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AFRICAN RAINBOW MINERALS LIMITED - Interim results for the six months ended 31 December 2014

Release Date: 16/03/2015 07:05
Code(s): ARI     PDF:  
Wrap Text
Interim results for the six months ended 31 December 2014

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

Interim Results
for the six months ended
31 December 2014

Shareholder information      
                                          
Issued share capital at 31 December 2014          217 437 523 shares   
Market capitalisation at 31 December 2014           ZAR 25.9 billion   
Market capitalisation at 31 December 2014            US$ 2.2 billion   
Closing share price at 31 December 2014                      R119.00   
Six-month high (1 July 2014 – 31 December 2014)              R203.01   
Six-month low (1 July 2014 – 31 December 2014)               R109.51   
Average daily volume traded for the six months       580 339  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 decreased by 56% to R1 026 million (1H F2014: R2 341 million). Headline earnings
    per share were 473 cents (1H F2014: 1 084 cents).
-   Basic earnings were negatively impacted by exceptional items of R225 million, the largest of which
    related to a R222 million unrealised mark-to-market loss after tax on the Harmony investment.
-   Costs were well controlled at most operations. The iron ore, manganese alloy, chrome ore and Two
    Rivers operations achieved below inflation increases and the coal operations achieved a decrease
    in production costs.
-   Cash generated from non-ferrous operations increased significantly by R624 million to
    R1 485 million (1H F2014: R861 million) while the dividend from Assmang remained constant at
    R750 million.
-   Lubambe Mine copper production increased to 12 563 tonnes (1H F2014: 10 567 tonnes). Ramp-
    up has been slower than planned and as a result changes to the mine plan are currently being
    considered.
-   Cash operating profit at ARM Coal increased as the Tweefontein Optimisation Project ramps up.
-   Two Rivers' life of mine will be increased by approximately 30 years by ARM's acquisition of
    the Tamboti Platinum (Pty) Ltd mining right on a property adjacent to Two Rivers and through the
    addition of portions of the Buffelshoek, Kalkfontein and Tweefontein farms into the Two Rivers
    mining area.
-   Review of the manganese alloy smelter at Machadodorp Works has been completed. The current
    operating furnace at Machadodorp will be stopped and placed on care and maintenance at the end
    of April 2015.
-   ARM and Assore reached an in principle agreement on ARM's disposal of its effective 50% interest
    in the Dwarsrivier Chrome Mine to Assore.

ARM operational review

The ARM Board of Directors (the Board) announces headline earnings of R1 026 million for the six months ended
31 December 2014 (1H F2015). These headline earnings are 56% lower than the previous corresponding period mainly
as a result of a decline in US Dollar commodity prices which was partially offset by a weakening of the Rand compared
to the US Dollar.

ARM is responding to the current commodity cycle by:

-  Reviewing all non-performing operations;
-  Focusing on reducing capital expenditure;
-  Improving operational efficiencies;
-  Reducing costs;
-  Targeting a decrease in corporate office costs;
-  Curtailing exploration expenditure; and
-  Improving cash flow by optimising working capital management.

Headline earnings by division

                            six months ended 31 December

R million                        2014    2013  % change

Platinum Group Metals             176     206      (15)
Nickel                            101     157      (36)
ARM Platinum                      277     363      (24)
ARM Ferrous*                      833   2 153      (61)
ARM Coal                         (10)    (34)        71
ARM Copper                      (233)   (122)      (91)
ARM Exploration                  (40)    (24)      (67)
Gold                                –       –
Corporate and other*              199       5      >250
ARM headline earnings           1 026   2 341      (56)

*Includes IFRS 11 adjustments related to ARM Ferrous.

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 (Impala), Norilsk Nickel Africa (Pty) Ltd (Norilsk),
Glencore South Africa (Glencore), Vale S.A. (Vale) and Zambian Consolidated Copper Mines Investment Holdings (ZCCM-IH).

The interim results for the six months ended 31 December 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.

ARM Ferrous headline earnings, at R833 million (1H F2014: R2 153 million), were impacted by lower US Dollar commodity
prices with average realised export iron ore prices decreasing 45% and average realised manganese ore prices
declining 17%.

ARM Platinum headline earnings declined by 24% to R277 million mainly as a result of decreased production and high cost
increases at Modikwa Mine together with lower nickel produced at Nkomati Mine due to a lower grade consistent with the
mine plan. Modikwa Mine's performance was disappointing and detailed plans to improve the operational performance of
the mine are being considered and will be finalised in the current financial year. Two Rivers Mine increased its contribution
to headline earnings to R176 million (1H F2014: R157 million).

The headline loss from ARM Coal reduced marginally from a loss of R34 million in 1H F2014 to a loss of R10 million. This
reduction was mainly due to an increase in production and a reduction in unit costs at the Goedgevonden and Participating
Coal Business (PCB) operations. PCB cash operating profit increased to R182 million (1H F2014: R45 million), however,
higher interest charges negatively impacted their headline earnings.

ARM Copper incurred a headline loss of R233 million (1H F2014: R122 million). Ramp-up of the Lubambe Mine has been
slower than planned mainly as a result of grade dilution which has impacted production. As a result of the grade dilution and
the current low copper price changes to the mine plan are being considered in order to improve profitability, reduce capital
requirements and optimise cash flow for the mine. The Lubambe Mine orebody is significant both in size and in grade.
ARM remains committed to ramping up the mine to steady state and expects a recovery in the copper price in the medium
to long term. An updated plan is expected to be approved and communicated within the 2015 financial year.

Safety

ARM maintained a good safety record in the six months under review. The number of Lost Time Injuries (LTIs) improved
marginally to 58 compared to 59 in 1H F2014. The Lost Time Injury Frequency Rate (LTIFR) improved to 0.40 per 200 000
man-hours (1H F2014: 0.41 per 200 000 man-hours).

Safety achievements

- Black Rock Mine received the award for the "best improved mine" from the Department of Mineral Resources (DMR) in
  the Northern Cape.
- As at end December 2014, Machadodorp Works had been lost time injury free for four consecutive quarters.
- Two Rivers Mine completed two million fatality-free shifts on 5 September 2014.
- Nkomati Mine completed four million fatality-free shifts on 31 August 2014.

Safety figures and statistics in this report are presented on a 100% basis and exclude the ARM Coal operations.

Focus on operational efficiencies
In the current environment ARM continues to reinforce its strategy of focussing on operational efficiencies to ensure that
all its operations are positioned below the 50th percentile of each commodity's respective cost curve. This has become
challenging as cost curves shift due to lower cost production being added to global supply, especially in iron ore.

Through a number of initiatives implemented in ARM Ferrous, the iron ore, manganese alloy and chrome ore operations
achieved below inflation on-mine unit production cost increases. Unit production costs at the manganese ore operations
increased by 19% mainly as a result of a decrease in production of manganese units as a lower grade section was
intersected at the Nchwaning III shaft.

The Black Rock Project currently underway is aimed at modernising the Black Rock Mine and increasing production from
the Seam 2 resource. The project is expected to curtail cost increases bringing them in line with inflation. Establishment of
key underground and surface infrastructure, being undertaken as part of the project, is expected to eliminate the need for
inefficient material handling and ultimately enable the saleable production capacity of Black Rock Mine to be increased.

In ARM Platinum, Two Rivers Mine once again delivered a strong operational performance with unit costs increasing below
inflation compared to 1H F2014. Modikwa Mine however experienced an 11% decrease in production and a 21% increase
in unit production costs due to safety stoppages and reduced labour productivity. All aspects of the mine, especially costs
and capital expenditure, are currently being reviewed. Nkomati Mine on-mine cash cost per tonne milled increased below
inflation, at 3%. C1 unit cash cost net of by-products, however, increased by 15% as a result of a reduction in grade
consistent with the mine plan.

ARM Coal saw a marked improvement in unit costs especially at the PCB operations as commissioning of the Tweefontein
Optimisation Project (TOP) commenced. High cost underground operations at Tweefontein Mine have been closed as part
of the project which has contributed to a lowering of costs. Unit costs per saleable tonne decreased by 18% at the PCB
operations and by 8% at Goedgevonden Mine. As TOP ramps up, a further reduction in unit costs is expected.

Quality growth

The Black Rock Project approved by the boards of directors of ARM and Assore is progressing on schedule and on budget.
This project effectively comprises two inter-linking phases; the first being modernisation of the mine and the second being
an increase in the mining capacity from 3.4 million to 4.6 million tonnes per annum. The timing of capital expenditure
associated with the project has been carefully considered as part of an overall capital expenditure review. Development
of the project continues to be planned to align with Transnet's increase in manganese ore export capacity planned for
2019/2020.

The Sakura Ferroalloys Project in Malaysia is progressing on schedule with all major capital items for the project on site.
Key personnel for the operation including the General Manager and senior management have been appointed and are now
working with the project team to deliver the project. The project remains on schedule to achieve steady state production of
170 000 tonnes manganese alloy per annum by F2017.

Acquisitions and partnerships

ARM is pleased to announce a significant extension to the Two Rivers life of mine. The Two Rivers life of mine will be
increased by approximately 30 years by:

- The inclusion of portions of Buffelshoek, Kalkfontein and Tweefontein farms into the Two Rivers' mining area. The
  previously outstanding transfer of the prospecting right from Impala to Two Rivers has been finalised. As a result
  ARM's shareholding in Two Rivers reduced from 55% to 51% with effect from 6 February 2015. The incorporation
  of these areas into the Two Rivers mining right is nearing completion.
- ARM acquired Tamboti Platinum (Pty) Ltd, the holder of a mining right over a property adjacent to Two Rivers
  Mine for a consideration of R400 million. Based on previous drilling results available, this acquired property adds
  approximately 7.45 million ounces to the Two Rivers resource. ARM is in discussions with its partner, Impala, to
  transfer the acquired resources into the Two Rivers mining area.

As announced on 27 February 2015, ARM and Assore reached an in principle agreement on ARM's disposal of its effective
50% interest in the Dwarsrivier Mine to Assore. Pursuant to the implementation of this transaction, Assore will own an
effective 100% interest in Dwarsrivier Mine. The implementation of this transaction is subject to the execution of definitive
agreements and the receipt of relevant regulatory approvals.

The current commodity environment presents opportunities for consolidation and ARM continues to assess value accretive
mergers and acquisition opportunities.

Africa

The final phase of exploration on the Rovuma prospecting areas has been concluded. The Rovuma geological report is
being evaluated. The way forward is currently under review with Rovuma Resources.

Changes to the Board

On 6 February 2015, ARM announced that Mr Daniel Simelane had resigned as the Chief Executive of ARM Copper and
as an Executive Director of the Company, to pursue other interests.

Mr Thando Mkatshana, who was at the time Chief Executive of ARM Coal, was subsequently appointed as the Chief
Executive of ARM Copper and as an Executive Director of the Company with effect from 7 February 2015. In addition, he
maintains his role as Chief Executive of ARM Coal.

ARM announced on 2 March 2015 that Dr M M M Bakane-Tuoane would cease to be the Lead Independent Non-executive
Director of the Board effective from 2 March 2015. Dr Bakane-Tuoane was also the Chairman of both the Nomination
Committee and the Non-executive Directors' Committee as required by the principles of King III: Report on Governance
for South Africa 2009 ("King III"). She therefore ceased to be Chairman of the Nomination Committee and Chairman
of the Non-executive Directors' Committee effective from 2 March 2015. Dr Bakane-Tuoane, an existing Remuneration
Committee member, was appointed by the Board to serve the Company as the Chairman of the Remuneration Committee
and continues as a member of the Nomination Committee and the Non-executive Directors' Committee.

