subsidiary                                                      (16)             –      
Additional investment in associate                                                             (189)         (112)      
Investment in RBCT                                                                              (20)          (26)      
Decrease in loans and receivables                                                                 17            24      
Net cash outflow from investing activities                                                   (1 222)       (1 720)      
CASH FLOW FROM FINANCING ACTIVITIES                                                                                     
Proceeds on exercise of share options                                                             62            28      
Long-term borrowings raised                                                                        –           802      
Long-term borrowings repaid                                                                    (728)         (212)      
Decrease in short-term borrowings                                                               (93)         (144)      
Net cash (outflow)/inflow from financing activities                                            (759)           474      
Net increase in cash and cash equivalents                                                         96           523      
Cash and cash equivalents at beginning of year                                                 1 569           998      
Foreign currency translation on cash balance                                                       4            48      
Cash and cash equivalents at end of year                                               7       1 669         1 569      
* Restated after adoption of IFRS 11 Joint Arrangements (Refer note 2 and 14).                                          
 

Notes to the financial statements
for the year ended 30 June 2014 (Reviewed)
1   STATEMENT OF COMPLIANCE
    The Group provisional financial statements have been prepared in accordance with the framework concepts and the
    measurement and recognition requirements of International Financial Reporting Standards (IFRS), the Financial Reporting
    Guides as issued by the Accounting Practice and Financial Pronouncements as issued by the Financial Reporting Standards
    Council and contains the information required by IAS 34 – Interim Financial Reporting, requirements of the South African
    Companies Act and the Listings Requirements of the JSE Limited.
    BASIS OF PREPARATION
    The Group provisional results for the year under review have been prepared under the supervision of the financial director
    Mr M Arnold CA(SA). The Group provisional financial statements have been prepared on the historical cost basis, except for
    certain financial instruments that are fairly valued by mark to market. The accounting policies used are consistent with those in
    the most recent annual financial statements except for those listed below.
    The Group has adopted the following new and revised standards and interpretations, issued by the International Financial
    Reporting Interpretation Committee (IFRIC) of the IASB, that became effective on or before 1 January 2013.
    Standard               Subject                                                                                   Effective date
    IFRS 1                 First-time Adoption of International Financial Reporting Standards (Amendment)            1 January 2013
    IFRS 7                 Disclosures – Offsetting Financial Assets and Financial Liabilities                       1 January 2013
    IFRS 10                Consolidated Financial Statements                                                         1 January 2013
    IFRS 11                Joint Arrangements                                                                        1 January 2013
    IFRS 12                Disclosure of Interest in Other Entities                                                  1 January 2013
    IFRS 13                Fair Value Measurement                                                                    1 January 2013
    IAS 16                 Property, Plant and Equipment (Amendment)                                                 1 January 2013
    IAS 19                 Employee Benefits (Amendment)                                                             1 January 2013
    IAS 27                 Separate Financial Statements (as revised in 2011)                                        1 January 2013
    IAS 28                 Investment in Associates and Joint Ventures (as revised in 2011)                          1 January 2013
    IAS 34                 Interim Financial Reporting (Amendment)                                                   1 January 2013
    Circular 2/2013        Headline Earnings                                                      Annual periods ended 31 July 2013
    The adoption of these amendments had no significant effect on the Group financial statements except for IFRS 11 Joint
    Arrangements (Refer notes 2 and 14).
    In addition the following amendments, standards or interpretations have been issued but are not yet effective. The effective date
    refers to periods beginning on or after, unless otherwise indicated.
    Standard               Subject                                                                                    Effective date
    IFRS 9                 Financial Instruments – Classification and Measurement (Amendment)                         1 January 2018
    IFRS 7                 Financial Instruments: Disclosures (Amendment)                                             1 January 2015
    IFRS 10                Consolidated Financial Statements (Amendment)                                              1 January 2014
    IFRS 12                Disclosure of Interest in Other Entities (Amendment)                                       1 January 2014
    IFRS 14                Regulatory Deferral Accounts                                                               1 January 2016
    IFRS 15                Revenue from Contracts with Customers                                                      1 January 2017
    IAS 16 and IAS 38      Clarification of acceptable methods of depreciation and amortisation (Amendment)           1 January 2016
    IAS 19                 Employee Benefits (Amendment)                                                                 1 July 2014
    IAS 27                 Separate Financial Statements (Amendment)                                                  1 January 2014
    IAS 32                 Financial Instruments Presentation (Amendment)                                             1 January 2014
    IAS 36                 Impairment of Assets – Recoverable amount disclosure for
                           non-financial assets of impaired assets (Amendment)                                        1 January 2014
    IAS 39                 Financial Instruments: Recognition and Measurement –
                           Novation of derivatives and continuation of hedge accounting (Amendment)                   1 January 2014
    IFRIC 21               Levies                                                                                     1 January 2014
    The Group does not intend early adopting any of the above amendments, standards or interpretations.

