AFRICAN RAINBOW MINERALS LIMITED - Provisional results for the year ended 30 June 2018

Release Date: 07/09/2018 07:05
Code(s): ARI
 
Wrap Text
Provisional results for the year ended 30 June 2018

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

PROVISIONAL RESULTS FOR THE YEAR ENDED 30 JUNE 2018

Shareholder information

Issued share capital at 30 June 2018                                             219 709 127 shares
Market capitalisation at 30 June 2018                                              ZAR23.97 billion
Market capitalisation at 30 June 2018                                               US$1.75 billion 

Closing share price at 30 June 2018                                                         R109.10
12-month high (1 July 2017 - 30 June 2018)                                                  R140.97
12-month low (1 July 2017 - 30 June 2018)                                                    R78.01

Average daily volume traded for the 12 months                                        645 758 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 51% to R4 814 million (F2017: R3 196 million), which includes a net
     fair value gain of R977 million. The net fair value gain is due to a change in the net present value
     of loan repayment cash flows as a result of restructuring the ARM coal debt. Excluding the net fair
     value gain, headline earnings are up 20% compared to F2017.

-    Headline earnings per share were 2 526 cents compared to 1 684 cents in F2017.

-    Final dividend of 750 cents declared. A maiden interim dividend of 250 cents per share was paid for
     the first half of the financial year (1H F2018). The cumulative dividend for F2018 is 1 000 cents per
     share (F2017: 650 cents per share).

-    Basic earnings were R4 562 million (F2017: R1 372 million) and include the net value gain of R977 million
     as a result of the restructuring of the ARM Coal debt. F2017 included attributable impairments of
     the Nkomati Mine and Modikwa Mine assets of R711 million and R734 million after tax and non-
     controlling interest, respectively.

-    US Dollar prices realised for most commodities were higher except for iron ore, platinum and
     chrome concentrate prices.

-    ARM and Glencore successfully concluded the restructuring of the ARM Coal debt which improves
     ARM and ARM Coal's obligations in terms of this debt.

-    The disposal of ARM and Vale's 80% interest in Lubambe Mine was completed on 22 December 2017.

-    Dividends received from the Assmang joint venture were R3 000 million (F2017: R2 488 million).

-    The consolidated financial position improved by R2 266 million to net cash of R995 million (net debt of
     R1 271 million as at 30 June 2017).

Operational overview

The ARM Board of Directors (the Board) announces headline earnings of R4 814 million for F2018 (F2017:
R3 196 million) which include a net fair value gain of R977 million as a result of the ARM Coal debt restructure.
Excluding this fair value gain, headline earnings are 20% higher driven mainly by improved headline earnings
from the manganese division, Modikwa Mine and the PCB operations.

A final dividend of 750 cents per share is declared in addition to the 250 cents per share maiden interim dividend
declared in March 2018. The cumulative dividend declared for F2018 is 1 000 cents per share (F2017: 650 cents
per share).

Headline earnings/(loss) by operation/division

                                                                                                   12 months ended 30 June
                                                                                            Reviewed          Audited
R million                                                                                       2018             2017       % change
ARM Platinum                                                                                     420              350             20
Two Rivers Mine                                                                                  306              325            (6)
Modikwa Mine                                                                                     105             (66)          >200
Nkomati Mine                                                                                       9               91           (90)
ARM Ferrous                                                                                    3 528            3 709            (5)
Iron ore division                                                                              1 672            2 187           (24)
Manganese division                                                                             1 904            1 161             64
Chrome division**                                                                               (21)              375          (106)
Consolidation adjustment                                                                        (27)             (14)
ARM Coal*                                                                                      1 485               82           >200
GGV Mine                                                                                         852             (99)           >200
PCB Operations                                                                                   633              181           >200
ARM Copper                                                                                       (6)            (203)             97
ARM Corporate and other*                                                                       (613)            (742)             18
ARM headline earnings                                                                          4 814            3 196             51

*  F2018 includes a fair value gain of R1 210 million at ARM Coal and R233 million fair value loss at ARM Corporate resulting
   from the de-recognition and recognition of loans when the ARM Coal debt was restructured.
** The F2017 Chrome Division headline earnings include R378 million relating to the sale of ARM's effective 50% stake in the
   Dwarsrivier Mine.

