AFRICAN RAINBOW MINERALS LIMITED - Interim Results for the Six Months ended 31 December 2017

Release Date: 16/03/2018 07:05
Code(s): ARI
 
Wrap Text
Interim Results for the Six Months ended 31 December 2017

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 2017

Shareholder information
Issued share capital at 31 December 2017                219 691 837 shares
Market capitalisation at 31 December 2017                  ZAR29.5 billion
Market capitalisation at 31 December 2017                   US$2.4 billion

Closing share price at 31 December 2017                            R134.24
Six-months high (1 July 2017 - 31 December 2017)                   R140.97
Six-months low (1 July 2017 - 31 December 2017)                     R78.01

Average daily volume traded for the six months              795 558 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
Email: jongisa.magagula@arm.co.za

Company secretary

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

Salient features

- Headline earnings increased by 15% to R1 945 million compared to R1 693 million in the
  corresponding period (1H F2017).
  Headline earnings per share were 1 023 cents (1H F2017: 893 cents).

- Maiden interim dividend of 250 cents per share declared.

- Basic earnings were R1 753 million (1H F2017: R254 million basic loss). The basic loss in 1H F2017
  included an attributable impairment of the Nkomati Mine and Modikwa Mine assets of R711 million
  and R734 million after tax and non-controlling interest, respectively.

- Higher US Dollar prices were realised for all commodities in ARM's portfolio except iron ore,
  platinum and chrome concentrate. The average realised Rand/US Dollar exchange rate strengthened
  by 4% to R13.39/US$ (1H F2017: R13.98/US$).

- Disposal of ARM and Vale's 80% interest in Lubambe Mine was completed on 22 December 2017.
- ARM's interest in Two Rivers Mine increased to 54% from 9 November 2017 after the mine's
  amended mining right was executed by the Department of Mineral Resources (DMR).

- Cash dividends received from the Assmang joint venture were R1 000 million
  (1H F2017: R988 million).
  Since the period end, ARM received a cash dividend of R2 000 million from Assmang
  (in February 2018).

- Net debt reduced to R1 102 million (31 December 2016: R3 508 million).

Overview

The ARM Board of Directors (the Board) announces a 15% increase in headline earnings for the six months ended
31 December 2017 to R1 945 million (1H F2017: R1 693 million). This increase was mainly as a result of improved headline
earnings from the Manganese Division, ARM Coal, Modikwa Mine and ARM Copper.

As part of ARM's commitment to shareholder returns, ARM declared a maiden interim dividend of 250 cents per share.

ARM Ferrous headline earnings from continuing operations of R1 765 million were 26% higher (1H F2017: R1 401 million)
driven mainly by a 131% increase in headline earnings from the Manganese Division. Significant improvement in the
Manganese Division's earnings was mainly due to increased manganese ore and alloy sales volumes, proportionately
more high-grade manganese ore being sold (which resulted in higher average realised manganese ore prices) as well as
a 69% increase in manganese alloy prices.

ARM Ferrous headline earnings (including discontinued operations) of R 1 779 million in 1H F2017 included a non-recurring
amount of R378 million relating to the sale of ARM's effective 50% stake in the Dwarsrivier Mine (which was disclosed as
a discontinued operation in 1H F2017).

ARM Platinum headline earnings increased by 26% to R226 million (1H F2017: R179 million) as Modikwa Mine improved
from a headline loss of R54 million in 1H F2017 to headline earnings of R36 million. Two Rivers Mine headline earnings
were 16% lower at R173 million (1H F2017: R205 million) mainly as a result of a decrease in PGM volumes due to a
reduction in grades at the mine. Nkomati Mine reported reduced headline earnings as a result of lower sales volumes due
to shipment delays. Chrome concentrate sales volumes at Nkomati Mine increased by 105%, however, the average US
Dollar price realised for chrome concentrate was 62% lower.

ARM Coal headline earnings were R160 million (1H F2017: R99 million). Goedgevonden (GGV) Mine contributed headline
earnings of R35 million (1H F2017: R26 million headline loss) while the PCB operations contributed headline earnings of
R125 million (1H F2017: R125 million).

ARM Copper, which is disclosed as a discontinued operation in the period under review, recorded a headline loss of
R6 million for the period (1H F2017: R72 million headline loss).

The ARM Corporate and other segment showed an improved headline loss of R200 million (1H F2017: R292 million).
The improvement is mainly made up of:

- a decrease in foreign exchange losses of R145 million on the revaluation of ARM's US Dollar loans to Lubambe Mine
  prior to and on the disposal of Lubambe Mine;
- R60 million lower bonus provision raised; and
- higher management fee income of R28 million.

The above was partly offset by a R170 million higher income tax expense recorded for 1H F2018.

The ARM Corporate and other segment includes ARM Exploration costs of R10 million (1H F2017: R12 million).

Headline earnings by division/operation
                                                                                   six months ended 31 December 
                                                                                 2017                 2016              
R million                                                                                     Re-presented   % change   
ARM Platinum                                                                      226                  179         26   
Two Rivers Mine                                                                   173                  205       (16)   
Modikwa Mine                                                                       36                 (54)              
Nkomati Mine                                                                       17                   28       (39)   
ARM Ferrous                                                                     1 765                1 779        (1)   
Iron Ore Division                                                                 873                1 023       (15)   
Manganese Division                                                                872                  378        131   
Chrome Division*                                                                  (9)                  374      (102)   
Consolidation adjustment                                                           29                    4              
ARM Coal                                                                          160                   99         62   
Goedgevonden Mine                                                                  35                 (26)              
PCB Operations                                                                    125                  125          -   
ARM Copper                                                                        (6)                 (72)         92   
ARM Corporate and other**                                                       (200)                (292)         32   
Headline earnings                                                               1 945                1 693         15   
Headline earnings from continuing operations                                    1 951                1 387         41   
Headline earnings from discontinued operations                                    (6)                  306      (102)   

*   The 1H F2017 Chrome Division headline earnings include R378 million relating to the sale of ARM's effective 50% stake in the
    Dwarsrivier Chrome Mine.
**  The 1H F2017 results have been re-presented following the classification of Lubambe Mine as an asset held for sale. As such,
    intercompany interest accrued to ARM Company from Lubambe Mine of R130 million (1H F2017: R106 million) has been
    eliminated from both ARM Copper and Corporate and other segments.

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

The interim results for the six months ended 31 December 2017 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.

Operating safely

ARM is committed to creating a safe and healthy work environment for all employees.

Regrettably an employee, Mr Fabian Majoro, was fatally injured when he was exposed to irrespirable atmosphere
underground at Modikwa Mine on 9 October 2017. The Board and management express their sincerest condolences to the
family, friends and colleagues of Mr Majoro. Prior to this accident, ARM's operations had been fatality-free since May 2015.

The Lost Time Injury Frequency Rate (LTIFR) for 1H F2018 was 0.41 per 200 000 man-hours (1H F2017: 0.33). There were
51 Lost Time Injuries (LTIs) for the six months under review compared to 37 in the corresponding period.

Safety achievements in the period under review:

- On 3 July 2017, Modikwa Mine completed 4 million fatality-free shifts.
- On 18 August 2017, Two Rivers Mine completed 4 million fatality-free shifts.
- On 18 October 2017, Beeshoek Mine recorded 16 000 fatality-free production shifts and received a certificate from the
  DMR for an outstanding safety achievement as the "Most Consistent Surface Mine" in the 2017 Northern Cape Mine
  Safety Competition.
- On 7 November 2017, Nkomati Mine achieved 6 million fatality-free shifts.

Safety figures and statistics in this report are presented on a 100% basis and exclude the ARM Coal operations which are
managed by ARM's partner.

Corporate transactions

The disposal of Lubambe Mine was completed on 22 December 2017 when all conditions precedent were met. Lubambe
Mine is disclosed as a discontinued operation in terms of IFRS. The 1H F2017 Income Statement has, therefore, been
re-presented.

The 1H F2017 results included income from the discontinued chrome operation relating to the sale of ARM's effective 50%
interest in Dwarsrivier Mine. Machadodorp Works is the only remaining operation in Assmang's Chrome Division.

Further to the consent received by Two Rivers Mine during August 2017 (i) to transfer the Tamboti rights to it, and (ii) to
have Two Rivers Mine's mining right amended accordingly, the amended mining right was executed. This resulted in ARM's
interest in Two Rivers Mine increasing from 51% to 54% from 9 November 2017.

Restructuring loss-making operations

Lubambe Mine

The total cash proceeds, in respect of the disposal of ARM and Vale's 80% interest in Lubambe Mine was US$97.10 million
adjusted for:

- settlement of Lubambe Mine's general banking facility of US$26 million;
- payment of property transfer tax of US$10 million;
- payment of withholding tax of US$5 million; and
- reimbursement of funding provided to Lubambe Mine after 1 May 2017 of US$25 million.

The final proceeds were received by ARM and Vale in December 2017. Refer to note 12 to the financial statements for
more details.

Nkomati Mine

Nkomati Mine headline earnings were 39% lower than the corresponding period mainly as a result of reduced sales
volumes due to shipping delays. Nkomati Mine's tonnes milled increased by 14% to 4.08 million tonnes. Nickel units
produced were, however, only 2% higher as insufficient availability of high-grade MMZ ore and the processing of Very
Low Grade (VLG) MMZ stockpile material resulted in a reduction of the mine's head grade from 0.28% to 0.24%. Nickel
produced was 6 733 tonnes (1H F2017: 6 627 tonnes) while by-products PGM and copper volumes increased by 37% and
38% respectively.

As previously reported, Nkomati Mine is in a challenging period which is expected to continue until the end of F2020.
Increased waste stripping is required to increase mining flexibility and the pit requires piling work to improve slope stability.
Construction of pile wall 2 in the Western Section to improve slope stability was completed in the period under review
and the mine continues to progress with buttressing work. Waste stripping continues to be a challenge. In the period
under review waste mined was lower than planned at 11 million tonnes due to rescheduling and reallocation of equipment
between the Eastern and Western sections of the pit. Waste stripping is expected to remain challenging at an annualised
rate of approximately 23 million tonnes per annum (compared to the 27 million tonnes per annum required to ensure mining
flexibility). This is expected to impact nickel volumes to F2020.

Modikwa Mine

Modikwa Mine headline earnings of R36 million represent a turnaround from the R54 million headline loss reported for
1H F2017. Modikwa Mine delivered a 16% increase in PGM volumes.

The South 2 Shaft Project is advancing well. The first phase of the project is expected to enhance mining flexibility while
also contributing to the overall production build-up of the mine. Phase one of the project has been completed and is
expected to take the production capacity to 50 000 tonnes of ore per month by F2019.

ARM Coal

Negotiations with Glencore to restructure the ARM Coal debt to improve ARM's obligations in terms of these loans are
ongoing.

Changes to Mineral Resources and Mineral 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 2017, other than depletion due to continued mining activities at the operations
with the exception of:

- Lubambe Mine Mineral Resources and Mineral Reserves which are no longer reported by ARM after completion of the
  disposal of ARM's interest in December 2017.
- Two Rivers Mine, where the transfer of Tamboti Platinum (Kalkfontein RE portion) was completed in November 2017.
  The Mineral Resources and Mineral Reserves of the Kalkfontein RE portion will now be reported as part of Two Rivers
  Mine, and in terms of the agreement, ARM's attributable interest in Two Rivers Mine will increase from 51% to 54%.

An updated Mineral Resources and Mineral Reserves Statement will be issued in the Company's F2018 Integrated Annual
Report.

Financial commentary

Earnings

Headline earnings for the six-month period to 31 December 2017 were R1 945 million or 15% higher than the corresponding
period's headline earnings (1H F2017: R1 693 million). This equates to headline earnings per share of 1 023 cents
(1H F2017: 893 cents).

Basic earnings for 1H F2018 were R1 753 million (1H F2017: R254 million basic loss) and were impacted by an after-tax
and non-controlling interest loss on the disposal of Lubambe Mine of R179 million. The 1H F2017 basic loss included:

- an attributable impairment of the Nkomati assets of R711 million after tax;
- an attributable impairment of the Modikwa assets of R734 million after tax and non-controlling interest; and
- an impairment loss of R422 million within the Assmang joint venture related to the sale of Dwarsrivier Mine.

The reconciliation of basic earnings to headline earnings is provided in note 8 to the financial statements. Basic earnings
per share increased from a basic loss of 134 cents to basic earnings of 922 cents.

Sales from continuing operations for the reporting period were 2% higher in 1H F2018 at R4 260 million (1H F2017: R4 176
million). Sales for ARM Ferrous increased by 12% to R6 816 million (1H F2017: R6 088 million).

The average gross profit margin increased to 19% (1H F2017: 16%). The gross profit margins achieved at each operating
division may be ascertained from the detailed segment reports provided in note 2 to the financial statements.

ARM's earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations, excluding
special items and income from associates and joint ventures, were R999 million (1H F2017: R693 million). This is 44%
(R306 million) higher than 1H F2017, largely as a result of higher EBITDA contributions from ARM Platinum (R16 million),
ARM Coal (R93 million) and ARM Corporate (R230 million), respectively.

The income from joint venture (ARM Ferrous) was R1 765 million (1H F2017: R1 356 million) after special items and is 30%
higher than the corresponding period. The detailed and expanded segmental contribution analysis is provided in note 2 to
the financial statements.

Exchange rate

The 1H F2018 average Rand/US Dollar was R13.39/US$ (1H F2017: R13.98/US$). For reporting purposes, the closing
exchange rate at 31 December 2017 was R12.29/US$ (31 December 2016: R13.73/US$).

Cash

At 31 December 2017 cash and cash equivalents were R1 919 million (31 December 2016: R1 335 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 R3 198 million (31 December 2016: R2 588 million).

Dividends paid to ARM shareholders in October 2017 were R1 236 million (1H F2017: R426 million).

Capital expenditure was 23% (R114 million) higher at R603 million for the period (1H F2017: R489 million). Attributable
capital expenditure at the Assmang joint venture was flat at R558 million (1H F2017: R555 million).

Debt

Gross debt at the end of the period was 38% lower than the corresponding period at R3 021 million (31 December 2016:
R4 843 million). This was mainly due to a reduction in the amount owing on the ARM Corporate facility as well as the
discontinued consolidation of the Vale/ARM joint operation loans following the disposal of Lubambe Mine. There was no
debt at ARM Ferrous at 31 December 2017 (31 December 2016: nil).

The decrease in gross debt coupled with the proceeds received from the disposal of investments of R741 million resulted
in a reduced net debt at 31 December 2017 of R1 102 million (31 December 2016: R3 508 million).

Assets

The consolidated ARM total assets of R32.5 billion (1H F2017: R31.7 billion) include ARM's investment in Harmony on
31 December 2017 of R1 444 million (31 December 2016: R2 006 million). Harmony's share price was R22.69 per share
at 31 December 2017 (31 December 2016: R31.53 per share, 30 June 2017: R21.68 per share and 30 June 2016: R52.47
per share).

Events after the reporting date

Events after the reporting date are set out in note 16 to the financial statements. Since 31 December 2017, ARM received
a dividend of R2 000 million from Assmang.

ARM Ferrous

ARM Ferrous headline earnings from continuing operations were 26% higher from R1 401 million in 1H F2017 to
R1 765 million. This increase was primarily due to a 131% increase in the Manganese Division headline earnings as a
result of:

- a 10% increase in manganese ore sales volumes;
- proportionately more high-grade manganese ore being sold after the completion of the Ncwhaning II Shaft upgrade
  which resulted in a 24% increase in average realised US Dollar prices for export manganese ore;
- 17% increase in manganese alloy sales volumes as Sakura Ferroalloys Project ramped up; and
- a 69% increase in manganese alloy prices.

Headline earnings (including discontinued operations) were 1% lower at R1 765 million (1H F2017: R1 779 million) as
the 1H F2017 headline earnings included R378 million relating to the sale of ARM's effective 50% interest in Dwarsrivier
Chrome Mine (which was disclosed as a discontinued operation in 1H F2017).

Average realised US Dollar prices for export iron ore were flat compared to 1H F2017.

