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AFRICAN RAINBOW MINERALS LIMITED - Interim results for the six months ended 31 December 2015

Release Date: 11/03/2016 07:05
Code(s): ARI     PDF:  
Wrap Text
Interim results for the six months ended 31 December 2015

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 2015

Shareholder information

Issued share capital at 31 December 2015            217 934 588 shares
Market capitalisation at 31 December 2015               ZAR9.5 billion
Market capitalisation at 31 December 2015               US$0.6 billion

Closing share price at 31 December 2015                         R43.45
Six-months high (1 July 2015 – 31 December 2015)                R82.95
Six-months low (1 July 2015 – 31 December 2015)                 R34.90

Average daily volume traded for the six months          774 726 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
Email: jongisa.magagula@arm.co.za

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

Company secretary
Alyson D'Oyley, BCom, LLB, LLM
Telephone: +27 11 779 1300
Fax: +27 11 779 1312
Email: alyson.doyley@arm.co.za

Salient features

-  Headline earnings decreased by 51% to R507 million (1H F2015: R1 026 million). Headline earnings
   per share were 233 cents compared to 473 cents in the corresponding period.
-  Basic earnings were a loss of R996 million (1H F2015: R801 million basic earnings) and were
   impacted mainly by a R1 404 million attributable impairment of the Lubambe Copper Mine assets.
-  Good cost reduction initiatives implemented at all operations resulted in on-mine unit costs at most
   operations increasing below the inflation rate.
-  Capital expenditure reduced by 27% to R589 million (1H F2015: R810 million) while attributable
   capital expenditure at ARM Ferrous was R779 million (1H F2015: R802 million).
-  ARM's financial position remains robust despite the commodity market downturn.
-  The Lubambe Copper Mine plan is under review to reduce cash funding requirements and preserve
   its resource value.
-  The Modikwa Platinum Mine recovery plan implemented at the end of F2015 is yielding
   positive results.
-  Ministerial consent was received in December 2015 for the disposal of ARM's 50% shareholding in
   Dwarsrivier Chrome Mine. Completion of the transaction is expected to occur by 31 March 2016.
-  ARM and Impala Platinum have agreed to increase ARM's shareholding in Two Rivers Mine from
   51% to 54% upon the incorporation of the Tamboti rights into Two Rivers Mine.
-  ARM is in the process of seeking shareholder approval to restructure the ARM BBEE Trust to ensure
   a permanent and sustainable funding solution for the Trust.

ARM operational review

The ARM Board of Directors (the Board) announces headline earnings of R507 million for the six months ended
31 December 2015 (1H F2016). Headline earnings are 51% lower than the previous corresponding period largely owing to
significant declines in US Dollar commodity prices for all commodities in ARM's portfolio, partly offset by the average Rand/
US Dollar exchange rate weakening by 24%.

Headline earnings/(loss) by operation/division

                              6 months ended 31 December
R million                  2015          2014         % change
ARM Platinum                (9)           277            (103)
Two Rivers Mine             155           176             (12)
Modikwa Mine               (47)             –                –
Nkomati Mine              (117)           101            (216)
ARM Ferrous                 599           833             (28)
Iron ore division           478           591             (19)
Manganese division           97           236             (59)
Chrome division              39            28               39
Consolidation adjustment   (15)          (22)
ARM Coal                  (129)          (10)           >(250)
Goedgevonden Mine          (24)            58            (141)
PCB Operations            (105)          (68)             (54)
ARM Copper                (275)         (233)             (18)
ARM Exploration            (10)          (40)               75
Gold                          –             –                –
Corporate and other         331           199               66
ARM headline earnings       507         1 026             (51)

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

The interim results for the six months ended 31 December 2015 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 has responded proactively to the commodity price downturn and has implemented operating and capital cost reduction
initiatives at all its operations. With commodity prices expected to remain low for longer, ARM continued to focus on
improving operational efficiencies, reducing costs, deferring or curtailing capital expenditure and optimising working 
capital to improve profitability and cash generation. Capital expenditure reductions and deferrals have been made 
judiciously to ensure that the long-term value of operations is not negatively impacted.

Average realised US Dollar prices for export iron ore declined by 34% compared to 1H F2015 as concerns about continuing
increases to supply and lower than expected steel demand, especially in China, negatively impacted the seaborne iron ore
market. Manganese ore prices were lower due to similar supply and demand concerns. Average realised US Dollar prices
for high-grade and low-grade manganese ore decreased by 32% and 30% respectively. Nickel prices fell during the last
quarter resulting in the average price being 43% lower than the corresponding period. Platinum and palladium prices were
29% and 26% lower respectively. The 24% weakening of the average Rand versus US Dollar exchange rate partly offset
the decline in US Dollar prices, however, Rand prices for all commodities in ARM's portfolio of commodities were lower
compared to the previous corresponding six months.

Improving operational efficiencies and reducing costs

All operations continue to implement efficiency improvements and cost reduction initiatives which are yielding good results.

Khumani Mine delivered an impressive 19% decrease to on-mine unit production costs in the period under review and
is on track to achieve its targeted 15% reduction to on-mine unit production costs for the financial year. On-mine unit
production costs at the manganese ore operations increased by 4%, well below inflation compared to a 19% increase
in the corresponding period last year. This improved cost performance was as a result of ongoing modernisation of the
manganese ore operations together with a reduction in the labour force. Further costs savings are expected to be achieved
through procurement and labour efficiencies.

Unit production costs at the manganese alloys operations increased above inflation as production volumes were
strategically reduced. Manganese alloy production at Machadodorp Works has ceased while only three of the six furnaces
are operating at Cato Ridge Works.

The platinum mines also delivered good operational performance with unit production costs per tonne at Modikwa Mine
increasing by only 1% while at Two Rivers Mine increases were below inflation at 5%. Nkomati unit production costs
per tonne were 8% higher, however, the mine's C1 unit cash costs net of by-products decreased by 12% relative to the
corresponding period last year.

Deferring and curtailing capital expenditure

Plans to curtail capital costs have resulted in capital expenditure for 1H F2016 being reduced by 15% to R1 368 million
(1H F2015: R1 612 million) on a segmental basis. A large portion of the capital expenditure related to the Black Rock
Project. Details of the project's development are provided under the ARM Ferrous section of this report.


Ongoing review of operational plans

Generally, all ARM operational plans are revisited on an ongoing basis, however, there is currently higher level of scrutiny
of operational plans in response to the prevailing low commodity price environment. The ongoing reviews are also to
ensure that ARM continues to meet its strategic objective to have all operations positioned below the 50th percentile of
each commodity's global cost curve. Global commodity cost curves are undergoing notable changes mainly as a result of
increases in low cost supply, lower oil prices and changes in the currencies of commodity producing economies.

The Modikwa Mine plan was revised in F2015 to include (i) maintaining mining volumes at North 1 Shaft to 110 000 tonnes
per month and (ii) depleting mineable stopes at South 1 Shaft and ramping up South 2 Shaft to 90 000 tonnes per month
thereby integrating South 1 and South 2 shafts with a view to phase out South 1 Shaft. Restructuring of South 1 and
South 2 shafts has already begun in the period under review to enable operational synergies and cost savings. A process
is also already under way to right size the Modikwa workforce.

The Lubambe Mine is under review to reduce the funding requirements from shareholders and to preserve the value of its
substantial ore resources which include the Lubambe Extension Area.

Operating safely

ARM is committed to creating and maintaining a safe and healthy work environment for all its employees. The Company's
Lost Time Injuries (LTI) reduced from 58 in 1H F2015 to 44 in the period under review while the Lost Time Injury Frequency
Rate (LTIFR) for 1H F2016 improved to 0.32 per 200 000 man-hours (1H F2015: 0.40).

Safety achievements in the period under review:
-  Beeshoek Mine and Dwarsrivier Mine each completed three million fatality-free shifts.
-  Beeshoek Mine completed 13.5 years fatality-free.
-  Black Rock Mine completed four million fatality-free shifts.
-  Machadodorp Works completed 27 months without a lost-time injury.
-  Modikwa Mine achieved two million fatality-free shifts on 27 November 2015.
-  Lubambe Mine achieved three million fatality-free shifts in November 2015.

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

ARM to increase shareholding in Two Rivers Mine

ARM and Implats have agreed to increase ARM's shareholding in Two Rivers from 51% to 54% on incorporation of the
Tamboti Platinum (Pty) Ltd (Tamboti) rights into the Two Rivers mining area. Based on previous drilling results available the
Tamboti rights, located adjacent to Two Rivers Mine, will add approximately 6.73 million ounces to the Two Rivers resource.

Proposed restructuring of ARM Broad-Based Economic Empowerment Trust (ARM BBEE Trust or the Trust)

On 15 February 2016 ARM announced the proposed restructuring of the ARM BBEE Trust.

During 2015, ARM provided support to the ARM BBEE Trust in the form of guarantees to support the financial covenants
of the Nedbank Limited (Nedbank) loan. This was required given the fall in the ARM share price following a decline in
commodity prices and the overall negative sentiment towards the mining sector. Guarantees provided by ARM amounted
to R700 million which were disclosed in ARM's annual financial statements and integrated annual report for the year ended
30 June 2015 under contingent liabilities. Post 30 June 2015, the financial covenants of the Nedbank loan came under
pressure once again and required that these guarantees be increased to R850 million. Harmony provides R150 million in
guarantees to Nedbank in a similar manner.

The ARM BBEE Trust forms an integral part of the empowerment obligations of ARM. The current court process to determine
the legal status of the "once empowered, always empowered" principle also made it necessary that ARM minimises its legal
and financial exposure should this principle not be upheld by the court. The ARM Board, however, took a decision not to
provide any further guarantees to the Trust, but rather to restructure the shareholding and related funding of the Trust to
provide a permanent and sustainable solution.

To facilitate the unwinding of the current funding structure, ARM has entered into a repurchase agreement with the ARM
BBEE Trust in terms of which, a wholly-owned subsidiary of ARM (Subco) will acquire approximately 12.7 million ARM
shares held by the Trust (or 5.8% of current issued ARM shares) at a price of R51.19 per share, being the 30-day volume
weighted average price of the ARM share on 10 February 2016, the last day before the agreement was reached on the
transaction structure (Specific Repurchase).

Furthermore, to implement a more permanent funding structure, the ARM BBEE Trust bank debt will be refinanced as
part of one combined transaction through a combination of the proceeds from the Specific Repurchase, a non-recourse
R300 million senior secured loan from Nedbank, a Harmony subordinated unsecured loan of R200 million and an ARM
subordinated unsecured loan of approximately R800 million.

The Board believes that the Specific Repurchase and the ARM BBEE Trust Loan Refinancing is the best possible solution
in the current environment for the following reasons:
-  Achieves a permanent and sustainable funding solution for the Trust;
-  Retains ARM's black economic empowerment shareholding above 50%; and
-  Limits stress to the ARM financial position and removes the existing guarantees.

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 2015, other than depletion due to continued mining activities at the operations.

Financial commentary

Headline earnings for the six-month period to 31 December 2015 were R507 million or 51% lower than the corresponding
prior period's headline earnings (1H F2015: R1 026 million). This equates to headline earnings per share of 233 cents per
share (1H F2015: 473 cents per share).