2   Effect of adoption of new standards, amendments and interpretations
    The Group applied, for the first time, certain standards and amendments that require restatement of previous financial
    statements (Refer note 1). The financial statements were only affected by the adoption of IFRS 11 and IAS 28. As stated in
    our Integrated Annual Report for the 30 June 2013 financial statements, joint ventures have previously been proportionately
    consolidated. IFRS 11 removes the option to account for joint venture entities using the proportionate consolidation method.
    Instead, joint arrangements that meet the definition of a joint venture must be accounted for using the equity method. For a joint
    operation, the joint operator recognises its assets, liabilities, income and expenses and/or relative share thereof.
    The application of IFRS 11 and IAS 28 impacted the Group's accounting of its interest in its joint venture, Assmang Proprietary
    Limited. The Group has a 50% interest in Assmang Proprietary Limited, which is jointly controlled by ARM and Assore Limited.
    Prior to the adoption of IFRS 11, Assmang Proprietary Limited was classified as a jointly controlled entity and the Group's
    share of the assets, liabilities, revenue, income and expenses was proportionately consolidated in the consolidated financial
    statements. Upon adoption of IFRS 11, the Group has determined its interest in Assmang Proprietary Limited to be classified as
    a joint venture under IFRS 11 and it is required to be accounted for using the equity method.
    The transition was applied retrospectively as required by IFRS 11 and the comparative information has been restated.
    The effect of applying IFRS 11 on the Group's financial statements are shown in detail in note 14.

For management purposes the Group is organised into operating divisions. The operating divisions are ARM Platinum (which
includes platinum and nickel), ARM Ferrous, ARM Coal, ARM Copper, Corporate and other, ARM Exploration and Gold. Corporate
and other, ARM Exploration and Gold are included in ARM Corporate in the table below.

PRIMARY SEGMENTAL INFORMATION

                                                                                                                                                   Total per
                                                                                                                                                        IFRS
                                                                                                                                         *IFRS     financial
                                                        ARM            ARM         ARM           ARM          ARM                      Adjust-        state-      
                                                   Platinum        Ferrous        Coal        Copper    Corporate         Total           ment         ments      
                                                         Rm             Rm          Rm            Rm           Rm            Rm             Rm            Rm      
3.1 Year to 30 June 2014                                                                                                                                        
(Reviewed)                                                                                                                                                        
Sales                                                 7 986         13 781         961         1 085         (28)        23 785       (13 781)        10 004      
Cost of sales                                       (5 811)        (7 733)       (724)       (1 048)           73      (15 243)          7 712       (7 531)      
Other operating income                                   79            176          24            36          752         1 067          (106)           961      
Other operating expenses                              (531)        (1 228)         (3)         (319)        (910)       (2 991)          1 228       (1 763)      
Segment result                                        1 723          4 996         258         (246)        (113)         6 618        (4 947)         1 671      
Income from investments                                  36            225           –             –           83           344          (225)           119      
Finance cost                                           (51)           (27)        (89)           (2)           14         (155)             27         (128)      
Finance cost ZCCM:                                                                                                                                                
Shareholders' loan Vale ARM                                                                                                                                       
joint venture                                             –              –           –          (38)            –          (38)              –          (38)      
Finance cost ARM: Shareholders'                           –                                                                                                       
loan Vale/ARM joint venture                               –              –           –          (93)            –          (93)              –          (93)      
Income from associate**                                   –              –       (374)             –            –         (374)              –         (374)      
Income from joint venture***                              –             11           –             –            –            11          3 538         3 549      
Exceptional items                                       (2)          (260)           5             2        (621)         (876)            260         (616)      
Taxation                                              (506)        (1 361)        (48)           (3)           25       (1 893)          1 347         (546)      
Non-controlling interest                              (319)              –           –            73          (9)         (255)              –         (255)      
Consolidation adjustment                                  –           (35)           –             –           35             –              –             –      
Contribution to basic earnings                          881          3 549       (248)         (307)        (586)         3 289              –         3 289      
Contribution to headline                                                                                                                                          
earnings                                                883          3 736       (120)         (309)         (82)         4 108              –         4 108      
Other information:                                                                                                                                                
Segment assets, including                                                                                                                                         
investment in associate                              10 807         18 749       3 468         3 530        4 348        40 902        (4 444)        36 458      
Investment in associate                                                          1 267                                    1 267              –         1 267      
Investment in joint venture                                                                                                             14 305        14 305      
Segment liabilities                                   2 280          1 936       1 636           826        1 538         8 216        (1 936)         6 280      
Unallocated liabilities                                                                                                                                           
(tax and deferred tax)                                                                                                    4 542        (2 563)         1 979      
Consolidated total liabilities                                                                                           12 758        (4 499)         8 259      
Cash inflow/(outflow) from                                                                                                                                        
operating activities                                  1 386          4 485         407         (158)      (1 308)         4 812        (2 735)         2 077      
Cash outflow from investing                                                                                                                                       
activities                                            (690)        (2 382)       (305)         (204)         (23)       (3 604)          2 382       (1 222)      
Cash outflow from financing                                                                                                                                       
activities                                            (104)              –       (152)             –        (503)         (759)              –         (759)      
Capital expenditure                                     731          1 753         129           299            6         2 918        (1 753)         1 165      
Amortisation and depreciation                           650            892         117           176            6         1 841          (892)           949      
Impairment                                                –            260         183             –            –           443          (260)           183      
EBITDA                                                2 373          5 888         375          (70)        (107)         8 459        (5 839)         2 620      
* Includes IFRS 11 adjustment related to ARM Ferrous.
** Impairment included in loss from associate R132 million.
*** Impairment included in income from joint venture R187 million. 
    