ARM Ferrous headline earnings (on 100% basis)
                                                                                       six months ended 31 December
R million                                                                           2017              2016   % change   
Iron ore division                                                                  1 746             2 049       (15)   
Manganese division                                                                 1 743               756        131   
Chrome division*                                                                    (18)               748      (102)   
Total                                                                              3 471             3 553        (2)   
ARM share                                                                          1 736             1 775        (2)   
Consolidation adjustments                                                             29                 4              
Headline earnings attributable to ARM                                              1 765             1 779        (1)   

*  The 1H F2017 chrome division headline earnings include R756 million relating to the sale of ARM's effective 50% stake in the
   Dwarsrivier Chrome Mine.

Higher sales volumes across all the Ferrous commodities also contributed positively to headline earnings.

Iron ore sales volumes were 4% higher at a record 9.1 million tonnes (1H F2017: 8.8 million). Of the 9.1 million tonnes sold,
7.4 million tonnes were exported and 1.7 million tonnes were sold locally. The rail link established from Beeshoek Mine to
the Saldanha Export Channel has created additional flexibility for Beeshoek Mine to access the export market.

Manganese ore sales volumes increased by 10% from 1.4 million tonnes in 1H F2017 to 1.6 million tonnes in 1H F2018.
Of the 1.6 million tonnes sold 1.5 million tonnes were exported. Production volumes at Black Rock Mine increased by 43%
as the Nchwaning II Shaft returned to full production after being out of commission for the entire duration of 1H F2017 as
part of the shaft's refurbishment.

Total manganese alloy sales volumes increased by 17% to 162 thousand tonnes (1H F2017: 139 thousand tonnes) as
the Sakura Ferroalloys Project (Sakura) ramped up. Manganese alloy production at Sakura increased from 68 thousand
tonnes to 122 thousand tonnes as both furnaces became fully operational. Good operational management and improved
availability of furnaces also contributed positively to production volumes at this operation.

At Cato Ridge Works, alloy production increased by 2% to 68 thousand tonnes, however, sales volumes were 35% lower
at 57 thousand tonnes as spot sales from Cato Ridge Works were held back in 1H F2018 to enable the plant to deliver on
contract sales to consignment customers in the United States. Due to this, consignment stocks were high at 31 December
2017. These stocks are all committed and contracted to be sold.

Machadodorp Works is currently only recovering ferrochrome from the slag dump through the metal recovery plant and will
start to recover ferromanganese from the slag dumps.

ARM Ferrous sales volumes (on 100% basis)
                                                                                   six months ended 31 December
Thousand tonnes                                                                  2017                 2016   % change   
Iron ore*                                                                       9 121                8 805          4   
Manganese ore*                                                                  1 556                1 417         10   
Manganese alloys (local)                                                           57                   97       (41)   
Manganese alloys (Sakura)                                                         105                   42        150 
  
* Excluding intra-group sales.                                             

ARM Ferrous production volumes (on 100% basis)
                                                                                       six months ended 31 December
Thousand tonnes                                                                      2017             2016   % change   
Iron ore                                                                            9 143            8 641          6   
Manganese ore                                                                       1 865            1 306         43   
Manganese alloys (Local)                                                               68               67          1   
Manganese alloys (Sakura)                                                             122               68         79   

Unit production costs at all the Ferrous operations continue to be under pressure mainly owing to increases in the costs of
labour, electricity and raw materials. Various cost saving initiatives continue to be implemented.

On-mine unit production costs at the iron ore operations were well managed. On-mine unit production costs at Khumani
Mine were kept flat at R201 per tonne compared to the corresponding period while Beeshoek Mine achieved a 5% reduction
in on-mine unit production costs.

Black Rock on-mine unit production costs increased by 23% from R434 per tonne in 1H F2017 to R534 per tonne in
1H F2018. On-mine unit production costs had reduced by 11% from R489 per tonne in 1H F2016 to R434 per tonne in
1H F2017 mainly due to the exclusion of fixed costs of R188 million from on-mine production costs. The R188 million was
not included in on-mine production costs as Nchwaning II Shaft was closed for the entire duration of 1H F2017, the on-mine
production costs therefore could not be attributed directly to production volumes due to the shaft closure.

The mine's 1H F2018 total on-mine production costs were 76% higher compared to 1H F2017 while production volumes
were 43% higher compared to the previous period.

The increase in Black Rock Mine unit cost of sales was below inflation at 5%.

ARM Ferrous cost and EBITDA margin performance
                                                                                                On-mine unit            
                                                                                    Unit cost     production   EBITDA   
                                                                                    of sales*          cost*   margin   
Commodity group                                                                      % change       % change        %   
Iron ore                                                                                    9            (1)       38   
Manganese ore                                                                               5             23       44   
Manganese alloys                                                                         (12)             23       26   

* Brackets refer to a decrease in unit costs while no brackets refer to an increase in unit costs in the above table.

At Beeshoek Mine, the capital expenditure was R182 million, mainly due to waste-rock removal from the Village Pit as well
as replacement of mining equipment. Khumani Mine's capital expenditure was R426 million, consisting mainly of waste
stripping at King Pit, infill drilling, and replacement of mining equipment and fleet.

At Black Rock Mine, capital expenditure was R540 million, consisting mainly of the Black Rock Project, fire protection,
finalising the construction of the Hotazel Rail Link line and replacement of mining equipment and fleet.

ARM Ferrous capital expenditure (on 100% basis)
                                                                                         six months ended 31 December
R million                                                                                           2017         2016   
Iron ore                                                                                             609          368   
Manganese                                                                                            557          786   
Total                                                                                              1 166        1 154   

Projects

Black Rock Project

The modernisation project at Black Rock Mine is continuing on time and within budget. Ramp up of production volumes
from the project will proceed as planned in close synchronisation with Transnet.

The new load-out facility and rail loop system have been completed and are being commissioned.

The underground silo and the Graben conveyor system at Nchwaning II Shaft is still under construction and is progressing
as planned. The underground work will take a further 24 months to complete where after an increase in production output
from Nchwaning II Shaft can be expected.

Logistics

Assmang's manganese ore export volumes are fully contracted with Transnet for F2018 and F2019 through both the Port
Elizabeth and Saldanha export channels. In terms of the long-term allocation, Assmang is in ongoing negotiations with
Transnet to synchronise the ramp up of Black Rock Mine with the medium- and longer-term (MECA2 and MECA3) Transnet
capacity process.

Transnet provided the regular service on the iron ore export supply route from the Khumani Mine to the Port of Saldanha.

Assmang continued to support a junior iron ore producer and exporter by loading rail wagons at its Khumani Mine load-out
facility.

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

ARM Platinum

ARM Platinum's attributable headline earnings increased by 26% to R226 million (1H F2017: R179 million), mainly as a
result of a sharp rise in the Rand palladium (34%), rhodium (72%) and copper (26%) prices and improved volumes from
Modikwa Mine.

ARM Platinum attributable headline earnings
                                                                                       six months ended 31 December
R million                                                                            2017             2016   % change   
Two Rivers                                                                            173              205       (16)   
Modikwa                                                                                36             (54)              
Nkomati                                                                                17               28       (39)   
Headline earnings attributable to ARM                                                 226              179         26   

US Dollar and Rand prices for platinum and chrome were lower than the corresponding period. Due to Modikwa
Mine's higher palladium content, the average Rand per 6E kilogram basket price increased by 13% to R375 776/kg
(1H F2017: R333 388/kg), whereas the average basket price at Two Rivers Mine increased by 9% to R365 825/kg
(1H F2017: R335 433/kg).

The tables below set out the relevant price comparison:

Average US Dollar metal prices
                                                                         average for the six months ended 31 December
                                                            unit                 2017              2016      % change   
Platinum                                                  US$/oz                  936             1 013           (8)   
Palladium                                                 US$/oz                  947               676            40   
Rhodium                                                   US$/oz                1 199               667            80   
Gold                                                      US$/oz                1 277             1 257             2   
Nickel                                                     US$/t               11 213            10 270             9   
Copper                                                     US$/t                6 690             5 081            32   
UG2 chrome concentrate - Two Rivers (CIF*)                 US$/t                  159               209          (24)   
High sulphur chrome concentrate -                                                                                       
Nkomati (FOT**)                                            US$/t                   69               175          (61)  
 
*  CIF refers to Cost, Insurance and Freight.
** FOT refers to Free On Truck.                                                                 

Average Rand metal prices
                                                                         average for the six months ended 31 December
                                                          unit                  2017             2016        % change   
Exchange rate                                                                  13.39            13.98             (4)   
Platinum                                                  R/oz                12 538           14 157            (11)   
Palladium                                                 R/oz                12 677            9 444              34   
Rhodium                                                   R/oz                16 050            9 329              72   
Gold                                                      R/oz                17 095           17 575             (3)   
Nickel                                                     R/t               150 145          143 576               5   
Copper                                                     R/t                89 577           71 039              26   
UG2 chrome concentrate - Two Rivers (CIF*)                 R/t                 2 130            2 920            (27)   
High sulphur chrome concentrate -                                                                                       
Nkomati (FOT**)                                            R/t                   920            2 443            (62)   

*  CIF refers to Cost, Insurance and Freight.
** FOT refers to Free On Truck.

Lower PGM production at Two Rivers Mine (14%) was offset by an increase at Modikwa Mine (16%) and Nkomati
Mine (37%), resulting in ARM Platinum's PGM ounces (on a 100% basis) improving by 3% to 422 104 6E ounces
(1H F2017:407 846 6E ounces).

Nkomati Mine's nickel production increased slightly to 6 733 tonnes (1H F2016: 6 627 tonnes) as a result of higher tonnes
milled (14%) and improved recoveries at the PCMZ concentrator plant. Nickel sales were however 31% lower than the
corresponding period due to shipping delays in December 2017.

Unit production costs were well controlled at Modikwa and Nkomati mines with both mines achieving below inflation unit
cost increases. Unit production costs at Two Rivers Mine were flat on a Rand per tonne basis but increased by 14% on a
Rand per PGM ounce basis, mainly as a result of the lower PGMs produced due to grade decline.

Capital expenditure at ARM Platinum operations (on a 100% basis) decreased by 10% to R644 million (1H F2017:
R718 million).

At Modikwa Mine, the North Shaft execution project recommenced in September 2017. The development team took
delivery of re-built equipment and development commenced in November 2017. This resulted in Modikwa Mine's capital
expenditure increasing by 36% to R218 million (1H F2017: R160 million).

Of the capital spent at Two Rivers Mine, 24% is associated with fleet replacement and refurbishment. The deepening of
the Main and North declines, together with its electrical and mechanical installations, comprised 60% of the total capital
expenditure.

Nkomati Mine's capital expenditure was mainly for the replacement of the Onverwacht Tails line (R51 million), as well as
continued construction of the second anchored pile wall (R24 million). Capitalised waste stripping costs decreased by
R250 million or 69% due to rescheduling and reallocation of equipment between the Eastern and Western sections. Waste
stripping was also negatively affected by constraints in the pit as the Western Section was being stabilised with pile wall
2 construction. The mine is continuing with buttressing work in the area. Waste stripping volumes were 11 million tonnes
in 1H F2018 and will be accelerated in the last quarter of F2018 to an annualised rate of 23 million tonnes. The mine has
re-evaluated the accelerated waste stripping plan and reduced planned waste stripping volumes to 23 million tonnes per
annum. This is expected to impact nickel volumes produced in the current financial year, F2019 and F2020.

ARM Platinum capital expenditure (on 100% basis)
                                                                                         six months ended 31 December
R million                                                                                        2017            2016   
Modikwa                                                                                           218             160   
Two Rivers                                                                                        226             175   
Nkomati                                                                                            86              19   
Nkomati capitalised waste stripping                                                               114             364   
Total                                                                                             644             718   

Two Rivers Mine

Headline earnings at Two Rivers Mine reduced by 16% to R173 million (1H F2017: R205 million). A 2% decrease in
tonnes milled and an 8% reduction in grade, led to PGMs produced declining by 14% to 178 702 6E ounces (1H F2017:
207 147 6E ounces).

The decrease in tonnes milled can be ascribed to a two-day safety-related stoppage at the plant while the decline in
head grade is largely attributed to an increase in split reef proportion in the ore mix following the depletion of normal
reef in the upper levels of both the Main and North declines. There is currently limited flexibility in blending the ore from
split reef and normal reef sources due to face length constraints at Main Decline. Thick areas of split reef are expected
to continue affecting the overall mining grade negatively for the next 14 months, resulting in overall mining grades being
between 3.70 and 3.80 6E grams per tonne (1H F2017: 3.85 6E grams per tonne). To mitigate the declining grade, there
is a drive to increase mining volumes from high-grade panels to enhance the ore mix as well as undercutting the internal
waste wherever practically possible.

An attempt to scalp internal waste, both underground and on surface, by means of burden controls within the UG2
internal waste band and the 'waste scalper screen', has shown very limited improvement in grade due to the nature of
fragmentation of internal waste (i.e. finer fragmentations).

The accelerated sinking at the Main Decline into the Tamboti area is in progress after the Two Rivers Mine amended
mining right, including the Tamboti mining rights was executed by the DMR from 9 November 2017.

Chrome sales volumes decreased as a result of lower tonnes milled and lower grade. This, combined with a 27%
decline in the Rand chrome price, resulted in chrome cash operating profit declining by 53% to R102 million (1H F2017:
R218 million). Chrome concentrate sales volumes declined by 19% to 115 657 tonnes as a result of a lower chrome yield,
a direct consequence of the lower PGM grade.

Unit production costs on a Rand per tonne milled basis were flat at R694 per tonne (1H F2017: R692 per tonne). The
Rand per PGM ounce produced, however, increased by 14% to R6 655 per 6E ounce (1H F2017: R5 838 per 6E ounce),
primarily as a direct result of the decline in PGM ounces produced due to the low grade. These unit production costs
were flat compared to 2H F2017 which were R6 599 per 6E ounce. There was a 56 222 tonne decrease in the UG2
Run-of-Mine stockpile to a total of 251 663 tonnes of ore as at 31 December 2017.

Two Rivers Mine operational statistics (on 100% basis)
                                                                                   six months ended 31 December
                                                                       unit      2017                 2016   % change   
Cash operating profit                                             R million       681                  783       (13)   
-  PGMs                                                           R million       580                  565          3   
-  Chrome                                                         R million       102                  218       (53)   
Tonnes milled                                                            Mt      1.71                 1.75        (2)   
Head grade                                                          g/t, 6E      3.70                 4.03        (8)   
PGMs in concentrate                                              Ounces, 6E   178 702              207 147       (14)   
Chrome concentrate sold                                              Tonnes   115 657              142 721       (19)   
Average basket price                                               R/kg, 6E   365 825              335 433          9   
Average basket price                                             US$/oz, 6E       850                  746         14   
Cash operating margin                                                     %        35                   37              
Cash cost                                                          R/kg, 6E   213 971              187 685         14   
Cash cost                                                           R/tonne       694                  692          0   
Cash cost                                                           R/Pt oz    14 253               12 505         14   
Cash cost                                                          R/oz, 6E     6 655                5 838         14   
Cash cost                                                        US$/oz, 6E       497                  418         19   
Headline earnings attributable to ARM                             R million       173                  205       (16)   

Modikwa Mine

Modikwa Mine achieved attributable headline earnings of R36 million (1H F2017: R54 million headline loss). A 21%
(216 thousand tonnes) increase in tonnes milled, offset by a 6% decrease in head grade, resulted in PGM production
increasing by 16% to 175 899 6E ounces (1H F2017: 151 562 6E ounces). Of the 1.24 million tonnes milled, 94 thousand
tonnes were purchased from Mototolo Platinum Mine. Modikwa Mine is working on a plan to reduce dilution and improve
the grade.

Unit production costs increased by 3%, to R8 832 per 6E PGM ounce (1H F2017: R8 559 per 6E PGM ounce) and were
lower on a Rand per tonne basis at R1 258 per tonne (1H F2017: R1 273 per tonne).