Mr A K Maditsi, an Independent Non-executive Director of the Company, was appointed as the Lead Independent
Non-executive Director of the Board as well as the Chairman of the Nomination Committee and the Chairman of the
Non-executive Directors' Committee of the Company, with effect from 2 March 2015. Applying the principles of King III,
Mr Maditsi ceased to be the Chairman of the Remuneration Committee of the Company with effect from 2 March 2015.
Mr Maditsi will remain a member of the Remuneration Committee.

Changes to mineral 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 2014, other than depletion due to continued mining activities at the operations and the
additional resources at Two River Mine.

Financial commentary

Headline earnings for the six-month period to 31 December 2014 were R1 026 million or 56% lower than the corresponding
prior period's headline earnings (1H F2014: R2 341 million). This equates to headline earnings per share of 473 cents per
share (1H F2014: 1 084 cents per share).

ARM's basic earnings for 1H F2015 were R801 million (1H F2014: R1 714 million) and were negatively impacted by
exceptional items of R225 million after tax (1H F2014: R627 million after tax). The largest exceptional item relates to the
unrealised mark-to-market loss of R222 million after tax on the Harmony investment made through the Income Statement.
This accounting adjustment is made using the closing share price of Harmony at 31 December 2014. Basic earnings per
share decreased by 54% to 369 cents per share (1H F2014: 794 cents per share). The reconciliation of basic earnings to
headline earnings is provided in note 8 of the financial statements.

Sales for the reporting period were 5% higher than the corresponding period last year at R4 829 million (1H F2014:
R4 606 million). Sales for the Assmang joint venture decreased by 26% to R5 167 million (1H F2014: R7 013 million).

The average gross profit margin has decreased to 17% (1H F2014: 22%). The margins achieved at each operation may
be ascertained from the detailed segment reports provided in note 2 to the financial statements as well as in the write-ups
for each operation.

The 1H F2015 average Rand/US Dollar of R10.99/US$ is 9.5% weaker than the corresponding period average of
R10.04/US$. For reporting purposes the closing exchange rate was R11.57/US$ (1H 2014: R10.46/US$).

ARM's earnings before interest, tax, depreciation and amortisation (EBITDA) excluding exceptional items and income from
associates and joint ventures were R1 130 million (1H F2014: R1 264 million).

The income from joint venture amounts to R830 million and is 61% lower than the corresponding period last year
(1H F2014: R2 153 million). The expanded segmental analysis for ARM Ferrous is shown in note 2 to the financial
statements.

The detailed segmental contribution analysis is provided in note 2 to the financial statements. Key features from the
segmental contribution analyses are:

- The ARM Ferrous contribution to ARM's headline earnings declined to R833 million (1H F2014: R2 153 million) largely
  due to a 68% decrease in the iron ore division's contribution to R590 million. The manganese (manganese ore and
  alloys) division contribution reduced to R236 million (1H F2014: R327 million).
- The ARM Platinum segment contribution, which includes the results of Nkomati, was R277 million which is R86 million
  lower than the corresponding period (1H F2014: R363 million). The decreased contribution is mainly due to a poor
  operational performance from Modikwa and lower nickel produced at Nkomati as a result of a lower grade (consistent
  with the mine plan). The Two Rivers contribution increased by R19 million to R176 million.
- The ARM Coal segment result reflected a reduced loss of R10 million (1H F2014: R34 million loss). Goedgevonden
  Mine contributed decreased headline earnings of R58 million (1H F2014: R93 million) while the PCB operations loss
  reduced to R68 million (1H F2014: R127 million loss).
- ARM Copper which largely comprises the Vale/ARM joint venture interest in the Lubambe Copper mine and related
  costs amounted to a loss of R233 million for the period (1H F2014: R122 million loss) which includes interest on
  shareholder loans of R73 million (1H F2014: R58 million).
- The costs for the ARM Exploration segment were R40 million (1H F2014: R24 million) and includes the cost of
  exploration on the Rovuma project and staff costs.
- The ARM Corporate, other companies and consolidation segment shows a positive contribution to headline earnings
  of R199 million as compared to a positive contribution of R5 million for the previous corresponding period. The higher
  contribution is largely due to increased management fees earned, foreign exchange gains on loans to Lubambe and
  reduced finance costs.

At 31 December 2014 cash and cash equivalents increased to R1 976 million (1H F2014: R1 524 million) the details of
which are reflected in note 4 of the financial statements. This excludes the attributable cash and cash equivalents held at
ARM Ferrous (50% of Assmang) of R2 473 million (1H F2014: R2 646 million).

Gross debt at the end of the period was largely unchanged at R3 920 million (1H F2014: R3 854 million). There is no debt
at ARM Ferrous (1H F2014: nil).

The net debt position at 31 December 2014 amounts to R1 944 million (1H F2014: R2 330 million).

Cash generated from non-ferrous operations increased by R624 million to R1 485 million (1H F2014: R861 million) and
includes a reduction in working capital of R178 million (1H F2014: R671 million increase). ARM Platinum's cash generated
from operations increased to R1 323 million from R663 million in the previous corresponding period. Dividends received
from the Assmang joint venture were maintained at R750 million.

Dividends paid to ARM shareholders in October 2014 increased to R1.3 billion (1H F2014: R1.1 billion).

Cash capital expenditure was R707 million for the period (1H F2014: R679 million). Attributable capital expenditure at the
Assmang joint venture was R802 million (1H F2014: R732 million).

During the period R400 million was spent acquiring Tamboti Platinum (Pty) Ltd, a company holding a mining right over a
property adjacent to Two Rivers Mine.

Events after the reporting date are set out in note 12 to the financial statements.

ARM Ferrous

Assmang sales revenue decreased by 26% and headline earnings by 61% compared to the corresponding period last
year. The lower revenue and headline earnings were mainly as a result of declining US Dollar prices for export iron ore and
manganese ore. The lower US Dollar prices were partially offset by a 9.5% weakening of the Rand against the US Dollar.

Total costs were well controlled with ARM Ferrous cost of sales increasing by only 2% year-on-year.

ARM Ferrous headline earnings (on 100% basis)

                                      six months ended 31 December

R million                             2014           2013       % change

Iron ore division                    1 181          3 644           (68)
Manganese division                     472            655           (28)
Chrome division                         56             37             51
Total                                1 709          4 336           (61)
ARM share                              855          2 168           (61)
Consolidation adjustments             (22)           (15)           (47)
Total per IFRS financial statements    833          2 153           (61)

Assmang sales volumes

100% basis                            six months ended 31 December

Thousand tonnes                       2014           2013       % change
Iron ore*                            7 496          7 738            (3)
Manganese ore*                       1 422          1 411              1
Manganese alloys                       112            117            (4)
Chrome ore*                            477            477              –

* Excluding intra-group sales.

ARM Ferrous iron ore sales volumes of 7.50 million tonnes were 3% lower than 1H F2014 as a result of loading problems
experienced during July 2014 at the port of Saldanha and three vessels totalling 553 thousand tonnes being loaded only on
3 January 2015. Local iron ore sales of 1.47 million tonnes were 41% higher than the previous year as a result of increased
sales to ArcelorMittal after start-up of their refurbished blast furnace in Newcastle.

Manganese ore sales volumes were maintained at 1.4 million tonnes through good stockpile management and co-operation
with Transnet Freight Rail (TFR). Manganese alloy sales volumes decreased by 4% as a decision was taken to shut down
two unprofitable furnaces at Cato Ridge Works.

Assmang remains on track to achieve iron ore sales of 16.1 million tonnes (13.7 million tonnes export sales and 2.4 million
tonnes local sales) in the 2015 financial year. Total manganese ore sales are expected to be 3.2 million tonnes of which
2.6 million tonnes will be exported through the Port Elizabeth, Durban and Saldanha ports.

Assmang production volumes

100% basis                   six months ended 31 December

Thousand tonnes              2014           2013       % change
Iron ore                    7 967          7 606              5
Manganese ore               1 487          1 727           (14)
Manganese alloys              133            133              –
Chrome ore                    510            496              3

Iron ore production improved marginally as a result of an operational efficiency programme launched to increase the
tonnage through the Khumani off-grade beneficiation plant. This programme resulted in a 30% improvement in the off-
grade plant throughput and in a balancing of the on:off grade ratio feed to the plant with the on:off grade ratio from the
Bruce and King pits.

The decline in manganese ore production was mainly due to mining being stopped in the North-West section of
Nchwaning III shaft mining area where lower than expected ore grades were intersected. Infill drilling in this area continues
to improve management's knowledge of the grade variations and specific geological features. The mining crews that were
mining there have been redeployed to other areas of the mine. Production at Nchwaning II shaft improved and is expected
to supplement the shortfall tonnage from Nchwaning III shaft.

Production of Seam 2 material at Nchwaning II shaft increased with the product being well received by customers.

Assmang cost and EBITDA margin performance

                                  On-mine            
                   Unit cost   production            
                    of sales    unit cost   EBITDA   
                      change       change   margin   
Commodity group            %            %        %   
Iron ore*                  2            2       39   
Manganese ore              4           19       32   
Manganese alloys          12            4        3   
Chrome ore                 6            4       18   

* Excluding the Khumani Mine housing element.

Through a number of initiatives implemented to improve productivity, Khumani Mine's on-mine production unit cost increase
was below inflation (at 4%). Beeshoek Mine on-mine production unit costs decreased by 9% as a result of operational
efficiency, increased throughput and 852 000 tonnes less waste mined.

On-mine production unit costs at Black Rock Mine increased by 19% mainly due to the lower grade manganese ore
production from Nchwaning III shaft.

Unit costs to produce manganese alloys at Machadodorp Works were 16% lower than 1H F2014 due to the cost
rationalisation project. Only one furnace was operational at the Machadodorp Works during the period under review. Cato
Ridge Works unit cost of production increased by 14% due to the higher ore cost from Black Rock and since Cato Ridge
Works already implemented its operational efficiency programme in 2013/14, the higher electricity tariff impacted directly
on the unit costs.

The unit production costs at Dwarsrivier Mine increased by 4% year-on-year.

Assmang capital expenditure

100% basis       six months ended 31 December

R million               2014             2013

Iron ore                 710              902
Manganese                849              541
Chrome                   130               80
Total                  1 689            1 523

Capital expenditure at the iron ore operations was largely for 7.2 million tonnes (4.1 million tonnes more than 1H F2014) of
waste removal at Beeshoek Mine's Village and East pits and 5.3 million tonnes (zero in 1H F2014) of capital waste removed
from the Bruce and King pits at Khumani Mine. The iron ore capital expenditure also included the King Transnet Freight Rail
mainline rail deviation, infill drilling and replacement capital.

A major portion of the manganese division capital expenditure related to the Black Rock Project. This capital expenditure was
mainly to recapitalise the underground infrastructure in order to improve operational efficiencies and increase production
from the Seam 2 resource at Nchwaning II shaft. The project's expenditure includes a sorting plant, development work
at Nchwaning III and Nchwaning I shafts, an upgrade of Nchwaning II shaft, sinking of a ventilation shaft at Gloria Mine,
infill drilling, a new load-out station and accommodation for contractors and employees who previously resided in hostels.

At Dwarsrivier Mine, the majority of the capital was spent on equipping the north shaft, trackless mechanised machines
and plant upgrades.