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

The provisional results for the year ended 30 June 2018 have been prepared in accordance with International
Financial Reporting Standards (IFRS) and the disclosures are in accordance with IAS 34: Interim Financial Reporting.

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

ARM Ferrous headline earnings from continuing operations were 6% higher at R3 528 million compared to
R3 331 million in F2017. The division's total headline earnings were, however, 5% lower as the F2017 headline
earnings of R3 709 million included a non-recurring amount of R378 million related to the sale of ARM's effective
50% stake in Dwarsrivier Mine (which was disclosed as a discontinued operation). Headline earnings from the
manganese division were 64% higher as manganese ore sales volumes increased by 7% and average Rand
realised export manganese ore and manganese alloy prices increased by 18% and 20% respectively. Despite
achieving record sales volumes, the iron ore division's headline earnings were 24% lower at R1 672 million
(F2017: R2 187 million) mainly due to lower realised export iron ore prices.

ARM Platinum headline earnings increased by 20% to R420 million (F2017: R350 million) as Modikwa Mine
improved from a headline loss of R66 million in F2017 to headline earnings of R105 million. This was mainly due
to an improvement in the commercial terms of the Modikwa Mine purchase of concentrate agreement agreed
between ARM Mining Consortium and Anglo American Platinum for three years effective from 1 January 2017.
Two Rivers Mine headline earnings of R306 million (F2017: R325 million) were negatively affected by a decrease
in the mine's head grade as higher proportions of split reef were mined. Transfer of the Tamboti area mining right
to Two Rivers Mine has now been completed allowing access into the Tamboti area which over time will increase
mining flexibility and reduce the proportions of split reef being mined. Nkomati Mine reported an R82 million
reduction in headline earnings to R9 million as a decline in the mine's head grade (due to the milling of additional
Very Low Grade (VLG) stockpile material) resulted in lower nickel and by-product production volumes. An
amendment to the mine's concentrate offtake agreement was concluded with Metals Trade Overseas AG (MTO)
effective from 22 April 2018 which improves the terms and conditions of the offtake for the mine. Nkomati Mine
was also impacted by a lower chrome contribution as the mine's average realised US Dollar price for chrome
decreased by 50%.

All three ARM platinum operations faced grade decline in the financial year under review. A number of interventions
are being implemented to address this operational challenge. Modikwa Mine is introducing stope width control
measures particularly in the South 1 and South 2 shafts to reduce dilution and improve the grade. The mine head
grade is expected to return to normalised levels in the next financial year. At Two Rivers Mine, the levels of split
reef being mined is expected to reduce from F2020 when mining in the Tamboti area commences, improving the
mining flexibility. The Nkomati Mine grade is expected to improve from F2021 as more MMZ ore on the Western
section of the open pit is mined.

ARM Coal headline earnings were R1 485 million (F2017: R82 million). This includes an impact of R1 210 million
as a result of the restructuring of the ARM Coal debt concluded between ARM, ARM Coal, Glencore and Glencore
Operations South Africa (GOSA) as announced on the Stock Exchange News Service of the JSE on 25 June
2018. The impact of the restructuring on the F2018 ARM statement of comprehensive income is:

R million                                                                                 Old loan terms    New loan terms    Impact
Cash operating profit                                                                              1 365             1 365         -
Amortisation                                                                                       (592)             (592)         -
Interest received                                                                                      -                 8         8
Interest paid                                                                                      (501)             (321)       180
Fair value gain: GGV loans                                                                             -               885       885
Fair value gain: PCB loans                                                                             -               325       325
Taxation                                                                                            (46)             (185)     (139)
Headline earnings attributable to ARM                                                                226             1 485     1 259

The headline loss from Goedgevonden (GGV) Mine, excluding the impact of the debt restructuring, was
R30 million (F2017: R99 million) while the PCB Operations contributed headline earnings of R256 million (F2017:
R181 million), excluding the impact of the debt restructuring.