Production ramp up at South 2 Shaft has been slower than expected, however an upward trend has commenced particularly
in the last quarter of the financial year. The focus remains on ramping production up at this shaft.

Modikwa Mine operational statistics (on 100% basis)
                                                                                      six months ended 31 December
                                                                        unit        2017              2016   % change   
Cash operating profit/(loss)                                       R million         200              (61)              
Tonnes milled                                                             Mt        1.24              1.02         21   
Head grade                                                           g/t, 6E        5.15              5.45        (6)   
PGMs in concentrate                                               Ounces, 6E     175 899           151 562         16   
Average basket price                                                R/kg, 6E     375 776           333 388         13   
Average basket price                                              US$/oz, 6E         873               742         18   
Cash operating margin                                                      %          12               (5)              
Cash cost                                                           R/kg, 6E     283 964           275 163          3   
Cash cost                                                            R/tonne       1 258             1 273        (1)   
Cash cost                                                            R/Pt oz      22 548            22 084          2   
Cash cost                                                           R/oz, 6E       8 832             8 559          3   
Cash cost                                                         US$/oz, 6E         660               612          8   
Headline earnings/(loss) attributable to ARM                       R million          36              (54)              

Nkomati Mine

Nkomati Mine generated attributable headline earnings of R17 million (1H F2017: R28 million) for the period under review.
The decline in earnings is due to lower nickel sales volumes (4 178 tonnes vs 6 079 tonnes) and a 62% decline in the
Rand chrome price. Nkomati Mine had 11 thousand tonnes of nickel concentrate in stock as at 31 December 2017 due to
shipping delays. The shipping schedule is expected to be back on track by April 2018. The shipping logistics are managed
by Metals Trade Overseas AG.

Despite chrome concentrate sales volumes increasing by 105% to 198 928 tonnes (1H F2017: 96 821 tonnes), the chrome
contribution to cash operating profit reduced by 27% to R118 million (1H F2017: R161 million) as a result of the lower
chrome price realised.

Nkomati Mine's total tonnes milled increased by 14% to 4.08 million tonnes. Nickel units produced however, improved by
only 2% to 6 733 tonnes (1H F2017: 6 627 tonnes). The main reasons for this are:

- Pit 3 mining operations remain constrained as a result of the historical mining inefficiencies and geotechnical issues,
  resulting in insufficient MMZ ore availability during the reporting period.
- Approximately 1 million tonnes of VLG MMZ stockpile material was processed during the period to complement the
  shortfall of MMZ, ensuring that both mills are operating at maximum capacity. The VLG MMZ material, with an average
  nickel grade of 0.17%, resulted in the average mill feed grade declining by 15%.
- The VLG material and MMZ ore contained significantly more PGMs and copper than anticipated, resulting in the
  production of these metals increasing by 37% and 38%, respectively, when compared to the period. The by-product
  content of this material is being evaluated as the mine continues to process more of it.
- Waste stripping on the Western Section of the pile wall commenced on 1 October 2017. A saprolite failure occurred
  which resulted in the mine having to re-evaluate the accelerated waste stripping plan. Planned waste stripping has
  therefore reverted back to the old life-of-mine plan. Waste stripping of 23 million tonnes per annum is planned which is
  expected to impact nickel volumes from F2018 to F2020.

Nkomati Mine's on-mine unit production cost (excluding capitalised waste stripping) was 22% higher at R311 per tonne
(1H F2017: R254 per tonne). The reduction in waste stripping volumes (as discussed above) resulted in unit cost per
tonne milled (including capitalised waste stripping) declining by 5% to R339 per tonne (1H F2017: R356 per tonne). C1
unit cash cost net of by-products (which includes capitalised waste stripping cost) was 18% lower at US$4.95/lb (1H
F2017: US$6.05/lb) of nickel produced. The decrease in C1 unit cash costs was due to higher by-product credits combined
with decreased capitalised waste stripping costs. R114 million of waste stripping costs (1H F2017: R364 million) were
capitalised during the period due to lower production.

Nkomati Mine operational statistics (on 100% basis)
                                                                                        six months ended 31 December
                                                                        unit           2017           2016   % change   
Cash operating profit                                              R million            293            308        (5)   
-  Nickel Mine                                                     R million            175            147         19   
-  Chrome Mine                                                     R million            118            161       (27)   
Cash operating margin                                                      %             17             17              
Tonnes milled                                                             Mt           4.08           3.58         14   
Head grade                                                          % nickel           0.24           0.28       (14)   
Nickel on-mine cash cost per tonne milled                            R/tonne            311            254         22   
Nickel on-mine cash cost per tonne milled                                                                               
(including capitalised waste stripping costs)                        R/tonne            339            356        (5)   
Cash cost net of by-products*                                         US$/lb           4.95           6.05       (18)   
Contained metal                                                                                                         
Nickel                                                                Tonnes          6 733          6 627          2   
PGMs                                                                  Ounces         67 503         49 137         37   
Copper                                                                Tonnes          4 482          3 245         38   
Cobalt                                                                Tonnes            356            318         12   
Chrome concentrate sold                                               Tonnes        198 928         96 821        105   
Headline earnings attributable to ARM                              R million             17             28       (39)   

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

Projects

Modikwa Mine

In order to maintain the current production profile and ramp-up the operation, Modikwa Mine initiated the North Shaft
Deepening Project and the South 2 Shaft Project. The current status of these projects are detailed below:

- Deepening of North Shaft - This project entails the deepening of North Shaft from Level 7 to Level 9 thereby
  establishing three new mining levels. To curtail capital expenditure, portions of this project were deferred during F2015,
  resulting in current development being delayed at Level 9. Level 7 and 8 are both fully equipped with all the required
  mining infrastructure. The chairlift installation was commissioned in February 2017.

- Sinking of South 2 Shaft - This project scope includes the establishment of a decline shaft system South of the current
  South Shaft Infrastructure. The first phase of the project is expected to enhance mining flexibility while also contributing
  to the overall production build-up of the mine. Phase one of the project has been completed and is expected to take the
  production capacity to 50 000 tonnes of ore per month by F2019. The second phase will follow and increase the design
  capacity of this shaft system to 100 000 tonnes per month.

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 ARM subsidiary in which ARM has a 54% shareholding and Implats 46%. The increase in
    shareholding is effective 9 November 2017, when Two Rivers' amended mining right, including the mining rights
    transferred to it, was executed by the DMR.

  - 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

ARM Coal's attributable headline earnings increased by 62% to R160 million (1H F2017: R99 million). This improvement
was mainly due to the average realised US Dollar export prices being 20% higher compared to 1H F2017 with the realised
price exceeding US$75 per tonne.

Seaborne coal prices were positively impacted by an increase in demand from India and China, largely due to gas supply
shortages in China over the winter months. The impact of the higher prices was partially reduced by a strengthening of
the average realised Rand/US Dollar exchange rate. Realised Rand prices increased from R873 per tonne in 1H F2017 to
R1 000 per tonne in 1H F2018.

More than 70% of the export volumes at GGV Mine were high quality (RB1) coal while only 34% of PCB exports were RB1
quality. This resulted in PCB's average received export price being lower compared to GGV Mine.

ARM attributable saleable tonnes produced of 2.59 million tonnes were slightly higher than the 2.54 million tonnes
produced in 1H F2017.

ARM Coal attributable profit analysis
                                                                                        six months ended 31 December
R million                                                                              2017           2016   % change   
Cash operating profit                                                                   751            687          9   
Less: Interest paid                                                                   (257)          (271)          5   
Less: Amortisation                                                                    (249)          (246)        (1)   
Less: Fair value adjustments                                                           (29)           (32)          9   
Less: Impairment                                                                       (19)              -              
Profit before tax                                                                       197            138         43   
Add: Impairment                                                                          19              -              
Less: Tax                                                                              (51)           (39)       (31)   
Tax on impairment                                                                       (5)              -              
Headline earnings attributable to ARM                                                   160             99         62   

Goedgevonden (GGV) Mine

GGV Mine's attributable cash operating profit increased by 63% from R147 million in 1H F2017 to R240 million in 1H F2018.

Average received export US Dollar prices increased by 34% compared to 1H F2017. The impact of the higher prices was
partially reduced by a 4% reduction in export sales volumes and a 4% strengthening of the Rand versus the US Dollar. This
resulted in an increase in attributable export revenue of R86 million.

Production volumes at GGV Mine were 9% lower than 1H F2017 partially due to a rollover of low in-pit inventory levels
from 2H F2017. The in-pit inventory levels have since improved during 1H F2018. Production was further impacted by
safety related stoppages and community protests.

On-mine unit production costs per saleable tonne increased by 9% to R315, mainly as a result of a decrease in production
volumes.

Attributable headline earnings increased by R61 million, from a headline loss of R26 million in 1H F2017 to headline
earnings of R35 million in 1H F2018.

Goedgevonden Mine operational statistics
                                                                                       six months ended 31 December
                                                                        unit         2017             2016   % change   
Total production sales (100% basis)                                                                                     
Saleable production                                                       Mt         3.30             3.61        (9)   
Export thermal coal sales                                                 Mt         1.64             1.71        (4)   
Eskom thermal coal sales                                                  Mt         1.72             1.67          3   
Local thermal coal sales                                                  Mt         0.03             0.20       (85)   
Attributable production and sales                                                                                       
Saleable production                                                       Mt         0.86             0.94        (9)   
Export thermal coal sales                                                 Mt         0.43             0.44        (2)   
Eskom thermal coal sales                                                  Mt         0.45             0.43          5   
Local thermal coal sales                                                  Mt         0.01             0.05       (80)   
Average received coal price                                                                                             
Export (FOB*)                                                      US$/tonne        80.22            59.99         34   
Eskom (FOT**)                                                        R/tonne          232              228          2   
Local (FOR***)                                                       R/tonne          995              509         95   
On-mine saleable cost                                                R/tonne          315              289          9   
Cash operating profit                                                                                                   
Total                                                              R million          923              567         63   
Attributable (26%)                                                 R million          240              147         63   
Headline earnings/(loss) attributable to ARM                       R million           35             (26)              

*   FOB refers to Free On Board.
**  FOT refers to Free On Truck.
*** FOR refers to Free On Rail.

Goedgevonden Mine attributable profit analysis
                                                                                       six months ended 31 December
R million                                                                            2017             2016   % change   
Cash operating profit                                                                 240              147         63   
Less: Interest paid                                                                 (113)            (105)        (8)   
Less: Amortisation                                                                   (78)             (72)        (8)   
Less: Fair value adjustments                                                          (6)              (7)         14   
Profit/(loss) before tax                                                               43             (37)              
Less: Tax                                                                             (8)               10      (180)   
Headline earnings/(loss) attributable to ARM                                           35             (26)              

Participating Coal Business (PCB)

PCB attributable cash operating profit decreased by 5% to R511 million (1H F2017: R539 million).

An 11% increase in average received US Dollar coal prices together with a 1% increase in export coal sales volumes,
improved revenue by R146 million. This was partially offset by a 4% strengthening of the Rand versus the US Dollar which
negatively impacted revenue by R52 million. Revenue from inland coal sales was R31 million lower than the previous
period, mainly due to a decrease in local coal sales volumes.

Unit production costs per saleable tonne increased by 22% from R273 per tonne in 1H F2017 to R334 per tonne in
1H F2018. On-mine production costs in the previous period benefited from processing of stockpile ore built up during
the Tweefontein Optimisation Project (TOP). The Tweefontein operation has since stabilised and is now operating at
the planned unit production costs which was estimated at approximately R300 per tonne. The 8% increase in saleable
production together with the reduction in the benefits obtained from the low cost stockpile resulted in an increase in on-
mine costs of R142 million.

Headline earnings attributable to ARM were flat at R125 million.

PCB operational statistics
                                                                                        six months ended 31 December
                                                                        unit           2017           2016   % change   
Total production sales (100% basis)                                                                                     
Saleable production                                                       Mt           8.57           7.93          8   
Export thermal coal sales                                                 Mt           6.71           6.62          1   
Eskom thermal coal sales                                                  Mt           0.83           0.77          8   
Local thermal coal sales                                                  Mt           0.14           0.54       (74)   
Attributable production and sales                                                                                       
Saleable production                                                       Mt           1.73           1.60          8   
Export thermal coal sales                                                 Mt           1.36           1.34          1   
Eskom thermal coal sales                                                  Mt           0.17           0.16          6   
Local thermal coal sales                                                  Mt           0.03           0.11       (73)   
Average received coal price                                                                                             
Export (FOB*)                                                      US$/tonne          71.13          63.97         11   
Eskom (FOT**)                                                        R/tonne            244            246        (1)   
Local (FOR***)                                                       R/tonne            998            523         91   
On-mine saleable cost                                                R/tonne            334            273         22   
Cash operating profit                                                                                                   
Total                                                              R million          2 529          2 669        (6)   
Attributable (20.2%)                                               R million            511            539        (5)   
Headline earnings attributable to ARM                              R million            125            125          -   

*   FOB refers to Free On Board.
**  FOT refers to Free On Truck.
*** FOR refers to Free On Rail.

PCB attributable profit analysis
                                                                                        six months ended 31 December
R million                                                                              2017           2016   % change   
Cash operating profit                                                                   511            539        (5)   
Less: Interest paid                                                                   (144)          (166)         13   
Amortisation                                                                          (171)          (173)        (1)   
Fair value adjustments                                                                 (23)           (26)         12   
Impairment                                                                             (19)              -              
Profit before tax                                                                       154            174       (11)   
Add: Impairment                                                                          19              -              
Less: Tax                                                                              (43)           (49)         12   
Tax on impairment                                                                       (5)              -              
Headline earnings attributable to ARM                                                   125            125          -   

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%.

Discontinued operation: ARM Copper

For the six months under review, ARM Copper's headline loss improved from R72 million in 1H F2017 to R6 million
in 1H F2018. During 1H F2018 the average realised copper price of US$6 595 per tonne was 32% higher than the
comparable period in F2017.

Lubambe Mine

Following the year of consolidation in F2017 where Lubambe Mine operated at a reduced target production level of 80 000
tonnes ore per month, development metres increased by 94% to 7 113 metres in 1H F2018 (1H F2017: 3 667 metres). The
upgrade in underground pumping capacity has enabled the mine to recommence with development in previously flooded
areas. The increased development profile enabled Lubambe Mine to increase its developed ore reserves over the duration
of the six months.

Lubambe Mine's C1 cash cost were negatively impacted by low stoping reserves and the increased ore development.
C1 unit production costs for 1H F2018 at US$2.82/lb were 27% higher than the same comparable period in F2017.

In order to preserve cash flow, capital expenditure was restricted during 1H F2018 with the majority of expenditure related
to the life of mine capital development and upgrades in underground water infrastructure.

Lubambe Mine operational statistics (100% basis)
                                                                                         six months ended 31 December
                                                                                        2017          2016   % change   
Waste development                                                      Metres          2 842         1 209        135   
Ore development                                                        Metres          4 271         1 212       >200   
Ore development                                                        Tonnes        260 737        74 288       >200   
Ore stoping                                                            Tonnes        232 226       423 803       (45)   
Ore tonnes mined                                                       Tonnes        492 963       498 091        (1)   
Tonnes milled                                                        Thousand        539 437       545 162        (1)   
Mill head grade                                                      % copper           2.12          2.09              
Concentrator recovery                                                       %           81.9          84.6              
Copper concentrate produced                                            Tonnes         24 015        23 193          4   
Copper concentrate sold                                                Tonnes         23 511        22 139          6   
Average realised copper price                                          US$/lb           2.99          2.27         32   
C1 cash cost per pound of copper produced                              US$/lb           2.82          2.22         27   
Capital expenditure                                                    US$000          6 942         5 229         33   
Contained metal                                                                                                         
Copper produced                                                        Tonnes          9 380         9 644        (3)   
Copper sold                                                            Tonnes          9 269         9 255          -   
Headline loss attributable to ARM                                   R million            (6)          (72)         92   

*  The 1H F2017 results have been re-presented following the classification of Lubambe Mine as an asset held for sale. As
   such, intercompany interest accrued to ARM Company from Lubambe Mine of R130 million (1H F2017: R106 million)
   has been eliminated from both ARM Copper and Corporate and other segments. The disposal of Lubambe Mine was
   completed on 22 December 2017.