At a basic earnings level a loss of R996 million was incurred for 1H F2016 (1H F2015: R801 million basic earnings).
Basic earnings were negatively impacted by special items of R1 503 million after tax and non-controlling interests
(1H F2015: R225 million loss after tax). The special items largely relate to an attributable impairment of the Lubambe
Copper Mine assets of R1 404 million after non-controlling interest and an impairment of the underground assets at
Nkomati Mine of R83 million after tax. The reconciliation of basic earnings to headline earnings is provided in note 9 to the
financial statements. Basic earnings per share reduced from 369 cents per share to a basic loss of 458 cents per share.

Sales for the reporting period were 10% lower than the corresponding period last year at R4 332 million (1H F2015:
R4 829 million). Sales for ARM Ferrous decreased by 12% to R4 546 million (1H F2015: R5 167 million).

The average gross profit margin decreased to 5% (1H F2015: 17%). The gross profit 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 F2016 average Rand/US Dollar of R13.61/US$ is 24% weaker than the corresponding period average of R10.99/US$. 
This significant weakening of the exchange rate partly offset the fall in US Dollar commodity prices at all operations 
except for Lubambe which has a US Dollar functional currency. For reporting purposes the closing exchange rate was 
R15.46/US$ (1H F2015: R11.57/US$).

ARM's earnings before interest, tax, depreciation and amortisation (EBITDA), excluding special items and income from
associates and joint ventures, were R891 million (1H F2015: R1 130 million).

The income from joint venture (ARM Ferrous) was R567 million after special items and is 32% lower than the corresponding
period last year (1H F2015: R830 million). The expanded segmental analysis for ARM Ferrous is included 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 R599 million (1H F2015: R833 million) largely
     due to a 59% decrease in the manganese (manganese ore and alloys) division contribution from R236 million to
     R97 million. All ARM Ferrous divisions contributed positively to headline earnings. The iron ore division contribution
     was R478 million (1H F2015: R591 million) despite the 33% fall in the average US Dollar prices for iron ore due to
     excellent cost reduction initiatives and the weaker Rand/US$ exchange rate. Sales volumes for iron ore were 6%
     higher at 7.9 million tonnes.
-    The ARM Platinum segment contribution, which includes the results of Nkomati, was a headline loss of R9 million
     (1H F2015: R277 million headline earnings). The decreased contribution is mainly due to a headline loss at Nkomati
     of R117 million (1H F2015: R101 million contribution) as a result of a significant fall in US Dollar nickel prices during
     the last quarter of the reporting period. The Two Rivers contribution remained positive at R155 million (1H F2015:
     R176 million). Unit cash costs increases were contained and capital expenditure was reduced at ARM Platinum.
-    The ARM Coal segment result reflected a headline loss of R129 million (1H F2015: R10 million headline loss) while cash
     operating profit was R321 million. Goedgevonden Mine made a headline loss of R24 million (1H F2015: R58 million
     headline earnings) while the PCB operations headline loss increased to R105 million (1H F2015: R68 million headline loss).
-    ARM Copper, which largely comprises the Vale/ARM joint venture interest in the Lubambe Mine, amounted to
     a headline loss of R275 million for the period (1H F2015: R233 million headline loss) which includes interest on
     shareholder loans of R104 million (1H F2015: R73 million). The increased loss is largely due to the 20% fall in
     US Dollar copper prices and the weaker average Rand versus US Dollar exchange rate at which the results are
     translated for consolidation purposes.
-    The costs for the ARM Exploration segment reduced to R10 million (1H F2015: R40 million) as no further costs were
     incurred on the Rovuma project.
-    The ARM Corporate, other companies and consolidation segment shows a positive contribution to headline earnings
     of R331 million (1H F2015: R199 million). The higher contribution is largely due to foreign exchange gains on loans
     made by ARM to Lubambe, resulting from the weakening of the Rand versus the US Dollar exchange rate from
     R12.16/US$ at 30 June 2015 to R15.46/US$ at 31 December 2015. The ARM Company loans to Lubambe amounted
     to US$148 million at 31 December 2015 (30 June 2015: US$133 million).

At 31 December 2015 cash and cash equivalents were R1 444 million (1H F2015: R1 976 million) the details of which
are reflected in note 5 to the financial statements. This excludes the attributable cash and cash equivalents held at
ARM Ferrous (50% of Assmang) of R2 036 million (1H F2015: R2 473 million).

Gross debt at the end of the period was slightly higher at R4 124 million (1H F2015: R3 920 million) of which R2 298 million
(1H F2015: R2 027 million) comprises partner loans. There is no debt at ARM Ferrous (1H F2015: nil).

The net debt position at 31 December 2015 amounts to R2 680 million (1H F2015: R1 944 million). The increase was
largely due to:
i.   increased borrowings at the Vale/ARM joint operation;
ii.  lower cash at Nkomati Mine; and
iii. increased borrowings at ARM corporate.

Cash generated from operations reduced to R473 million (1H F2015: R1 485 million) largely due to an increase in working
capital requirements of R256 million (1H F2015: R178 million decrease). The working capital utilisation arises mainly
due to payment of short-term provisions raised at 30 June 2015. Dividends received from the Assmang joint venture were
R500 million (1H F2015: R750 million).

Dividends paid to ARM shareholders in October 2015 were R761 million (1H F2015: R1 302 million).

Cash expended on capital expenditure was 19% or R133 million lower at R574 million for the period (1H F2015:
R707 million). Attributable capital expenditure at the Assmang joint venture was slightly lower at R779 million (1H F2015:
R802 million).

Events after the reporting date are set out in note 13 to the financial statements.

ARM Ferrous

All ARM Ferrous divisions contributed positively to headline earnings for the period. ARM Ferrous total headline earnings
declined by 28%, mainly due to a significant reduction in US Dollar commodity prices which was partially offset by the
weakening of the Rand versus the US Dollar exchange rate.

ARM Ferrous headline earnings

100% basis                                    six months ended 31 December
R million                                     2015           2014        % change
Iron ore division                              957          1 181            (19)
Manganese division                             193            472            (59)
Chrome division                                 78             56              39
Total                                        1 228          1 709            (28)
ARM share                                      614            855            (28)
Consolidation adjustments                     (15)           (22)
Total per IFRS financial statements            599            833            (28)

Iron ore sales volumes, on a 100% basis, increased by 6% to 7.9 million tonnes of which 6.5 million tonnes was sold to the
export market and 1.4 million to the local market. Beeshoek Mine concluded a three-year contract to supply 3 million tonnes
of iron ore per annum to Arcelor Mittal South Africa.

Manganese ore production volumes were 3% higher at 1 530 million tonnes while sales volumes were 1 471 million tonnes
compared to 1 422 million tonnes in 1H F2015. Export sales volumes comprised 1 433 million tonnes of the total sales while
38 thousand tonnes of the manganese ore was sold locally.

Manganese alloy sales and production volumes were negatively affected by the strategic decision to close down
uneconomical furnaces at both Machadodorp and Cato Ridge Works. In comparison to the same period last year an
additional two furnaces have been shut down. The only production remaining at the Machadodorp Works is the recovery of
ferrochrome from the slag dump through the Metal Recovery Plant, which has approximately 18 months left. At Cato Ridge
Works, only three of the six furnaces are currently producing high carbon and medium carbon ferromanganese.

ARM and Assore continue to evaluate the future of Machadodorp Works.

Chrome ore produced at Dwarsrivier Mine was 4% higher. Chrome ore sales volumes increased by 14% to 545 000 tonnes.

Assmang sales volumes 

100% basis                                         six months ended 31 December             
Thousand tonnes                                 2015          2014       % change              
Iron ore                                       7 920         7 496              6
Manganese ore*                                 1 471         1 422              3
Manganese alloys                                  80           112           (29)
Chrome ore                                       545           477             14
* Excluding intra-group sales.              

Assmang production volumes

100% basis                                    six months ended 31 December
Thousand tonnes                                2015           2014       % change
Iron ore                                      8 643          7 967              8
Manganese ore                                 1 530          1 487              3
Manganese alloys                                 73            133           (45)
Chrome ore                                      529            510              4

Successful implementation of various cost reduction initiatives, together with lower stripping ratio and improved production
efficiencies, resulted in Khumani Mine achieving a 19% reduction in on-mine unit production costs. On-mine unit production
costs reduced from R231.90 per tonne to R187.50 per tonne.

The efficiency improvement initiatives implemented also yielded the following results:
-  Optimised the value of the saleable ore by increasing lumpy ore yield and recovery from the mining pits. The lumpy
   yield improved from 50% to 52%.
-  Increased off-grade plant yield from 60% to 63%.
-  Optimised the life-of-mine pit designs, thus reducing the stripping ratio from 2.6 to 1.9 over the life of the mine.

Khumani Mine remains on track to achieve its stated target of a 15% reduction in on-mine unit production costs for the
2016 financial year.

Lower production volumes and increased stripping ratio at Beeshoek Mine resulted in a 22% increase to on-mine unit
production costs. The mining schedule for Beeshoek Village Pit is continuously being reviewed to minimise waste stripping
and right size its labour complement. A concerted effort is being made to significantly reduce its replacement capital.

On-mine unit production costs at the manganese operations increased by 4% in 1H F2016. A number of cost saving
and efficiency initiatives were launched at the mine. Through re-deployment and various other initiatives, the operation's
labour force was reduced by 750 people. The impact of these cost-saving and efficiency parameters is expected to flow
through in the costs of the mine in the second half of the 2016 financial year with cost savings of 10% being targeted for
the second half. Annualised cost savings of R47 million are expected to be realised by the end of the financial year through
procurement efficiencies and a further annualised cost saving of R235 million is expected through an improvement in
labour efficiency.

Assmang cost and EBITDA margin performance
                                                                On-mine
                                              Cost of   production cost
                                           sales unit         unit cost    EBITDA
                                        cost change**          change**    margin
Commodity group                                     %                 %         %
Iron ore*                                         (2)              (12)        36
Manganese ore                                      10                 4        17
Manganese alloys                                   30                16        13
Chrome Ore                                         26                15        19

*  Excluding the Khumani Mine housing element.
** Brackets refer to a decrease in unit costs while no brackets refer to an increase in unit costs in the above table.

ARM Ferrous' capital expenditure (on 100% basis) was R1.63 billion (1H F2015: R1.69 billion). This capital expenditure
includes R936 million which was spent on the Black Rock Project.

Beeshoek Mine's capital expenditure for the first six months of F2016 mainly comprised of the Village Pit waste stripping,
new load and haul equipment and the last phase of the relocation of the Village infrastructure. This project will increase
the life-of-mine from 2 to 10 years and will enable Beeshoek Mine to supply the product qualities to Arcelor Mittal South
Africa, as contracted.

Khumani Mine's capital expenditure mainly related to waste stripping, infill drilling, the purchase of mining equipment and
water infrastructure.

The Black Rock Project, currently in progress, represented the majority of the division's capital expenditure. Other capital
items at Black Rock included underground mining equipment, water storage dams and various risk mitigating projects.

Dwarsrivier Mine's capital expenditure mainly comprised of equipping the North Shaft underground development and the
installation of new equipment in the beneficiation plant.

ARM Ferrous management team continues to critically review all capital expenditure programmes and is implementing a
number of value-adding efficiency and cost-saving initiatives in response to the current challenges facing the global mining
industry.

ARM Ferrous capital expenditure by division

100% basis                                           six months ended 31 December
R million                                                    2015            2014
Iron ore                                                      518             710
Manganese                                                   1 049             849
Chrome                                                         66             130
Total                                                       1 633           1 689

Logistics

An agreement was reached with Transnet regarding the manganese ore export capacity as per the mine plan. All
manganese ore export volumes are now transported by rail, either to Saldanha or Port Elizabeth port. No manganese ore
volumes are transported by road.