The ARM Corporate and other segment showed a headline loss of R613 million (F2017: R778 million headline
loss) which is made up of the following:

R million                                                                                                 F2018    F2017    Variance
Foreign exchange losses*                                                                                   (70)    (270)         200
Silicosis provision raised                                                                                    -    (330)         330
Tax expense                                                                                               (231)        -       (231)
Fair value loss**                                                                                         (233)        -       (233)
Other                                                                                                      (79)    (178)          99
Total                                                                                                     (613)    (778)         165

*  Foreign exchange losses relate to the US Dollar loans made by ARM to Lubambe Mine, which entity's functional currency is
   the US Dollar, resulting from the Rand versus the US Dollar exchange rate strengthening from R13.05/US$ at 30 June 2017 to
   R12.58/US$ at 22 December 2017 (effective date of sale of Lubambe Mine).
** Fair value loss resulting from the coal debt restructuring at ARM Company level.
   A detailed segmental headline earnings contribution analysis is provided in note 2 to the financial statements.

Safety

We are committed to creating and maintaining a safe work environment for all our employees. A regrettable
accident occurred at Modikwa Mine, when two employees were exposed to irrespirable atmosphere underground
on 9 October 2017. Our sincerest condolences to the family, friends and colleagues of Mr Fabian Majoro who
succumbed to his injuries at the scene. The second employee, Mr Daniel Ntlangoe, was treated in hospital and
has recovered fully.

On 2 April 2018 a bus carrying Modikwa Mine employees was attacked and set alight. Six people were fatally
injured in the incident. We extend our deepest condolences to the families, friends and colleagues of those who
lost their lives in this tragic incident.

We also note a fatality at the Sakura Ferroalloys operation and one at the Tweefontein Coal Mine.

On 30 March 2018, Mr Raymond Anak Edmund Samaie, a production shift manager suffered a fatal injury while
he was assisting to unblock a section of a Gas Cleaning Plant at Sakura. Assmang, Sumitomo Corporation and
China Steel Corporation as joint partners in Sakura, extend their heartfelt condolences to the family, friends
and colleagues of Mr Samaie.

Mr Bonga Lingeni, a grader operator, was fatally injured in January 2018 at the Tweefontein Coal Mine which
forms part of the PCB operations. ARM and Glencore, as partners in ARM Coal operations extend our sincerest
condolences to the family, friends and colleagues of Mr Lingeni.

In the financial year under review ARM's Lost Time Injury Frequency Rate (LTIFR) was 0.38 per 200 000 man-
hours (F2017: 0.28 per 200 000 man-hours). The number of Lost Time Injuries increased to 91 (F2017: 65) and
reportable injuries increased from 47 in F2017 to 68 in F2018.

Safety related stoppages (i.e. Section 54 Notices) increased from 20 in F2017 to 31 in F2018.

ARM Ferrous safety highlights in F2018:

-    The Ferrous LTIFR improved by 24% to 0.13 per 200 000 man-hours (F2017: 0.17 per 200 000 man-hours)
     while the number of LTIs reduced by 27% to 11 (F2017:15);
-    Black Rock Mine achieved 6 million fatality-free shifts on 17 January 2018, an accomplishment which took
     nine years to achieve;
-    On 18 October 2017, Beeshoek Mine recorded 16 000 fatality-free production shifts, an accomplishment which
     took approximately 15 years to achieve. Beeshoek Mine also received a certificate from the Department of
     Mineral Resources (DMR) for an outstanding safety achievement as the "Most Consistent Surface Mine" in
     the 2017 Northern Cape Mine Safety Competition. On 7 March 2018, the mine completed 365 consecutive
     days without an LTI;
-    Khumani Mine achieved 2 million fatality-free shifts on 12 April 2018;
-    As at 30 June 2018, Cato Ridge Works completed 704 days without an LTI; and
-    As at 30 June 2018, Machadodorp Works completed 875 days without an LTI.

ARM Platinum safety highlights in F2018:

-    Prior to the fatal accident (as discussed above), Modikwa Mine had completed 4 million fatality-free shifts
     on 3 July 2017;
-    Two Rivers Platinum Mine completed 4 million fatality-free shifts on 18 August 2017; and
-    Nkomati Mine achieved 6 million fatality-free shifts on 7 November 2017.