Harmony Gold Mining Company Limited (Harmony)

Harmony reported a 49% increase in headline earnings to R990 million (1H F2017: R657 million) or 224 cents per share
(1H F2017: 150 cents per share).

Revenue for the six months under review remained relatively flat in comparison to 1H F2017 as the average gold price
received decreased by 1% to R580 672/kg (US$1 348/oz) and total gold sales increased by 2%. Forward gold sale
contracts of 3 359kg or 108 000oz, with an average price of R692 836/kg (US$1 609/oz), matured during 1H F2018. This
contributed R503 million (US$38 million) to revenue.

The hedging programmes realised gains of R771 million (US$58 million) for the December 2017 period. Management
continues to top-up these programmes when the market presents attractive opportunities to do so. The gold hedging
programme currently provides cover for approximately 19% of the expected gold production over the next two years.
A summary of all the open hedging contracts is included in the Harmony 1H F2018 results published on 13 February 2018.

Production costs decreased by R264 million or 4% compared to the corresponding period. The decrease in Rand terms
was mainly due to the capitalisation of production costs as a result of the re-investment into Hidden Valley.

Harmony's net profit for 1H F2018 was R897 million compared to R1 539 million for the comparative period which included
a gain on bargain purchase of R848 million.

Harmony completed the acquisition of the Moab Khotsong operations effective 1 March 2018 - which includes the Great
Noligwa underground mine and related infrastructure from AngloGold Ashanti Limited for a consideration of US$300 million
in cash. The Moab Khotsong acquisition is expected to increase Harmony's cash flow from year one and unlock value by
expanding the reserves and extending life-of-mine.

The Harmony investment is reflected on the ARM Statement of Financial Position at R1 444 million based on the Harmony
share price at 31 December 2017 of R22.69 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 are accounted for, net of deferred capital gains tax, through the Statement of Comprehensive
Income. Dividends from Harmony 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 2017 can be viewed on Harmony's website at http://www.harmony.co.za.

ARM owns 14.3% of Harmony's issued share capital.

Outlook

US Dollar commodity prices for most of the commodities that ARM produces remain strong into 2H F2018. In particular,
premiums for the high-quality iron ore and manganese ore appear to be underpinned by ongoing Chinese supply-side
reforms, improved efficiencies in the Chinese steel industry and increasingly stringent environmental policies. Commodity
prices are, however, expected to remain volatile.

Uncertainties into 2H F2018 include (i) the outlook for the Rand versus US Dollar exchange rate; (ii) changes in South
African mining regulations; (iii) the dynamic socio-economic environment around mines; and (iv) above-inflation unit cost
increases.

Re-engagement between government, the mining industry and other stakeholders on Mining Charter III is positive for the
South African mining industry and is contributing towards improved investor sentiment.

ARM continues to proactively manage cost pressures whilst ensuring efficient production levels to maximise profit margins.

We are also focused on the allocation of capital to ensure that a responsible balance is achieved between re-investment
into the business, shareholder returns, maintaining a robust financial position and value enhancing growth. We are pleased
to have declared a maiden interim dividend and will continue to consider interim and annual dividends taking into account
amongst things our financial position, the outlook for our operations and commodity markets, capital expenditure and
growth.

Further, ARM is committed to managing the impact of our mining activities on all stakeholders. We are committed to
investing in ways that will ensure mutual benefit to surrounding communities, Government and the environments in which
we operate.

ARM remains confident about the future of our business.

Dividends

The Board has approved and declared an interim dividend of 250 cents per share (gross) in respect of the six months
ended 31 December 2017 (1H F2017: Nil). The amount to be paid is approximately R549 million.

This dividend is consistent with ARM's commitment, as a globally competitive company, to pay dividends while retaining the
ability to fund efficiency improvements and sustaining production.

The dividend will be subject to Dividend Withholding Tax. In accordance with paragraphs 11.17(a) (i) to (x) and 11.17(c) of
the JSE Listings Requirements the following additional information is disclosed:

- The dividend has been declared out of income reserves;
- The South African Dividends Tax ("Dividends Tax") rate is 20%;
- The gross local dividend amount is 250 cents per ordinary share for shareholders exempt from the Dividends Tax;
- The net local dividend amount is 200.00000 cents per share for shareholders liable to pay the Dividends Tax;
- As at the date of this declaration ARM has 219 691 837 ordinary shares in issue; and
- ARM's income tax reference number is 9030/018/60/1.

A gross dividend of 250 cents per ordinary share, being the dividend for the six months ended 31 December 2017 has
been declared payable on Monday, 16 April 2018 to those shareholders recorded in the books of the Company at the close
of business on Friday, 13 April 2018. The dividend is declared in the currency of South Africa. Any change in address or
dividend instruction to apply to this dividend must be received by the Company's transfer secretaries or registrar not later
than Friday, 13 April 2018. The last day to trade ordinary shares cum dividend is Tuesday, 10 April 2018. Ordinary shares
trade ex-dividend from Wednesday, 11 April 2018. The record date is Friday, 13 April 2018 whilst the payment date is
Monday, 16 April 2018.

No dematerialisation or rematerialisation of share certificates may occur between Wednesday, 11 April 2018 and
Friday,13 April 2018, both dates inclusive, nor may any transfers between registers take place during this period.

Review by independent auditors

The financial results for the six months ended 31 December 2017 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
16 March 2018

Group statement of financial position
as at 31 December
                                                                                                              Unaudited             Audited
                                                                                                          Six months ended       Year ended
                                                                                                            31 December             30 June
                                                                                                          2017            2016         2017
                                                                                                Note        Rm              Rm           Rm
ASSETS
Non-current assets
Property, plant and equipment                                                                      3     7 989           8 801        7 801
Intangible assets                                                                                          124             135          130
Deferred tax assets                                                                                        663             510          656
Loans and long-term receivables                                                                             38              38           34
Investment in associate                                                                                  1 445           1 279        1 334
Investment in joint venture                                                                        4    15 626          14 460       14 860
Other investments                                                                                        1 648           2 194        1 573
                                                                                                        27 533          27 417       26 388
Current assets
Inventories                                                                                                692             759          663
Trade and other receivables                                                                              2 283           2 179        2 096
Taxation                                                                                                    97              10            6
Cash and cash equivalents                                                                          5     1 919           1 335        1 488
                                                                                                         4 991           4 283        4 253
Assets held for sale                                                                              11         1               1        1 605
Total assets                                                                                            32 525          31 701       32 246
EQUITY AND LIABILITIES
Capital and reserves
Ordinary share capital                                                                                      11              11           11
Share premium                                                                                            4 396           4 268        4 279
Treasury shares                                                                                        (2 405)         (2 405)      (2 405)
Other reserves                                                                                           1 310           2 342        1 326
Other reserves discontinued operation                                                                        -               -          730
Retained earnings                                                                                       20 073          17 921       19 556
Equity attributable to equity holders of ARM                                                            23 385          22 137       23 497
Non-controlling interest                                                                                 1 541             644          543
Total equity                                                                                            24 926          22 781       24 040
Non-current liabilities
Long-term borrowings                                                                               6     2 311           3 618        2 002
Deferred tax liabilities                                                                                 1 574           1 394        1 297
Long-term provisions                                                                                     1 181             677        1 166
                                                                                                         5 066           5 689        4 465
Current liabilities
Trade and other payables                                                                                 1 505           1 600        1 307
Short-term provisions                                                                                      235             294          393
Taxation                                                                                                    83             112          112
Overdrafts and short-term borrowings                                                               6       710           1 225          757
                                                                                                         2 533           3 231        2 569
Liabilities directly associated with assets held for sale                                                    -               -        1 172
Total equity and liabilities                                                                            32 525          31 701       32 246

Group income statement
for the six months ended 31 December
                                                                                                            Unaudited               Audited
                                                                                                        Six months ended         Year ended
                                                                                                          31 December               30 June
                                                                                                                 *Represented
                                                                                                       2017              2016          2017
                                                                                              Note       Rm                Rm            Rm
Revenue                                                                                               5 020             4 950         9 019
Sales                                                                                                 4 260             4 176         8 158
Cost of sales                                                                                       (3 455)           (3 521)       (6 951)
Gross profit                                                                                            805               655         1 207
Other operating income                                                                                  453               379           757
Other operating expenses                                                                              (620)             (725)       (1 750)
Profit from operations before special items                                                             638               309           214
Income from investments                                                                                 103               122           238
Finance costs                                                                                         (174)             (271)         (423)
Income from associate                                                                                   111               125           181
Income from joint venture**                                                                      4    1 765             1 356         3 265
Profit before taxation and special items                                                              2 443             1 641         3 475
Special items                                                                                    7        1           (2 322)       (2 322)
Profit/(loss) before taxation from continuing
operations                                                                                            2 444             (681)         1 153
Taxation                                                                                         9    (334)               516           409
Profit/(loss) for the period from continuing
operations                                                                                            2 110             (165)         1 562
Discontinued operations
Loss for the period from discontinued
operation                                                                                             (219)             (118)         (130)
Profit/(loss) for the period                                                                          1 891             (283)         1 432
Attributable to:
Equity holders of ARM
Profit/(loss) for the period from continuing operations                                               1 938             (182)         1 431
Loss for the period from discontinued operations                                                      (185)              (72)          (59)
Basic earnings/(loss) for the period                                                                  1 753             (254)         1 372
Non-controlling interest
Profit for the period from continuing operations                                                        172                17           131
Loss for the period from discontinued operations                                                       (34)              (46)          (71)
                                                                                                        138              (29)            60
Profit/(loss) for the period                                                                          1 891             (283)         1 432
*  Re-presented as a result of IFRS 5 - Non-current
   Assets Held for Sale accounting for Lubambe.
   Refer note 11.
** Impairment included in income from joint venture
   of nil, (1H F2017: R422 million before tax of nil;
   F2017: R470 million before tax of R27 million)
Earnings per share                                                                               8
Basic earnings/(loss) per share (cents)                                                                 922             (134)           723
Basic earnings/(loss) from continuing operations
per share (cents)                                                                                     1 019              (96)           754
Basic loss from discontinued operation per share (cents)                                               (97)              (38)          (31)
Diluted basic earnings/(loss) per share (cents)                                                         896             (130)           703
Diluted basic earnings/(loss) from continuing operations
per share (cents)                                                                                       990              (93)           733
Diluted basic loss from discontinued operation
per share (cents)                                                                                      (95)              (37)          (30)

Group statement of comprehensive income
for the six months ended 31 December 2017
                                                                                                               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 2017 (Unaudited)
Profit for the period                                                              -        -       1 753      1 753          138     1 891
Profit for the period from continuing operations                                   -        -       1 938      1 938          172     2 110
Loss for the period from discontinued operations                                   -        -       (185)      (185)         (34)     (219)
Other comprehensive income that may be reclassified
to the income statement in subsequent periods:
Net impact of revaluation of listed investment                                    50        -           -         50            -        50
Revaluation of listed investment*                                                 64        -           -         64            -        64
Deferred tax on above                                                           (14)        -           -       (14)            -      (14)
Foreign currency translation reserve movement
from continuing operations                                                         -     (37)           -       (37)            -      (37)
Foreign currency translation reserve movement
from discontinued operations current year                                          -       80           -         80            -        80
Foreign currency translation reserve movement
from discontinued operations prior year**                                          -    (730)           -      (730)            -     (730)
Total other comprehensive income/(loss)                                           50    (687)           -      (637)            -     (637)
Total comprehensive income/(loss) for the period                                  50    (687)       1 753      1 116          138     1 254
Six months ended 31 December 2016 (Unaudited)
Re-presented
Loss for the period                                                                -        -       (254)      (254)         (29)     (283)
(Loss)/profit for the period from continuing operations                            -        -       (182)      (182)           17     (165)
Loss for the period from discontinued operations                                   -        -        (72)       (72)         (46)     (118)
Other comprehensive income that may be reclassified
to the income statement in subsequent periods:
Net impact of revaluation of listed investment                               (1 034)        -           -    (1 034)            -   (1 034)
Revaluation of listed investment*                                            (1 333)        -           -    (1 333)            -   (1 333)
Deferred tax on above                                                            299        -           -        299            -       299
Foreign currency translation reserve movement
from continuing operations                                                         -    (285)           -      (285)            -     (285)
Foreign currency translation reserve movement
from discontinuing operations                                                      -      219           -        219            -       219
Total other comprehensive loss                                               (1 034)     (66)           -    (1 100)            -   (1 100)
Total comprehensive loss for the period                                      (1 034)     (66)       (254)    (1 354)         (29)   (1 383)

                                                                                                               Total
                                                                            Available-                        share-         Non-
                                                                              for-sale           Retained    holders  controlling
                                                                               reserve   Other   earnings     of ARM     interest     Total
                                                                                    Rm      Rm         Rm         Rm           Rm        Rm
Year ended 30 June 2017 (Audited)
Profit for the year                                                                  -       -      1 372      1 372           60     1 432
Profit for the period from continuing operations                                     -       -      1 431      1 431          131     1 562
Loss for the year from discontinued operations                                       -       -       (59)       (59)         (71)     (130)
Other comprehensive income that may be reclassified
to the income statement in subsequent periods:
Net impact of revaluation of listed investment                                 (1 520)       -          -    (1 520)            -   (1 520)
Revaluation of listed investment*                                              (1 959)       -          -    (1 959)            -   (1 959)
Deferred tax on above                                                              439       -          -        439            -       439
Foreign currency translation reserve movement
continuing operations                                                                -   (365)          -      (365)            -     (365)
Foreign currency translation reserve movement
discontinued operations                                                              -     403          -        403            -       403
Total other comprehensive (loss)/income                                        (1 520)      38          -    (1 482)            -   (1 482)
Total comprehensive (loss)/income for the year                                 (1 520)      38      1 372      (110)           60      (50)

*  The share price of Harmony Limited at 31 December 2017 was R22.69, R21.68 at 30 June 2017, R31.53 at 31 December 2016,
   and R52.47 at 30 June 2016 per share. The valuation of the investment in Harmony is based on a level 1 fair value hierarchy
   level in terms of IFRS.
** This relates to the foreign currency translation reserve on presentation of Lubambe in US dollars translated into South African
   Rands.