ARM Ferrous continues to experience good service levels on its 14 million tonnes per annum iron ore export supply route
from Transnet.

Projects

Beeshoek Village Pit

The Village Pit capital project is progressing according to schedule and within budget. The waste stripping program will see
the first ore being produced from Village Pit in April 2016. The Village Pit projects extend the life-of-mine for Beeshoek from
2 to 10 years at a sustainable production rate of 3 million tonnes per annum.

An ore supply agreement to Arcelor Mittal South Africa has been secured for the next three years to the end of December
2018, which supports the development of the Village Pit.

The mining schedules for Village Pit are currently under review to align the mining programme to the production output of
3 million tonnes per annum planned for Beeshoek Mine, but also to ensure that the Village Pit is exploited effectively and
that waste stripping rates are minimised and product qualities are sustained.

The overall capital required for the project is reviewed on a continuous basis to ensure that the project objectives and
activities are continuously calibrated with the changes and challenges experienced within the iron ore market.

Black Rock Project

The objectives and capital schedule of the Black Rock Project is reviewed continuously to ensure that the project is aligned
with the challenges experienced within the manganese ore market, i.e. the low manganese ore price environment, as well
as the current over-supply of ore, experienced mainly as producers oversupplied carbonate ore into the market.

As a result of the review process the capital requirement for the Black Rock Project has been reduced from R6.7 billion to
R6.0 billion. Most of the underground development work that would have been executed by specialist contractors will now
be executed by Black Rock Mine, thus reducing the cost of this development and deferring the capital expenditure over a
three-year period. The management structures for the project have also been reviewed and streamlined to ensure the cost
efficient execution of the project. A portion of the scope of the project originally planned and scheduled has been deferred,
as part of the continuous review, which resulted in the deferment of approximately R100 million for the next 12 months.

The project is approximately 64% complete and good progress has been made with the construction of additional surface
infrastructure. The underground development and infrastructure, as well as the sinking of a new ventilation shaft is
proceeding according to plan. The preparation work for the shutdown to upgrade Nchwaning 2 shaft is progressing well and
all indications are that the planned shutdown, of four months, will proceed as planned. There will be sufficient stockpiles to
maintain sales volumes during the shutdown.

Primary focus of the project remains:
-    Modernisation of the mine to optimise resource exploitation and to maximise utilisation of production hours, production
     fleet and mining equipment.
-    Cost efficient exploitation of Seam 1 and Seam 2 manganese resources at the Nchwaning mining complex, targeting
     the production of high-grade manganese products.
-    Modernisation of the surface plant infrastructure to ensure the cost efficient processing and separation of the various
     high-grade manganese products from the two Seams.
-    Creating flexibility within the underground operations at the Nchwaning Shafts to ensure that the mine can effectively
     react to changes in market product requirements.
-    Creating the ability to exploit the high-grade ore within Nchwaning 1.
-    Establishment of the load-out capacity and efficiency required to meet the requirements as set by Transnet for the
     Nqura port facility.

Sakura Ferroalloys Project

Construction of the Sakura furnace complex in Eastern Malaysia is progressing well and cold commissioning activities are
underway on the raw material handling and furnace sub-systems. Operational teams are preparing for hot commissioning
activities across the plant. All raw materials have been delivered to site for first production. It is anticipated that both
furnaces will reach full production as planned, in the last quarter of the current calendar year. The project remains within
budget in USD terms.

Sakura is currently utilising the Bintulu port until the Samalaju port is completed.

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

ARM Platinum

ARM Platinum achieved good operational performance, delivering increased production combined with exceptional cost
control, at all three operations.

The significant downturn in world metal markets during the six months under review had a substantial, negative financial
impact. While Two Rivers Mine generated a profit, losses were recorded by both Modikwa and Nkomati mines. The sharp
decline in US Dollar commodity prices during the reporting period resulted in an attributable headline loss for ARM Platinum
of R9 million (1H F2015: R277 million headline earnings).

US Dollar prices were significantly lower than the corresponding period but a 24% weakening of the Rand against the
US Dollar provided some cushioning, resulting in the average Rand basket prices for Modikwa and Two Rivers decreasing
by approximately 11% to R301 574/kg (1H F2015: R340 452/kg) and by 12% to R303 612/kg (1H F2015: R346 072/kg)
respectively.

The tables below set out the relevant price comparison:

Average US Dollar metal prices
                                         Average for the six months ended 31 December               
                                                            2015     2014    % change
Platinum                                          US$/oz     948    1 332        (29)
Palladium                                         US$/oz     610      825        (26)
Rhodium                                           US$/oz     721    1 188        (39)
Gold                                              US$/oz   1 114    1 242        (10)
Nickel                                             US$/t   9 732   16 935        (43)
Copper                                             US$/t   4 940    6 746        (27)
Chrome concentrate (CIF)                           US$/t     109      148        (26)

Average Rand metal prices
                                         Average for the six months ended 31 December
                                                 2015            2014        % change
Exchange rate                     R/US$         13.61           10.99              24
Platinum                           R/oz        12 901          14 638            (12)
Palladium                          R/oz         8 308           9 071             (8)
Rhodium                            R/oz         9 819          13 053            (25)
Gold                               R/oz        15 167          13 645              11
Nickel                              R/t       132 456         186 119            (29)
Copper                              R/t        67 234          74 136             (9)
Chrome concentrate (CIF)            R/t         1 639           1 623               1

PGM production (on 100% basis including Nkomati) increased by 10% to 437 207 6E ounces (1H F2015: 396 813
6E ounces). Nkomati's nickel production increased by 9% to 11 554 tonnes (1H F2015: 10 587 tonnes), while copper
production increased by 14%, mainly as a result of a 7% increase in head grade.

Nkomati Mine's C1 unit cash cost net of by-products decreased by 12% to US$4.40/lb (1H F2015: US$5.00/lb) of nickel
produced.

Two Rivers Mine managed to keep its unit cash cost well under control at R5 368/6E PGM ounce (1H F2015: R5 376/6E
PGM ounce). Modikwa Mine's unit cash cost reduced by 1% to R7 970/6E PGM ounce (1H F2015: R8 029/6E PGM ounce)
due to an 8% increase in PGM production.

ARM and Implats have agreed to increase ARM's shareholding in Two Rivers Mine by 3% from 51% to 54% on incorporation
of the Tamboti rights into Two Rivers Mine. Based on previous drilling results available, the Tamboti property, located
adjacent to Two Rivers Mine, will add approximately 6.73 million 6E PGM ounces to the Two Rivers resource.

ARM Platinum capital expenditure

100% basis                                               six months ended 31 December
                                                                 2015            2014
Modikwa                                                           195             418
Two Rivers                                                        180             156
Nkomati                                                           108              66
Nkomati capitalised waste stripping                               220             176
Total                                                             703             816

Capital expenditure at ARM Platinum operations (on 100% basis) was R703 million (R442 million attributable).

As previously reported, market conditions necessitated Modikwa's capital projects to be reviewed with the view to reduce
capital expenditure without adversely affecting the mine's future ability to ramp-up production. During F2015, the following
actions were implemented:
-  Deferral of capital expenditure at North Shaft;
-  Restructuring of the South 1 and South 2 shafts to enable operational synergies and cost savings; and
-  Continuation of the capital project at South 2 to improve mining flexibility – stoping commenced in June 2015 and
   project completion is expected in May 2016.

The above steps have reduced capital spending at Modikwa by 53% to R195 million (1H F2015: R418 million) during the
period under review.

Of the capital spent at Two Rivers, 45% is associated with fleet replacement and refurbishment. The deepening of the Main
and North declines, together with its electrical and mechanical installations, comprised 42% of the total capital expenditure.

Nkomati Mine's major capital expenditure items include a new cleaner bank for the MMZ plant (R58 million), and the
installation of an anchored pile wall (R15 million). Due to the sharp decline in base metal prices, capital spending at
Nkomati has been reduced substantially in the latter part of the reporting period while a revised production profile (reduced
waste stripping) was implemented at the same time (refer to Nkomati section below).

Modikwa Mine

Implementation of a recovery plan at Modikwa Mine, which focuses on operational and labour efficiencies, enforcing
discipline and increasing availability of face length, all of which will enhance mining flexibility, commenced at the end
of F2015. The recovery plan has started showing results, with Modikwa delivering an 8% increase in PGM ounces
when compared with the previous reporting period. Modikwa Mine's attributable headline loss for the period is R47 million
(1H F2015: break-even), a direct result of an 11% decline in the average Rand basket price as well as the provision of an
amount of R22 million for restructuring costs.

A 6% increase in milled tonnes, combined with a 1% increase in head grade, resulted in PGM production increasing by 8%
to 149 326 6E ounces (1H F2015: 138 482 6E ounces). Consequently, unit costs decreased by 1% to R7 970 per 6E PGM
ounce (1H F2015: R8 029 per 6E PGM ounce).

To mitigate the effect of the unfavourable market conditions and ensure the long-term viability of Modikwa, the mine has
initiated Voluntary Separation as well as a Section 189 process, which will result in a reduction in labour.

Modikwa Mine operational statistics

100% basis                                               six months ended 31 December
                                                        2015        2014     % change
Cash operating (loss)/profit            R million       (14)          82        (117)
Tonnes milled                                  Mt       1.03        0.98            5
Head grade                                g/t, 6E       5.33        5.27            1
PGMs in concentrate                    Ounces, 6E    149 326     138 482            8
Average basket price                     R/kg, 6E    301 574     340 452         (11)
Average basket price                   US$/oz, 6E        689         964         (29)
Cash operating margin                          %         (1)           7
Cash cost                                R/kg, 6E    256 237     258 137          (1)
Cash cost                                 R/tonne      1 156       1 140            1
Cash cost                                 R/Pt oz     20 610      20 749          (1)
Cash cost                                R/oz, 6E      7 970       8 029          (1)
Cash cost                              US$/oz, 6E        586         731         (20)
Headline loss attributable to ARM       R million       (47)           –

Two Rivers Mine

Headline earnings attributable to ARM decreased by 12%, of which 6% can be ascribed to the reduction in ARM's
shareholding in Two Rivers (which fell from 55% to 51% on 6 February 2015) and 6% is a direct result of lower commodity
prices. Tonnes milled was 1% higher while the head grade increased by 3%, resulting in PGMs increasing by 6% to
198 063 6E ounces.

Cost control measures resulted in unit costs remaining flat at R5 368 per 6E ounce (1H F2015: R5 376 per 6E ounce).
There was an approximate 21 000 tonne increase in the UG2 Run of Mine stockpile to a total of 504 835 tonnes of ore
(1H F2015: 483 411 tonnes). Two Rivers has entered into a toll treatment agreement with Modikwa to process some of
its stockpile material, thereby enhancing its working capital.

Two Rivers Mine increased chrome concentrate sales by 27% to 140 870 tonnes, contributing R80 million (1H F2015:
R61 million) to cash operating profit (on 100% basis).