Logistics

Assmang continues to engage with Transnet regarding manganese ore export capacity as per the interim manganese
export capacity allocation (MECA2) process and is synchronising the ramp-up of the Black Rock Mine with the longer-term
(MECA3) process. Transnet has received approval from the Department of Public Enterprises for the 16 million tonnes per
annum expansion of the manganese export channel through a new terminal at the Port of Ngqura. Planning at this stage
indicates that the export channel will be operational by the first quarter of 2019.

Beeshoek Village Pit Project

The Beeshoek Village Pit Project is in the process of being executed. Waste stripping associated with the development of
the Village Pit is ahead of schedule. Additional exploration drilling work completed on the Village Pit resource has resulted
in an optimised pit design which has increased the reserve base of the pit and enabled a reduction of the waste stripping
ratio. The Village Pit reserve will enable Beeshoek Mine to sustain saleable production volumes of approximately 3.5 million
tonnes per annum, for at least the next nine years.

As part of the Village Pit Project, Beeshoek Mine personnel were successfully relocated from the mine village to
Postmasburg town. To this extent 300 houses were built and occupied within the district of the local municipality.

Black Rock Project

The Black Rock Project will recapitalise and expand the Black Rock Mine and is in the process of being executed. The
project is on schedule and within budget. Progress so far includes upgrades to ventilation systems, the building of contractor
accommodation, erection of additional water storage capacity and construction of the new ventilation shaft at Gloria Mine.

Capital expenditure approved for the project is R6.7 billion with funds committed to 31 December 2014 totalling R3.4 billion
and funds spent totalling R1.5 billion to date.

Sakura Ferroalloys Project

All the major items of equipment for the Sakura Ferroalloys Project in Malaysia are on site. The steel furnace shells have
been completed and the raw materials tunnel is ready to be equipped. The turnkey contractor, Metix, continues to perform
against the main project milestones. The project remains on schedule to achieve steady state production of 170 000
tonnes per annum in F2017. The general manager and senior management team for the operation have been appointed
and are focused on delivering the operations readiness plans including the appointment of all staff needed to work in the
key operational disciplines. The major logistics contracts have been put in place and the Bintulu Port Agreement for raw
material and final product shipments has been negotiated. The furnace raw materials recipes are finalised and contracts
are being negotiated with the relevant parties.

To date, partners in the Sakura Ferroalloys Project have contributed 90% of the equity commitment for the project.
(Assmang's total contribution was US$160.86 million).

Initiatives to deal with the current commodity environment

The ARM Ferrous division is responding to the fall in commodity prices through a number of division wide initiatives
including:

- Review and reduction of capital expenditure at all operations and renewed focus on operational efficiency and
  elimination of bottlenecks.
- Reduction of operating costs at the Black Rock Mine. Future measures will form the subject of consultations with trade
  unions at the mine and may include redeployment of employees and possible reduction of the workforce size.
- Timing of capital expenditure for the Black Rock Project is being reviewed to closely match the expected increase in
  Transnet Freight Rail's capacity of the manganese export channels.
- The review of the manganese alloy smelter at Machadodorp Works has been completed, with the conclusion that
  manganese alloy cannot continue to be produced sustainably at this operation. The current furnace will therefore be
  stopped and placed on care and maintenance at the end of April 2015. Production of ferrochrome will continue from the
  metal recovery plant only (where entrapped metal is recovered from historical ferrochrome slag).

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

While ARM Platinum's realised Rand metal prices were higher than the previous corresponding period, lower production
at Modikwa and Nkomati, together with high-cost increases at Modikwa, resulted in a 24% decrease in headline earnings
to R277 million (1H F2014: R363 million). Two Rivers performed well, generating a 12% increase in headline earnings.

PGM production (on 100% basis including Nkomati) decreased 7% to 396 813 6E ounces (1H F2014: 426 695 6E ounces).
Nkomati's nickel production decreased by 11% to 10 587 tonnes (1H F2014: 11 859 tonnes) mainly as a result of a lower
head grade consistent with the mine plan.

US Dollar prices for platinum and copper were lower than the corresponding period but higher US Dollar prices for
palladium, rhodium and nickel together with a 9% weakening of the Rand against the US Dollar resulted in the average
basket prices for Modikwa and Two Rivers increasing by approximately 10% to R340 452/kg (1H F2014: R305 767/kg) and
R346 072/kg (1H F2014: R315 316/kg) respectively.

The tables below set out the relevant price comparison:

Average US Dollar metal prices
                                        six months ended 31 December

                                        2014           2013       % change

Platinum                    US$/oz     1 332          1 424            (6)
Palladium                   US$/oz       825            724             14
Rhodium                     US$/oz     1 188            937             27
Nickel                       US$/t    16 935         13 935             22
Copper                       US$/t     6 746          7 177            (6)
Chrome concentrate (CIF)     US$/t       148            133             11

Average Rand metal prices
                                        six months ended 31 December

                                        2014           2013      % change

Platinum                      R/oz    14 638         14 301             2
Palladium                     R/oz     9 071          7 267            25
Rhodium                       R/oz    13 053          9 403            39
Nickel                         R/t   186 119        139 910            33
Copper                         R/t    74 136         72 061             3
Chrome concentrate (CIF)       R/t     1 623          1 333            22

Nkomati Mine's unit cost increased by 3% to R291 per tonne (1H F2014: R283 per tonne) while the C1 unit cash cost net of
by-products, increased by 15% to US$5.00/lb (1H F2014: US$4.35/lb), a direct result of lower nickel units and by-products
produced. Two Rivers Mine managed to keep its unit cash cost well under control with only a 4% increase to R5 376/6E
PGM ounce (1H F2014: R5 153/6E PGM ounce). Modikwa Mine's unit cash cost increased by 21% to R8 029/6E PGM
ounce (1H F2014: R6 639/6E PGM ounce) due to an 11% decrease in production.

ARM Platinum capital expenditure

100% basis                         six months ended 31 December

R million                                 2014             2013

Modikwa                                    418              320
Two Rivers                                 156              138
Nkomati                                    242              182
Total                                      816              640

Capital expenditure at ARM Platinum operations (on 100% basis) was R816 million (R486 million attributable). Modikwa's
major capital items related to the deepening of North shaft, the sinking of South 2 shaft, and mining fleet refurbishments.
The capital projects at Modikwa are currently under review to determine the most viable way forward.

Of the capital spent at Two Rivers, 28% is associated with fleet replacement and refurbishment. The deepening of the
Main and North declines, together with its electrical and mechanical installations, contributed 43% to the total capital
expenditure. The balance was for additional housing facilities and to sustain operations. Nkomati Mine's capital expenditure
relates to capitalised waste stripping costs (73%), fleet replacements to sustain operations.

Modikwa Mine

Due to decreased production output stemming from seven safety stoppages, an extended break during December 2014
and labour inefficiencies, Modikwa Mine's attributable headline earnings decreased by R49 million resulting in break-even
headline earnings for the period under review.

A 12% reduction in milled tonnes resulted in PGM production declining by 11% to 138 482 6E ounces (1H F2014: 154 911 6E
ounces). Consequently unit costs increased by 23% to R1 140 per tonne milled (1H F2014: R929 per tonne milled) and by
21% to R8 029 per 6E PGM ounce (1H F2014: R6 639 per 6E PGM ounce).

A recovery plan has been developed and is being evaluated. Execution of this plan is expected to enhance efficiencies and
head grade whilst simultaneously reducing cash costs. The senior management team on the mine has been replaced, with
a new General Manager and Financial Manager appointed in March 2015.

Modikwa Mine operational statistics

100% basis                                                       six months ended 31 December

                                                                 2014           2013       % change

Cash operating profit                            R million         82            226           (64)
Tonnes milled                                           Mt       0.98           1.11           (12)
Head grade                                          g/t,6E       5.27           5.31            (1)
PGMs in concentrate                              Ounces,6E    138 482        154 911           (11)
Average basket price                               R/kg,6E    340 452        305 767             11
Average basket price                             US$/oz,6E        964            947              2
Cash operating margin                                    %          7             18
Cash cost                                          R/kg,6E    258 137        213 441             21
Cash cost                                          R/tonne      1 140            929             23
Cash cost                                          R/Pt oz     20 749         17 067             22
Cash cost                                          R/oz,6E      8 029          6 639             21
Cash cost                                        US$/oz,6E        731            661             11
Headline earnings attributable to ARM (41.5%)    R million          –             49              –

Two Rivers Mine

Headline earnings at Two Rivers Mine increased by 12% while tonnes milled increased by 2%, PGM ounces decreased by
3% as a result of a lower feed grade and increased concentrate stock as at the end of December 2014.

Unit cost increased below inflation (4%) to R5 376 per 6E ounce (1H F2014: R5 153 per 6E ounce). There was a
181 084 tonne increase in the UG2 run of mine stockpile to a total of 483 411 tonnes of ore (1H F2014: 302 327 tonnes).

Two Rivers Mine increased chrome concentrate sales by 154% to 111 104 tonnes, contributing R61 million (1H F2014:
R17 million) to cash operating profit.

Two Rivers Mine operational statistics

100% basis                                                     six months ended 31 December

                                                               2014            2013        % change

Cash operating profit                          R million        744             641              16
– PGMs                                         R million        683             624               9
– Chrome                                       R million         61              17            >250
Tonnes milled                                         Mt       1.69            1.66               2
Head grade                                        g/t,6E       3.97            4.01             (1)
PGMs in concentrate                            Ounces,6E    187 291         193 503             (3)
Chrome concentrate sold                           Tonnes    111 104          43 787             154
Average basket price                             R/kg,6E    346 072         315 316              10
Average basket price                           US$/oz,6E        979             977               –
Cash operating margin                                  %         40              38
Cash cost                                        R/kg,6E    172 837         165 667               4
Cash cost                                        R/tonne        597             602             (1)
Cash cost                                        R/Pt oz     11 530          11 068               4
Cash cost                                        R/oz,6E      5 376           5 153               4
Cash cost                                      US$/oz,6E        489             513             (5)
Headline earnings attributable to ARM (55%)    R million        176             157              12

Nkomati Mine

Nkomati Mine's total ore tonnes mined increased by 5%, however, a 7% decrease in the average head grade resulted
in nickel units produced of 10 587 tonnes, 11% lower than the previous period. The lower head grade is due to the
mining of lower grade areas in the open pit, consistent with the mining plan. Attributable headline earnings decreased by
36% to R101 million (1H F2014: R157 million). Chrome concentrate sales increased by 60% to 188 079 tonnes (1H F2014:
117 211 tonnes).

Nkomati Mine's C1 unit cash costs net of by-products increased by 15% to US$5.00/lb (1H F2014: US$4.35/lb), a direct
result of the lower nickel output. Unit cost per tonne milled increased by 3% to R291 per tonne (1H F2014: R283 per tonne).

Nkomati Mine operational statistics

100% basis                                                    six months ended 31 December

                                                             2014            2013       % change

Cash operating profit                        R million        447             748           (40)
– Nickel Mine                                R million        330             695           (53)
– Chrome Mine                                R million        117              53            121
Cash operating margin                                %         17              30
Tonnes milled                                 Thousand       3.92            3.96            (1)
Head grade                                    % nickel       0.36            0.39            (8)
Nickel on-mine cash cost per tonne milled      R/tonne        291             283              3
Cash cost net of by-products*                   US$/lb       5.00            4.35             15

Contained metal
Nickel                                          Tonnes     10 587          11 859           (11)
PGMs                                            Ounces     71 040          78 280            (9)
Copper                                          Tonnes      4 625           5 171           (11)
Cobalt                                          Tonnes        556             593            (6)
Chrome concentrate sold                         Tonnes    188 079         117 211             60
Headline earnings attributable to ARM (50%)  R million        101             157           (36)

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

Modikwa Mine Recapitalisation Project

The North Shaft deepening project and construction, together with development and construction of the South 2 Project is
on schedule and on budget. These projects are currently under review to determine the most viable way forward in light of
the challenging environment.