Group statement of changes in equity
for the six months ended 31 December 2017

                                                     Share                                                   Total
                                                   capital    Treasury   Available-                         share-           Non-
                                                       and       share     for-sale            Retained    holders    controlling
                                                   premium     capital      reserve    Other   earnings     of ARM       interest     Total
                                                        Rm          Rm           Rm       Rm         Rm         Rm             Rm        Rm
Six months ended
31 December 2017
(Unaudited)
Balance at 30 June 2017                              4 290     (2 405)          414    1 642     19 556     23 497            543    24 040
Total comprehensive
income for the period                                    -           -           50    (687)      1 753      1 116            138     1 254
Profit for the period                                    -           -            -        -      1 753      1 753            138     1 891
Other comprehensive
income/(loss)                                            -           -           50    (687)          -      (637)              -     (637)
Bonus and performance
shares issued to
employees                                              117           -            -    (117)          -          -              -         -
Tamboti asset sale to
Two Rivers                                               -           -            -     (99)          -       (99)             99         -
Non-controlling interest
derecognised on sale
of Lubambe                                               -           -            -        -          -          -            822       822
Dividend paid                                            -           -            -        -    (1 236)    (1 236)              -   (1 236)
Dividend paid to
Impala Platinum                                          -           -            -        -          -          -           (61)      (61)
Share based payments                                     -           -            -      107          -        107              -       107
Balance at
31 December 2017                                     4 407     (2 405)          464      846     20 073     23 385          1 541    24 926
Six months ended
31 December 2016
(Unaudited)
Balance at 30 June 2016                              4 228     (2 405)        1 934    1 461     18 601     23 819            762    24 581
Total comprehensive loss
for the period                                           -           -      (1 034)     (66)      (254)    (1 354)           (29)   (1 383)
Loss for the period                                      -           -            -        -      (254)      (254)           (29)     (283)
Other comprehensive
income/(loss)                                            -           -      (1 034)     (66)          -    (1 100)              -   (1 100)
Performance shares issued
to employees                                            51           -            -     (51)          -          -              -         -
Dividend paid                                            -           -            -        -      (426)      (426)              -     (426)
Dividend paid to
Impala Platinum                                          -           -            -        -          -          -           (89)      (89)
Share based payments                                     -           -            -       98          -         98              -        98
Balance at
31 December 2016                                     4 279     (2 405)          900    1 442     17 921     22 137            644    22 781

                                                     Share                                                    Total
                                                   capital    Treasury   Available-                          share-         Non-
                                                       and       share     for-sale            Retained     holders  controlling
                                                   premium     capital      reserve    Other   earnings      of ARM     interest      Total
                                                        Rm          Rm           Rm       Rm         Rm          Rm           Rm         Rm
Year ended 30 June 2017
(Audited)
Balance at 30 June 2016                              4 228     (2 405)        1 934    1 461     18 601      23 819          762     24 581
Total comprehensive
(loss)/income for the year                               -           -      (1 520)       38      1 372       (110)           60       (50)
Profit for the year
30 June 2017                                             -           -            -        -      1 372       1 372           60      1 432
Other comprehensive
(loss)/income                                            -           -      (1 520)       38          -     (1 482)            -    (1 482)
Bonus and performance
shares issued to
employees                                               62           -            -     (58)          -           4            -          4
Dividend paid                                            -           -            -        -      (426)       (426)            -      (426)
Dividend paid to
Impala Platinum                                          -           -            -        -          -           -        (279)      (279)
Dividend reserve reversed
in ARM BBEE Trust                                        -           -            -        -          9           9            -          9
Share based payments                                     -           -            -      201          -         201            -        201
Balance at 30 June 2017                              4 290     (2 405)          414    1 642     19 556      23 497          543     24 040

Group statement of cash flows
for the six months ended 31 December 2017
                                                                                                            Unaudited               Audited
                                                                                                        Six months ended         Year ended
                                                                                                          31 December               30 June
                                                                                                        2017             2016          2017
                                                                                              Note        Rm               Rm            Rm
CASH FLOW FROM OPERATING ACTIVITIES
Cash receipts from customers                                                                           4 748            5 139         9 779
Cash paid to suppliers and employees                                                                 (3 808)          (4 313)       (8 168)
Cash generated from operations                                                                  10       940              826         1 611
Interest received                                                                                         54               65           122
Interest paid                                                                                           (48)            (106)         (247)
Dividends received from joint venture                                                            4     1 000              988         2 488
Dividends paid to non-controlling interest - Impala Platinum                                            (61)             (89)         (279)
Dividend paid                                                                                        (1 236)            (426)         (426)
Taxation paid                                                                                          (325)            (232)         (401)
Net cash inflow from operating activities                                                                324            1 026         2 868
CASH FLOW FROM INVESTING ACTIVITIES
Additions to property, plant and equipment to maintain
operations                                                                                             (603)            (489)         (949)
Dividends received from investments                                                                       22               32            64
Proceeds on disposal of property, plant and equipment                                                      2                4             7
Proceeds on disposal of investment                                                              12       741              238           238
Investments in Richards Bay Coal Terminal                                                                (2)              (2)           (6)
Loans and receivables received                                                                             -                2             6
Net cash inflow/(outflow) from investing activities                                                      160            (215)         (640)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds on exercise of share options                                                                      -                5             4
Long-term borrowings raised                                                                              200                -             -
Long-term borrowings repaid                                                                            (173)            (459)       (1 475)
Short-term borrowings repaid                                                                           (152)            (259)         (394)
Net cash outflow from financing activities                                                             (125)            (713)       (1 865)
Net increase in cash and cash equivalents                                                                359               98           363
Cash and cash equivalents at beginning of period                                                       1 031              667           667
Foreign currency translation on cash balances                                                           (12)               11             1
Cash and cash equivalents at end of period                                                       5     1 378              776         1 031
Cash generated from operations per share (cents)                                                         494              436           849

Notes to the financial statements
for the six months ended 31 December 2017

1.   Statement of compliance

     The Group financial statements for the six months ended 31 December 2017 have been 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 2017 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,
     Miss AM Mukhuba CA(SA).
   
     Adoption of new and revised accounting standards
   
     The Group has adopted the following new and/or and revised standards and interpretations issued by the International Financial
     Reporting Interpretation Committee (IFRIC) of the IASB during the period under review.

                                                                                                                    Effective date
     IAS 7              Disclosure initiative - Amendments to IAS 7                                                 1 January 2017
     IAS 12             Recognition of Deferred Tax Assets or Unrealised losses - Amendments to IAS 12              1 January 2017
     IFRS 12            Disclosure of Interest in Other Entities - Clarification of the scope
                        of the disclosure requirements in IFRS 12 AIP*                                              1 January 2017

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

     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 
     IAS 28             Investment in associates and joint ventures - clarification that measuring
                        investees at fair value through profit or loss is an investment -
                        by - investment choice                                                                      1 January 2018
     IFRS 1             First-time adoption of International Financial Reporting Standards -
                        Deletion of short-term exemptions for first-time adopters                                   1 January 2018
     IFRS 2             Share-based payment (Amendment)                                                             1 January 2018
     IFRS 4 and IFRS 9  Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts -
                        Amendments to IFRS 4                                                                        1 January 2018
     IFRS 9             Financial Instruments - Classification and Measurement (Amendment)                          1 January 2018
     IFRS 15            Revenue from Contracts with Customers                                                       1 January 2018
     IFRS 16            Leases                                                                                      1 January 2019
     IFRS 17            Insurance Contracts                                                                         1 January 2018
     IFRIC 22           Foreign currency transactions and Advance Consideration                                     1 January 2018
     IFRIC 23           Uncertainty over Income Tax Treatments                                                      1 January 2018
   
     * AIP: Annual Improvement Project
   
     The Group does not intend early adopting any of the above amendments, standards or interpretations
     ARM continuously evaluates the impact of these standards and amendments, the most prominent being IFRS 9 Financial
     Instruments, IFRS 15 Revenue from Contracts with Customers and IFRS 16 Leases. In summary the following are the current
     expectations in relation to IFRS 9, IFRS 15 and IFRS 16. (Refer next page).

     IFRS 9 Financial Instruments
     
     As previously reported, ARM has decided not to adopt IFRS 9 until it becomes mandatory for annual periods beginning on or after
     1 January 2018 (i.e. for the financial year beginning 1 July 2018 for ARM).
     
     The actual impact of adopting IFRS 9 on the financial statements is not currently known and cannot be reliably estimated as the
     impact will be dependent on the financial instruments that ARM holds and economic conditions prevailing at that time as well as
     accounting elections and judgements which ARM make in the future.
     
     The new standard may require ARM to revise its accounting processes and internal controls related to reporting financial instruments
     and these possible changes have not yet been ascertained.
     
     ARM has embarked on the process of determining the impact that the new impairment model, on the basis of expected credit losses,
     will have on the impairment provisions. As part of this process ARM will finalise the impairment methodologies that it will apply under
     IFRS 9.
     
     Disclosure requirements and changes in presentation are expected to change the nature and extent of ARM's disclosures about its
     financial instruments, particularly in the year of the adoption of the new standard.
     
     ARM continues with a process of identifying changes to systems and controls which may be necessary to capture the required data.
     This process is expected to be completed before 30 June 2018.
     
     IFRS 15 Revenue from Contracts with Customers
     
     The standard is effective for annual periods beginning on or after 1 January 2018 (i.e. for the financial year beginning 1 July 2018
     for ARM).

     ARM has completed a diagnostic impact assessment to identify IFRS 15 gaps between existing and future requirements, as well
     as to establish implementation efforts to be compliant when the standard is implemented. The impact of IFRS 15 was completed
     by assessing the impact across three dimensions: i) scoped-in entities of the group and identified revenue streams, ii) accounting
     principles identified in IFRS 15 on income statement (revenue, EBITDA) and statement of financial position (assets and liabilities)
     items; and iii) Changes to policies and disclosures.
     
     From this, ARM has developed a detailed project plan for the implementation of IFRS 15 and in line with this plan:
     
     - has identified all significant contracts with customers, in the various entities in the Group, in line with the IFRS 15 five-step
       model;
     - has evaluated the different sale contracts in place with its customers, which vary per entity and commodity - there are various
       contracts with complex terms including consignment sales, various shipping terms and provisional pricing;
     - has engaged its various partners on their interpretation of the various contracts;
     - has evaluated practical expedients to be used;
     - has established that a fully retrospective approach will be adopted; and
     - is in the process of finalising its evaluation of the changes required to controls and Information Technology systems relating
       to revenue recognition.
     
     The new standard will have an impact on revenue recognised arising from most of the existing contracts. The critical impact identified
     thus far (amongst others) will be on:
     
     Financial impact
     
     - Split of performance obligations impacts on timing of revenue recognition;
     - Fair value adjustments of provisional pricing index are recognised in fair value adjustments rather than revenue. Judgements
       to use in estimating transaction price in exchange for sale of mining products, including the reasonableness of applying the
       constraint;
     - Possible change in amount of revenue recognised due to estimating transaction price at inception which is not reflective of
       costs incurred or forecasting on the allocation of transaction price to performance obligation - for management services; and
     - EBITDA impact due to customer contract costs and Profit or loss changes due to costs capitalisation.
     
     Disclosure impact
     
     - Provisional pricing values at year end for open contracts;
     - Additional disclosure regarding assumptions used in estimating variable consideration for transaction price, including variable
       consideration on management fees; and
     - Process of assessing recoverability of contract cost including reassessment of useful lives.
     
     Accounting policies

     - Disclosure of qualitative information on performance obligations.
     
     IFRS 16 Leases
     
     The standard is effective for annual periods beginning on or after 1 January 2019 (i.e. for the financial year beginning 1 July 2019 for
     ARM). Early adoption is permitted provided that IFRS 15 is adopted at or before the date of initial application of IFRS 16.
     
     As previously reported, ARM continues with the initial assessment of the potential impact of this standard on the financial statements
     but has not yet reached a conclusion if this standard will be early adopted with the implementation of IFRS 15. The decision of the
     date of adoption is expected to be made before 30 June 2018.
     
     ARM must still make a decision on the transition method to be applied as well as the practical expedients to be used, if elected.

2.   SEGMENTAL INFORMATION

     Primary segmental information

     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 aggregated in ARM Corporate in the
     table below.

                                                                            Continuing operations
                                                                                                                       Total per    Discon-
                                                                                                                            IFRS     tinued
                                                                                                                 IFRS  financial operations
                                                           ARM        ARM         ARM         ARM             Adjust-     state-        ARM
                                                      Platinum   Ferrous*        Coal   Corporate     Total    ment**      ments     Copper
                                                            Rm         Rm          Rm          Rm        Rm        Rm         Rm         Rm
2.1  Six months ended
     31 December 2017 (Unaudited)
     Sales                                               3 689      6 816         571           -    11 076   (6 816)      4 260        340
     Cost of sales                                     (3 026)    (4 029)       (433)          69   (7 419)     3 964    (3 455)      (282)
     Other operating income                                 26         29          23         379       457       (4)        453          4
     Other operating expenses                            (120)      (641)         (3)       (497)   (1 261)       641      (620)       (70)
     Segment result                                        569      2 175         158        (49)     2 853   (2 215)        638        (8)
     Income from investments                                15        151           -          88       254     (151)        103          -
     Finance cost                                         (25)       (19)       (115)        (34)     (193)        19      (174)       (12)
     Finance cost ZCCM:
     Shareholders' loan Vale/ARM
     joint venture                                           -          -           -           -         -         -          -       (20)
     Finance cost ARM:
     Shareholders' loan Vale/ARM
     joint venture                                           -          -           -           -         -         -          -          -
     Income from associate                                   -          -         111           -       111         -        111          -
     Income from joint venture                               -        111           -           -       111     1 654      1 765          -
     Special items                                           1          -           -           -         1         -          1      (117)
     Taxation                                            (163)      (682)         (8)       (174)   (1 027)       693      (334)       (62)
     Profit/(loss) after tax                               397      1 736         146       (169)     2 110         -      2 110      (219)
     Non-controlling interest                            (170)          -           -         (2)     (172)         -      (172)         34
     Consolidation adjustment***                             -         29           -        (29)         -         -          -          -
     Contribution to basic earnings/
     (losses)                                              227      1 765         146       (200)     1 938         -      1 938      (185)
     Contribution to headline
     earnings/(losses)                                     226      1 765         160       (200)     1 951         -      1 951        (6)
     Other information:
     Segment assets including
     investment in associate and
     joint venture                                       9 371     20 063       3 588       3 940    36 962   (4 437)     32 525
     Investment in associate                                                    1 445                 1 445                1 445
     Investment in joint venture                                                                               15 626     15 626
     Segment liabilities                                 1 894      1 595       1 825       2 223     7 537   (1 595)      5 942
     Unallocated - Deferred taxation
     and taxation                                                                                     4 550   (2 893)      1 657
     Consolidated total liabilities                                                                  12 087   (4 488)      7 599
     Cash generated/(utilised)
     from operations                                       784      1 918         210          19     2 931   (1 918)      1 013       (73)
     Cash inflow/(outflow) from
     operating activities                                  637      1 505         211     (1 448)       905     (505)        400       (76)
     Cash (outflow)/inflow from
     investing activities                                (431)      (471)       (127)         577     (452)       471         19        141
     Cash outflow from financing
     activities                                           (78)          -        (86)          46     (118)         -      (118)        (7)
     Capital expenditure                                   435        558         108           -     1 101     (558)        543         46
     Amortisation and depreciation                         274        467          85           2       828     (467)        361          -
     EBITDA                                                843      2 642         243        (47)     3 681   (2 682)        999        (8)

     There were no significant inter - division sales
     
     *   Refer note 2.7 and note 4 for more detail on the ARM Ferrous segment.
     **  Includes IFRS 11 - Joint Arrangements - adjustments related to ARM Ferrous.
     *** Capitalised fees after tax and reversal of provision.