3.2   Year to 30 June 2013                                                                                                                                         
(Restated Reviewed)                                                                                                                                                
Sales                                                 6 344         12 458          929          69             –        19 800        (12 458)         7 342      
Cost of sales                                       (5 102)        (7 293)        (656)       (132)            46      (13 137)           7 271       (5 866)      
Other operating income                                   87            312           37          11           776         1 223           (231)           992      
Other operating expenses                              (294)        (1 058)          (2)        (91)         (907)       (2 352)           1 058       (1 294)      
Segment result                                        1 035          4 419          308       (143)          (85)         5 534         (4 360)         1 174      
Income from investments                                  21            137            –           –           110           268           (137)           131      
Finance cost                                           (56)           (26)         (82)        (20)          (35)         (219)              26         (193)      
Finance cost Implats:                                                                                                                                              
Shareholders' loan Two Rivers                           (3)              –            –           –             –           (3)               –           (3)      
Finance cost ARM:                                                                                                                                                  
Shareholders' loan Two Rivers                           (3)              –            –           –             –           (3)               –           (3)      
Loss from associate                                       –              –         (14)           –             –          (14)               –          (14)      
Income from joint venture**                               –              3            –           –             –             3           3 060         3 063      
Exceptional items                                         –          (182)          (3)           –       (2 454)       (2 639)             182       (2 457)      
Taxation                                              (285)        (1 245)         (63)         (6)           454       (1 145)           1 229            84      
Non-controlling interest                              (182)              –            –          34             –         (148)               –         (148)      
Consolidation adjustment                                  –           (43)            –           –            43             –               –             –      
Contribution to basic earnings                          527          3 063          146       (135)       (1 967)         1 634               –         1 634      
Contribution to headline                                                                                                                                           
earnings                                                527           3194          148       (135)             3         3 737               –         3 737      
Other information:                                                                                                                                                 
Segment assets, including                                                                                                                                          
investment in associate                               9 913         16 775        3 631       3 581         4 208        38 108         (4 269)        33 839      
Investment in associate                                                           1 420                                   1 420               –         1 420      
Investment in joint venture                                                                                                              12 506        12 506      
Segment liabilities                                   2 008          1 724        1 717         919         2 001         8 369         (1 724)         6 645      
Unallocated liabilities                                                                                                                                            
(tax and deferred tax)                                                                                                    4 277         (2 546)         1 731      
Consolidated total liabilities                                                                                           12 646         (4 270)         8 376      
Cash inflow/(outflow) from                                                                                                                                         
operating activities                                    988          3 979          219        (48)         (890)         4 248         (2 479)         1 769      
Cash outflow from investing                                                                                                                                        
activities                                            (654)        (2 041)        (169)       (888)           (9)       (3 761)           2 041       (1 720)      
Cash (outflow)/inflow from                                                                                                                                         
financing activities                                  (149)              –        (155)         144           634           474               –           474      
Capital expenditure                                     735          1 951           41         753             9         3 489         (1 951)         1 538      
Amortisation and depreciation                           676            885          106          21             5         1 693           (885)           808      
Impairment                                                –            156            –           –             –           156           (156)             –      
EBITDA                                                1 711          5 304          414       (122)          (80)         7 227         (5 245)         1 982      
* Includes IFRS 11 adjustment related to ARM Ferrous.
** Impairment included in income from joint venture R112  million.    
                                                                
The ARM platinum segment is analysed further into Nkomati, Two Rivers Platinum Proprietary Limited and ARM Mining Consortium
Limited, which includes Modikwa Platinum Mine.

                                                                                            Platinum      
                                                    Nkomati     Two Rivers      Modikwa        total      
                                                         Rm             Rm           Rm           Rm      
3.3   Year to 30 June 2014 (Reviewed)                                                                     
External sales                                        3 032          3 725        1 229        7 986      
Cost of sales                                       (2 110)        (2 566)      (1 135)      (5 811)      
Other operating income                                   47             15           17           79      
Other operating expenses                              (343)          (172)         (16)        (531)      
Segment result                                          626          1 002           95        1 723      
Income from investments                                  15             11           10           36      
Finance cost                                            (5)           (44)          (2)         (51)      
Exceptional items                                       (2)              –            –          (2)      
Taxation                                              (192)          (288)         (26)        (506)      
Non-controlling interest                                  –          (306)         (13)        (319)      
Contribution to earnings                                442            375           64          881      
Contribution to headline earnings                       444            375           64          883      
Other information:                                                                                        
Segment and consolidated assets                       3 885          3 999        2 923       10 807      
Segment liabilities                                     871            982          427        2 280      
Unallocated liabilities (tax and deferred tax)                                                 1 558      
Consolidated total liabilities                                                                 3 838      
Cash inflow from operating activities                   508            705          173        1 386      
Cash outflow from investing activities                (164)          (240)        (286)        (690)      
Cash outflow from financing activities                    –          (104)            –        (104)      
Capital expenditure                                     129            317          285          731      
Amortisation and depreciation                           179            399           72          650      
EBITDA                                                  805          1 401          167        2 373      

    
3.4   Year to 30 June 2013 (Restated Reviewed)                                                            
External sales                                        2 244         2 868         1 232        6 344      
Cost of sales                                       (1 810)       (2 216)       (1 076)      (5 102)      
Other operating income                                   54            21            12           87      
Other operating expenses                              (168)         (114)          (12)        (294)      
Segment result                                          320           559           156        1 035      
Income from investments                                   9             4             8           21      
Finance cost                                            (3)          (50)           (3)         (56)      
Finance cost Implats: Shareholders' loan                                                                  
Two Rivers Platinum (Pty) Limited                         –           (3)             –          (3)      
Finance cost ARM: Shareholders' loan                                                                      
Two Rivers Platinum (Pty) Limited                         –           (3)             –          (3)      
Taxation                                               (94)         (146)          (45)        (285)      
Non-controlling interest                                  –         (162)          (20)        (182)      
Contribution to earnings                                232           199            96          527      
Contribution to headline earnings                       232           199            96          527      
Other information:                                                                                        
Segment and consolidated assets                       3 316         3 823         2 774        9 913      
Segment liabilities                                     608         1 037           363        2 008      
Unallocated liabilities (tax and deferred tax)                                                 1 354      
Consolidated total liabilities                                                                 3 362      
Cash inflow from operating activities                   314           539           135          988      
Cash outflow from investing activities                 (80)         (427)         (147)        (654)      
Cash outflow from financing activities                    –         (149)             –        (149)      
Capital expenditure                                      94           498           143          735      
Amortisation and depreciation                           254           350            72          676      
EBITDA                                                  574           909           228        1 711      