Two Rivers Mine operational statistics
             
100% basis                                              six months ended 31 December
                                                            2015      2014   % change
Cash operating profit                         R million      645       744       (13)
– PGMs                                        R million      566       683       (17)
– Chrome                                      R million       80        61         31
Tonnes milled                                        Mt     1.70      1.69          1
Head grade                                      g/t, 6E     4.09      3.97          3
PGMs in concentrate                          Ounces, 6E  198 063   187 291          6
Chrome concentrate sold                          Tonnes  140 870   111 104         27
Average basket price                           R/kg, 6E  303 612   346 072       (12)
Average basket price                         US$/oz, 6E      694       979       (29)
Cash operating margin                                 %       35        40
Cash cost                                      R/kg, 6E  172 594   172 837        (0)
Cash cost                                       R/tonne      626       597          5
Cash cost                                       R/Pt oz   11 582    11 530          0
Cash cost                                      R/oz, 6E    5 368     5 376        (0)
Cash cost                                    US$/oz, 6E      394       489       (19)
Headline earnings attributable to ARM         R million      155       176       (12)
             
Nkomati Mine

A 30% decline in the average Rand nickel price resulted in an attributable headline loss of R117 million (1H F2015:
R101 million headline earnings) for the period under review. Chrome concentrate sales increased by 4% to 195 583 tonnes
(1H F2015: 188 079 tonnes), contributing R130 million to cash operating profit (1H F2015: R117 million).

Nkomati Mine's tonnes milled increased by 7% to 4.19 million tonnes. This, combined with a 7% increase in the average
head grade, resulted in nickel units produced increasing by 9% to 11 554 tonnes (1H F2015: 10 587 tonnes), while copper
production increased by 14% and PGM production by 26%.

Nkomati Mine's C1 unit cash costs net of by-products decreased by 12% to US$4.40/lb (1H F2015: US$5.00/lb) as a result
of higher volumes produced, the weakening of the R/US$ exchange rate and increased by-product credits. Unit cost per
tonne milled increased 8% to R313 per tonne (1H F2015: R291 per tonne).

The 8% increase in unit cost per tonne milled is mainly due to the new mining contractor ramping up tonnes mined from
11.4 million tonnes in 1H F2015 to 15.3 million tonnes in 1H F2016.

During December 2015, a restructuring and cash preservation plan was implemented by introducing the following measures:
-   Stop all mining in the loss making underground operation;
-   Cut-back on waste stripping for a period of four months, resulting in a maximum of 1.5 million tonnes mined per month.
    The reduction in waste stripping will not affect the milling profile;
-   Initiation of Voluntary Separation and a Section 189 process to reduce the labour force;   
-   Termination of all incentive schemes;
-   Termination of the services of all non-core contractors; and    
-   Cease all non-core operating costs and capital expenditure.

Nkomati Mine operational statistics

100% basis                                                                        six months ended 31 December
                                                                                  2015               2014      % change
Cash operating (loss)/profit                               R million              (132)               447         (130)
– Nickel Mine                                              R million              (261)               330         (179)
– Chrome Mine                                              R million                130               117            11
Cash operating margin                                              %                (6)                17
Tonnes milled                                                     Mt               4.19              3.92             7
Head grade                                                  % nickel               0.39              0.36
Nickel on-mine cash cost per tonne milled                    R/tonne                313               291             8
Cash cost net of by-products*                                 US$/lb               4.40              5.00          (12)
Contained metal
Nickel                                                        Tonnes             11 554            10 587             9
PGMs                                                          Ounces             89 818            71 040            26
Copper                                                        Tonnes              5 250             4 625            14
Cobalt                                                        Tonnes                552               556           (1)
Chrome concentrate sold                                       Tonnes            195 583           188 079             4
Headline (loss)/earnings attributable to ARM               R million              (117)               101          (216)

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

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 Implats, with ARM holding 51% and Implats 49%. ARM and Implats
          have agreed to increase ARM's shareholding in Two Rivers by 3% from 51% to 54% on incorporation of the Tamboti
          rights into Two Rivers Mine.
       -  Nkomati – a 50:50 partnership between ARM and Norilsk Nickel Africa.
-      Two prospecting rights:
       -  The "Kalplats prospecting right" in which ARM Platinum holds 46% and Platinum Australia (PLA) holds 44%, with
          Anglo American holding 10%.
       -  The "Kalplats Extended Area prospecting right" in which ARM Platinum and PLA each have a 50% interest.

ARM Coal

The continued oversupply of the seaborne thermal coal resulted in US Dollar coal prices declining by 24% compared
to 1H F2015 and, although the Rand weakened by 24% in the period under review in comparison to the average for
1H F2015, the Rand price realised for export coal was 7% lower than in 1H F2015. The cash operating profit for 1H F2016
was R77 million lower than 1H F2015, mainly due to the decline in revenue.

Overall cost of sales was in line with 1H F2015 but cost control at all operations yielded a commendable reduction in
operational costs and a 2% reduction in on-mine unit costs. The headline loss of R129 million for the six months was
R119 million higher than the previous corresponding period, mainly due to the decline in the operating profit, higher interest
and an increase in the amortisation charge.

ARM Coal cash operating profit was R321 million for the reporting period (1H F2015: R398 million).

ARM Coal attributable profit analysis

                                                               six months ended 31 December
R million                                                      2015           2014       % change
Cash operating profit                                           321            398           (19)
Less: Interest paid                                           (240)          (189)           (27)
      Amortisation                                            (223)          (198)           (13)
      Fair value adjustments                                   (36)           (24)           (50) 
Loss before tax                                               (178)           (13)         >(250)
Less: Tax                                                        49              3           >250
Headline loss attributable to ARM                             (129)           (10)         >(250)

Goedgevonden Mine

The saleable production is 24% lower than the first six months of the previous financial year due to mining entering a
localised, geological, mineralisation discontinuity and thinning of coal seams (Pre-Karoo area) which was necessary to
mine through in order to maintain the strip mining continuation. The Pre-Karoo area impacted both the coal quantity per
area as well as the quality thus impacting the yield. Mining through this area is completed and it is the only Pre-Karoo
occurrence that has been identified on the reserves. A 10-day wage negotiation related strike that affected major coal
producers also contributed to the decline in production.

The attributable cash operating profit of R126 million was R90 million lower than 1H F2015 resulting mainly from a decline
of 33% in export sales volumes and 26% reduction in US Dollar prices. These lower prices and sales volumes resulted
in a decrease of R276 million in revenue which was, to some extent, offset by the weaker Rand, and higher Eskom sales
volumes and prices.

Cost of sales was R43 million lower than 1H F2015, mainly due to savings in on-mine costs and distribution costs. Although
on-mine costs were R30 million lower than the previous reporting period, on-mine costs per saleable tonne was 14% higher
as a result of the decrease in production volumes. The lower operating profit and increase in finance costs resulted in
Goedgevonden Mine reflecting a headline loss of R24 million for 1H F2016 compared to headline earnings of R58 million
for 1H F2015.

Goedgevonden Mine operational statistics
                                                             six months ended 31 December
                                                              2015           2014        % change
Total production sales (100% basis)
Saleable production                                   Mt      3.33           4.40            (24)
Export thermal coal sales                             Mt      1.98           2.97            (33)
Eskom thermal coal sales                              Mt      1.77           1.20              48
Attributable production and sales 
Saleable production                                   Mt      0.87           1.14            (24)
Export thermal coal sales                             Mt      0.51           0.77            (34)
Eskom thermal coal sales                              Mt      0.46           0.31              48
Average received coal price 
Export (FOB)                                   US$/tonne     43.54          59.05            (26)
Eskom (FOT)                                      R/tonne    251.81         194.97              29
On-mine saleable cost                            R/tonne    215.50         189.10              14
Cash operating profit
Total                                          R million       483            830            (42)
Attributable (26%)                             R million       126            216            (42)
Headline (loss)/earnings attributable to ARM   R million      (24)             58           (141)
 
Goedgevonden Mine attributable profit analysis
                                                            six months ended 31 December
R million                                                    2015           2014         % change
Cash operating profit                                         126            216             (42)
Less: Interest paid                                          (89)           (63)             (41)
      Amortisation                                           (62)           (61)              (2)
      Fair value adjustments                                  (8)           (11)               27
Profit before tax                                            (33)             81            (141)
Less: Tax                                                       9           (23)              139
Headline (loss)/earnings attributable to ARM                 (24)             58            (141)

Participating Coal Business (PCB)

The mines comprising the PCB business reflected a 6% increase in saleable production for the half year aided by the
commissioning of the Tweefontein Optimisation Project (TOP).

The attributable cash operating profit increased from R182 million to R195 million as a result of a 9% increase in revenue
offset by a 6% increase in cost of sales. Export revenue was R341 million higher due to higher sales volumes and the
weaker Rand. A 23% decline in export prices, however, impacted negatively on profit by R254 million.

Even with an increase in production volumes total on-mine costs, in absolute terms, decreased by R37 million. On-mine
unit costs per saleable tonne decreased by 14% from R341 to R293 per tonne.

Total distribution costs were higher than 1H F2015 due to an increase of 17% in export volumes and the amortisation
charge increased by 26% resulting mainly from the commissioning of the TOP Project. PCB recorded a headline loss of
R105 million for 1H F2016 which is R37 million higher than the headline loss in 1H F2015 due to an increase in finance
costs and amortisation.

The TOP Project is fully commissioned and the conversion from predominantly underground mining to opencast mining is
completed. The conversion has resulted in a reduction in a on-mine production costs per tonne to R293.20 per tonne, 14%
lower than the previous corresponding period.

Participating Coal Business operational statistics
                                                                   six months ended 31 December
                                                                        2015      2014   % change
Total production sales (100% basis)
Saleable production                                            Mt        6.78     6.38          6
Export thermal coal sales                                      Mt        6.95     5.96         17
Eskom thermal coal sales                                       Mt        0.67     0.89       (25)
Local thermal coal sales                                       Mt        0.44     0.65       (32)
Attributable production and sales
Saleable production                                            Mt        1.37     1.29          6
Export thermal coal sales                                      Mt        1.40     1.20         17
Eskom thermal coal sales                                       Mt        0.14     0.18       (22)
Local thermal coal sales                                       Mt        0.09     0.13       (31)
Average received coal price
Export (FOB)                                            US$/tonne       44.68    57.99       (23)
Eskom (FOT)                                               R/tonne      230.74   213.89          8
Local (FOR)                                               R/tonne      428.75   327.73         31
On-mine saleable cost                                     R/tonne      293.20   341.23       (14)
Cash operating profit
Total                                                   R million         966      899          7
Attributable (20.2%)                                    R million         195      182          7 
Headline loss attributable to ARM                       R million       (105)     (68)       (54)

Participating Coal Business attributable profit analysis
                                                                      six months ended 31 December
R million                                                               2015      2014   % change
Cash operating profit                                                    195       182          7
Less: Interest paid                                                    (151)     (126)       (20)
      Amortisation                                                     (161)     (137)       (18)
      Fair value adjustments                                            (28)      (13)      (115)
Loss before tax                                                        (145)      (94)       (54)
Less: Tax                                                                 40        26         54
Headline loss attributable to ARM                                      (105)      (68)       (54)

Projects

Tweefontein Optimisation Project (TOP)

The project has been commissioned and the production ramp up is in line with the plan. Operations are expected to reach
the steady state production rate by the end of this financial year.

Construction progress is at 97% with only minor, non-production areas which include the diversion of the provisional road
still having to be completed. The project still has cost savings of R600 million.

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

ARM Copper's attributable operating loss increased by 13% to R 234 million mainly as a result of the continued decline in
the copper price coupled with lower copper production volumes. Production volumes at the mine were negatively impacted
by power shortages in Zambia and wage related industrial action.