Two Rivers Mine Extension of Life

The acquisition of the Prospecting Right from Impala in respect of portions of the farms Kalkfontein, Tweefontein and
Buffelshoek is complete. The incorporation of these areas into the mining right of Two Rivers is nearing completion.

The ARM Platinum division comprises:

-   Three operating mines:
    - Modikwa – ARM Mining Consortium has an effective 41.5% interest in Modikwa where local communities hold an
      8.5% effective interest. The remaining 50% is held by Anglo American Platinum.
    - Two Rivers – an incorporated joint venture with Impala, with ARM holding 51% and Impala 49%. ARM's shareholding
      in Two Rivers reduced from 55% to 51% after the reporting period (6 February 2015).
    - Nkomati – a 50:50 partnership between ARM and Norilsk Nickel Africa.
-   Two projects:
    - The "Kalplats Platinum Project" in which ARM Platinum holds 46%, Platinum Australia (PLA) 44% and Anglo
      American 10%.
    - The "Kalplats Extended Area Project" in which ARM Platinum and PLA each have a 50% interest.

ARM Coal

The ARM Coal headline loss reduced relative to the previous corresponding period to R10 million (1H F2014: R34 million
loss). Total attributable cash operating profit improved by 45% to R398 million (1H F2014: R275 million).

At Goedgevonden Mine feed to the plant and saleable production increased by 21% and 17% respectively. Run of mine
(ROM) and saleable production at PCB increased by 7% with the partial commissioning of the Tweefontein Optimisation
Project (TOP). ARM Coal saleable coal produced therefore increased by 10% and a decrease in unit production costs was
achieved at all the ARM Coal operations.

Attributable export sales volumes were 26% higher. Realised US Dollar prices however declined from US$74.40 per tonne
to US$58.58 per tonne which resulted in a R312 million reduction in the attributable export revenue. This was offset to an
extent by a weaker Rand/US Dollar exchange rate which contributed R132 million to revenue.

ARM Coal attributable profit analysis

                                    six months ended 31 December

R million                            2014           2013      % change

Cash operating profit                 398            275            45
Less: Interest paid                 (189)          (127)          (49)
      Amortisation                  (198)          (178)          (11)
      Fair value adjustments         (24)           (15)          (60)
Profit before tax                    (13)           (45)            71
Less: Tax                              3              11          (73)
Headline loss attributable to ARM    (10)           (34)            71

Goedgevonden Coal Mine

Goedgevonden Mine produced outstanding production results for 1H F2015. An 18% increase in run of mine production
and a 21% increase in the feed to plant resulted in a 17% increase in saleable production and a 9% reduction in on-mine
production cost per saleable tonne.

Export sales volumes increased by 39% due to an improvement in rail performance by Transnet Freight Rail (TFR). Eskom
however curtailed buying of additional coal, resulting in a 34% reduction in Eskom sales.

Goedgevonden Mine attributable revenue was R27 million higher as a combined result of increased export sales volumes
and a weaker Rand/US Dollar exchange rate which was partially offset by a decline in US Dollar export coal prices.

Total on-mine production costs increased by 6%, however, due to the increased production, unit on-mine costs per saleable
tonne decreased by 9% to R189 per tonne. Higher export volumes gave rise to an increase of R49 million in distribution
costs.

Goedgevonden Mine headline earnings decreased by 38% from R93 million to R58 million due to a 6% reduction in
cash operating profits together with an increase in interest paid (as the interest holiday on the project facility expired on
30 September 2014). The depreciation charge was R30 million higher due to an increase in the asset base and higher
production and sales volumes which are used to determine the depreciation charge.

Goedgevonden Mine operational statistics
                                                      six months ended 31 December

                                                       2014          2013      % change

Total production sales
Saleable production                            Mt      4.40          3.77            17
Export thermal coal sales                      Mt      2.97          2.13            39
Eskom thermal coal sales                       Mt      1.20          1.81          (34)

Attributable production and sales
Saleable production                            Mt      1.14          0.98            16
Export thermal coal sales                      Mt      0.77          0.55            40
Eskom thermal coal sales                       Mt      0.31          0.47          (34)

Average received coal price
Export (FOB)                            US$/tonne     59.05         79.98          (26)
Eskom (FOT)                               R/tonne    194.97        195.74             –

On-mine saleable cost                     R/tonne    189.10        207.20           (9)

Cash operating profit
Total                                   R million       830           883           (6)
Attributable (26%)                      R million       216           230           (6)

Headline earnings attributable to ARM   R million        58            93          (38)

Goedgevonden Mine attributable profit analysis
                                                 six months ended 31 December

R million                                        2014           2013       % change

Cash operating profit                             216            230            (6)
Less: Interest paid                              (63)           (43)           (47)
      Amortisation                               (61)           (48)           (27)
      Fair value adjustments                     (11)            (8)           (38)
Profit before tax                                  81            131           (38)
Less: Tax                                        (23)           (38)             39
Headline earnings attributable to ARM              58             93           (38)

Participating Coal Business (PCB)

PCB attributable cash operating profit increased from R45 million to R182 million and the headline loss reduced from
R127 million in 1H F2014 to R68 million in the period under review. Interest paid was R42 million higher than 1H F2014
due to increased borrowings to fund the TOP project. Depreciation increased by R13 million compared to H1 F2014 due
to an increase in the asset base as well as an increase in production and sales volumes which are used to determine the
depreciation charge.

Attributable export revenue was R81 million higher due to a 20% increase in export coal volumes and the weaker Rand/
US Dollar exchange rate. These were partially offset by a decrease in the US Dollar prices of coal. Revenue realised from
domestic sales was some R37 million higher than 1H F2014 due to higher volumes and Eskom prices.

Despite the closure of some high cost underground operations, all production indicators were higher in 1H F2015. ROM
production from TOP is progressing to a steady state level resulting in PCB producing 7% more ROM volume than in
1H F2014. The increased ROM production has resulted in the stockpile increasing approximately 1 million tonnes since
June 2014. This increased ROM stockpile was in preparation for the commissioning of the Coal Handling and Processing
Plant (CHPP) which commenced during the last quarter of the 2014 calendar year and has contributed towards an increase
of 7% in total saleable production from PCB. The on-mine saleable cost per tonne decreased by 18% from R417 per tonne
to R341 per tonne as a result of the increase in production and a 13% reduction in total on-mine costs.

Participating Coal Business operational statistics

                                                  six months ended 31 December

                                                   2014          2013       % change
Total production sales
Saleable production                        Mt      6.38          5.98              7
Export thermal coal sales                  Mt      5.96          4.97             20
Eskom thermal coal sales                   Mt      0.89          0.78             14
Local thermal coal sales                   Mt      0.65          0.22            195
Attributable production and sales
Saleable production                        Mt      1.29          1.21              7
Export thermal coal sales                  Mt      1.20          1.00             20
Eskom thermal coal sales                   Mt      0.18          0.16             13
Local thermal coal sales                   Mt      0.13          0.04            225
Average received coal price
Export (FOB)                        US$/tonne     57.99         67.78           (14)
Eskom (FOT)                           R/tonne    213.89        201.83              6
Local (FOR)                           R/tonne    327.73        347.04            (6)
On-mine saleable cost                 R/tonne    341.23        417.44           (18)
Cash operating profit
Total                               R million       899           223            303
Attributable (20.2%)                R million       182            45            304
Headline loss attributable to ARM   R million      (68)         (127)             46

Participating Coal Business attributable profit analysis

                                    six months ended 31 December

R million                            2014           2013        % change

Cash operating profit                 182             45            >250
Less: Interest paid                 (126)           (84)            (50)
      Amortisation                  (137)          (130)             (5)
      Fair value adjustments         (13)            (7)            (86)
Loss before tax                      (94)          (176)              47
Less: Tax                              26             49            (47)
Headline loss attributable to ARM    (68)          (127)              46

Tweefontein Optimisation Project

TOP comprises opencast operations which includes the mining of some old underground operations and the construction
of the new and more efficient CHPP.

The mining operations will employ truck and shovel and dragline equipment. The truck and shovel operations have already
been fully commissioned and the dragline is being refurbished for commissioning in the first quarter of the 2015 calendar
year. The project has provided new job opportunities with the majority of the labour coming from the local communities.

Commissioning of the plant started in the last quarter of 2014 and will be put through performance testing throughout the
first quarter of 2015. The new large and efficient CHPP is replacing three old and less efficient plants and will result in a
further 3% to 5% improvement on coal recovery. A reduction of two-thirds in plant labour complement is expected to be
realised. The new rapid train load out facility will be replacing the front end loaders and is expected to reduce train loading
time by an average of six hours. This will result in a saving on TFR rates as well as getting preference on train allocation.

As at 31 December 2014, 87% of the total project costs had been committed and almost 80% actually spent. The project
is progressing on schedule for full implementation by next financial year with an expected saving of at least R300 million
against the project budget.

Initiatives to deal with the current commodity environment

The operations are progressing well with efficiency improvements and production cost reduction. The following have been
realised:

- Closure of high cost underground operations at Tweefontein and reduction of underground shifts with just over
  100 employees taking pension or severance packages, while others have been redeployed.
- A decrease in waste stripping costs together with the replacement of contractors by permanent employees for some
  functions resulted in costs reducing by more than 15%.
- Capital expenditure of all operations has been critically reviewed and has resulted in deferment of over R300 million of
  capital expenditure at PCB.

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 Goedgevonden Mine situated near Ogies in Mpumalanga.

Attributable refers to 20.2% of PCB whilst total refers to 100%.

ARM Copper

Lubambe Copper Mine

Longitudinal Room and Pillar (LRP) stoping is currently the only mining method being used at the Lubambe Mine and at the
end of December 2014 24 stopes were being mined. Valuable practical experience, regarding the mining of the ore body,
is still being gained and constant refinements are being put in place to improve extraction percentage and reduce dilution.

Operational statistics
                                                           six months ended 31 December

100% basis                                                 2014           2013       % change

Waste development                            Metres       2 701          5 861            (54)
Ore development                              Metres       2 809          4 281            (34)
Ore development                              Tonnes     156 009        220 516            (29)
Ore stoping                                  Tonnes     727 225        436 394              67
Ore tonnes mined                             Tonnes     883 234        656 910              34
Tonnes milled                              Thousand     859 979        716 005              20
Mill head grade                            % copper        1.83           1.97             (7)
Concentrator recovery                             %        80.0          75.04
Copper concentrate produced                  Tonnes      29 879         25 167              19
Copper concentrate sold                      Tonnes      30 299         33 607            (10)
Contained metal
Copper produced                              Tonnes      12 563         10 567              19
Copper sold                                  Tonnes      12 718         14 325            (11)
Headline loss attributable to ARM (40%)*  R million       (233)          (122)            (91)

* The headline loss is after deducting attributable interest on shareholders' loans of R73 million (1H F2014: R58 million).