                                                                                                                                   Total per      
                                                                                                                                        IFRS      
                                                                   Manga-                                                *IFRS     financial      
                                                   Iron ore          nese        Chrome                      ARM       adjust-        state-      
                                                   division      division      division       Total        share          ment         ments      
                                                         Rm            Rm            Rm          Rm           Rm            Rm            Rm      
3.5   Pro forma analysis of the ARM Ferrous                                                                                                       
segment on a 100% basis                                                                                                                           
Year to 30 June 2014 (Reviewed)                                                                                                                   
Sales                                                17 667         8 286         1 608      27 561       13 781      (13 781)             –      
Other operating income                                  744           166            27         937          176         (176)             –      
Other operating expense                             (2 020)         (821)         (201)     (3 042)      (1 228)         1 228             –      
Operating profit                                      8 332         1 474           184       9 990        4 996       (4 996)             –      
Contribution to earnings                              6 357           684           128       7 169        3 584          (35)         3 549      
Contribution to headline earnings                     6 356         1 058           128       7 542        3 771          (35)         3 736      
Other information:                                                                                                                                
Consolidated total assets                            26 145        11 246         1 027      38 418       18 749       (4 444)        14 305      
Consolidated total liabilities                        6 087         2 545           516       9 148        1 936       (1 936)             –      
Capital expenditure                                   2 058         1 340           244       3 642        1 753       (1 753)             –      
Amortisation and depreciation                         1 295           450            80       1 825          892         (892)             –      
Cash inflow from operating activities               3 510**         1 650           310       5 470        4 485       (4 485)             –      
Cash outflow from investing activities              (1 845)       (2 681)         (237)     (4 763)      (2 382)         2 382             –      
EBITDA                                                9 627         1 924           264      11 815        5 888       (5 888)             –      
Additional information for                                                                                                                                                                            
ARM Ferrous at 100%                                                                                                                                                                                  
Non-current assets                                                                                                                                
Property, plant and equipment                                                                20 638                     (20 638)           –      
Investment in joint venture                                                                   1 663                      (1 663)           –      
Other non-current assets                                                                        781                        (781)           –      
Current assets                                                                                                                                    
Inventories                                                                                   4 427                      (4 427)           –      
Trade and other receivables                                                                   4 823                      (4 823)           –      
Financial asset                                                                                 112                        (112)           –      
Cash and cash equivalents                                                                     5 976                      (5 976)           –      
Non-current liabilities                                                                                                                           
Other non-current liabilities                                                                 5 986                      (5 986)           –      
Current liabilities                                                                                                                               
Trade and other payables                                                                      2 232                      (2 232)           –      
Short-term provisions                                                                           585                        (585)           –      
Taxation                                                                                        346                        (346)           –      
* Includes consolidation and IFRS 11 adjustments.        
** Dividend paid amounting to R3.5 billion included in cash flows from operating activities.          
                                       
     
3.6   Pro forma analysis of the ARM Ferrous                                                                                                        
segment on a 100% basis                                                                                                                            
Year to 30 June 2013                                                                                                                               
(Restated Reviewed)                                                                                                                                
Sales                                              15 690          7 349          1 876       24 915       12 458      (12 458)             –      
Other operating income                                854            283             22        1 159          312         (312)             –      
Other operating expense                           (1 576)          (767)          (312)      (2 655)      (1 058)         1 058             –      
Operating profit                                    7 466          1 547          (179)        8 834        4 419       (4 419)             –      
Contribution to earnings                            5 517            827          (134)        6 210        3 106          (43)         3 063      
Contribution to headline earnings                   5 531            940              1        6 472        3 237          (43)         3 194      
Other information:                                                                                                                                 
Consolidated total assets                          23 185         10 412            776       34 373       16 775       (4 269)        12 506      
Consolidated total liabilities                      5 985          2 454            332        8 771        1 724       (1 724)             –      
Capital expenditure                                 2 709          1 216            132        4 057        1 951       (1 951)             –      
Amortisation and depreciation                       1 180            531            102        1 813          885         (885)             –      
Cash inflow/(outflow) from operating activiti     3 694**      *   1 305           (50)        4 949        3 979       (3 979)             –      
Cash outflow from investing activities            (2 791)        (1 155)          (127)      (4 073)      (2 041)         2 041             –      
EBITDA                                              8 646          2 078           (77)       10 647        5 304       (5 304)             –      
Additional information for                                                                                                                         
ARM Ferrous at 100%                                                                                                                                
Non-current assets                                                                                                                                 
Property, plant and equipment                                                                 19 445                   (19 445)             –      
Investment in joint venture                                                                      238                      (238)             –      
Other non-current assets                                                                         579                      (579)             –      
Current assets                                                                                                                                     
Inventories                                                                                    4 118                    (4 118)             –      
Trade and other receivables                                                                    4 724                    (4 724)             –      
Cash and cash equivalents                                                                      5 268                    (5 268)             –      
Non-current liabilities                                                                                                                            
Other non-current liabilities                                                                  5 564                    (5 564)             –      
Current liabilities                                                                                                                                
Trade and other payables                                                                       2 145                    (2 145)             –      
Short-term provisions                                                                            505                      (505)             –      
Taxation                                                                                         558                      (558)             –      
* Includes consolidation and IFRS 11 adjustments.
** Dividend paid amounting to R3 billion included in cash flows from operating activities. 
                                       

Additional information
ARM Corporate as presented in the table on page 78 is analysed further into Corporate and other, ARM Exploration and Gold
segments.