The average copper price dropped by 25% from US$6 807 per tonne in 1H F2015 to US$5 081 per tonne in 1H F2016.
Post the reporting period, the price deteriorated further to a low of US$4 400/tonne in January 2016. The decline in the
copper price contributed a revenue reduction of US$20.2 million compared to the previous comparable period. Seven
production days were lost during July 2015 following a wage-related strike while electrical power supply disruption resulted
in 10 days of production being lost during the reporting period.

The improvement in head grade and plant recoveries, which commenced in the last quarter of F2015, have continued.
The improvement in head grade is mostly due to a reduction in stoping and development dilution brought about by technical
mining changes implemented during the last year.

Despite lower volumes, the mine managed to reduce C1 unit production costs by 23% to US$2.39/lb (1H F2015: US$3.10/lb)
following the closure of the vertical shaft and mining being focussed only on the East Limb area together with the
implementation of efficiency improvement measures.

ARM Copper headline loss increased to R275 million from R233 in 1H F2015.

The outlook for the copper price in the short to medium term has also declined substantially in the last six months.
The indications are that low prices are expected to persist for longer than was initially projected. As a result of the reduction
in copper prices, a reduction in planned copper production volumes and the application of higher discount rates in the
valuation of the Lubambe Mine the evaluation of the carrying value of assets at Lubambe Mine resulted in an attributable
impairment provision of R1 404 million after non-controlling interest.

Lubambe Mine operational statistics
                                                                                     six months ended 31 December
100% basis                                                                           2015           2014        % change
Waste development                                                      Metres       2 081          2 701            (23)
Ore development                                                        Metres       2 792          2 809             (1)
Ore development                                                        Tonnes     173 167        156 009              11
Ore stoping                                                            Tonnes     548 114        727 225            (25)
Ore tonnes mined                                                       Tonnes     721 281        883 234            (18)
Tonnes milled                                                        Thousand     715 007        859 979            (17)
Mill head grade                                                      % copper        2.00           1.83               9
Concentrator recovery                                                       %        81.1           80.0               1
Copper concentrate produced                                            Tonnes      28 598         29 879             (4)
Copper concentrate sold                                                Tonnes      28 550         30 299             (6)
Average realised copper price                                          US$/lb        2.30           2.88            (20)
C1 cash cost per pound of copper produced                              US$/lb        2.39           3.11            (23)
Capital expenditure                                                    US$000       7 443         22 775            (67)
Contained metal                         
Copper produced                                                        Tonnes      11 711         12 563             (7)
Copper sold                                                            Tonnes      11 714         12 718             (8)
Headline loss attributable to ARM (40%)                             R million       (275)          (233)            (18)

Lubambe Copper Mine

The decision taken in the last quarter of F2015 to stop mining of the South Limb and to only mine the East Limb has had a
positive impact on the mine in view of the increased head grade and recoveries despite the reduction on the tonnes milled.
The tonnes milled was reduced by 17% to 715 007 tonnes but the contained copper produced was only reduced by 4%.
This is due to a 9% increase in copper head grade and a 1% improvement in copper concentrator recoveries.

The adaptation to the mining method implemented during 2H F2015 is delivering favourable results with improvements
in mining dilution contributing to the 9% increase in copper head grade. The revised mining method enables better
development placement within the orebody and also facilitates parallel drilling which enables improved extraction, reduced
dilution and lower drilling and explosives costs.

Improvements in production costs have been progressing month by month and give a positive indication that long-
term sustainable unit production costs could be achieved. Overall, cash costs per tonne milled has reduced by 14% from
US$100/tonne milled in 1H F2015 to US$86/tonne milled in 1H F2016. This improvement, combined with the increase in
head grade, culminated in the 23% reduction in C1 unit cost from US$3.10/lb to US$2.39/lb.

Notwithstanding the progress made in the reduction of costs, the effect of the sustained lower copper prices has
necessitated further production curtailment. The mine is under review to minimise cash requirements and preserve the
value of its resources.

Lubambe Extension Project

The hydrogeological hole drilled has been put on hold until an opportune time when the copper price has recovered.

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

ARM Strategic Services and Exploration

The Strategic Services and Exploration division undertakes information technology, technical support, strategic support,
project development, exploration and new business opportunity evaluations.

Costs for the ARM Strategic Services & Exploration division were reduced by 75% to R10 million (1H F2015: R40 million).

Projects

The Projects Development team works closely with the operating divisions to manage major capital projects. Projects
currently under development include the Black Rock Mine efficiency and modernisation project. The project is on schedule
and there are no major concerns.

The other major project underway is the Sakura Ferroalloys Project. The project is post-peak construction and cold
commissioning has started.

Exploration and New Business

ARM has established a focused team to identify new mineral business opportunities for sustainable and value enhancing
development. The team also continues to assess a number of acquisition opportunities in this regard.

Harmony Gold Mining Company Limited (Harmony)

Harmony's headline loss for the six months ended 31 December 2015 reduced by 41% to R449 million (1H F2015: R763 million).
In the second quarter of the 2016 financial year Harmony reported a headline profit of R74 million.

Harmony's revenue increased by 10% quarter on quarter as a result of the 3% increase in gold volumes sold to 8 999kg and
a 7% increase in the average gold price received at R507 490/kg in the December 2015 quarter.

The company's production costs decreased by 5% to R3.28 billion in the December 2015 quarter. The decrease is mainly
a result of the decrease in electricity costs of R189 million due to the higher, winter electricity price tariffs included in the
September 2015 quarter.

In the December 2015 quarter, Harmony repaid R1.12 billion of its debt. Repayments consisted of US$50 million on Harmony's
US$250 million Revolving Credit Facility and R400 million on the company's R1.3 billion facility.

On 15 February 2016, Harmony announced the results of the Golpu Stage 1 Feasibility and Stage 2 Prefeasibility studies and
declared updated Resources and Reserves for the Golpu project. Harmony, who owns 50% of the asset, described the Golpu
porphyry as a world-class resource due to its size, high grades, long-life and low operating costs. The design of the mine is
expected to allow optionality and flexibility to scale the operation up with a relatively low capital investment in response to
increasing commodity prices.

The Stage 1 project capital, on a 100% basis, is estimated at US$2.6bn, yielding an internal rate of return of 16%. Harmony
is continuing to engage with key stakeholders, including the PNG national government, the Morobe provincial government,
landowners and community representatives in order to ensure clear alignment on the project objectives with affected
stakeholders.

The ARM Statement of Financial Position, as at 31 December 2015, reflects a mark-to-market investment in Harmony of
R993 million (1H F2015: R1 375 million) at a share price of R15.60 per share (1H F2015: R21.61 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 2015 can be viewed on Harmony's website at www.harmony.co.za.

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

Outlook

The significant fall in US Dollar commodity prices continued during the reporting period as producers took longer than
anticipated to remove high-cost production across most commodities. Since the end of the reporting period there have,
however, been increasing indications of further cuts to mining production and closures of operations globally.

For the short to medium term, notwithstanding that commodity prices appear to be stabilising at current levels, ARM is
guiding its operations to continue with cost cutting initiatives, technical innovation and capital expenditure reviews to ensure
that operational profits and cash flows are optimised and that where shareholder funding is required, this is minimised.

ARM is critically reviewing non-performing operations and assessing whether these have potential to achieve improved
results in the future, especially those operations which are positioned above the 50th percentile of the global cost curve.

With relatively low gearing and an attractive long-life asset portfolio, ARM is well positioned to continue assessing
opportunities to grow.

ARM invests into mines for the long term and has long-life mines. ARM is positive about a future recovery in commodity
prices and therefore believes that all steps taken now to improve productivity, unit costs and profitability will position the
company well into the future.

Review by independent auditors

The financial results for the six months ended 31 December 2015 have not been reviewed or audited by the Company's
registered auditors, Ernst & Young Inc.

Signed on behalf of the Board:

P T Motsepe                   M P Schmidt
Executive Chairman            Chief Executive Officer

Johannesburg
11 March 2016

Financial statements

Group statement of financial position
as at 31 December 2015             
                                                                                      Unaudited             Audited
                                                                                  Six months ended       Year ended
                                                                                    31 December             30 June
                                                                                  2015            2014         2015
                                                                        Note        Rm              Rm           Rm
ASSETS             
Non-current assets             
Property, plant and equipment                                              3    11 155          12 733       12 218
Intangible assets                                                                  143             156          149
Deferred tax assets                                                                565             438          565
Loans and long-term receivables                                                     43              53           48
Financial assets                                                                     –               2            1
Investment in associate                                                          1 258           1 199        1 363
Investment in joint venture                                                4    14 161          14 385       14 094
Other investments                                                                1 172           1 556        1 178
                                                                                28 497          30 522       29 616
Current assets             
Inventories                                                                        844             893          852
Trade and other receivables                                                      2 729           3 043        2 542
Taxation                                                                             5               1            3
Financial assets                                                                     2               –            1
Cash and cash equivalents                                                  5     1 444           1 976        2 257
                                                                                 5 024           5 913        5 655
Assets held for sale                                                       6        –               12           12
Total assets                                                                    33 521          36 447       35 283
EQUITY AND LIABILITIES             
Capital and reserves             
Ordinary share capital                                                              11              11           11
Share premium                                                                    4 210           4 178        4 183
Other reserves                                                                   1 158           1 099        1 212
Retained earnings                                                               18 161          20 810       20 113
Equity attributable to equity holders of ARM                                    23 540          26 098       25 519
Non-controlling interest                                                           999           1 528        1 386
Total equity                                                                    24 539          27 626       26 905
Non-current liabilities             
Long-term borrowings                                                       7     2 767           2 363        2 511
Non-current financial liabilities                                                    –               7            –
Deferred tax liabilities                                                         1 984           1 936        1 970
Long-term provisions                                                               630             630          656
                                                                                 5 381           4 936        5 137
Current liabilities             
Trade and other payables                                                         1 872           1 977        1 452
Short-term provisions                                                              303             302          322
Taxation                                                                            69              41           96
Current financial liabilities                                                        –               8            –
Overdrafts and short-term borrowings – interest-bearing                    7     1 357           1 557        1 371
                                                                                 3 601           3 885        3 241
Total equity and liabilities                                                    33 521          36 447       35 283

Group income statement
for the six months ended 31 December 2015
                                                                                     Unaudited              Audited
                                                                                 Six months ended        Year ended
                                                                                   31 December              30 June
                                                                                 2015           2014           2015
                                                               Note                Rm             Rm             Rm
Revenue                                                                         4 708          5 210         10 227
Sales                                                                           4 332          4 829          9 263
Cost of sales                                                                 (4 124)        (4 011)        (7 854)
Gross profit                                                                      208            818          1 409
Other operating income                                                            925            576          1 225
Other operating expenses                                                        (760)          (785)        (1 594)
Profit from operations before special items                                       373            609          1 040
Income from investments                                                            87             76            192
Finance costs                                                                   (153)           (74)          (250)
Loss from associate                                                             (105)           (68)          (186)
Income from joint venture*                                        4               567            830          1 289
Profit before taxation and special items                                          769          1 373          2 085
Special items                                                     8           (1 855)          (273)        (1 659)
(Loss)/profit before taxation                                                 (1 086)          1 100            426
Taxation                                                         10             (189)          (208)          (353)
(Loss)/profit for the period                                                  (1 275)            892             73
Attributable to:
Non-controlling interest                                                        (279)             91           (31)
Equity holders of ARM                                                           (996)            801            104
                                                                              (1 275)            892             73
Additional information
Headline earnings (R million)                                     9               507          1 026          1 744
Headline earnings per share (cents)                                               233            473            803
Basic (loss)/earnings (R million)                                               (996)            801            104
Basic (loss)/earnings per share (cents)                                         (458)            369             48
Diluted headline earnings per share (cents)                                       232            470            799
Diluted basic (loss)/earnings per share (cents)                                 (455)            367             48
Number of shares in issue at end of period (thousands)                        217 935        217 438        217 491
Weighted average number of shares in issue (thousands)                        217 550        217 023        217 232
Weighted average number of shares used in calculating
 fully diluted earnings per share (thousands)                                 218 650        218 315        218 222
Net asset value per share (cents)                                              10 801         12 003         11 733
EBITDA (R million)                                                                891          1 130          2 087
Dividend declared after year-end (cents)                                            –              –            350
  
* Impairment included in income from joint venture R44 million before tax of R12 million (1H 2015: Rnil; F2015: R406 million 
  before tax of R114 million).