The Lubambe Mine ore tonnes mined from stoping showed a good increase when compared to the previous period.
The grade from stoping and development declined by 7% due to marginally lower grade areas being mined together with
an increase in dilution in the flatter dipping stopes. To counter this, there has been a slight adaptation to the mining method
to enable better development placement within the orebody which then facilitates parallel drilling aimed at improving
extraction and reducing dilution. This change is in progress and grade improvements are expected to be seen shortly with
full head grade recovery by the end of 2015.

Concentrate production is within contract specification of the Zambian smelters to which Lubambe is delivering concentrate.
The plant recoveries are in line with the design parameters and increased to 80%.

Lubambe Copper Mine was planned to ramp-up to full production during the 2015 financial year. In the last nine months
waste development was negatively affected by a kaolin intrusion in one of the main access ramps. This intrusion resulted
in poor ground conditions which necessitated rehabilitation work lasting three months. Fissure water also flowed into ramp
4 slowing down the required development rate. Both these ramps are now fully rehabilitated and advancing at the required
rates.

The sand zone on the South Limb is still hampering the rate of ore access from the main ramps in this area and the sand
zone variability makes mining through it slow and expensive. An exercise is currently underway to evaluate the impact of
the slower development rates on the ramp-up profile and how best to approach the extraction strategy. The expectation is
to complete the full evaluation by the end of March 2015.

Since the start of the new financial year, the copper price deteriorated by 33% from a high of US$7 225 per tonne of copper
in July 2014 to US$5 428 per tonne in January 2015. With this fall in copper prices and market expectations that a recovery
will take a few years, the main focus on the mine is to consolidate production and reduce further funding requirements in a
sustainable manner. This approach will give the operation the ability to focus on optimum ore extraction, correct dewatering
procedures, efficiencies and effectiveness which will stand the mine in good stead into the future. The revised plan is
expected to be finalised by the end of the 2015 financial year.

A significant change to the taxation of mining companies in Zambia was announced by the Zambian Government during
the reporting period. As a result of this announcement, Lubambe Mine will now pay a royalty tax of 8% as a final tax. The
mining industry is engaged with the Zambian Government on a number of aspects of the new tax regime.

The Lubambe Extension Project
The geohydrological borehole has been completed. Further study work in this area has been deferred as a temporary
measure to conserve cash flows.

ARM Copper owns 50% of the Vale/ARM joint venture. The Vale/ARM joint venture then owns 80% of the Lubambe Mine
and ZCCM-IH has a 20% shareholding.

ARM Strategic Services and Exploration

ARM Strategic Services and Exploration expenditure was R40 million (1H F2014: R24 million).

The agreement with Rovuma Resources is ongoing. ARM agreed to continue with the option for a fourth year (commencing
April 2014) and to fund exploration costs at the cost of approximately US$6 million. Exploration to end December 2014 has
intersected substantial thickness of copper, zinc, gold and silver sulphides with a strike of 2.5 kilometres. The way forward
on this opportunity is currently under review with Rovuma Resources.

The Strategic Services team continued to provide project management and technical services for the Black Rock and
Sakura Ferroalloys projects.

ARM Strategic Services and Exploration is cognisant of the current environment and have implemented cost-cutting
initiatives which include the reduction of the team size. In addition, no new exploration opportunities will be pursued. The
team's efforts will be focused instead on assisting the ARM operations improve operational efficiencies and on merger and
acquisition opportunities.

Harmony Gold Mining Company Limited (Harmony)

Harmony reported a headline loss of R763 million for the six months ended 31 December 2014 (1H F2014: R71 million loss).

Harmony's revenue for the six-month period increased 1% to R8 146 million (1H F2014: R8 089 million) mainly as a result of
a higher realised Rand gold price. Gold produced and gold sold decreased by 7% and 3% respectively while cash operating
costs increased by 13%.

Harmony announced the results of the updated Golpu prefeasibility study (PFS) on 15 December 2014. Emphasis in preparing
the PFS was to create flexibility to allow the size of the project to be adapted to different levels of gold and copper prices and
phase the development of Golpu. The updated study reduces the capital of the project, lowers operating costs and improves the
rate of return on the project. Harmony intends to fund the earlier stages of the project from internal cash flows, and is reviewing
other options for the latter stages.

The ARM Statement of Financial Position as at 31 December 2014 reflects a mark-to-market investment in Harmony of
R1 375 million at a share price of R21.61 per share (1H F2014: R25.90 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. Dividends are recognised in the ARM Income Statement on the last day of registration
following dividend declaration.

Harmony's results for the six months ended 31 December 2014 can be viewed on Harmony's website at www.harmony.co.za.

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

Outlook

ARM is invested into mining for the long term and understands that within that longer period commodity prices are cyclical.
ARM's strategy is developed to focus on the long term while still allowing short and medium term interventions to address
cyclical issues when necessary.

ARM is responding proactively to the current challenges in the mining industry. These are largely characterised by declines
in US Dollar commodity prices, cost pressures and labour issues.

The key areas under review by ARM include:

- Restructuring of existing mining plans to optimise profitability from operations under the prevailing business
  circumstances;
- Improving productivity at all operations;
- Reviewing all capital allocations and reducing or deferring capital expenditure;
- Reducing costs at both operational and corporate level;
- Using technology to enhance efficiencies;
- Focusing on maintaining/improving planned cash flows by the abovementioned methods and also by increasing focus
  on working capital management;
- Maintaining good labour and stakeholder relations at all operations; and
- Considering the curtailment or exit from operations which are not profitable.

The global economy which utilises ARM's commodities continues to show different growth rates. The Chinese economy
continues to grow significantly in absolute terms, however, given the larger base is slowing down in percentage terms. The
US economy has continued to improve while growth in Europe and Japan is expected to recover gradually.

The current business environment is expected to remain challenging for the next two to three years and as a result the key
focus for ARM is to maintain a prudent approach to managing its businesses, maximising cash flows while continuing to
consider value enhancing merger and acquisition opportunities, particularly in platinum and copper.

Review by independent auditors

The financial results for the six months ended 31 December 2014 have not been reviewed or audited by the Company's
registered auditors, Ernst & Young Inc. Any forward-looking information contained in this announcement 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
16 March 2015

Financial
statements

Group statement of financial position
as at 31 December 2014
                                                          Unaudited                  Audited
                                                      Six months ended            Year ended
                                                        31 December                  30 June
                                                        2014               2013         2014
                                               Note       Rm                 Rm           Rm
ASSETS
Non-current assets
Property, plant and equipment                         12 733             11 647       11 752
Investment property                                        –                 12           12
Intangible assets                                        156                171          166
Deferred tax assets                                      438                426          381
Loans and long-term receivables                           53                 75           73
Financial assets                                           2                  3            2
Investment in associate                                1 199              1 211        1 267
Investment in joint venture                      3    14 385             13 909       14 305
Other investments                                      1 556              1 779        2 119
                                                      30 522             29 233       30 077
Current assets
Inventories                                              893              1 101          934
Trade and other receivables                            3 043              2 864        3 292
Taxation                                                   1                  3            5
Cash and cash equivalents                        4     1 976              1 524        2 150
                                                       5 913              5 492        6 381
Assets held for sale                             5       12                  –             –
Total assets                                          36 447             34 725       36 458
EQUITY AND LIABILITIES
Capital and reserves
Ordinary share capital                                    11                 11           11
Share premium                                          4 178              4 079        4 108
Other reserves                                         1 099                875        1 258
Retained earnings                                     20 810             19 736       21 311
Equity attributable to equity holders of ARM          26 098             24 701       26 688
Non-controlling interest                               1 528              1 563        1 511
Total equity                                          27 626             26 264       28 199
Non-current liabilities
Long-term borrowings                             6     2 363              3 148        2 420
Non-current financial liabilities                          7                  –            –
Deferred tax liabilities                               1 936              1 829        1 911
Long-term provisions                                     630                608          558
                                                       4 936              5 585        4 889
Current liabilities
Trade and other payables                               1 977              1 817        1 741
Short-term provisions                                    302                278          479
Taxation                                                  41                 75           68
Current financial liabilities                              8                  –            –
Overdrafts and short-term borrowings             6     1 557                706        1 082
                                                       3 885              2 876        3 370
Total equity and liabilities                          36 447             34 725      36 458

Group income statement
for the six months ended 31 December 2014
                                                                     Unaudited                  Audited
                                                                 Six months ended            Year ended
                                                                   31 December                  30 June
                                                                   2014            2013            2014
                                                         Note        Rm              Rm              Rm
Revenue                                                           5 210           4 983          10 863
Sales                                                             4 829           4 606          10 004
Cost of sales                                                   (4 011)         (3 582)         (7 531)
Gross profit                                                        818           1 024           2 473
Other operating income                                              576             499             961
Other operating expenses                                          (785)           (743)         (1 763)
Profit from operations before exceptional item                      609             780           1 671
Income from investments                                              76              52             119
Finance costs                                                      (74)           (120)           (259)
Loss from associate*                                               (68)           (240)           (374)
Income from joint venture**                                3        830           2 153           3 549
Profit before taxation and exceptional items                      1 373           2 625           4 706
Exceptional items                                          7      (273)           (631)           (616)
Profit before taxation                                            1 100           1 994           4 090
Taxation                                                   9      (208)           (164)           (546)
Profit for the period                                               892           1 830           3 544
Attributable to:
Non-controlling interest                                             91             116             255
Equity holders of ARM                                               801           1 714           3 289
                                                                    892           1 830           3 544
Additional information
Headline earnings (R million)                              8      1 026           2 341           4 108
Headline earnings per share (cents)                                 473           1 084           1 900
Basic earnings (R million)                                          801           1 714           3 289
Basic earnings per share (cents)                                    369             794           1 521
Diluted headline earnings per share (cents)                         470           1 076           1 886
Diluted basic earnings per share (cents)                            367             788           1 510
Number of shares in issue at end of period (thousands)          217 438         216 462         216 748
Weighted average number of shares in issue (thousands)          217 023         215 971         216 268
Weighted average number of shares used in calculating
 fully diluted earnings per share (thousands)                   218 315         217 492         217 784
Net asset value per share (cents)                                12 003          11 411          12 313
EBITDA (R million)                                                1 130           1 264           2 620
Dividend declared after year-end (cents)                              –               –             600

*  Impairment included in loss from associate Rnil (1H 2014: R113 million; F2014: R132 million).
** Impairment included in income from joint venture Rnil (1H 2014: Rnil: F2014: R187 million).