                                                                                                                                        Total      
                                                                                              ARM    Corporate*                          ARM      
                                                                                      Exploration     and other         Gold       Corporate      
                                                                                               Rm            Rm           Rm              Rm      
3.7   Year to 30 June 2014 (Reviewed)                                                                                                             
Sales                                                                                           –          (28)            –            (28)      
Cost of sales                                                                                   –            73            –              73      
Other operating income                                                                          –           752            –             752      
Other operating expenses                                                                     (81)         (829)            –           (910)      
Segment result                                                                               (81)          (32)            –           (113)      
Income from investments                                                                         –            83            –              83      
Finance cost                                                                                    –            14            –              14      
Exceptional items                                                                               –             6        (627)           (621)      
Taxation                                                                                        –          (92)          117              25      
Non-controlling interest                                                                        –           (9)            –             (9)      
Consolidation adjustment                                                                        –            35            –              35      
Contribution to basic earnings                                                               (81)             5        (510)           (586)      
Contribution to headline earnings                                                            (81)           (1)            –            (82)      
Other information:                                                                                                                                
Segment assets, including investment in associate                                               –         2 366        1 982           4 348      
Segment liabilities                                                                             –         1 538            –           1 538      
Cash outflow from operating activities                                                       (81)       (1 227)            –         (1 308)      
Cash outflow from investing activities                                                          –          (23)            –            (23)      
Cash outflow from financing activities                                                          –         (503)            –           (503)      
Capital expenditure                                                                             –             6            –               6      
Amortisation and depreciation                                                                   –             6            –               6      
EBITDA                                                                                       (81)          (26)            –           (107)      
* Corporate, other companies and consolidation adjustments.                                                                            


ARM Corporate is analysed further into Corporate and other, ARM Exploration and Gold
segments.
                                                                                                                                       Total      
                                                                                              ARM    Corporate*                          ARM      
                                                                                      Exploration     and other          Gold      Corporate      
                                                                                               Rm            Rm            Rm             Rm      
3.8   Year to 30 June 2013 (Restated Reviewed)                                                                                                    
Cost of sales                                                                                   –            46             –             46      
Other operating income                                                                          –           776             –            776      
Other operating expenses                                                                     (88)         (819)             –          (907)      
Segment result                                                                               (88)             3             –           (85)      
Income from investments                                                                         –            46            64            110      
Finance cost                                                                                    –          (35)             –           (35)      
Exceptional items                                                                               –             –       (2 454)        (2 454)      
Taxation                                                                                        –          (30)           484            454      
Consolidation adjustment                                                                        –            43             –             43      
Contribution to basic earnings                                                               (88)            27       (1 906)        (1 967)      
Contribution to headline earnings                                                            (88)            27            64              3      
Other information:                                                                                                                                
Segment assets, including investment in associate                                               –         1 933         2 275          4 208      
Segment liabilities                                                                             –         2 001             –          2 001      
Cash (outflow)/inflow from operating activities                                              (88)         (866)            64          (890)      
Cash outflow from investing activities                                                          –           (9)             –            (9)      
Cash inflow from financing activities                                                           –           634             –            634      
Capital expenditure                                                                             –             9             –              9      
Amortisation and depreciation                                                                   –             5             –              5      
EBITDA                                                                                       (88)             8             _           (80)      
* Corporate, other companies and consolidation adjustments.                                                                               

                                                                                         Reviewed      Reviewed      
                                                                                                       Restated      
                                                                                             2014          2013      
                                                                                               Rm            Rm      
4 EXCEPTIONAL ITEMS                                                                                                
Profit on sale of property, plant and equipment                                                 6             –      
Profit on sale of subsidiary                                                                    5             –      
Unrealised impairment of available-for-sale listed investment                               (627)       (2 454)      
Scrapping of property, plant and equipment                                                      –           (3)      
Exceptional items per income statement                                                      (616)       (2 457)      
Impairment on property, plant and equipment accounted for directly                                                   
in associate – ARM Coal                                                                     (183)             –      
Loss on sale of property, plant and equipment accounted for directly                                                 
in joint venture Assmang                                                                        –          (26)      
Impairment on property, plant and equipment accounted for directly                                                   
in joint venture – Assmang                                                                  (260)         (156)      
Exceptional items before taxation effect                                                  (1 059)       (2 639)      
Taxation accounted for in associate – ARM Coal                                                 51             –      
Taxation accounted for in joint venture – Assmang                                              73            51      
Taxation on impairment of available-for-sale investment                                       117           484      
Taxation on other exceptional items                                                           (1)             1      
Total amount adjusted for headline earnings                                                 (819)       (2 103)      
5   HEADLINE EARNINGS                                                                                                
Basic earnings attributable to equity holders of ARM                                        3 289         1 634      
–  Impairment on property, plant and equipment in associate – ARM Coal                        183             –      
–  Profit on sale of subsidiary                                                               (5)             –      
–  Unrealised impairment of available-for-sale listed investment                              627         2 454      
–  Impairments of property, plant and equipment in joint venture – Assmang                    260           156      
–  Scrapping of property, plant and equipment                                                   –             3      
–  (Profit)/loss on disposal of property, plant and equipment                                 (6)            26      
                                                                                            4 348         4 273      
– Taxation on impairment of available-for-sale investment                                   (117)         (484)      
– Taxation accounted for directly in associate and joint venture                            (124)          (51)      
– Taxation on other exceptional items                                                           1           (1)      
                                                                                            4 108         3 737      
6 INVESTMENT IN JOINT VENTURE                                                                                      
The investment relates to ARM Ferrous and comprises Assmang as a joint venture                                       
which includes iron ore, manganese and chrome operations.                                                             
Opening balance                                                                            12 506        10 943      
Income for the period                                                                       3 584         3 106      
Consolidation adjustment                                                                     (35)          (43)      
Net income for the period                                                                   3 549         3 063
Less: Dividend received for the period                                                    (1 750)       (1 500)
Closing balance                                                                            14 305        12 506      