Group statement of comprehensive income
for the six months ended 31 December 2015
                                                                                                      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 2015
 (Unaudited)
Loss for the period                                               –            –        (996)         (996)          (279)     (1 275)
Other comprehensive income that may
 be reclassified to the income statement
 in subsequent periods:
 Revaluation of listed investment*                                1            –            –             1              –           1
 Deferred tax on above                                            –            –            –             –              –           –
Net impact of above                                               1            –            –             1              –           1
Foreign currency translation reserve movement                     –        (121)            –         (121)              –       (121)
Total other comprehensive income/(loss)                           1        (121)            –         (120)              –       (120)
Total comprehensive income/(loss) for the period                  1        (121)        (996)       (1 116)          (279)     (1 395)
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 (loss)/income                       (272)           67            –         (205)              –       (205)
Total comprehensive (loss)/income for the year                (272)           67          801           596             91         687
Year ended 30 June 2015 (Audited)
Profit for the year                                               –            –          104           104           (31)          73
Other comprehensive income that may
 be reclassified to the income statement
 in subsequent periods:
Revaluation of listed investment                              (990)            –            –         (990)              –       (990)
Deferred tax on above                                           184            –            –           184              –         184
Reclassification to income statement                            656            –            –           656              –         656
Deferred tax on above                                         (122)            –            –         (122)              –       (122)
Net impact of revaluation of listed investment                (272)            –            –         (272)              –       (272)
Foreign currency translation reserve movement                     –          104            –           104              –         104
Total other comprehensive (loss)/income                       (272)          104            –         (168)              –       (168)
Total comprehensive (loss)/income for the year                (272)          104          104          (64)           (31)        (95)
   
* The fair value of the available-for-sale listed investment is determined with reference to the market share price.

Group statement of changes in equity
for the six months ended 31 December 2015
                                                          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 2015
 (Unaudited)
Balance at 30 June 2015                                   4 194            –    1 212      20 113      25 519         1 386     26 905
 Loss for the period                                          –            –        –       (996)       (996)         (279)    (1 275)
 Other comprehensive income/(loss)                            –            1    (121)           –       (120)             –      (120)
Total comprehensive income/(loss)
 for the period                                               –            1    (121)       (996)     (1 116)         (279)    (1 395)
Share-based payments                                          –            –       93           –          93             –         93
Bonus and performance shares
 issued to employees                                         27            –     (27)           –           –             –          –
Dividend paid                                                 –            –        –       (761)       (761)             –      (761)
Dividend paid to Impala Platinum                              –            –        –           –           –         (108)      (108)
Changes due to insurance restructuring
 – net of tax                                                 –            –        –       (195)       (195)             –      (195)
Balance at 31 December 2015                               4 221            1    1 157      18 161      23 540           999     24 539
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 (loss)/income                            –        (272)       67           –       (205)             –      (205)
Total comprehensive (loss)/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
Year ended 30 June 2015 (Audited)
Balance at 30 June 2014                                   4 119          272      986      21 311      26 688         1 511     28 199
 Profit/(loss) for the year                                   –            –        –         104         104          (31)         73
 Other comprehensive (loss)/income                            –        (272)      104           –       (168)             –      (168)
Total comprehensive (loss)/income
 for the year                                                 –        (272)      104         104        (64)          (31)       (95)
Share-based payments                                          –            –      193           –         193             –        193
Share options exercised                                      30            –        –           –          30             –         30
Bonus and performance shares
 issued to employees                                         45            –     (45)           –           –             –          –
Dividend paid                                                 –            –        –     (1 302)     (1 302)             –    (1 302)
Dividend paid to Impala Platinum                              –            –        –           –           –         (277)      (277)
Dilution in Two Rivers                                        –            –     (26)           –        (26)           183        157
Balance at 30 June 2015                                   4 194            –    1 212      20 113      25 519         1 386     26 905

Group statement of cash flows
for the six months ended 31 December 2015
                                                                                                       Unaudited               Audited
                                                                                                   Six months ended         Year ended
                                                                                                     31 December               30 June
                                                                                                  2015              2014          2015
                                                                                         Note       Rm                Rm            Rm
CASH FLOW FROM OPERATING ACTIVITIES
Cash receipts from customers                                                                     4 655             5 578        11 093
Cash paid to suppliers and employees                                                           (4 182)           (4 093)       (8 585)
Cash generated from operations                                                             11      473             1 485         2 508
Interest received                                                                                   65                64           120
Interest paid                                                                                     (32)              (55)         (109)
Dividends received                                                                                   –                 –             1
Dividends received from joint venture                                                       4      500               750         1 500
Dividends paid to non-controlling interest – Impala Platinum                                     (108)              (74)         (277)
Dividend paid                                                                                    (761)           (1 302)       (1 302)
Taxation paid                                                                                    (126)             (198)         (386)
Net cash inflow from operating activities                                                           11               670         2 055
CASH FLOW FROM INVESTING ACTIVITIES
Additions to property, plant and equipment
  to maintain operations                                                                         (538)             (689)       (1 212)
Additions to property, plant and equipment
  to expand operations                                                                            (36)              (18)          (64)
Proceeds on disposal of property, plant and equipment                                               30                 2             5
Additional investment in associate                                                                   –                 –         (282)
Investment in subsidiary                                                                             –             (400)         (400)
Investment in insurance cell                                                                         –              (25)          (25)
Investments in Richards Bay Coal Terminal                                                          (7)              (21)          (26)
Decrease in loans and long-term receivables                                                          6                21            24
Net cash outflow from investing activities                                                       (545)           (1 130)       (1 980)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds on exercise of share options                                                                –                32            30
Long-term borrowings raised                                                                        300                 –             –
Long-term borrowings repaid                                                                       (55)              (54)          (36)
Short-term borrowings repaid                                                                     (216)             (112)         (298)
Net cash inflow/(outflow) from financing activities                                                 29             (134)         (304)
Net decrease in cash and cash equivalents                                                        (505)             (594)         (229)
Cash and cash equivalents at beginning of period                                                 1 445             1 669         1 669
Foreign currency translation on cash balances                                                     (18)               (1)             5
Cash and cash equivalents at end of period                                                  5      922             1 074         1 445
Cash generated from operations per share (cents)                                                   217               684         1 155

Notes to the financial statements
for the six months ended 31 December 2015

1.    STATEMENT OF COMPLIANCE
      The Group financial statements for the six months ended 31 December 2015 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 2015 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 no new and revised standards and interpretations issued by the International Financial Reporting
      Interpretation Committee (IFRIC) of the IASB during the period under review.
      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 2018
      IFRS 16             Leases                                                                                     1 January 2019
      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.

                                                                                                                   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
2.    SEGMENTAL INFORMATION
      Primary segmental information
2.1   Six months ended
      31 December 2015 (Unaudited)
      Sales                                 3 620      4 546      424        288         –     8 878    (4 546)        4 332
      Cost of sales                       (3 281)    (3 775)    (414)      (429)        17   (7 882)      3 758      (4 124)
      Other operating income                   70        190       49          –       768     1 077      (152)          925
      Other operating expenses              (231)      (262)      (2)       (93)     (434)   (1 022)        262        (760)
      Segment result                          178        699       57      (234)       351     1 051      (678)          373
      Income from investments                  17         96        2          –        68       183       (96)           87
      Finance cost                           (18)       (18)     (92)        (6)        67      (67)         18         (49)
      Finance cost ZCCM:
       Shareholders' loan Vale/ARM
       joint venture                            –          –        –       (18)         –      (18)          –         (18)
      Finance cost ARM:
       Shareholders' loan Vale/ARM
       joint venture                            –          –        –       (86)         –      (86)          –         (86)
      Loss from associate                       –          –    (105)          –         –     (105)          –        (105)
      Income from joint venture***              –         25        –          –         –        25        542          567
      Special items                         (116)       (44)        –    (1 755)        16   (1 899)         44      (1 855)
      Taxation                               (15)      (176)        9          –     (177)     (359)        170        (189)
      Profit/(loss) after tax                  46        582    (129)    (2 099)       325   (1 275)          –      (1 275)
      Non-controlling interest              (138)          –        –        420       (3)       279          –          279
      Consolidation adjustment                  –       (15)        –          –        15         –          –            –
      Contribution to earnings               (92)        567    (129)    (1 679)       337     (996)          –        (996)
      Contribution to headline
      earnings                                (9)        599    (129)      (275)       321       507          –          507
      Other information:
      Segment assets including
       investment in associate and
       joint venture                       10 387     18 197    3 322      1 889     3 762    37 557    (4 036)       33 521
      Investment in associate                                   1 258                          1 258                   1 258
      Investment in joint venture                                                                        14 161       14 161
      Segment liabilities                   1 847      1 363    1 697      1 280     2 105     8 292    (1 363)        6 929
      Unallocated – Deferred taxation
       and taxation                                                                            4 726    (2 673)        2 053
      Consolidated total liabilities                                                          13 018    (4 036)        8 982
      Cash generated/(utilised) from
      operations                              279      1 060      188       (99)       105     1 533    (1 060)          473
      Cash inflow/(outflow) from
       operating activities                    72      1 031      206      (101)     (666)       542      (531)           11
      Cash (outflow)/inflow from
       investing activities                 (385)      (980)    (157)       (33)        30   (1 525)        980        (545)
      Cash (outflow)/inflow from
       financing activities                  (57)         –      (56)         43        99        29          –           29
      Capital expenditure                     442        779      105         41         1     1 368      (779)          589
      Amortisation and depreciation           329        511       70        116         3     1 029      (511)          518
      EBITDA                                  507      1 210      127      (118)       354     2 080    (1 189)          891
      
            There were no significant inter-company sales.
      *     Refer note 2.6 for more detail on the ARM Ferrous segment.
      **    Includes IFRS 11 adjustments related to ARM Ferrous.
      ***   Impairment included in income from joint venture R44 million before tax of R12 million.
                                                                                                                   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
2.2   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
      Special items                                –       (4)        –          –     (273)     (277)         4       (273)
      Taxation                                 (164)     (354)     (23)        (3)       (9)     (553)       345       (208)
      Profit/(loss) after tax                    421       852     (10)      (291)      (80)       892         –         892
      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 associate                                                                    1 199                 1 199
      Investment in joint venture                                                                         14 385      14 385
      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/(utilised) 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
      