Group statement of comprehensive income
for the six months ended 31 December 2014
                                                                                   Total                       
                                                 Available-                       share-        Non-           
                                                   for-sale           Retained   holders controlling           
                                                    reserve   Other   earnings    of ARM    interest   Total   
                                                         Rm      Rm         Rm        Rm          Rm      Rm   
Six months ended 31 December 2014                                                                              
(Unaudited)                                                                                                    
Profit for the period                                     –       –        801       801          91     892   
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               (334)       –          –     (334)           –   (334)   
Deferred tax on above                                    62       –          –        62           –      62   
Net impact of above                                   (272)       –          –     (272)           –   (272)   
Foreign currency translation reserve movement             –      67          –        67           –      67   
Total other comprehensive income                      (272)      67          –     (205)           –   (205)   
Total comprehensive income for the period             (272)      67        801       596          91     687   
Six months ended 31 December 2013                                                                              
(Unaudited)                                                                                                    
Profit for the period                                     –       –      1 714     1 714         116   1 830   
Other comprehensive income that may                                                                            
be reclassified to the income statement                                                                        
in subsequent periods:                                                                                         
Sale of subsidiary                                        –     (5)          –       (5)           –     (5)   
Cash flow hedge reserve                                   –      31          –        31           –      31   
Foreign currency translation reserve movement             –      57          –        57           –      57   
Total other comprehensive income                          –      83          –        83           –      83   
Total comprehensive income for the period                 –      83      1 714     1 797         116   1 913   
Year ended 30 June 2014 (Audited)                                                                              
Profit for the year                                       –       –      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   

Group statement of changes in equity
for the six months ended 31 December 2014
                                            Share                                     Total                          
                                          capital   Available-                       share-         Non-             
                                              and     for-sale           Retained   holders  controlling             
                                          premium      reserve   Other   earnings    of ARM     interest     Total   
                                               Rm           Rm      Rm         Rm        Rm           Rm        Rm   
Six months ended 31 December 2014                                                                                    
(Unaudited)                                                                                                          
Balance at 30 June 2014                     4 119          272     986     21 311    26 688        1 511    28 199   
Profit for the period                           –            –       –        801       801           91       892   
Other comprehensive income                      –        (272)      67          –     (205)            –     (205)   
Total comprehensive income                                                                                           
for the period                                  –        (272)      67        801       596           91       687   
Share-based payments                            –            –      84          –        84            –        84   
Share options exercised                        32            –       –          –        32            –        32   
Bonus and performance shares                                                                                         
issued to employees                            38            –    (38)          –         –            –         –   
Dividend paid                                   –            –       –    (1 302)   (1 302)            –   (1 302)   
Dividend paid to Impala Platinum                –            –       –          –         –         (74)      (74)   
Balance at 31 December 2014                 4 189            –   1 099     20 810    26 098        1 528    27 626   
Six months ended 31 December 2013                                                                                    
(Unaudited)                                                                                                          
Balance at 30 June 2013                     4 007            –     769     19 294    24 070        1 393    25 463   
Profit for the period                           –            –       –      1 714     1 714          116     1 830   
Other comprehensive income                      –            –      83          –        83            –        83   
Total comprehensive income                                                                                           
for the period                                  –            –      83      1 714     1 797          116     1 913   
Share-based payments                            –            –      70          –        70            –        70   
Share options exercised                        36            –       –          –        36            –        36   
Bonus and performance shares issued                                                                                  
to employees                                   47            –    (47)          –         –            –         –   
Dividend paid                                   –            –       –    (1 102)   (1 102)            –   (1 102)   
Dividend paid to Impala Platinum                –            –       –          –         –         (45)      (45)   
Acquisition of non-controlling interest                                                                              
in Kalumines                                    –            –       –      (170)     (170)           99      (71)   
Balance at 31 December 2013                 4 090            –     875     19 736    24 701        1 563    26 264   
Year ended 30 June 2014 (Audited)                                                                                    
Balance at 30 June 2013                     4 007            –     769     19 294    24 070        1 393    25 463   
Profit for the year                             –            –       –      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                     4 119          272     986     21 311    26 688        1 511    28 199   

Group statement of cash flows
for the six months ended 31 December 2014
                                                                   Unaudited                 Audited
                                                               Six months ended           Year ended
                                                                 31 December                 30 June
                                                                2014               2013         2014
                                                        Note      Rm                 Rm           Rm
CASH FLOW FROM OPERATING ACTIVITIES
Cash receipts from customers                                   5 578              4 519        9 950
Cash paid to suppliers and employees                         (4 093)            (3 658)      (7 877)
Cash generated from operations                           10    1 485                861        2 073
Interest received                                                 64                 42           99
Interest paid                                                   (55)               (65)        (113)
Dividends received                                                 –                  –            1
Dividends received from joint venture                            750                750        1 750
Dividends paid to non-controlling interest                      (74)               (45)        (236)
Dividend paid                                                (1 302)            (1 102)      (1 102)
Taxation paid                                                  (198)               (72)        (395)
Net cash inflow from operating activities                        670                369        2 077
CASH FLOW FROM INVESTING ACTIVITIES
Additions to property, plant and equipment
  to maintain operations                                       (689)              (321)        (724)
Additions to property, plant and equipment
  to expand operations                                          (18)              (358)        (409)
Proceeds on disposal of property, plant and equipment              2                184          118
Proceeds on disposal of subsidiary                                 –                  1            1
Transfer of cash on disposal of subsidiary                         –               (16)         (16)
Investment in associate                                            –                  –        (189)
Investment in subsidiary                                       (400)                  –            –
Investment in insurance cell                                    (25)                  –            –
Investments in Richards Bay Coal Terminal                       (21)               (15)         (20)
Decrease in loans and long-term receivables                       21                 15           17
Net cash outflow from investing activities                   (1 130)              (510)      (1 222)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds on exercise of share options                             32                 36           62
Payment to non-controlling interest in Kalumines                   –               (71)            –
Long-term borrowings repaid                                     (54)              (235)        (728)
Decrease in short-term borrowings                              (112)               (49)         (93)
Net cash outflow from financing activities                     (134)              (319)        (759)
Net (decrease)/increase in cash and cash equivalents           (594)              (460)           96
Cash and cash equivalents at beginning of period               1 669              1 569        1 569
Foreign currency translation on cash balances                    (1)                  4            4
Cash and cash equivalents at end of period                4    1 074              1 113        1 669
Cash generated from operations per share (cents)                 684                399          959

Notes to the financial statements
for the six months ended 31 December 2014

1   STATEMENT OF COMPLIANCE

    The Group financial statements for the six months ended 31 December 2014 are prepared in accordance with and contain the
    information required by IAS 34 – Interim Financial Reporting and comply with International Financial Reporting Standards (IFRS)
    and Interpretations of those standards, as adopted by the International Accounting Standards Board (IASB), requirements of the
    South African Companies Act 2008, the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee
    and Financial Pronouncements as issued by the Financial Reporting Standards Council and the Listings Requirements of the
    JSE Limited.

    BASIS OF PREPARATION

    The Group financial statements for the six months ended 31 December 2014 have been prepared on the historical cost
    basis, except for certain financial instruments, which include listed investments, 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
    and comply with IFRS. The Group financial statements for the period have been prepared under the supervision of the financial
    director, Mr M Arnold CA(SA).

    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 July 2014.

Standard               Subject                                                                                   Effective date
IFRS 1                 First-time Adoption of International Financial Reporting Standards
                       (Annual improvement project)                                                                1 July 2014
IFRS 2                 Share-based Payments (Annual improvement project)                                           1 July 2014
IFRS 3                 Business Combinations (Annual improvement project)                                          1 July 2014
IFRS 7                 Financial Instruments: Disclosures (Amendment)                                           1 January 2014
IFRS 8                 Operating Segments (Annual improvement project)                                             1 July 2014
IFRS 10                Consolidated Financial Statements (Amendment)                                            1 January 2014
IFRS 12                Disclosure of Interest in Other Entities (Amendment)                                     1 January 2014
IFRS 13                Fair Value Measurement (Annual improvement project)                                         1 July 2014
IAS 16                 Property, Plant and Equipment (Annual improvement project)                                  1 July 2014
IAS 19                 Employee Benefits (Amendment)                                                               1 July 2014
IAS 24                 Related Party Disclosure (Annual improvement project)                                       1 July 2014
IAS 27                 Separate Financial Statements (Amendment)                                                1 January 2014
IAS 32                 Financial Instruments Presentation – Offsetting financial assets
                       and financial liabilities (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 – Novation of derivatives and continuation
                       of hedge accounting (Amendment)                                                          1 January 2014
IAS 40                 Investment Property (Annual improvement project)                                            1 July 2014
IFRIC 21               Levies                                                                                   1 January 2014

The adoption of these amendments had no significant effect on the Group financial statements.

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 5                 Non-current Asset Held for Sale and Discontinued Operations
                       (Annual improvement project)                                                             1 January 2016
IFRS 7                 Financial Instruments: Disclosures (Annual improvement project)                          1 January 2016
IFRS 9                 Financial Instruments – Classification and Measurement (Amendment)                       1 January 2018
IFRS 10                Consolidated Financial Statements (Amendment)                                            1 January 2016
IFRS 11                Accounting for Acquisitions of Interest in Joint Operations (Amendment)                  1 January 2016
IFRS 12                Disclosure of Interest in Other Entities (Amendment)                                     1 January 2016
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 16 and IAS 41      Agriculture: Bearer Plants (Amendment)                                                   1 January 2016
IAS 1                  Disclosure initiative (Amendment)                                                        1 January 2016
IAS 19                 Employee Benefits (Annual improvement project)                                           1 January 2016
IAS 27                 Separate Financial Statements – Equity method (Amendment)                                1 January 2016
IAS 28                 Investment in Associates and Joint Ventures (Amendment)                                  1 January 2016
IAS 34                 Interim Financial Reporting (Annual improvement project)                                 1 January 2016

The Group does not intend early adopting any of the above amendments, standards or interpretations.
The impact of the above standards or interpretations are still being assessed.

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.

2. 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
Primary segmental information
Six months ended
31 December 2014 (Unaudited)
Sales                                3 820     5 167      574     435         –    9 996   (5 167)     4 829
Cost of sales                      (3 051)   (3 754)    (455)   (516)        22  (7 754)     3 743   (4 011)
Other operating income                 106        76       21       2       405      610      (34)       576
Other operating expenses             (289)     (380)      (2)   (128)     (366)  (1 165)       380     (785)
Segment result                         586     1 109      138   (207)        61    1 687   (1 078)       609
Income from investments                 19       105        –       –        57      181     (105)        76
Finance cost                          (20)      (17)     (57)     (8)        84     (18)        17       (1)
Finance cost ZCCM:
  Shareholders' loan Vale/ARM
  joint venture                          –         –        –    (13)         –     (13)         –      (13)
Finance cost ARM:
  Shareholders' loan Vale/ARM
  joint venture                          –         –        –    (60)         –     (60)         –      (60)
Loss from associate                      –         –     (68)       –         –     (68)         –      (68)
Income from joint venture                –        13        –       –         –       13       817       830
Exceptional items                        –       (4)        –       –     (273)    (277)         4     (273)
Taxation                             (164)     (354)     (23)     (3)       (9)    (553)       345     (208)
Non-controlling interest             (144)         –        –      58       (5)     (91)         –      (91)
Consolidation adjustment                 –      (22)        –       –        22        –         –         –
Contribution to earnings               277       830     (10)   (233)      (63)      801         –       801
Contribution to headline
 earnings                              277       833     (10)   (233)       159    1 026         –     1 026
Other information:
Segment assets including
 investment in associate and
 joint venture                     10 869     18 608    3 158   3 775     4 260   40 670   (4 223)    36 447
Investment in joint venture                                                            –    14 385    14 385
Investment in associate                                 1 199                      1 199               1 199
Segment liabilities                 2 393      1 591    1 690     935     1 826    8 435   (1 591)     6 844
Unallocated – Deferred taxation
 and taxation                                                                      4 609   (2 632)     1 977
Consolidated total liabilities                                                    13 044   (4 223)     8 821
Cash generated from operations      1 323      1 490      170    (34)        26    2 975   (1 490)     1 485
Cash inflow/(outflow) from
 operating activities               1 141      1 307      173    (63)   (1 331)    1 227     (557)       670
Cash outflow from investing
 activities                         (443)    (1 072)    (118)   (146)     (423)  (2 202)     1 072   (1 130)
Cash outflow from
 financing activities                (43)          –     (55)              (36)    (134)         –     (134)
Capital expenditure                   486        802      177     146         1    1 612     (802)       810
Amortisation and depreciation         331        491       72     115         3    1 012     (491)       521
EBITDA                                917      1 600      210    (92)        64    2 699   (1 569)     1 130

* Includes IFRS 11 adjustments related to ARM Ferrous.