                                                                           Continuing operations
                                                                                                                       Total per    Discon-
                                                                                                                            IFRS     tinued
                                                                                                                IFRS   financial operations
                                                        ARM         ARM         ARM        ARM               Adjust-      state-        ARM
                                                   Platinum    Ferrous*        Coal  Corporate      Total     ment**       ments     Copper
                                                         Rm          Rm          Rm         Rm         Rm         Rm          Rm         Rm
2.2  Six months ended
     31 December 2016 (Unaudited)
     (Re-presented)
     Sales                                            3 678       6 088         498          -     10 264    (6 088)       4 176        305
     Cost of sales                                  (3 065)     (3 619)       (445)         17    (7 112)      3 591     (3 521)      (296)
     Other operating income                              43          17          20        293        373          6         379          2
     Other operating expenses                         (131)       (615)         (2)      (592)    (1 340)        615       (725)       (96)
     Segment result                                     525       1 871          71      (282)      2 185    (1 876)         309       (85)
     Income from investments                             15         386           -        107        508      (386)         122          -
     Finance cost                                      (28)        (19)       (107)      (136)      (290)         19       (271)       (13)
     Finance cost ZCCM:
     Shareholders' loan Vale/ARM
     joint venture                                        -           -           -          -          -          -           -       (19)
     Finance cost ARM:
     Shareholders' loan Vale/ARM
     joint venture                                        -           -           -          -          -          -           -          -
     Loss from associate                                  -           -         125          -        125          -         125          -
     Income from joint venture***                         -        (22)           -          -       (22)      1 378       1 356          -
     Special items                                  (2 243)       (424)           -       (79)    (2 746)        424     (2 322)          -
     Taxation                                           495       (440)          10         10         75        441         516        (1)
     (Loss)/profit after tax                        (1 236)       1 352          99      (380)      (165)          -       (165)      (118)
     Non-controlling interest                          (30)           -           -         13       (17)          -        (17)         46
     Consolidation adjustment                             -           4           -        (4)          -          -           -          -
     Contribution to basic (losses)/
     earnings                                       (1 266)       1 356          99      (371)      (182)          -       (182)       (72)
     Contribution to headline
     earnings/(losses)                                  179       1 779          99      (292)      1 765          -       1 765       (72)
     Other information:
     Segment assets including
     investment in associate
     and joint venture                                7 786      18 546       3 431      4 443     34 206    (4 086)      30 120      1 581
     Investment in associate                                                  1 279                 1 279                  1 279
     Investment in joint venture                                                                              14 460      14 460
     Segment liabilities                              1 571       1 413       1 809      2 838      7 631    (1 413)       6 218      1 196
     Unallocated - Deferred taxation
     and taxation                                                                                   4 179    (2 673)       1 506
     Consolidated total liabilities                                                                11 810    (4 086)       7 724
     Cash generated/(utilised)
     from operations                                    799       1 688         132       (48)      2 571    (1 688)         883       (57)
     Cash inflow/(outflow) from
     operating activities                               538       1 726         156      (588)      1 832      (738)       1 094       (68)
     Cash (outflow)/inflow from
     investing activities                             (347)       (550)       (102)        270      (729)        550       (179)       (36)
     Cash outflow from financing
     activities                                        (35)           -        (61)      (609)      (705)          -       (705)        (8)
     Capital expenditure                                448         555         119          -      1 122      (555)         567         37
     Amortisation and depreciation                      302         454          79          3        838      (454)         384         65
     Impairment loss                                (2 243)       (422)           -          -    (2 665)        422     (2 243)          -
     EBITDA                                             827       2 325         150      (279)      3 023    (2 330)         693       (20)

     There were no significant inter-division sales
     
     *   Refer note 2.8 and note 4 for more detail on the ARM Ferrous segment.
     **  Includes IFRS 11 - Joint Arrangements - adjustments related to ARM Ferrous.
     *** Impairment included in income from joint venture R44 million before tax of R12 million.

                                                                          Continuing operations
                                                                                                                       Total per    Discon-
                                                                                                                            IFRS     tinued
                                                                                                                 IFRS  financial operations
                                                        ARM        ARM         ARM        ARM                 Adjust-     state-        ARM
                                                   Platinum   Ferrous*        Coal  Corporate       Total      ment**      ments     Copper
                                                         Rm         Rm          Rm         Rm          Rm          Rm         Rm         Rm
2.3  Year ended 30 June 2017
     (Audited)
     Sales                                            7 247     13 140         911          -      21 298    (13 140)      8 158        600
     Cost of sales                                  (6 097)    (7 405)       (866)         40    (14 328)       7 377    (6 951)      (601)
     Other operating income                              78         35          37        595         745          12        757          4
     Other operating expenses                         (276)    (1 214)         (4)    (1 470)     (2 964)       1 214    (1 750)      (238)
     Segment result                                     952      4 556          78      (835)       4 751     (4 537)        214      (235)
     Income from investments                             30        537           -        208         775       (537)        238          -
     Finance cost                                      (70)       (48)       (215)      (138)       (471)          48      (423)       (19)
     Finance cost ZCCM:
     Shareholders' loan Vale/ARM
     joint venture                                        -          -           -          -           -           -          -       (56)
     Finance cost ARM:
     Shareholders' loan Vale/ARM
     joint venture                                        -          -           -          -           -           -          -          -
     Profit from associate                                -          -         181          -         181           -        181          -
     Income form joint venture***                         -       (23)           -          -        (23)       3 288      3 265          -
     Special items before tax                       (2 243)      (471)           -       (79)     (2 793)         471    (2 322)        180
     Taxation                                           376    (1 272)          38          -       (858)       1 267        409          -
     (Loss)/profit after tax                          (955)      3 279          82      (844)       1 562           -      1 562      (130)
     Non-controlling interest                         (140)          -           -          9       (131)           -      (131)         71
     Consolidation adjustment                             -       (14)           -         14           -           -          -          -
     Contribution to basic (losses)/
     earnings                                       (1 095)      3 265          82      (821)       1 431           -      1 431       (59)
     Contribution to headline
     earnings/(losses)                                  350      3 709          82      (742)       3 399           -      3 399        203
     Other information:
     Segment assets including
     investment in associate                          8 234     19 249       3 785      3 763      35 031     (4 389)     30 642      1 604
     Investment in associate                                                 1 334                  1 334                  1 334
     Investment in joint venture                                                                               14 860     14 860
     Segment liabilities                              1 819      1 617       1 848      1 958       7 242     (1 617)      5 625      1 172
     Unallocated - Deferred taxation
     and taxation                                                                                   4 181     (2 772)      1 409
     Consolidated total liabilities                                                                11 423     (4 389)      7 034
     Cash inflow/(outflow) generated
     from operations                                  1 419      4 933         222         54       6 628     (4 933)      1 695       (84)
     Cash inflow/(outflow) from
     operating activities                               868      4 396         222      (555)       4 931     (1 908)      3 023      (155)
     Cash (outflow)/inflow from
     investing activities                             (727)    (1 142)       (181)        300     (1 750)       1 142      (608)       (32)
     Cash outflow from
     financing activities                              (15)          -        (40)    (1 806)     (1 861)           -    (1 861)        (4)
     Capital expenditure                                783      1 361         196          2       2 342     (1 361)        981         41
     Amortisation and depreciation                      546        913         159          3       1 621       (913)        708        107
     (Impairment)/reversal before tax               (2 243)      (470)           -          -     (2 713)         470    (2 243)        180
     EBITDA                                           1 498      5 469         237      (832)       6 372     (5 450)        922      (128)

     There were no significant inter-division sales
     
     *   Refer note 2.9 and note 4 for more detail on the ARM Ferrous segment.
     **  Includes IFRS 11 - Joint Arrangements - adjustments related to ARM Ferrous.
     *** Impairment included in income from joint venture R470 million after tax of R27 million.
     
     Additional information
     
     The ARM platinum segment is analysed further into Nkomati, Two Rivers Platinum Proprietary Limited and ARM Mining
     Consortium Limited which includes 50% of the Modikwa Platinum Mine.

                                                                                                                                       ARM
                                                                                              Two Rivers    Modikwa   Nkomati     Platinum
                                                                                                      Rm         Rm        Rm           Rm
2.4  Six months ended 31 December 2017 (Unaudited)
     Sales                                                                                         1 950        877       862        3 689
     Cost of sales                                                                               (1 418)      (822)     (786)      (3 026)
     Other operating income                                                                           11         12         3           26
     Other operating expenses                                                                       (58)       (12)      (50)        (120)
     Segment result                                                                                  485         55        29          569
     Income from investments                                                                           6          6         3           15
     Finance cost                                                                                   (14)        (2)       (9)         (25)
     Special items before tax                                                                          -          -         1            1
     Taxation                                                                                      (141)       (16)       (6)        (163)
     Profit after tax                                                                                336         43        18          397
     Non-controlling interest                                                                      (163)        (7)         -        (170)
     Contribution to earnings                                                                        173         36        18          227
     Contribution to headline earnings                                                               173         36        17          226
     Other information:
     Segment and consolidated assets                                                               5 143      2 367     1 861        9 371
     Segment liabilities                                                                           1 153        431       310        1 894
     Cash inflow from operating activities                                                           347        177       113          637
     Cash outflow from investing activities                                                        (223)      (110)      (98)        (431)
     Cash outflow from financing activities                                                         (17)          -      (61)         (78)
     Capital expenditure                                                                             226        109       100          435
     Amortisation and depreciation                                                                   151         45        78          274
     EBITDA                                                                                          636        100       107          843
2.5  Six months ended 31 December 2016 (Unaudited)
     Sales                                                                                         2 143        618       917        3 678
     Cost of sales                                                                               (1 485)      (706)     (874)      (3 065)
     Other operating income                                                                            8          6        29           43
     Other operating expenses                                                                       (93)        (9)      (29)        (131)
     Segment result                                                                                  573       (91)        43          525
     Income from investments                                                                           7          5         3           15
     Finance cost                                                                                   (16)        (4)       (8)         (28)
     Special items before tax                                                                          -    (1 255)     (988)      (2 243)
     Taxation                                                                                      (162)        390       267          495
     Profit/(loss) after tax                                                                         402      (955)     (683)      (1 236)
     Non-controlling interest                                                                      (197)        167         -         (30)
     Contribution to basic earnings                                                                  205      (788)     (683)      (1 266)
     Contribution to headline earnings                                                               205       (54)        28          179
     Other information:
     Segment and consolidated assets                                                               4 095      1 961     1 730        7 786
     Segment liabilities                                                                             847        332       392        1 571
     Cash inflow/(outflow) from operating activities                                                 246         29       263          538
     Cash outflow from investing activities                                                         (77)       (80)     (190)        (347)
     Cash outflow from financing activities                                                         (24)          -      (11)         (35)
     Capital expenditure                                                                             175         80       193          448
     Amortisation and depreciation                                                                   128         55       119          302
     Impairment loss                                                                                   -    (1 255)     (988)      (2 243)
     EBITDA                                                                                          701       (36)       162          827

                                                                                                                                       ARM
                                                                                               Two Rivers    Modikwa   Nkomati    Platinum
     Platinum                                                                                          Rm         Rm        Rm          Rm
2.6  For the year ended 30 June 2017 (Audited)
     Sales                                                                                          3 996      1 256     1 995       7 247
     Cost of sales                                                                                (2 899)    (1 358)   (1 840)     (6 097)
     Other operating income                                                                            16         17        45          78
     Other operating expenses                                                                       (168)       (28)      (80)       (276)
     Segment result                                                                                   945      (113)       120         952
     Income from investments                                                                           14         10         6          30
     Finance cost                                                                                    (48)        (7)      (15)        (70)
     Special items before tax                                                                           -    (1 255)     (988)     (2 243)
     Taxation                                                                                       (275)        394       257         376
     Profit/(loss) after tax                                                                          636      (971)     (620)       (955)
     Non-controlling interest                                                                       (311)        171         -       (140)
     Contribution to basic earnings/(losses)                                                          325      (800)     (620)     (1 095)
     Contribution to headline earnings/(losses)                                                       325       (66)        91         350
     Other information:
     Segment and consolidated assets                                                                4 215      2 179     1 840       8 234
     Segment liabilities                                                                            1 113        309       397       1 819
     Unallocated liabilities (deferred tax and taxation)                                                                               845
     Consolidated total liabilities                                                                                                  2 664
     Cash inflow/(outflow) generated from operations                                                1 244      (109)       284       1 419
     Cash inflow/(outflow) from operating activities                                                  684       (99)       283         868
     Cash outflow from investing activities                                                         (240)      (128)     (359)       (727)
     Cash (outflow)/inflow from financing activities                                                 (57)          -        42        (15)
     Capital expenditure                                                                              293        131       359         783
     Amortisation and depreciation                                                                    268         89       189         546
     Impairment loss                                                                                    -    (1 255)     (988)     (2 243)
     EBITDA                                                                                         1 213       (24)       309       1 498

     Analysis of the ARM Ferrous segment

                                                                                                                                  Total per
                                                                                                                                       IFRS
                                                                            Manga-                    ARM                   IFRS  financial
                                                              Iron ore        nese      Chrome    Ferrous        ARM     Adjust-     state-
                                                              division    division    division      Total      share       ment*      ments
                                                                    Rm          Rm          Rm         Rm         Rm          Rm         Rm
                                                                             at 100% basis
2.7  Six months ended 31 December 2017
     (Unaudited)
     Sales                                                       7 592       5 958          83     13 633      6 816     (6 816)          -
     Other operating income                                        253         141           -        394         29        (29)          -
     Other operating expenses                                    (888)       (686)        (44)    (1 618)      (641)         641          -
     Operating profit/(loss)                                     2 223       2 153        (26)      4 350      2 175     (2 175)          -
     Contribution to basic earnings and total
     comprehensive income                                        1 746       1 743        (18)      3 471      1 736          29      1 765
     Contribution to headline earnings                           1 746       1 743        (18)      3 471      1 736          29      1 765
     Other information:
     Segment assets                                             25 507      15 259         527     41 293     20 063     (4 437)     15 626
     Segment liabilities                                         6 122       2 740         412      9 274      1 595     (1 595)          -
     Cash (outflow)/inflow from operating
     activities                                                (270)**       1 279           -      1 009      1 505     (1 505)          -
     Cash outflow from investing activities                      (423)       (518)           -      (941)      (471)         471          -
     Cash (outflow)/inflow from financing
     activities                                                    (7)           7           -          -
     Capital expenditure                                           609         557           -      1 166        558       (558)          -
     Amortisation and depreciation                                 686         277           -        963        467       (467)          -
     EBITDA                                                      2 909       2 430        (26)      5 313      2 642     (2 642)          -
     Additional information for ARM Ferrous
     at 100%
     Non-current assets
     Property, plant and equipment                                                                 21 904               (21 904)          -
     Investment in joint venture                                                                    2 733                (2 733)          -
     Other non-current assets                                                                         800                  (800)          -
     Current assets
     Inventories                                                                                    3 978                (3 978)          -
     Trade and other receivables                                                                    5 252                (5 252)          -
     Financial asset                                                                                  229                  (229)          -
     Cash and cash equivalents                                                                      6 397                (6 397)          -
     Non-current liabilities
     Other non-current liabilities                                                                  6 616                (6 616)          -
     Current liabilities
     Trade and other payables                                                                       1 550                (1 550)          -
     Short-term provisions                                                                            576                  (576)          -
     Taxation                                                                                         532                  (532)          -

     Refer note 2.1 and note 4 for more detail on the ARM Ferrous segment

     *  Includes consolidation and IFRS 11 - Joint Arrangements - adjustments.
     ** Dividend paid amounting to R2 billion included in cash flows from operating activities.

                                                                          Continued     Discon-                                   Total per
                                                                          operation      tinued                                        IFRS
                                                         Manga-                 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
                                                                   at 100% basis
2.8  Six months ended
     31 December 2016
     (Unaudited)
     Sales                                    7 572      4 510         95    12 177           -     12 177      6 088    (6 088)          -
     Other operating income                     207         62          2       271           -        271         17       (17)          -
     Other operating expenses                 (787)      (661)       (13)   (1 461)         (4)    (1 465)      (615)        615          -
     Operating profit /(loss)                 2 623      1 135       (10)     3 748         (4)      3 744      1 871    (1 871)          -
     Contribution to basic
     earnings and total
     comprehensive income                     2 044        757        (8)     2 793        (88)      2 705      1 352          4      1 356
     Contribution to headline
     earnings/(losses)                        2 049        756        (8)     2 797         756      3 553      1 775          4      1 779
     Other information:
     Segment assets                          26 062     11 849        278    38 189           -     38 189     18 546    (4 086)     14 460
     Segment liabilities                      5 864      2 401        215     8 480           -      8 480      1 413    (1 413)          -
     Cash inflow from
     operating activities                     897**        580          -     1 477           -      1 477      1 726    (1 726)          -
     Cash outflow from investing
     activities                               (373)      (726)          -   (1 099)           -    (1 099)      (550)        550          -
     Capital expenditure                        368        786          -     1 154           -      1 154        555      (555)          -
     Amortisation and depreciation              741        223          -       964           -        964        454      (454)          -
     EBITDA                                   3 364      1 358       (10)     4 712         (4)      4 708      2 325    (2 325)          -
     Additional information for
     ARM Ferrous at 100%
     Non-current assets
     Property, plant and equipment                                                                  21 161              (21 161)          -
     Investment in joint venture                                                                     2 551               (2 551)          -
     Other non-current assets                                                                          897                 (897)          -
     Current assets
     Inventories                                                                                     3 356               (3 356)          -
     Trade and other receivables                                                                     4 964               (4 964)          -
     Financial asset                                                                                    84                  (84)
     Cash and cash equivalents                                                                       5 176               (5 176)          -
     Non-current liabilities
     Other non-current liabilities                                                                   6 355               (6 355)          -
     Current liabilities
     Trade and other payables                                                                        1 332               (1 332)          -
     Short-term provisions                                                                             499                 (499)          -
     Taxation                                                                                          299                 (299)          -
          
     Refer note 2.2 and note 4 for more detail on the ARM Ferrous segment

     *  Includes consolidation and IFRS 11 - Joint Arrangements - adjustments.
     ** Dividend paid amounting to R1.975 billion included in cash flows from operating activities.