         There were no significant inter-company sales.
      *  Refer note 2.7 for more detail on the ARM Ferrous segment.
      ** Includes IFRS 11 adjustments related to ARM Ferrous.
                                                                                                                   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
2.3   Year ended 30 June 2015
      (Audited)
      Sales                                7 444    10 561    1 025        794          –     19 824  (10 561)         9 263
      Cost of sales                      (6 128)   (7 790)    (842)      (906)         54   (15 612)     7 758       (7 854)
      Other operating income                 175       132       95          4        862      1 268      (43)         1 225
      Other operating expenses             (537)     (875)      (5)      (249)      (803)    (2 469)       875       (1 594)
      Segment result                         954     2 028      273      (357)        113      3 011   (1 971)         1 040
      Income from investments                 39       218        –          –        153        410     (218)           192
      Finance cost                          (52)      (29)    (144)       (13)        118      (120)        29          (91)
      Finance cost ZCCM:
        Shareholders' loan Vale/ARM
        joint venture                          –         –        –       (27)          –       (27)         –          (27)
      Finance cost ARM: 
        Shareholders' loan Vale/ARM 
        joint venture                          –         –        –      (132)          –      (132)         –         (132)
      Loss from associate                      –         –    (186)          –          –      (186)         –         (186)
      Income form joint venture**              –        51        –          –          –         51     1 238         1 289
      Special items                            –     (415)        –    (1 003)      (656)    (2 074)       415       (1 659)
      Taxation                             (274)     (523)     (36)        (7)       (20)      (860)       507         (353)
      Profit/(loss) after tax                667     1 330     (93)    (1 539)      (292)         73         –            73
      Non-controlling interest             (262)         –        –        302        (9)         31         –            31
      Consolidation adjustment                 –      (41)        –          –         41          –         –             –
      Contribution to earnings               405     1 289     (93)    (1 237)      (260)        104         –           104
      Contribution to headline
       earnings                              405     1 588     (93)      (430)        274      1 744         –         1 744
      Other information:
      Segment assets including
        investment in associate           10 372    18 574    3 746      3 010      4 061     39 763   (4 480)        35 283
      Investment in associate                                 1 363                            1 363                   1 363
      Investment in joint venture                                                                       14 094        14 094
      Segment liabilities                  1 864     1 946    1 736      1 077      1 635      8 258   (1 946)         6 312
      Unallocated – Deferred taxation  
       and taxation                                                                            4 705   (2 639)         2 066
      Consolidated total liabilities                                                          12 963   (4 585)         8 378
      Cash inflow/(outflow) from  
       operating activities                1 479     2 967      372       (95)    (1 201)      3 522   (1 467)         2 055
      Cash outflow from investing   
       activities                          (808)   (1 966)    (488)      (256)      (428)    (3 946)     1 966       (1 980)
      Cash (outflow)/inflow from
       financing activities                 (67)         –     (52)          2      (187)      (304)         –         (304)
      Capital expenditure                    933     1 830      259        302          2      3 326   (1 830)         1 496
      Amortisation and depreciation          668       936      139        232          8      1 983     (936)         1 047
      Impairment                               –       406        –        980          –      1 386     (406)           980
      EBITDA                               1 622     2 964      412      (125)        121      4 994   (2 907)         2 087
        
           There were no significant inter-company sales.
      *    Includes IFRS 11 adjustments related to ARM Ferrous.
      **   Impairment included in income from joint venture R406 million before tax of R114 million.

      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
2.4   Six months ended 31 December 2015 (Unaudited)
      Sales                                                                          1 865        588      1 167       3 620
      Cost of sales                                                                (1 351)      (657)    (1 273)     (3 281)
      Other operating income                                                             9          9         52          70
      Other operating expenses                                                       (100)       (22)      (109)       (231)
      Segment result                                                                   423       (82)      (163)         178
      Income from investments                                                            6          4          7          17
      Finance cost                                                                    (10)        (2)        (6)        (18)
      Special items                                                                      –          –      (116)       (116)
      Taxation                                                                       (116)         23         78        (15)
      Profit/(loss) after tax                                                          303       (57)      (200)          46
      Non-controlling interest                                                       (148)         10          –       (138)
      Contribution to earnings                                                         155       (47)      (200)        (92)
      Contribution to headline earnings                                                155       (47)      (117)         (9)
      Other information:
      Segment assets                                                                 4 145      3 206      3 036      10 387
      Segment liabilities                                                              858        354        635       1 847
      Cash inflow/(outflow) from operating activities                                  206      (127)        (7)          72
      Cash outflow from investing activities                                         (124)       (98)      (163)       (385)
      Cash outflow from financing activities                                          (44)          –       (13)        (57)
      Capital expenditure                                                              180         98        164         442
      Amortisation and depreciation                                                    139         62        128         329
      EBITDA                                                                           562       (20)       (35)         507
2.5   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)
      Profit after tax                                                                 320          –        101         421
      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

      Analysis of the ARM Ferrous segment on a 100% basis.

                                                                            Continued    Discon-                                   Total per
                                                                 Continued  operation     tinued                                        IFRS
                                                        Manga-   operation        ARM  operation        ARM                 *IFRS  financial
                                           Iron ore       nese      Chrome    Ferrous     Chrome    Ferrous       ARM     Adjust-     state-
                                           division   division    division      Total   division      Total     share        ment      ments
                                                 Rm         Rm          Rm         Rm         Rm         Rm        Rm          Rm         Rm
2.6   Six months ended
      31 December 2015
      (Unaudited)
      Sales                                   5 126      3 016          61      8 203        890      9 093     4 546     (4 546)          –
      Other operating income                    230        227           6        463          9        472       190       (190)          –
      Other operating expenses                (324)      (201)        (11)      (536)       (80)      (616)     (262)         262          –
      Operating profit                        1 068        202          23      1 293        106      1 399       699       (699)          –
      Contribution to earnings and
       total comprehensive income               956        130           4      1 090         74      1 164       582        (15)        567
      Contribution to headline  
       earnings                                 957        193           4      1 154         74      1 228       614        (15)        599
      Other information:
      Segment assets                         25 001     10 926         357     36 284      1 184     37 468    18 197     (4 036)     14 161
      Segment liabilities                     5 605      2 077         215      7 897        477      8 374     1 363     (1 363)          –
      Cash inflow from operating
       activities                             809**        118           –        927        136      1 063     1 031     (1 031)          –
      Cash outflow from investing
       activities                             (586)    (1 308)           –    (1 894)       (66)    (1 960)     (980)         980          –
      Capital expenditure                       518      1 049           –      1 567         66      1 633       779       (779)          –
      Amortisation and depreciation             779        224           –      1 003         52      1 055       511       (511)          –
      EBITDA                                  1 847        426          23      2 296        158      2 454     1 210     (1 210)          –
      Additional information for
      ARM Ferrous at 100%
      Non-current assets
      Property, plant and equipment                                                                  21 057              (21 057)          –
      Investment in joint venture                                                                     2 625               (2 625)          –
      Other non-current assets                                                                          905                 (905)          –
      Current assets  
      Inventories                                                                                     4 422               (4 422)          –
      Trade and other receivables                                                                     2 738               (2 738)          –
      Financial asset                                                                                    79                  (79)          –
      Cash and cash equivalents                                                                       4 071               (4 071)          –
      Asset held for sale                                                                             1 571               (1 571)          –
      Non-current liabilities  
      Other non-current liabilities                                                                   6 107               (6 107)          –
      Current liabilities  
      Trade and other payables                                                                        1 070               (1 070)          –
      Short-term provisions                                                                             470                 (470)          –
      Taxation                                                                                          129                 (129)          –
      Liabilities directly associated     
       with asset held for sale                                                                         598                 (598)          –

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

      Analysis of the ARM Ferrous segment on a 100% basis.

                                                                           Continued     Discon-                                   Total per
                                                               Continued   operation      tinued                                        IFRS
                                                     Manga-    operation         ARM   operation        ARM                 *IFRS  financial
                                        Iron ore       nese       Chrome     Ferrous      Chrome    Ferrous       ARM     Adjust-     state-
                                        division   division     division       Total    division      Total     share        ment      ments
                                              Rm         Rm           Rm          Rm          Rm         Rm        Rm          Rm         Rm
2.7   Six months ended 
      31 December 2014
      (Unaudited)
      Sales                                5 757      3 868           18       9 643         690     10 333     5 167     (5 167)          –
      Other operating income                 276        133            1         410           4        414        76        (76)          –
      Other operating expenses             (682)      (254)            –       (936)        (87)    (1 023)     (380)         380          –
      Operating profit                     1 478        656            8       2 142          76      2 218     1 109     (1 109)          –
      Contribution to earnings and   
       total comprehensive income          1 174        473            6       1 653          50      1 703       852        (22)        830
      Contribution to headline    
       earnings                            1 181        472            6       1 659          50      1 709       855        (22)        833
      Other information:   
      Segment assets                      25 480     11 625          118      37 223         972     38 195    18 608     (4 223)     14 385
      Segment liabilities                  5 748      2 547           16       8 311         410      8 721     1 591     (1 591)          –
      Cash inflow/(outflow) from   
       operating activities                663**        632         (18)       1 277       (188)      1 089     1 307     (1 307)          –
      Cash outflow from investing   
       activities                          (835)    (1 187)            –     (2 022)        (97)    (2 119)   (1 072)       1 072          –
      Capital expenditure                    710        849            –       1 559         130      1 689       802       (802)          –
      Amortisation and depreciation          751        209            –         960          43      1 003       491       (491)          –
      EBITDA                               2 229        865            8       3 102         119      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)          –
      Liabilities directly associated
      with asset held for sale

      *    Includes consolidation and IFRS 11 adjustments.
      **   Dividend paid amounting to R 1 billion included in cash flows from operating activities.

      ARM Corporate as presented in the table on page 74 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
2.8   Six months ended 31 December 2015 (Unaudited)
      Cost of sales                                                                 –          17       –           17
      Other operating income                                                        –         768       –          768
      Other operating expenses                                                   (10)       (424)       –        (434)
      Segment result                                                             (10)         361       –          351
      Income from investments                                                       –          68       –           68
      Finance cost                                                                  –          67       –           67
      Special items                                                                 –          16       –           16
      Taxation                                                                      –       (177)       –        (177)
      (Loss)/profit after tax                                                    (10)         335       –          325
      Non-controlling interest                                                      –         (3)       –          (3)
      Consolidation adjustment                                                                 15                   15
      Contribution to earnings                                                   (10)         347       –          337
      Contribution to headline earnings                                          (10)         331       –          321
      Other information:
      Segment assets                                                                –       2 769     993        3 762
      Segment liabilities                                                           –       2 105       –        2 105
      Cash (utilised)/generated from operations                                  (10)         115       –          105
      Cash outflow from operating activities                                     (10)       (656)       –        (666)
      Cash inflow from investing activities                                         –          30       –           30
      Cash inflow from financing activities                                         –          99       –           99
      Capital expenditure                                                           –           1       –            1
      Amortisation and depreciation                                                 –           3       –            3
      EBITDA                                                                     (10)         364       –          354
   
      * Corporate, other companies and consolidation adjustments.