                                                                                        Reviewed      Reviewed      
                                                                                                      Restated      
                                                                                            2014          2013      
                                                                                              Rm            Rm      
7   CASH AND CASH EQUIVALENTS                                                                                       
– African Rainbow Minerals Limited                                                           746           579      
– ARM Finance Company SA                                                                      63            60      
– ARM Coal Proprietary Limited                                                                 –             4      
– ARM Platinum Proprietary Limited                                                            28           125      
– Kingfisher Insurance Co Limited                                                            137           134      
– Nkomati                                                                                    216           223      
– Two Rivers Platinum Proprietary Limited                                                      9             9      
– Vale/ARM joint venture                                                                      92            45      
– Venture Building Trust Proprietary Limited                                                   4             2      
– Restricted cash                                                                            855           784      
Total as per statement of financial position                                               2 150           965
Less: Overdrafts (Refer note 8)                                                              481           396                                                                              
Total as per statement of cash flows                                                       1 669         1 569     

8   BORROWINGS                                                                                                      
Long-term borrowings are held as follows:                                                                           
– African Rainbow Minerals Limited                                                             –           564      
– ARM Finance Company SA                                                                     659           735      
– ARM Coal Proprietary Limited (partner loan)                                              1 209         1 492      
– Two Rivers Platinum Proprietary Limited                                                     88           104      
– Vale/ARM joint venture                                                                      12             –      
– Vale/ARM joint venture – ZCCM (partner loan)                                               452           398      
                                                                                           2 420         3 293      
Short-term borrowings                                                                                               
– African Rainbow Minerals Limited                                                             –             3      
– Anglo Platinum Limited (partner loan)                                                      114           114      
– ARM Coal Proprietary Limited                                                               217            36      
– ARM Finance Company SA                                                                     191            60      
–  Two Rivers Platinum Proprietary Limited                                                    79            90      
                                                                                             601           303      
Overdrafts (Refer note 7)                                                                                           
–  ARM Mining Consortium Limited                                                              24             –      
–  Two Rivers Platinum Proprietary Limited                                                   300           353      
–  Vale/ARM joint venture                                                                    130            13      
–  Other                                                                                      27            30      
                                                                                             481           396      
Overdrafts and short-term borrowings                                                       1 082           699      
Total borrowings                                                                           3 502         3 992      

Notes to the financial statements
for the year ended 30 June 2014
                                                                                        Reviewed      Reviewed      
                                                                                                      Restated      
                                                                                            2014          2013      
                                                                                              Rm            Rm      
9   TAXATION                                                                                                        
South African normal tax                                                                                            
– current year                                                                               423           247      
– mining                                                                                     322           126      
– non-mining                                                                                 101           121      
– prior year                                                                                   8          (42)      
Deferred tax                                                                                 115         (296)      
Foreign taxes                                                                                  –             7      
                                                                                             546          (84)      
10   CASH GENERATED FROM OPERATIONS BEFORE                                                                          
WORKING CAPITAL MOVEMENTS                                                                                           
Cash generated from operations before working capital movement                             3 032         2 555      
Working capital changes                                                                    (959)         (990)      
Movement in inventories                                                                      179         (620)      
Movement in receivables                                                                    (978)         (635)      
Movement in inventories                                                                    (160)           265      
Cash generated from operations (per cash flow)                                             2 073         1 565   

11   COMMITMENTS                                                                                                                              
Commitments in respect of future capital expenditure, which will be funded                                                                    
from operating cash flows and by utilising available cash and borrowing                                                                       
resources, are summarised below:                                                                                                              
Commitments                                                                                                                                   
Commitments in respect of capital expenditure:                                                                                                
Approved by directors                                                                                                     
– contracted for                                                                            359            425      
– not contracted for                                                                          7            120      
Total commitments                                                                           366            545   

12   CONTINGENT LIABILITIES                                                                                                                   
There have been no significant changes in the contingent liabilities of the Group as disclosed in the 30 June 2013 integrated      
annual report.     

13   EVENTS AFTER REPORTING DATE                                                                                                              
No significant events have occurred subsequent to the reporting date that could materially affect the reporte results.      