Safety figures and statistics are reported only for the operations where ARM has direct or joint management and
therefore do not include the ARM Coal and Sakura Ferroalloy operations. Reported safety figures and statistics
are on a 100% basis.

Corporate transactions

ARM Coal - ARM, ARM Coal, Glencore and GOSA successfully concluded the restructuring of ARM Coal debt
on 25 June 2018, with an effective date of 1 July 2017. Salient features of the restructuring include:

-    Debt owed by ARM Coal to GOSA will accrue interest at a rate of 0% compared to the previous rate, which
     was at prime, with effect from 1 July 2017 until 31 December 2029;
-    Final maturity date for all debt owed by ARM Coal to GOSA is extended to 31 December 2029;
-    All operating cash generated by GGV and the PCB operations, attributable to ARM and ARM Coal, shall
     be applied in repayment of the debt until the earlier of 31 December 2029 or full repayment of these loans;
-    GOSA's obligation (acting through the PCB) to repay ARM the amount of R700 million under the PCB
     shareholders loan from ARM was set off against ARM's obligation to pay GOSA (acting through the non-
     PCB) the amount of R700 million under the PCB revolving credit facility such that both loans have been fully
     and finally settled and discharged. This resulted in the PCB being indebted to the non-PCB in an amount of
     R700 million, which debt will rank pari passu to the remaining shareholder loan from ARM Coal to PCB, and;
-    All distributions to be received by ARM Coal in respect of the PCB shareholders loan, shall be utilised by
     ARM Coal in the settlement of its shareholder loans from GOSA and ARM. The payments to be received by
     GOSA and ARM, shall immediately be advanced back to ARM Coal through a shareholder's loan, on a 0%
     interest rate basis, and ARM Coal will utilise these funds to service the GGV debt.

Lubambe Mine - As reported in the 1H F2018 results, all conditions precedent for the disposal of Lubambe
Mine were completed on 22 December 2017. The purchase consideration received by ARM and Vale, directly
and indirectly, 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 of US$81 million were received by ARM and Vale in December 2017. Lubambe Mine, which
for F2018 reported a headline loss of R6 million, is disclosed as a discontinued operation in terms of International
Financial Reporting Standards (IFRS).

Two Rivers Mine - Further to the consent received by Two Rivers Mine in August 2017 to transfer the Tambot rights
to it and 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.

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 from continuing operations increased by 42% to R4 820 million for F2018 (F2017: R3 399 million).
This equates to headline earnings per share from continuing operations of R25.29 (F2017: R17.91 per share).
F2018 headline and basic earnings were positively impacted by a net fair value gain recognised in the statement
of comprehensive income of R977 million relating to the ARM Coal debt restructuring.

ARM's basic earnings from continuing operations for F2018 were R4 747 million (F2017: R1 431 million).
F2017 basic earnings were negatively impacted by the following special items:

-    An attributable impairment of the Nkomati Mine assets of R711 million after tax;
-    An attributable impairment of the Modikwa Mine assets of R734 million after tax and non-controlling interest; and
-    An attributable impairment loss of R373 million within the Assmang joint venture related to the sale of
     Dwarsrivier.

Additional special items are set out in note 6 to the financial statements and the reconciliation of basic earnings
to headline earnings is provided in note 7 to the financial statements.

Sales from continuing operations for the year increased by 2% to R8.35 billion (F2017: R8.16 billion).

Earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations, excluding
special items and income from associates and joint ventures, were R2 451 million (F2017: R922 million). This is
166% higher than F2017, largely as a result of a higher EBITDA contribution from the manganese division and
a net fair value gain recognised in ARM Coal from the debt restructuring. This was partially offset by unrealised
foreign exchange losses in the Corporate segment of R70 million (F2017: R270 million). Segmental EBITDA
margins are reflected in the graph on page 40.

Income from joint venture increased by 8% to R3 510 million (F2017: R3 265 million).

Exchange rate

The positive impact of higher realised US Dollar prices for most commodities was partially offset by the
strengthening of the Rand against the US Dollar. The F2018 average Rand/US Dollar exchange rate of
R12.84/US$ was 6% stronger than the average of R13.60/US$ for F2017. For reporting purposes, the closing
exchange rate was R13.72/US$ (30 June 2017: R13.05/US$).