                                                                         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
                                                                 at 100% basis
2.9  For the year ended
     30 June 2017 (Audited)
     Sales                              15 853      10 219           208    26 280           -      26 280    13 140    (13 140)          -
     Other operating income                495         130             -       625           -         625        35        (35)          -
     Other operating expenses          (1 900)     (1 056)          (24)   (2 980)         (4)     (2 984)   (1 214)       1 214          -
     Operating profit                    5 762       3 361           (9)     9 114         (4)       9 110     4 556     (4 556)          -
     Contribution to basic
     earnings and total
     comprehensive income                4 373       2 182           (7)     6 548          10       6 558     3 279        (14)      3 265
     Contribution to headline
     earnings/(losses)                   4 373       2 322           (7)     6 688         756       7 444     3 723        (14)      3 709
     Other information:
     Consolidated total assets          25 571      13 519           554    39 644           -      39 644    19 249     (4 389)     14 860
     Consolidated total liabilities      5 931       2 754           414     9 099           -       9 099     1 617     (1 617)          -
     Cash inflow from
     operating activities             1 188***       2 627             -     3 815           -       3 815     4 396     (4 396)          -
     Cash outflow from investing
     activities                          (964)     (1 320)             -   (2 284)           -     (2 284)   (1 142)       1 142          -
     Capital expenditure                 1 169       1 648             -     2 817           -       2 817     1 361     (1 361)          -
     Amortisation and depreciation       1 417         465             -     1 882           -       1 882       913       (913)          -
     EBITDA                              7 179       3 826           (9)    10 996         (4)      10 992     5 469     (5 469)          -
     Additional information for
     ARM Ferrous at 100%
     Non-current assets
     Property, plant and equipment                                                                  21 704              (21 704)          -
     Investment in joint venture                                                                     2 527               (2 527)          -
     Other non-current assets                                                                          843                 (843)          -
     Current assets
     Inventories                                                                                     3 648               (3 648)          -
     Trade and other receivables                                                                     4 317               (4 317)          -
     Financial asset                                                                                   276                 (276)
     Cash and cash equivalents                                                                       6 330               (6 330)          -
     Non-current liabilities
     Other non-current liabilities                                                                   6 479               (6 479)          -
     Current liabilities
     Trade and other payables                                                                        1 584               (1 584)          -
     Short-term provisions                                                                             643                 (643)          -
     Taxation                                                                                          392                 (392)          -

     Refer note 2.3 and note 4 for more detail on the ARM Ferrous segment

     *   This relates to the Dwarsrivier operation.
     **  Includes consolidation and IFRS 11 - Joint Arrangements - adjustments.
     *** Dividend paid amounting to R2.5 billion included in cash flows from operating activities.

     ARM Corporate as presented in the table on page 76 is analysed further into the ARM Exploration, ARM Corporate and other
     and Gold segments.
                                                                                         ARM       Corporate                      Total ARM
                                                                                 Exploration      and other*           Gold       Corporate
     Primary segmental information                                                        Rm              Rm             Rm              Rm
2.10 Six months ended 31 December 2017 (Unaudited)
     Cost of sales                                                                         -              69              -              69
     Other operating income                                                                -             379              -             379
     Other operating expenses                                                           (10)           (487)              -           (497)
     Segment result                                                                     (10)            (39)              -            (49)
     Income from investments                                                               -              66             22              88
     Finance cost                                                                          -            (34)              -            (34)
     Taxation                                                                              -           (174)              -           (174)
     (Loss)/profit after tax                                                            (10)           (181)             22           (169)
     Non-controlling interest                                                              -             (2)              -             (2)
     Consolidation adjustment                                                                           (29)                           (29)
     Contribution to basic (losses)/earnings                                            (10)           (212)             22           (200)
     Contribution to headline (losses)/earnings                                         (10)           (212)             22           (200)
     Other information:
     Segment assets                                                                        -           2 496          1 444           3 940
     Segment liabilities                                                                   -           2 223              -           2 223
     Cash utilised from operations                                                      (10)              29              -              19
     Cash (outflow)/inflow from operating activities                                    (10)         (1 460)             22         (1 448)
     Cash inflow from investing activities                                                 -             577              -             577
     Cash outflow from financing activities                                                -              46              -              46
     Amortisation and depreciation                                                         -               2              -               2
     EBITDA                                                                             (10)            (37)              -            (47)
 
     * Corporate, other companies and consolidation adjustments.
 
     ARM Corporate as presented in the table on page 77 is analysed further into the ARM Exploration, ARM Corporate and other
     and Gold segments.
                                                                                        ARM       Corporate                       Total ARM
                                                                                Exploration      and other*           Gold        Corporate
                                                                                         Rm              Rm             Rm               Rm
2.11 Six months ended 31 December 2016 (Unaudited)
     Cost of sales                                                                        -              17                              17
     Other operating income                                                               -             293                             293
     Other operating expenses                                                          (12)           (580)                           (592)
     Segment result                                                                    (12)           (270)                           (282)
     Income from investments                                                              -              75             32              107
     Finance cost                                                                         -           (136)                           (136)
     Special items before tax                                                             -            (79)                            (79)
     Taxation                                                                             -              10                              10
     (Loss)/profit after tax                                                           (12)           (400)             32            (380)
     Non-controlling interest                                                             -              13                              13
     Consolidation adjustment                                                                           (4)                             (4)
     Contribution to basic (losses)/earnings                                           (12)           (391)             32            (371)
     Contribution to headline (losses)/earnings                                        (12)           (312)             32            (292)
     Other information:
     Segment assets                                                                       -           2 437          2 006            4 443
     Segment liabilities                                                                  -           2 838                           2 838
     Cash (utilised)/generated from operations                                         (12)            (36)                            (48)
     Cash outflow from operating activities                                            (12)           (576)                           (588)
     Cash inflow from investing activities                                                -             238             32              270
     Cash inflow from financing activities                                                -           (609)                           (609)
     Amortisation and depreciation                                                        -               3                               3
     EBITDA                                                                            (12)           (267)                           (279)
 
     * Corporate, other companies and consolidation adjustments.

     ARM Corporate as presented in the table on page 78 is analysed further into the ARM Exploration, ARM Corporate and other
     and Gold segments.
                                                                                      ARM        Corporate                        Total ARM
                                                                              Exploration       and other*            Gold        Corporate
                                                                                       Rm               Rm              Rm               Rm
2.12 For the year ended 30 June 2017 (Audited)
     Cost of sales                                                                      -               40                               40
     Other operating income                                                             -              595                              595
     Other operating expenses                                                        (28)          (1 442)                          (1 470)
     Segment result                                                                  (28)            (807)                            (835)
     Income from investments                                                            -              144              64              208
     Finance cost                                                                       -            (138)                            (138)
     Special items before tax                                                           -             (79)                             (79)
     (Loss)/profit after tax                                                         (28)            (880)              64            (844)
     Non-controlling interest                                                           -                9                                9
     Consolidation adjustment                                                                           14                               14
     Contribution to basic (losses)/earnings                                         (28)            (857)              64            (821)
     Contribution to headline (losses)/earnings                                      (28)            (778)              64            (742)
     Other information:
     Segment and consolidated assets                                                    -            2 383           1 380            3 763
     Segment liabilities                                                                -            1 958                            1 958
     Cash outflow from operating activities                                          (28)            (527)                            (555)
     Cash inflow from investing activities                                              -              236              64              300
     Cash outflow from financing activities                                             -          (1 806)                          (1 806)
     Capital expenditure                                                                -                2                                2
     Amortisation and depreciation                                                      -                3                                3
     EBITDA                                                                          (28)            (804)                            (832)

     * Corporate, other companies and consolidation adjustments.

3.   PROPERTY, PLANT AND EQUIPMENT

3.1  Lubambe Copper Mine

     At year end 30 June 2017, there was an impairment reversal following the classification of Lubambe as an asset held for sale (refer
     note 11 and 12). There were no further impairments or impairment reversals at time of sale.

3.2  Nkomati Nickel Mine

     At 31 December 2016, an impairment loss of the Nkomati Nickel Mine cash generating unit was recognised, largely as a result of:
     i)  A revision of the mine plan with a resultant lower metal output profile.
     ii) Asignificant decline from the prior year forecast long-term price of nickel and a further strengthening of the R/US$ exchange
         rate.

     ARM's attributable share of the impairment charge amounted to R988 million before tax and R711 million after tax.

     The recoverable amount of the cash generating unit was determined based on the value-in-use calculation performed in terms
     of International Financial Reporting Standards.

     A pre-tax discount rate of 20.72% was used for the impairment calculation together with the following metal prices and exchange
     rate assumptions.
                                                                       2H F2017           F2018    F2019           F2020          Long-term
                                                                        Nominal         Nominal                  Nominal               Real
     Nickel - US$/tonne                                                  11 053          11 561   12 606          14 029             16 475   
     Platinum - US$/ounce                                                   986           1 073    1 171           1 247              1 270   
     Palladium - US$/ounce                                                  712             751      805             825                790   
     Gold - US$/ounce                                                     1 221           1 260    1 295           1 307              1 194   
     Copper - US$/tonne                                                   5 356           5 362    5 555           5 803              5 975   
     Cobalt - US$/lb                                                      14.00           13.89    13.51           13.58              11.86   
     Chrome concentrate - US$/tonne                                         235             180      160             165                175   
     Exchange rate - R/US$                                                13.84           14.24    14.22           14.30              14.00   

     At 30 June and 31 December 2017 there were no further impairments.

3.3  Modikwa Platinum Mine

     At 31 December 2016, an impairment loss of the Modikwa Platinum Mine cash generating unit attributable to ARM, was
     recognised largely as a result of :

     (i)  Lower forecast PGM output over the short- to medium-term;
     (ii)  Higher forecast unit cost of production; and
     (iii)  A reduction in the forecast long-term platinum price and a further strengthening of the R/US$ exchange rate.

     ARM's attributable share of the impairment amounted to R1 255 million before tax, R890 million after tax and R734 million after
     non-controlling interest and tax.

     The recoverable amount of the cash generating unit was determined based on the value-in-use calculation performed in terms
     of International Financial Reporting Standards.

     A pre-tax discount rate of 18.72% as used for the impairment calculation together with the following metal prices and exchange
     rate assumptions.
                                                                 2H F2017           F2018           F2019           F2020         Long-term
                                                                  Nominal         Nominal         Nominal         Nominal              Real
     Platinum - US$/ounce                                             986           1 073           1 171           1 247             1 270   
     Palladium - US$/ounce                                            712             751             805             825               790   
     Rhodium - US$/ounce                                              845             800             800             850               850   
     Gold - US$/ounce                                               1 221           1 260           1 295           1 307             1 194   
     Iridium - US$/ounce                                              500             500             500             500               500   
     Ruthenium - US$/ounce                                             40              40              50              50                55   
     Nickel - US$/tonne                                            11 053          11 561          12 606          14 029            16 475   
     Copper - US$/tonne                                             5 356           5 362           5 555           5 803             5 975   
     Cobalt - US$/lb                                                14.00           13.89           13.51           13.58             11.86   
     Exchange rate - R/US$                                          13.84           14.24           14.22           14.30             14.00   

     At 30 June and 31 December 2017 there were no further impairments.

                                                                                                            Unaudited               Audited
                                                                                                        Six months ended         Year ended
                                                                                                          31 December               30 June
                                                                                                        2017             2016          2017
                                                                                                          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                                                                                  14 860           14 623        14 623
     Net income for the period                                                                         1 765            1 356         3 265
     Income for the period                                                                             1 736            1 352         3 279
     Consolidation adjustments                                                                            29                4          (14)
     Foreign currency translation reserve                                                                  1            (215)         (224)
     Less: Dividends received for the period                                                         (1 000)          (1 304)       (2 804)
     In specie dividend                                                                                    -            (316)         (316)
     Cash dividend                                                                                   (1 000)            (988)       (2 488)
     Closing balance                                                                                  15 626           14 460        14 860
     Refer to notes 2.1, 2.2, 2.3, 2.7, 2.8 and 2.9 for further detail
     relating to the ARM Ferrous segment.

5.   CASH AND CASH EQUIVALENTS
     - African Rainbow Minerals Limited                                                                  225              103           233
     - ARM BBEE Trust                                                                                      1                2             2
     - ARM Finance Company SA                                                                            203               10             7
     - ARM Platinum Proprietary Limited                                                                  173               34            82
     - ARM Treasury Investments Proprietary Limited                                                       37               35            36
     - Nkomati                                                                                            27               37             -
     - Two Rivers Platinum Proprietary Limited                                                            35               10            10
     - Teal Minerals Barbados Incorporated*                                                               22                -             1
     - Teal Exploration and Mining Barbados Incorporated*                                                  8                -            13
     - Teal Exploration and Mining Incorporated*                                                           1                -             1
     - Vale/ARM joint venture (discontinued operation)                                                                     21
     - Venture Building Trust Proprietary Limited                                                          4                5             4
     - Restricted cash**                                                                               1 183            1 078         1 099
     Total as per statement of financial position                                                      1 919            1 335         1 488
     Less - Overdrafts (refer note 6)                                                                  (541)            (559)         (292)
          - Overdrafts relating to asset held for sale (refer note 11)                                                                (168)
          - Cash relating to asset held for sale (refer note 11 )                                                                         3
     Total as per statement of cash flows                                                              1 378              776         1 031

     *  Entities remaining after the proposed Vale/ARM discontinued operation.
     ** Includes amounts relating to an insurance cell captive (R797 million; 1H 2017: R728 million; F2017: R745 million).
        The remaining amount relates largely to rehabilitation trust funds at respective operations.