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.
                                                                                                        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
Six months ended
31 December 2013 (Unaudited)
Sales                               3 571     7 013      547       488         –    11 619    (7 013)       4 606
Cost of sales                     (2 747)   (3 690)    (386)     (462)        23   (7 262)      3 680     (3 582)
Other operating income                 35       105       17         –       417       574       (75)         499
Other operating expenses            (162)     (569)      (1)     (110)     (470)   (1 312)        569       (743)
Segment result                        697     2 859      177      (84)      (30)     3 619    (2 839)         780
Income from investments                15       100        –         –        37       152      (100)          52
Finance cost                         (19)      (12)     (46)       (6)         9      (74)         12        (62)
Finance cost ZCCM:
  Shareholders' loan Vale/ARM
  joint venture                         –         –        –       (9)         –       (9)          –         (9)
Finance cost ARM:
  Shareholders' loan Vale/ARM
  joint venture                         –         –        –      (49)         –      (49)          –        (49)
Loss from associate**                   –         –    (240)         –         –     (240)          –       (240)
Income from joint venture               –         7        –         –         –         7      2 146       2 153
Exceptional items                       –         –        –      (10)     (621)     (631)          –       (631)
Taxation                            (193)     (786)     (38)         –        72     (945)        781       (164)
Non-controlling interest            (137)         –        –        26       (5)     (116)          –       (116)
Consolidation adjustment                –      (15)        –         –        15         –          –           –
Contribution to earnings              363     2 153    (147)     (132)     (523)     1 714          –       1 714
Contribution to headline
 earnings                             363     2 153     (34)     (122)      (19)     2 341          –       2 341
Other information:
Segment assets including
  investment in associate and
  joint venture                    10 336    17 940    2 949     3 649     3 882    38 756    (4 031)      34 725
Investment in joint venture                                                              –     13 909      13 909
Investment in associate                                1 211                         1 211                  1 211
Segment liabilities                 1 909     1 486    1 528     1 025     2 095     8 043    (1 486)       6 557
Unallocated – Deferred taxation
 and taxation                                                                        4 452    (2 548)       1 904
Consolidated total liabilities                                                      12 495    (4 034)       8 461
Cash generated from operations        663     2 480      272      (31)      (43)     3 341    (2 480)         861
Cash inflow/(outflow) from
 operating activities                 546     1 803      272      (31)   (1 168)     1 422    (1 053)         369
Cash outflow from investing
 activities                         (388)   (1 041)     (40)      (63)      (19)   (1 551)      1 041       (510)
Cash (outflow)/inflow from
 financing activities                (48)         –    (235)      (71)        35     (319)          –       (319)
Capital expenditure                   389       732       58       247         3     1 429      (732)         697
Amortisation and depreciation         371       428       56        55         2       912      (428)         484
EBITDA                              1 068     3 287      233      (29)      (28)     4 531    (3 267)       1 264

* Includes IFRS 11 adjustments related to ARM Ferrous.
** Impairment included in loss from associate R113 million.

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.
                                                                                                           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
Year ended 30 June 2014
(Audited)
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)
Loss from associate**                   –          –    (374)         –         –       (374)          –       (374)
Income form 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 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 and
  joint venture                    10 807     18 749    3 468     3 530     4 348      40 902    (4 444)      36 458
Investment in joint venture                                                                 –     14 305      14 305
Investment in associate                                 1 267                           1 267                  1 267
Segment liabilities                 2 280      1 936    1 636       826     1 538       8 216    (1 936)       6 280
Unallocated – Deferred taxation
 and taxation                                                                           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 adjustments related to ARM Ferrous.
** Impairment included in loss from associates R132 million.
*** Impairment included in income from joint venture R187 million.

Additional information

The ARM platinum segment is analysed further into Nkomati, Two Rivers Platinum Proprietary Limited and ARM Mining Consortium
Limited which includes 50% of the Modikwa Platinum Mine.
                                                                                      ARM   
                                                Two Rivers   Modikwa   Nkomati   Platinum   
Platinum                                                Rm        Rm        Rm         Rm   
Six months ended 31 December 2014 (Unaudited)                                               
Sales                                                1 873       597     1 350      3 820   
Cost of sales                                      (1 336)     (598)   (1 117)    (3 051)   
Other operating income                                   6         1        99        106   
Other operating expenses                              (87)      (10)     (192)      (289)   
Segment result                                         456      (10)       140        586   
Income from investments                                  7         3         9         19   
Finance cost                                          (16)       (1)       (3)       (20)   
Taxation                                             (127)         8      (45)      (164)   
Non-controlling interest                             (144)         –         –      (144)   
Contribution to earnings                               176         –       101        277   
Contribution to headline earnings                      176         –       101        277   
Other information:                                                                          
Segment assets                                       4 248     3 092     3 529     10 869   
Segment liabilities                                  1 053       553       787      2 393   
Cash inflow from operating activities                  551        90       500      1 141   
Cash outflow from investing activities               (127)     (207)     (109)      (443)   
Cash outflow from financing activities                (43)         –         –       (43)   
Capital expenditure                                    156       209       121        486   
Amortisation and depreciation                          205        42        84        331   
EBITDA                                                 661        32       224        917   
Six months ended 31 December 2013 (Unaudited)                                               
Sales                                                1 700       627     1 244      3 571   
Cost of sales                                      (1 242)     (551)     (954)    (2 747)   
Other operating income                                  11         7        17         35   
Other operating expenses                              (59)       (9)      (94)      (162)   
Segment result                                         410        74       213        697   
Income from investments                                  3         5         7         15   
Finance cost                                          (17)         –       (2)       (19)   
Taxation                                             (112)      (20)      (61)      (193)   
Non-controlling interest                             (127)      (10)         –      (137)   
Contribution to earnings                               157        49       157        363   
Contribution to headline earnings                      157        49       157        363   
Other information:                                                                          
Segment assets                                       3 896     2 889     3 551     10 336   
Segment liabilities                                    842       406       661      1 909   
Cash inflow from operating activities                  337       154        55        546   
Cash outflow from investing activities               (140)     (160)      (88)      (388)   
Cash outflow from financing activities                (48)         –         –       (48)   
Capital expenditure                                    138       160        91        389   
Amortisation and depreciation                          181        41       149        371   
EBITDA                                                 591       115       362      1 068   

Pro forma analysis of the ARM Ferrous segment on a 100% basis
                                                                                                              Total per
                                                                                                                   IFRS
                                                            Manga-                                    *IFRS   financial
                                                Iron ore      nese    Chrome    Ferrous       ARM   Adjust-      state-
                                                division  division  division      Total     share      ment       ments
                                                      Rm        Rm        Rm         Rm        Rm        Rm          Rm
Six months ended 31 December 2014
(Unaudited)
Sales                                              5 757     3 868       708     10 333     5 167    (5 167)          –
Other operating income                               276       133         5        414        76       (76)          –
Other operating expenses                           (682)     (254)      (87)    (1 023)     (380)        380          –
Operating profit                                   1 478       656        84      2 218     1 109    (1 109)          –
Contribution to earnings and
 total comprehensive income                        1 174       473        56      1 703       852       (22)        830
Contribution to headline earnings                  1 181       472        56      1 709       855       (22)        833
Other information:
Segment assets                                    25 480    11 625     1 090     38 195    18 608    (4 223)     14 385
Segment liabilities                                5 748     2 547       426      8 721     1 591    (1 591)          –
Cash inflow/(outflow) from operating activities    663**       632     (206)      1 089     1 307    (1 307)          –
Cash outflow from investing activities             (835)   (1 187)      (97)    (2 119)   (1 072)      1 072          –
Capital expenditure                                  710       849       130      1 689       802      (802)          –
Amortisation and depreciation                        751       209        43      1 003       491      (491)          –
EBITDA                                             2 229       865       127      3 221     1 600    (1 600)          –
Additional information for ARM Ferrous
at 100%
Non-current assets
Property, plant and equipment                                                    21 312             (21 312)          –
Other non-current assets                                                          2 857              (2 857)          –
Current assets
Inventories                                                                       4 963              (4 963)          –
Trade and other receivables                                                       4 038              (4 038)          –
Financial asset                                                                      80                 (80)          –
Cash and cash equivalents                                                         4 945              (4 945)          –
Non-current liabilities
Other non-current liabilities                                                     6 193              (6 193)          –
Current liabilities
Trade and other payables                                                          1 829              (1 829)          –
Short-term provisions                                                               416                (416)          –
Taxation                                                                            284                (284)          –

* Includes consolidation and IFRS 11 adjustments.
** Dividend paid amounting to R1.5 billion included in cash flows from operating activities.

Pro forma analysis of the ARM Ferrous segment on a 100% basis
                                                                                                        Total per
                                                                                                             IFRS
                                                    Manga-                                       *IFRS  financial
                                       Iron ore       nese      Chrome    Ferrous       ARM    Adjust-     state-
                                       division   division    division      Total     share       ment      ments
                                             Rm         Rm          Rm         Rm        Rm         Rm         Rm
Six months ended 31 December 2013
(Unaudited)
Sales                                     9 222      4 022         782     14 026     7 013    (7 013)          –
Other operating income                      313         98           5        416       105      (105)          –
Other operating expenses                  (887)      (355)       (102)    (1 344)     (569)        569          –
Operating profit                          4 753        917          47      5 717     2 859    (2 859)          –
Contribution to earnings
 and total comprehensive income           3 644        655          37      4 336     2 168       (15)      2 153
Contribution to headline earnings         3 644        655          37      4 336     2 168       (15)      2 153
Other information:
Segment assets                           24 894     10 908         939     36 741    17 940    (4 031)     13 909
Segment liabilities                       5 549      2 424         331      8 304     1 486    (1 486)          –
Cash inflow from operating activities   1 576**        475          54      2 105     1 803    (1 803)          –
Cash outflow from investing activities    (795)    (1 208)        (78)    (2 081)   (1 041)      1 041          –
Capital expenditure                         902        541          80      1 523       732      (732)          –
Amortisation and depreciation               596        242          38        876       428      (428)          –
EBITDA                                    5 349      1 159          85      6 593     3 287    (3 287)
Additional information for ARM Ferrous
at 100%
Non-current assets
Property, plant and equipment                                              20 058             (20 058)          –
Other non-current assets                                                    1 554              (1 554)          –
Current assets
Inventories                                                                 4 479              (4 479)          –
Trade and other receivables                                                 5 272              (5 272)          –
Financial asset                                                                85                 (85)
Cash and cash equivalents                                                   5 293              (5 293)          –
Non-current liabilities
Other non-current liabilities                                               5 779              (5 779)          –
Current liabilities
Trade and other payables                                                    1 732              (1 732)          –
Short-term provisions                                                         407                (407)          –
Taxation                                                                      386                (386)          –

* Includes consolidation and IFRS 11 adjustments.
** Dividend paid amounting to R1.5 billion included in cash flows from operating activities.