14   Impact of accounting policy change on:
     Group statement of financial position
   
                                                              As at                                           As at                      
                                                       30 June 2014                                    30 June 2013                      
                                          Current          Previous                        Current         Previous                      
                                       accounting        accounting                     accounting       accounting                      
                                           policy            policy      Difference         policy           policy      Difference      
                                               Rm                Rm              Rm             Rm               Rm              Rm      
                                         Reviewed                                         Reviewed          Audited                      
ASSETS                                                                                                                                   
Non-current assets                                                                                                                       
Property, plant and equipment              11 752            21 845        (10 093)         11 309           20 636         (9 327)      
Investment property                            12                12               –             12               12               –      
Intangible assets                             166               166               –            178              179             (1)      
Deferred tax assets                           381               381               –            327              327               –      
Loans and long-term receivables                73               370           (297)             90              285           (195)      
Financial assets                                2               118           (116)              3               98            (95)      
Investment in associate                     1 267             1 267               –          1 420            1 420               –      
Investment in joint venture                14 305                 –          14 305         12 506                –          12 506      
Other investments                           2 119             2 119               –          2 391            2 391               –      
                                           30 077            26 278           3 799         28 236           25 348           2 888      
Current assets                                                                                                                           
Inventories                                   934             3 228         (2 294)          1 096            3 222         (2 126)      
Trade and other receivables                 3 291             5 759         (2 468)          2 290            4 667         (2 377)      
Taxation                                        5                61            (56)             22               22               –      
Financial asset                                 1                57            (56)             39               39               –      
Cash and cash equivalents                   2 150             5 630         (3 480)          1 965            4 632         (2 667)      
                                            6 381            14 735         (8 354)          5 412           12 582         (7 170)      
Assets held for sale                            –                 –               –            191              191               –      
Total assets                               36 458            41 013         (4 555)         33 839           38 121         (4 282)      
EQUITY AND LIABILITIES                                                                                                                   
Capital and reserves                                                                                                                     
Ordinary share capital                         11                11               –             11               11               –      
Share premium                               4 108             4 108               –          3 996            3 996               –      
Other reserves                              1 258             1 253               5            769              769               –      
Retained earnings                          21 311            21 311               –         19 294           19 294               –      
Equity attributable to                                                                                                                   
equity holders of ARM                      26 688            26 683               5         24 070           24 070               –      
Non-controlling interest                    1 511             1 511               –          1 393            1 393               –      
Total equity                               28 199            28 194               5         25 463           25 463               –      
Non-current liabilities                                                                                                                  
Long-term borrowings                        2 420             2 420               –          3 293            3 293               –      
Deferred tax liabilities                    1 911             4 321         (2 410)          1 680            3 951         (2 271)      
Long-term provisions                          558             1 028           (470)            560              959           (399)      
                                            4 889             7 769         (2 880)          5 533            8 203         (2 670)      
Current liabilities                                                                                                                      
Trade and other payables                    1 741             2 898         (1 157)          1 599            2 678         (1 079)      
Short-term provisions                         479               772           (293)            494              746           (252)      
Taxation                                       68               298           (230)             51              332           (281)      
Overdrafts and short-term borrowings        1 082             1 082               –            699              699               –      
                                            3 370             5 050         (1 680)          2 843            4 455         (1 612)      
Total equity and liabilities               36 458            41 013         (4 555)         33 839           38 121         (4 282)      


Impact of accounting policy change on:
Group income statement

                                                   For the year ended                             For the year ended      
                                                         30 June 2014                                   30 June 2013                   
                                           Current           Previous                       Current         Previous                   
                                        accounting         accounting                    accounting       accounting                     
                                            policy             policy     Difference         policy           policy     Difference      
                                                Rm                Rm             Rm             Rm               Rm             Rm      
                                          Reviewed                                         Reviewed          Audited                     
Sales                                       10 004             24 005       (14 001)          7 342           19 844       (12 502)      
Cost of sales                              (7 531)           (15 443)          7 912        (5 866)         (13 115)          7 249      
Gross profit                                 2 473          3   8 562        (6 089)          1 476            6 729        (5 253)      
Other operating income                         961                803            158            992              960             32      
Other operating expenses                   (1 763)            (2 737)            974        (1 294)          (2 152)            858      
Profit from operations                                                                                                                   
before exceptional items                     1 671              6 628        (4 957)          1 174            5 537        (4 363)      
Income from investments                        119                346          (227)            131              268          (137)      
Finance costs                                (259)              (286)             27          (199)            (225)             26      
(Loss)/income from associate                 (374)              (374)              –           (14)             (14)              –      
Income from joint venture                    3 549              9   –          3 549          3 063                –          3 063      
Profit before taxation                                                                                                                   
and exceptional items                        4 706              6 314        (1 608)          4 155            5 566        (1 411)      
Exceptional items                            (616)              (876)            260        (2 457)          (2 639)            182      
Profit before taxation                       4 090              5 438        (1 348)          1 698            2 927        (1 229)      
Taxation                                     (546)            (1 894)          1 348             84          (1 145)          1 229      
Profit for the period                        3 544              3 544              –          1 782            1 782              –      
Attributable to:                                                                                                                         
Non-controlling interest                       255                255              –            148              148              –      
Equity holders of ARM                        3 289              3 289              –          1 634            1 634              –      
                                             3 544              3 544              –          1 782            1 782              –      
Additional information                                                                                                                   
Headline earnings (R million)                4 108              4 108              –          3 737            3 737              –      
Headline earnings per share (cents)          1 900              1 900              –          1 735            1 735              –      
Basic earnings per share (cents)             1 521              1 521              –            759              759              –      
Fully diluted headline earnings                                                                                                          
per share (cents)                            1 886              1 886              –          1 723            1 723              –      
Fully diluted basic earnings                                                                                                             
per share (cents)                            1 510              1 510              –            753              753              –      
Net asset value per share (cents)           12 313             12 313              –         11 163           11 163              –      
EBITDA (R million)                           2 620              8 473        (5 853)          1 982            7 230        (5 248)      