                                                                                                           Unaudited                Audited
                                                                                                       Six months ended          Year ended
                                                                                                         31 December                30 June
                                                                                                       2017            2016            2017
                                                                                                        Rm               Rm              Rm
6.   BORROWINGS
     Long-term borrowings are held as follows:
     - African Rainbow Minerals Limited                                                                 200           1 025               -
     - ARM BBEE Trust                                                                                   473             500             528
     - ARM Coal Proprietary Limited (partner loan)                                                    1 578           1 358           1 433
     - Nkomati                                                                                            9              15              13
     - Two Rivers Platinum Proprietary Limited                                                           51              43              28
     - Vale/ARM joint operation*                                                                                          8
     - Vale/ARM joint operation (partner loan)*                                                                         669
                                                                                                      2 311           3 618           2 002
     Short-term borrowings are held as follows:
     - Anglo Platinum Limited (partner loan)                                                            114             114             114
     - ARM Coal Proprietary Limited (partner loan)                                                        -             206             172
     - ARM Finance Company SA                                                                             -             274              78
     - Nkomati                                                                                            7               9              64
     - Two Rivers Platinum Proprietary Limited                                                           48              48              37
     - Vale/ARM joint operation*                                                                                         15
                                                                                                        169             666             465
     Overdrafts are held as follows:
     - African Rainbow Minerals Limited                                                                 190               1               -
     - ARM Mining Consortium Limited                                                                      -              31               -
     - Nkomati                                                                                            -               -              11
     - Two Rivers Platinum Proprietary Limited                                                          327             301             261
     - Vale/ARM joint operation*                                                                                        205
     - Other                                                                                             24              21              20
                                                                                                        541             559             292
     Overdrafts and short-term borrowings                                                               710           1 225             757
     Total borrowings                                                                                 3 021           4 843           2 759
     * Asset held for sale and discontinued operation
     (refer note 11)
     Long-term borrowing                                                                                                                656
     Short-term borrowing                                                                                                                15
     Overdraft                                                                                                                          168

                                                                                                           Unaudited                Audited
                                                                                                       Six months ended          Year ended
                                                                                                         31 December                30 June
                                                                                                      2017               2016          2017
                                                                                                        Rm                 Rm            Rm
7.   SPECIAL ITEMS
     Impairment reversal/(loss) on property, plant and equipment -
     Nkomati                                                                                             1              (988)         (988)
     Impairment loss on property, plant and equipment - Modikwa                                          -            (1 255)       (1 255)
     Loss on disposal of investment                                                                      -               (79)          (79)
     Special items per income statement before taxation effect                                           1            (2 322)       (2 322)
     Impairment loss on property, plant and equipment accounted
     for directly in joint venture - Assmang                                                             -              (422)         (470)
     Impairment reversal on property, plant and equipment -
     Lubambe discontinued operation                                                                      -                  -           180
     Impairment loss on property, plant and equipment accounted
     for directly in associate - PCB                                                                  (19)                  -             -
     Pre-tax loss on sale of Lubambe                                                                 (117)                  -             -
     Loss on sale of property, plant and equipment accounted for
     directly in joint venture - Assmang                                                                 -                (2)           (1)
     Special items before taxation effect                                                            (135)            (2 746)       (2 613)
     Taxation accounted for in associate - impairment loss in PCB                                        5                  -             -
     Taxation accounted for in joint venture - impairment loss in
     Assmang                                                                                             -                  -            27
     Taxation - impairment loss of Modikwa assets                                                        -                365           365
     Taxation - impairment loss of Nkomati assets                                                        -                277           277
     Taxation - sale of Lubambe                                                                       (62)                  -             -
     Taxation accounted for in joint venture - loss on sale of property,
     plant and equipment                                                                                 -                  1             -
     Special items after taxation effect                                                             (192)            (2 103)       (1 944)
     Non-controlling interest - impairment reversal of assets at
     Lubambe - discontinued operation                                                                    -                  -          (36)
     Non-controlling interest - Modikwa impairment loss                                                  -                156           156
     Total amount adjusted for headline earnings                                                     (192)            (1 947)       (1 824)

                                                                                                            Unaudited               Audited
                                                                                                        Six months ended         Year ended
                                                                                                          31 December               30 June
                                                                                                        2017             2016          2017
                                                                                                          Rm               Rm            Rm
8.   EARNINGS PER SHARE                                                                                        (Re-presented)
     Headline earnings (R million)                                                                     1 945            1 693         3 196
     Headline earnings from continuing operations (R million)                                          1 951            1 765         3 399
     Headline loss from discontinued operation (R million)                                               (6)             (72)         (203)
     Headline earnings per share (cents)                                                               1 023              893         1 684
     Headline earnings per share from continuing operations (cents)                                    1 026              931         1 791
     Headline loss per share from discontinued operation (cents)                                         (3)             (38)         (107)
     Basic earnings/(loss) per share (cents)                                                             922            (134)           723
     Basic earnings/(loss) from continuing operations per share
     (cents)                                                                                           1 019             (96)           754
     Basic loss from discontinued operation per share (cents)                                           (97)             (38)          (31)
     Diluted headline earnings per share (cents)                                                         994              869         1 638
     Diluted headline earnings per share from continuing operations
     (cents)                                                                                             997              906         1 742
     Diluted headline loss per share from discontinued operation
     (cents)                                                                                             (3)             (37)         (104)
     Diluted basic earnings/(loss) per share (cents)                                                     896            (130)           703
     Diluted basic earnings/(loss) from continuing operations per
     share (cents)                                                                                       990             (93)           733
     Diluted basic loss from discontinued operation per share (cents)                                   (95)             (37)          (30)
     Number of shares in issue at end of the period (thousands)                                      219 692          218 577       218 702
     Weighted average number of shares (thousands)                                                   190 163          189 529       189 768
     Weighted average number of shares used in calculating diluted
     earnings per share (thousands)                                                                  195 740          194 880       195 112
     Net asset value per share (cents)                                                                10 644           10 128        10 744
     EBITDA (R million)                                                                                  991              673           794
     EBITDA from continuing operations (R million)                                                       999              693           922
     Dividend declared after period end (cents per share)                                                250                -           650
     Reconciliation to headline earnings
     Basic earnings/(loss) attributable to equity holders of ARM                                       1 753            (254)         1 372
     Impairment loss on property, plant and equipment - Modikwa                                            -            1 255         1 255
     Impairment (reversal)/loss on property, plant and equipment -
     Nkomati                                                                                             (1)              988           988
     Impairment loss of property, plant and equipment in joint
     venture - Assmang                                                                                     -              422           470
     Impairment loss of property, plant and equipment in
     associate - PCB                                                                                      19                -             -
     Pre-tax loss on sale of Lubambe                                                                     117                -             -
     Loss on disposal of investment                                                                        -               79            79
     Loss on sale of property, plant and equipment in joint venture -
     Assmang                                                                                               -                2             1
     Reversal of impairment on property, plant and equipment
     Lubambe                                                                                               -                -         (180)
                                                                                                       1 888            2 492         3 985
     Taxation accounted for directly in associate and joint venture                                      (5)              (1)          (27)
     Taxation - impairment loss of Modikwa assets                                                          -            (365)         (365)
     Taxation - impairment loss of Nkomati assets                                                          -            (277)         (277)
     Taxation - sale of Lubambe                                                                           62                -             -
                                                                                                       1 945            1 849         3 316
     Non-controlling interest - impairment reversal of assets at
     Lubambe - discontinued operation                                                                      -                -            36
     Non-controlling interest - Modikwa impairment loss                                                    -            (156)         (156)
     Headline earnings                                                                                 1 945            1 693         3 196

                                                                                                           Unaudited                Audited
                                                                                                       Six months ended          Year ended
                                                                                                         31 December                30 June
                                                                                                        2017             2016          2017
                                                                                                          Rm               Rm            Rm
9.   TAXATION
     South African normal tax - current year                                                              79              164           337
     South African normal tax - mining                                                                    89              118           212
     South African normal tax - non-mining                                                              (10)               52           117
     South African normal tax - prior year                                                                 -              (6)             8
     Deferred tax - current year                                                                         255            (680)         (783)
     Withholding tax                                                                                                                     37
                                                                                                         334            (516)         (409)
10.  CASH GENERATED FROM OPERATIONS
     Cash generated from operations before working capital movement                                    1 411            1 272         1 885
     Working capital changes                                                                           (471)            (446)         (274)
     Movement in inventories                                                                            (36)             (10)          (51)
     Movement in payables and provisions                                                               (192)            (741)         (530)
     Movement in receivables                                                                           (243)              305           307
     Cash generated from operations (per statement of cash flows)                                        940              826         1 611

11.  ASSETS HELD FOR SALE AND DISCONTINUED
     OPERATIONS
11.1 Lubambe Mine
     A sale agreement was entered into to sell the Lubambe operation
     in Zambia.
     The effective date for classification as asset held for sale was
     9 June 2017.
     The assets, liabilities and certain other reserves at 30 June 2017
     to be disposed of were as follows:
     Property, plant and equipment                                                                                                    1 392
     Inventories                                                                                                                        130
     Trade and other receivables                                                                                                         79
     Cash and cash equivalents                                                                                                            3
     Assets held for sale                                                                                                             1 604

     Other reserves                                                                                                                     730
     Long-term borrowings                                                                                                               656
     Long-term provisions                                                                                                                85
     Trade and other payables                                                                                                           215
     Short-term provisions                                                                                                               33
     Overdrafts and short-term borrowings                                                                                               183
     Liabilities directly associated with assets held for sale                                                                        1 172

     The cash flows were as follows:
     Cash outflow from operating activities                                                                                           (155)
     Cash outflow from investing activities                                                                                            (32)
     Cash outflow from financing activities                                                                                             (4)

                                                                                                           Unaudited                Audited
                                                                                                       Six months ended          Year ended
                                                                                                         31 December                30 June
                                                                                                       2017              2016          2017
                                                                                                         Rm                Rm            Rm
     The income statement effect is as follows:
     Sales                                                                                              340               305           600
     Cost of sales                                                                                    (282)             (296)         (601)
     Other operating income                                                                               4                 2             4
     Other operating expenses                                                                          (70)              (96)         (238)
     Segment result                                                                                     (8)              (85)         (235)
     Finance cost                                                                                      (12)              (13)          (19)
     Finance cost ZCCM: Shareholders' loan Vale/ARM joint operation                                    (20)              (19)          (56)
     Special items before tax*                                                                        (117)                 -           180
     Taxation                                                                                          (62)               (1)             -
     Loss after tax                                                                                   (219)             (118)         (130)
     Non-controlling interest                                                                            34                46            71
     Contribution to basic earnings                                                                   (185)              (72)          (59)
     Contribution to headline earnings                                                                  (6)              (72)         (203)
     Basic loss from discontinued operation per share (cents)                                          (97)              (38)          (31)
     Diluted basic loss from discontinued operation per share (cents)                                  (95)              (37)          (30)

     The Lubambe copper mine sale was completed on
     22 December 2017.
     This resulted in a loss on sale before tax of R179 million as
     detailed in note 12.
     * An impairment reversal (refer note 3.1) of R180 million was at
     recorded at 30 June 2017 by determining the recoverable amount
     using the fair value less cost to sell.

11.2 Nkomati
     The underground operations at Nkomati were classified as
     held for sale following the decision to cease operations in the
     underground area (refer note 3.2)                                                                    1                 1             1
     Asset held for sale                                                                                  1                 1             1
     Total assets held for sale per statement of financial position                                       1                 1         1 605

                                                                                                             Unaudited              Audited
                                                                                                         Six months ended        Year ended
                                                                                                           31 December              30 June
                                                                                                        2017              2016         2017
                                                                                                          Rm                Rm           Rm
12.  SALES TRANSACTIONS
12.1 Sale of Lubambe Copper Mine in Zambia
     The Lubambe copper mine sale was completed on
     22 December 2017. The transaction is reflected in the
     results as follows:
     Cash proceeds from sale                                                                             741
     Less: Overdraft facility paid - Stanbic                                                           (164)
           Witholding and property transfer tax                                                         (91)
           Foreign exchange on sale proceeds                                                               6
     Net proceeds from sale for Lubambe                                                                  492
     Net asset value at date of sale                                                                     437
     Profit on sale of Lubambe before FCTR and NCI                                                        55
     Foreign currency translation reserve (FCTR)                                                         650
     Non-controlling interest (NCI)                                                                    (822)
     Profit before tax (refer note 7)                                                                  (117)
     Taxation (refer note 7)                                                                            (62)
     Net loss on sale of Lubambe                                                                       (179)

12.2 Dwarsrivier Chrome Mine Disposal

     For accounting purposes, the disposal of the Dwarsrivier Chrome Mine was effective on 1 July 2016. The accounting result for
     ARM of this disposal was as follows: 
   
     i)   The attributable equity profit realised in Assmang amounted to R5 million which includes an impairment of R373 million
          before tax (tax nil); Subsequent to 31 December 2016 a reduction of R49 million in the attributable impairment raised at
          31 December 2016 for the disposal of the Dwarsrivier Chrome Mine was recorded.
     ii)  Attributable contribution to headline earnings amounting to R378 million;
     iii) Cash dividend received from Assmang amounting to R238 million and an in specie dividend of R316 million.
     iv)  Proceeds of R238 million received from Assore by ARM on the sale of its investment in Dwarsrivier Chrome Mine resulting
          in a loss amounting to R79 million before tax (tax: nil).

13.  PROVISION

     Silicosis and tuberculosis class action provision

     In November 2014, a gold mining industry working group was formed to address issues relating to the compensation and
     medical care for occupational lung diseases in the gold mining industry in South Africa. The working group comprises ARM,
     Harmony Gold Mining Company Limited, Anglo American South Africa Limited, AngloGold Ashanti Limited, Gold Fields Limited
     and Sibanye Gold Limited (collectively "the Working Group").

     The Working Group engaged different stakeholders including government, organised labour, other mining companies and
     legal representatives of claimants who have filed legal suits against the companies. These engagements have sought a
     comprehensive solution to address legacy compensation issues and future legal frameworks that are fair to past and current
     employees and enable companies to continue to be sustainable over the long-term.

     As a consequence of the progress of negotiations between the Working Group and affected stakeholders, the Company was
     in a position to reliably estimate, within an acceptable range, the Company's share of a possible settlement of the class action
     claims and related costs. ARM recorded a provision of R330 million (discounted) in the results for the year ended 30 June 2017.
     The nominal amount of the provision is R417 million. No changes has been made to this provision since June 2017.

     Notwithstanding the provision raised, the companies do not believe that they are liable in respect of the claims brought and
     continue to defend the legal proceedings filed against them. They do, however, believe that they should work together to seek
     a solution to this South African mining industry legacy issue. To this end, the ruling appeal which had been set for hearing from
     19 to 23 March 2018 has been postponed by the Registrar of the Supreme Court of Appeal (SCA) until further notice. The
     postponement was in response to a request by the parties involved in the appeal in January 2018.

     The negotiations with the claimants' lawyers are confidential and the Working Group companies are accordingly not able to
     provide any details of the negotiations.
                                                                                                            Unaudited               Audited
                                                                                                        Six months ended         Year ended
                                                                                                          31 December               30 June
                                                                                                       2017              2016          2017
                                                                                                         Rm                Rm            Rm
14.   RELATED PARTIES
     The Company in the ordinary course of business enters into
     various sale, purchase, service and lease transactions with
     subsidiaries, associated companies, joint ventures and joint
     operations.

     Transactions between the Company, its subsidiaries and joint
     operations relate to fees, insurances, dividends, rentals and
     interest and are regarded as intra-Group transactions and
     eliminated on consolidation.

     Amounts accounted in the income statement relating to
     transactions with related parties
     Joint venture
     Assmang Proprietary Limited
     - Provision of services                                                                            277               249           513
     - Dividends received                                                                             1 000             1 304         2 804
     Subsidiary
     Impala Platinum - dividend paid                                                                     61                89           279
     Amounts outstanding at year-end (owing to)/receivable by
     ARM on current account
     Joint venture
     Assmang - debtor                                                                                    26               109            93
     Joint operations
     Anglo American Platinum - debtor                                                                   545               361           468
     Norilsk Nickel - creditor                                                                            -                 -           (2)
     Norilsk Nickel - debtor                                                                             95               127           174
     Anglo American Platinum - short-term borrowing                                                   (114)             (114)         (114)
     Vale/ARM joint operation - ZCCM - long-term borrowing
     (refer note11)                                                                                                                     656
     Glencore Operations SA - long-term borrowing                                                   (1 578)           (1 358)       (1 433)
     Glencore Operations SA - short term borrowing                                                        -             (206)         (172)
     Subsidiary
     Impala Platinum - debtor                                                                         1 083             1 048         1 003

                                                                                                              Unaudited             Audited
                                                                                                          Six months ended       Year ended
                                                                                                            31 December             30 June
                                                                                                         2017             2016         2017
                                                                                                           Rm               Rm           Rm
15.  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                                                                                      92              105          134
     - not contracted for                                                                                  21                2            3
     Total commitments                                                                                    113              107          137

     There have been no significant changes in the contingent liabilities of the Group as disclosed since 30 June 2017 integrated
     annual report.

     For a detailed disclosure on contingent liabilities, refer to ARM's integrated annual report for the year ended 30 June 2017
     available on the group's website (http://www.arm.co.za).

16.  EVENTS AFTER REPORTING DATE

     Since the period end ARM received a dividend of R2 billion from Assmang.
  
     No other significant events have occurred subsequent to the reporting date that could materially affect the reported results.
     affect the reported results.

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                        Rosebank Towers, 15 Biermann Avenue
                                               Rosebank, Johannesburg, 2196
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
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 epidemic 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**                              J P Mïller*
Dr M M M Bakane-Tuoane*                 A M Mukhuba
T A Boardman*                           D C Noko*
A D Botha*                              Dr R V Simelane*
J A Chissano (Mozambican)*              J C Steenkamp**
*  Independent Non-executive            Z B Swanepoel*
** Non-executive                        A J Wilkens

http://www.arm.co.za



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