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

                                                        ARM   Corporate*           Total ARM   
                                                Exploration    and other    Gold   Corporate   
Primary segmental information                            Rm           Rm      Rm          Rm   
Six months ended 31 December 2014 (Unaudited)                                                  
Cost of sales                                             –           22       –          22   
Other operating income                                    –          405       –         405   
Other operating expenses                               (40)        (326)       –       (366)   
Segment result                                         (40)          101       –          61   
Income from investments                                   –           57       –          57   
Finance cost                                              –           84       –          84   
Exceptional items                                         –            –   (273)       (273)   
Taxation                                                  –         (60)      51         (9)   
Non-controlling interest                                  –          (5)       –         (5)   
Consolidation adjustment                                  –           22       –          22   
Contribution to earnings                               (40)          199   (222)        (63)   
Contribution to headline earnings                      (40)          199       –         159   
Other information:                                                                             
Segment assets                                            –        2 885   1 375       4 260   
Segment  liabilities                                      –        1 826       –       1 826   
Cash generated from operations                         (40)           66       –          26   
Cash outflow from operating activities                 (40)      (1 291)       –     (1 331)   
Cash outflow from investing activities                    –        (423)       –       (423)   
Cash outflow from financing activities                    –         (36)       –        (36)   
Capital expenditure                                       –            1       –           1   
Amortisation and depreciation                             –            3       –           3   
EBITDA                                                 (40)          104       –          64   

* Corporate, other companies and consolidation adjustments.

ARM Corporate as presented in the table on page 79 is analysed further into the Corporate and other, ARM Exploration and Gold
segments.
                                                        ARM   Corporate*           Total ARM   
                                                Exploration    and other    Gold   Corporate   
                                                         Rm           Rm      Rm          Rm   
Six months ended 31 December 2013 (Unaudited)                                                  
Cost of sales                                             –           23       –          23   
Other operating income                                    –          417       –         417   
Other operating expenses                               (24)        (446)       –       (470)   
Segment result                                         (24)          (6)       –        (30)   
Income from investments                                   –           37       –          37   
Finance cost                                              –            9       –           9   
Exceptional items                                         –            6   (627)       (621)   
Taxation                                                  –         (45)     117          72   
Non-controlling interest                                  –          (5)       –         (5)   
Consolidation adjustment                                  –           15       –          15   
Contribution to earnings                               (24)           11   (510)       (523)   
Contribution to headline earnings                      (24)            5       –        (19)   
Other information:                                                                             
Segment assets                                            –        2 234   1 648       3 882   
Segment liabilities                                       –        2 095       –       2 095   
Cash generated from operations                         (24)         (19)       –        (43)   
Cash outflow from operating activities                 (24)      (1 144)       –     (1 168)   
Cash outflow from investing activities                    –         (19)       –        (19)   
Cash inflow from financing activities                     –           35       –          35   
Capital expenditure                                       –            3       –           3   
Amortisation and depreciation                             –            2       –           2   
EBITDA                                                 (24)          (4)       –        (28)   

* Corporate, other companies and consolidation adjustments.

ARM Corporate as presented in the table on page 80 is analysed further into the Corporate and other, ARM Exploration and Gold
segments.
                                                 ARM   Corporate*           Total ARM   
                                         Exploration    and other    Gold   Corporate   
                                                  Rm           Rm      Rm          Rm   
Year ended 30 June 2014 (Audited)                                                       
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 earnings                        (81)            5   (510)       (586)   
Contribution to headline earnings               (81)          (1)       –        (82)   
Other information:                                                                      
Segment assets                                     –        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.
                                                                              Unaudited                  Audited
                                                                          Six months ended            Year ended
                                                                            31 December                  30 June
                                                                           2014               2013          2014
                                                                             Rm                 Rm            Rm
3.   INVESTMENT IN JOINT VENTURE

     This investment relates to ARM Ferrous and comprises Assmang
     as a joint venture which includes iron ore, manganese and
     chrome operations.
     Opening balance                                                     14 305             12 506        12 506
     Income for the period                                                  852              2 168         3 584
     Consolidation adjustments                                             (22)               (15)          (35)
     Net income for the period                                              830              2 153         3 549
     Less: Dividends paid for the period                                  (750)              (750)       (1 750)
     Closing balance                                                     14 385             13 909        14 305
     Refer to note 2 for further detail relating to the
      ARM Ferrous segment.

4.   CASH AND CASH EQUIVALENTS

     – African Rainbow Minerals Limited                                     288                100           746
     – ARM Finance Company SA                                               102                 81            63
     – ARM Platinum Proprietary Limited                                      17                120            28
     – Kingfisher Insurance Co Limited                                      119                192           137
     – Nkomati                                                              200                139           216
     – Two Rivers Platinum Proprietary Limited                              285                  9             9
     – Vale/ARM joint venture                                                34                 66            92
     – Venture Building Trust Proprietary Limited                             3                  3             4
     – Restricted cash                                                      928                814           855
     Total as per statement of financial position                         1 976              1 524         2 150
     Less overdrafts (refer note 6)                                         902                411           481
     Total as per statement of cash flows                                 1 074              1 113         1 669

5.   ASSETS HELD FOR SALE                                                    12                  –             –

     During the reporting period the investment property situated
     in Marshalltown, Johannesburg was sold. The transaction and
     the transfer thereof is expected to be finalised by the end of the
     current financial year.
                                                                            Unaudited                Audited
                                                                        Six months ended          Year ended
                                                                          31 December                30 June
                                                                         2014              2013         2014
                                                                           Rm                Rm           Rm

6.   BORROWINGS

     Long-term borrowings are held as follows
     – African Rainbow Minerals Limited                                     –               564            –
     – ARM Finance Company SA                                             567               774          659
     – ARM Coal Proprietary Limited (partner loan)                      1 220             1 290        1 209
     – Two Rivers Platinum Proprietary Limited                             61                89           88
     – Vale/ARM joint operation                                            10                 –           12
     – Vale/ARM joint operation (partner loan)                            505               431          452
                                                                        2 363             3 148        2 420
     Short-term borrowings are held as follows:
     – African Rainbow Minerals Limited                                     –                 8            –
     – Anglo Platinum Limited (partner loan)                              114               114          114
     – ARM Coal Proprietary Limited (partner loan)                        188                30          217
     – ARM Finance Company SA                                             289                63          191
     – Two Rivers Platinum Proprietary Limited                             64                80           79
                                                                          655               295          601
     Overdrafts are held as follows:
     – African Rainbow Minerals Limited                                   346                 –            –
     – ARM Mining Consortium Limited                                       80                 –           24
     – Two Rivers Platinum Proprietary Limited                            287               261          300
     – Vale/ARM joint operation                                           169               120          130
     – Other                                                               20                30           27
                                                                          902               411          481
     Overdrafts and short-term borrowings                               1 557               706        1 082
     Total borrowings                                                   3 920             3 854        3 502

                                                                          Unaudited                  Audited
                                                                      Six months ended            Year ended
                                                                        31 December                  30 June
                                                                       2014               2013          2014
                                                                         Rm                 Rm            Rm
7.   EXCEPTIONAL ITEMS

     Impairment of available-for-sale listed investment               (273)              (627)         (627)
     (Loss)/profit on sale of property, plant and equipment               –               (10)             6
     Profit on sale of subsidiary                                         –                  6             5
     Exceptional items per income statement                           (273)              (631)         (616)
     Impairment on property, plant and equipment accounted
      for directly in associate ARM Coal                                  –              (157)         (183)
     Impairment of property, plant and equipment accounted
      for directly in joint venture – Assmang                             –                  –         (260)
     Loss on sale of property, plant and equipment accounted for
     directly in joint venture – Assmang                                (4)                  –             –
     Exceptional items before taxation effect                         (277)              (788)       (1 059)
     Taxation accounted for in associate – ARM Coal                       –                 44            51
     Taxation accounted for in joint venture – Assmang                    1                  –            73
     Taxation on impairment of available-for-sale listed investment      51                117           117
     Taxation on other exceptional items                                  –                  –           (1)
     Total amount adjusted for headline earnings                      (225)              (627)         (819)

8.   HEADLINE EARNINGS

     Basic earnings per income statement                                801              1 714         3 289
     Impairment of available-for-sale listed investment                 273                627           627
     Impairment of property, plant and equipment
      in associate – ARM Coal                                             –                157           183
     Impairment of property, plant and equipment in
      joint venture – Assmang                                             –                  –           260
     Loss/(profit) on sale of property, plant and equipment               –                 10           (6)
     Loss on sale of property, plant and equipment in joint
      venture – Assmang                                                   4                  –             –
     Profit on sale of subsidiary                                         –                (6)           (5)
                                                                      1 078              2 502         4 348
     Taxation accounted for directly in associate and joint venture     (1)               (44)         (124)
     Taxation on impairment of available-for-sale listed investment    (51)              (117)         (117)
     Taxation on other exceptional items                                  –                  –             1
     Headline earnings                                                1 026              2 341         4 108

9.   TAXATION

     South African normal tax – current year                            175                116           423
     South African normal tax – mining                                  164                101           322
     South African normal tax – non-mining                               11                 15           101
     South African normal tax – prior year                                –                  –             8
     Deferred tax – current year                                         31                 48           115
     Foreign taxes                                                        2                  –             –
                                                                        208                164           546

                                                                             Unaudited                Audited
                                                                         Six months ended          Year ended
                                                                           31 December                30 June
                                                                         2014              2013          2014
                                                                           Rm                Rm            Rm
10. CASH GENERATED FROM OPERATIONS

    Cash generated from operations before working
    capital movement                                                    1 307             1 532         3 032
    Working capital changes                                               178             (671)         (959)
    Movement in receivables                                               340             (524)         (978)
    Movement in payables and provisions                                 (211)             (158)         (160)
    Movement in inventories                                                49                11           179
    Cash generated from operations (per statement of cash flows)        1 485               861         2 073

11. COMMITMENTS AND CONTINGENT LIABILITIES

    Commitments in respect of future capital expenditure which
    will be funded from operating cash flows and by utilising debt
    facilities at entity and corporate levels, are summarised below:
    Approved by directors
    – contracted for                                                      213               312           359
    – not contracted for                                                   77               120             7
    Total commitments                                                     290               432           366
    Shareholders are advised that there have been no significant
    changes to the contingent liabilities of the Group as disclosed
    in the 30 June 2014 annual report other than (i) additional
    guarantees issued for R274 million and (ii) an attributable
    estimated contingent liability of R76 million at the Nkomati mine
    for Eskom infrastructure.

12. EVENTS AFTER REPORTING DATE

    Subsequent to the end of the reporting period the following events have occurred that do not effect the reported results but which
    require disclosure:

    12.1    The current operating furnace at Machadodorp will be stopped at the end of April 2015. The attributable carrying value
            of the furnace at 31 December 2014 was R192 million.
    12.2    The transfer of Kalkfontein portions 4, 5 and 6 and Tweefontein prospecting rights into the Two Rivers mining area
            occurred on 6 February 2015 from which date ARM's shareholding in Two Rivers reduces to 51% from 55%. Two Rivers
            will remain a subsidiary of ARM after the changed shareholding as all criteria for control still exist after the reduction in
            shareholding.
    12.3    ARM and Assore have reached an in principle agreement on ARM's disposal of its effective 50% interest in the
            Dwarsrivier Chrome Mine to Assore. The Dwarsrivier Chrome Mine makes up the substantial portion of the Chrome
            Division in the ARM Ferrous segment report reflected in note 2.

Contact details and administration

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

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

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

Sponsor
Deutsche Securities (SA) Proprietary Limited

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 and 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*                               H L Mkatshana
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

Date: 16/03/2015 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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