      ARM Corporate as presented in the table on page 75 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
2.9   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
      Special items                                                             –            –     (273)         (273)
      Taxation                                                                  –         (60)        51           (9)
      (Loss)/profit after tax                                                (40)          182     (222)          (80)
      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 (utilised)/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 76 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
2.10  Year ended 30 June 2015 (Audited)
      Cost of sales                                                               –           54        –           54
      Other operating income                                                      –          862        –          862
      Other operating expenses                                                 (50)        (753)        –        (803)
      Segment result                                                           (50)          163        –          113
      Income from investments                                                     –          153        –          153
      Finance cost                                                                –          118        –          118
      Special items                                                               –            –    (656)        (656)
      Taxation                                                                    –        (142)      122         (20)
      (Loss)/profit after tax                                                  (50)          292    (534)        (292)
      Non-controlling interest                                                    –          (9)        –          (9)
      Consolidation adjustment                                                                41                    41
      Contribution to earnings                                                 (50)          324    (534)        (260)
      Contribution to headline earnings                                        (50)          324        –          274
      Other information:
      Segment assets                                                              –        3 069      992        4 061
      Segment liabilities                                                         –        1 635        –        1 635
      Cash outflow from operating activities                                   (50)      (1 151)        –      (1 201)
      Cash outflow from investing activities                                      –        (428)        –        (428)
      Cash outflow from financing activities                                      –        (187)        –        (187)
      Capital expenditure                                                         –            2        –            2
      Amortisation and depreciation                                               –            8        –            8
      EBITDA                                                                   (50)          171        –          121

      * Corporate, other companies and consolidation adjustments.

3.    PROPERTY, PLANT AND EQUIPMENT
      At 31 December 2015 an impairment of Lubambe Copper Mine assets was recognised largely as a result of (i) a decline in the
      forecast of the short to medium term copper price (ii) a revision to the mine plan and (iii) an increase in the discount rate used in
      the valuation of the mine. ARM's attributable share of the impairment amounted to R1 404 million. For the impairment calculation
      a pre-tax discounted rate of 24.43% and the following real term copper prices were used.

                                                        2H F2016             F2017            F2018            F2019       Long-term
      US$/tonne                                            4 569             4 615            4 939            5 427           6 369

                                                                                       Unaudited               Audited
                                                                                   Six months ended         Year ended
                                                                                     31 December               30 June
                                                                                  2015              2014          2015
                                                                                    Rm                Rm            Rm
4.    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                                                           14 094            14 305        14 305
      Income for the period                                                        582               852         1 330
      Consolidation adjustments                                                   (15)              (22)          (41)
      Net income for the period                                                    567               830         1 289
      Less: Dividends received for the period                                    (500)             (750)       (1 500)
      Closing balance                                                           14 161            14 385        14 094
      Refer to notes 2.1, 2.2, 2.3, 2.6 and 2.7 for further detail relating to
      the ARM Ferrous segment.
5.    CASH AND CASH EQUIVALENTS
      – African Rainbow Minerals Limited                                           234               288           909
      – ARM Finance Company SA                                                      22               102            11
      – ARM Coal Proprietary Limited                                                 –                 –             1
      – ARM Platinum Proprietary Limited                                            24                17            23
      – Kingfisher Insurance Co Limited                                             69               119           121
      – Nkomati                                                                     14               200           195
      – Two Rivers Platinum Proprietary Limited                                     21               285            12
      – Vale/ARM joint venture                                                      26                34            25
      – Venture Building Trust Proprietary Limited                                   6                 3             2
      – Restricted cash*                                                         1 028               928           958
      Total as per statement of financial position                               1 444             1 976         2 257
      Less overdrafts (refer note 7)                                               522               902           812
      Total as per statement of cash flows                                         922             1 074         1 445 
      
      * Includes amount relating to an insurance captive cell
        (R702 million;1H 2015: R620 million: F2015: R633 million).
        The remaining amount relates largely to rehabilitation
        trust funds at respective operations.

6.    ASSETS HELD FOR SALE                                                           –                12            12
      During the reporting period the investment property was sold.

                                                                                        Unaudited              Audited
                                                                                    Six months ended        Year ended
                                                                                      31 December              30 June
                                                                                    2015             2014         2015
                                                                                      Rm               Rm           Rm
7.    BORROWINGS
      Long-term borrowings are held as follows:
      – African Rainbow Minerals Limited                                             300                –            –
      – ARM Finance Company SA                                                       309              567          426
      – ARM Coal Proprietary Limited (partner loan)                                1 364            1 220        1 428
      – Nkomati                                                                       29                –           46
      – Two Rivers Platinum Proprietary Limited                                       33               61           37
      – Vale/ARM joint operation                                                      20               10           28
      – Vale/ARM joint operation (partner loan)                                      712              505          546
                                                                                   2 767            2 363        2 511
      Short-term borrowings are held as follows:
      – African Rainbow Minerals Limited                                               1                –            –
      – Anglo American Platinum Limited (partner loan)                               114              114          114
      – ARM Coal Proprietary Limited (partner loan)                                  108              188           32
      – ARM Finance Company SA                                                       448              289          328
      – Nkomati                                                                       13                –           14
      – Two Rivers Platinum Proprietary Limited                                       48               64           52
      – Vale/ARM joint operation                                                     103                –           19
                                                                                     835              655          559
      Overdrafts are held as follows:
      – African Rainbow Minerals Limited                                               1              346          290
      – ARM Mining Consortium Limited                                                 37               80           93
      – Two Rivers Platinum Proprietary Limited                                      311              287          226
      – Vale/ARM joint operation                                                     153              169          183
      – Other                                                                         20               20           20
                                                                                     522              902          812
      Overdrafts and short-term borrowings                                         1 357            1 557        1 371
      Total borrowings                                                             4 124            3 920        3 882

                                                                                       Unaudited               Audited
                                                                                   Six months ended         Year ended
                                                                                     31 December               30 June
                                                                                  2015             2014           2015
                                                                                    Rm               Rm             Rm

8.    SPECIAL ITEMS
      Impairment of property, plant and equipment – Lubambe                    (1 755)                –          (980)
      Impairment of property, plant and equipment – Nkomati                      (116)                –              –
      Unrealised impairment on available-for-sale listed
       investment – Harmony                                                          –            (273)          (656)
      Profit/(loss) on sale of property, plant and equipment                        16                –           (23)
      Special items per income statement before taxation effect                (1 855)            (273)        (1 659)
      Impairment of property, plant and equipment accounted
       for directly in joint venture – Assmang                                    (44)                –          (406)
      Loss on sale of property, plant and equipment accounted
       for directly in joint venture – Assmang                                       –              (4)            (9)
      Special items before taxation effect                                     (1 899)            (277)        (2 074)
      Taxation accounted for in joint venture – impairment at Assmang               12                –            114
      Taxation accounted for in joint venture – loss on sale at Assmang              –                1              2
      Taxation on impairment of available-for-sale listed
       investment – Harmony                                                          –               51            122
      Taxation on impairment – Nkomati                                              33                –              –
      Special items after taxation effect                                      (1 854)            (225)        (1 836)
      Non-controlling interest – Lubambe impairment                                351                –            196
      Total amount adjusted for headline earnings                              (1 503)            (225)        (1 640)

9.    HEADLINE EARNINGS
      Basic (loss)/earnings attributable to equity holders of ARM                (996)              801            104
      Impairment of property, plant and equipment – Lubambe                      1 755                –            980
      Impairment of property, plant and equipment – Nkomati                        116                –              –
      Unrealised impairment on available-for-sale listed
       investment – Harmony                                                          –              273            656
      Impairment of property, plant and equipment in
       joint venture – Assmang                                                      44                –            406
      (Profit)/loss on sale of property, plant and equipment                      (16)                –             23
      Loss on sale of property, plant and equipment in
       joint venture –Assmang                                                        –                4              9
                                                                                   903            1 078          2 178
      Taxation accounted for directly in associate and joint venture              (12)              (1)          (116)
      Taxation on impairment of available-for-sale listed
       investment – Harmony                                                          –             (51)          (122)
      Taxation on impairment – Nkomati                                            (33)                –              –
                                                                                   858            1 026          1 940
      Non-controlling interest – Lubambe impairment                              (351)                –          (196)
      Headline earnings                                                            507            1 026          1 744

10.   TAXATION
      South African normal tax – current year                                       99              175            418
                               – mining                                             77              164            319
                               – non-mining                                         22               11             99
                               – prior year                                          –                –            (4)
      Deferred tax – current year                                                   90               31           (63)
      Foreign taxes                                                                  –                2              2
                                                                                   189              208            353

                                                                                        Unaudited              Audited
                                                                                    Six months ended        Year ended
                                                                                      31 December              30 June
                                                                                   2015             2014          2015
                                                                                     Rm               Rm            Rm

11.   CASH GENERATED FROM OPERATIONS
      Cash generated from operations before working
       capital movement                                                             729            1 307         2 345
      Working capital changes                                                     (256)              178           163
      Movement in inventories                                                        43               49            96
      Movement in payables and provisions                                         (197)            (211)         (754)
      Movement in inventories                                                     (102)              340           821
      Cash generated from operations (per statement of cash flows)                  473            1 485         2 508

12.   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                                                              111              213           239
      – not contracted for                                                            2               77             9
      Total commitments                                                             113              290           248
      Shareholders are advised that further to the disclosure made
      regarding contingent liabilities of the Group in the 30 June 2015
      integrated annual report, guarantees provided by ARM to the
      ARM Broad-Based Economic Empowerment Trust (ARM BBEE
      Trust) increased to R850 million by 31 December 2015.
      There have been no further significant changes in the
      contingent liabilities of the Group as disclosed in the
      30 June 2015 integrated annual report.

13.   EVENTS AFTER REPORTING DATE
      Subsequent to the end of the reporting period ARM has proposed a restructuring of the ARM BBEE Trust which will include
      a repurchase of 12 717 328 ARM shares from the ARM BBEE Trust, the advance of a subordinated unsecured loan of
      approximately R800 million by ARM to the ARM BBEE Trust and the removal of the R850 million guarantee. This proposed
      restructuring was fully described by the company in the SENS announcement on 15 February 2016.

Contact details and administration

African Rainbow Minerals Limited               Transfer secretaries
Incorporated in the Republic of South Africa   Computershare Investor Services
Registration number 1933/004580/06             Proprietary Limited
ISIN code: ZAE000054045                        Ground Floor, 70 Marshall Street
                                               Johannesburg, 2001
Registered office
ARM House                                      PO Box 61051, Marshalltown, 2107
29 Impala Road                                 Telephone:   +27 11 370 5000
Chislehurston, Sandton, 2196                   Telefax:     +27 11 688 5222
South Africa                                   E-mail:      web.queries@computershare.co.za
PO Box 786136, Sandton, 2146                   Website:     http://www.computershare.co.za
South Africa
                                               Sponsor
Telephone: +27 11 779 1300                     Deutsche Securities (SA) Proprietary Limited
Fax:        +27 11 779 1312
E-mail:ir.admin@arm.co.za
Website:http://www.arm.co.za

Forward-looking statements

Certain statements in this report constitute forward-looking statements that are neither reported
financial results nor other historical information. They include but are not limited to statements that
are predictions of or indicate future earnings, savings, synergies, events, trends, plans or objectives.
Such forward-looking statements may or may not take into account and may or may not be affected
by known and unknown risks, uncertainties and other important factors that could cause the actual
results, performance or achievements of the Company to be materially different from the future results,
performance or achievements expressed or implied by such forward-looking statements. Such risks,
uncertainties and other important factors include among others: economic, business and political
conditions in South Africa; decreases in the market price of commodities; hazards associated with
underground and surface mining; labour disruptions; changes in government regulations, particularly
environmental regulations; changes in exchange rates; currency devaluations; inflation and other
macro-economic factors; and the impact of the HIV 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



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