Impact of accounting policy change on:
Group statement of cash flows
  
                                                  For the year ended                              For the year ended               
                                                        30 June 2014                                    30 June 2013                     
                                           Current          Previous                        Current         Previous                     
                                        accounting        accounting                     accounting       accounting                     
                                            policy            policy      Difference         policy           policy     Difference      
                                                Rm                Rm              Rm             Rm               Rm             Rm      
                                          Reviewed                                         Reviewed          Audited                     
CASH FLOW FROM OPERATING                                                                                                                 
ACTIVITIES                                                                                                                               
Cash receipts from customers                 9 950            23 570        (13 620)          7 618           19 611       (11 993)      
Cash paid to suppliers and employees       (7 877)          (15 922)           8 045        (6 053)         (13 299)          7 246      
Cash generated from operations               2 073             7 648         (5 575)          1 565            6 312        (4 747)      
Interest received                               99               312           (213)             62              199          (137)      
Interest paid                                (113)             (114)               1          (115)            (115)              –      
Dividends received                               1                 –               1             64               64              –      
Dividends received from joint venture        1 750                 –           1 750          1 500                –          1 500      
Dividends paid to non-controlling                                                                                                        
interest                                     (236)             (236)               –              –                –              –      
Dividends paid                             (1 102)           (1 102)               –        (1 021)          (1 021)              –      
Taxation paid                                (395)           (1 714)           1 319          (286)          (1 191)            905      
Net cash inflow from operating                                                                                                           
activities                                   2 077             4 794         (2 717)          1 769            4 248        (2 479)      
CASH FLOW FROM INVESTING                                                                                                                 
ACTIVITIES                                                                                                                               
Additions to property, plant and                                                                                                         
equipment to maintain operations             (724)           (2 249)           1 525          (544)          (1 452)            908      
Additions to property, plant and                                                                                                         
equipment to expand operations               (409)             (837)             428        (1 063)          (2 224)          1 161      
Proceeds on disposal of property,                                                                                                        
plant and equipment                            118               171            (53)              1               23           (22)      
Proceeds on disposal of subsidiary               1                 1               –              –                –              –      
Transfer of cash on disposal                                                                                                             
of subsidiary                                 (16)              (16)               –              –                –              –      
Additional investment in associate           (189)             (189)               –          (112)            (112)              –      
Investment in RBCT                            (20)              (20)               –           (26)             (26)              –      
Decrease in loans and receivables               17                17               –             24               30            (6)      
Net cash outflow from                                                                                                                    
investing activities                       (1 222)           (3 122)           1 900        (1 720)          (3 761)          2 041                        
CASH FLOW FROM FINANCING                                                                                                                 
ACTIVITIES                                                                                                                               
Proceeds on exercise of share options           62                62                –            28                28             –      
Long-term borrowings raised                      –                 –                –           802               802             –      
Long-term borrowings repaid                  (728)             (728)                –         (212)             (212)             –      
Decrease in short-term borrowings             (93)              (93)                –         (144)             (144)             –      
Net cash (outflow)/inflow                                                                                                                
from financing activities                    (759)             (759)                –           474               474             –      
Net (decrease)/increase                                                                                                                  
in cash and cash equivalents                    96               913            (817)           523               961         (438)      
Cash and cash equivalents at                                                                                                             
beginning of period                          1 569             4 236          (2 667)           998             3 227       (2 229)      
Foreign currency translation on                                                                                                          
cash balances                                    4                 –                4            48                48             –      
Cash and cash equivalents                                                                                                                
at end of period                             1 669             5 149          (3 480)         1 569             4 236       (2 667)      


Contact details and administration

Transfer secretaries                         PO Box 61051, Marshalltown, 2107
Computershare Investor Services              Telephone: +27 11 370 5000
Proprietary Limited                          Telefax:      +27 11 688 5222
Ground Floor, 70 Marshall Street             E-mail:       web.queries@computershare.co.za
Johannesburg, 2001                           Website:      http://www.computershare.co.za


Registered office
ARM House                                            
29 Impala Road                                       
Chislehurston, Sandton, 2196                         
South Africa                                         
PO Box 786136, Sandton, 2146                         
South Africa
                                             Sponsor
Telephone: +27 11 779 1300                   Deutsche Securities (SA) Proprietary Limited
Fax:         +27 11 779 1312
E-mail:      ir.admin@arm.co.za
Website:     http://www.arm.co.za


Forward-looking statements
Certain statements in this report constitute forward-looking statements that are neither reported
financial results nor other historical information. They include but are not limited to statements that
are predictions of or indicate future earnings, savings, synergies, events, trends, plans or objectives.
Such forward-looking statements may or may not take into account and may or may not be affected
by 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 HIV & 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.




Directors
P T Motsepe (Executive Chairman)                     W M Gule**
M P Schmidt (Chief Executive Officer)                A K Maditsi*
F Abbott*                                            D V Simelane
M Arnold                                             Dr R V Simelane*
Dr M M M Bakane-Tuoane*                              Z B Swanepoel*
T A Boardman*                                        A J Wilkens
A D Botha*
J A Chissano (Mozambican)*
* Independent Non-executive
** Non-executive

www.arm.co.za



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