Cash

At 30 June 2018 cash and cash equivalents from continuing operations amounted to R3 291 million (F2017:
R1 488 million). This excludes the attributable cash and cash equivalents held at ARM Ferrous (50% of Assmang)
of R2 507 million (F2017: R3 165 million).

Cash generated from operations increased by R323 million to R1 934 million (F2017: R1 611 million) after a
R517 million increase in working capital (F2017: R274 million increase). The cash dividends received from the
Assmang joint venture amounted to R3 000 million (F2017: R2 488 million).

Cash spent on capital expenditure increased by R201 million to R1  150 million (F2017: R949 million).
Attributable capital expenditure at the Assmang joint venture increased to R1 474 million (F2017: R1 361 million).

Dividends of R1 236 million and R478 million were paid in October 2017 and April 2018, respectively
(F2017: R426 million) bringing the total dividend paid in F2018 to R1 714 million.

Debt

Total borrowings at 30 June 2018 were R2 296 million (F2017: R2 759 million). The decrease in total borrowings
is largely due to the ARM Coal debt restructuring.

There was no debt at ARM Ferrous in either of the two reporting periods.

The consolidated net cash (overdrafts, short-term and long-term borrowings less cash and cash equivalents) at
30 June 2018 amounted to R995 million (30 June 2017: R1 271 million net debt). Details of cash and borrowings
are set out in notes 9 and 10 to the financial statements.

Assets

Consolidated ARM total assets of R34 billion (30 June 2017: R32 billion) include ARM's investment in Harmony of
R1 351 million (30 June 2017: R1 380 million) at a share price of R21.22 per share (30 June 2017: R21.68 per share).

Dividend

The Board declared a final dividend of 750 cents per share after the financial year-end. A maiden interim dividend
of 250 cents per share was declared and paid in the first half of the financial year, bringing the cumulative dividend
declared for F2018 is 1 000 cents per share (F2017: 650 cents per share).

Events after the reporting date

Harmony conducted a placing of new ordinary shares to qualifying investors to raise up to ZAR1.26 billion
(US$100 million) through an accelerated book-building process launched on 5 June 2018. As Harmony's strategic
black economic empowerment partner, ARM subscribed for shares necessary to maintain its shareholding of
approximately 14% post Harmony's placement of new ordinary shares. On 17 July, ARM subscribed to 11 032 623
shares at a total cost of R210.9 million (i.e. R19.12 per share) which resulted in ARM's shareholding in Harmony
being at 14.6%.

Since the year-end Assmang declared a dividend of R3 500 million. ARM's attributable portion of the dividend
is R1 750 million.

Events after the reporting date are set out in note 22 to the financial statements.

ARM Ferrous

ARM Ferrous headline earnings (including discontinued operations) of R3 528 million were 5% lower compared
to R3 709 million in F2017. This decrease was mainly due the inclusion in F2017 of 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 F2017). The F2018 ARM Ferrous headline earnings from continuing operations were
therefore 6% higher than the corresponding financial year excluding this non-recurring amount. The manganese
division headline earnings were 64% higher. Iron ore headline earnings were down 24% mainly as a result of
a 9% decrease in the average realised US Dollar export iron ore prices and the strengthening of the Rand/US
Dollar exchange rate.

ARM Ferrous headline earnings/(loss) by division

                                                                                                 12 months ended 30 June
                                                                                           Reviewed         Audited
R million                                                                                      2018            2017         % change
Iron ore division                                                                             3 343           4 373             (24)
Manganese division                                                                            3 808           2 322               64
Chrome division                                                                                (42)             749            (106)
Total (100% basis)                                                                            7 109           7 444              (5)
ARM share                                                                                     3 555           3 723              (5)
Consolidation adjustments                                                                      (27)            (14)
Headline earnings attributable to ARM                                                         3 528           3 709              (5)

Average manganese ore prices were up with the Platts Index for 44% manganese ore (CIF Tianjin) increasing
by 19% from US$5.77 per manganese tonne unit (mtu) in F2017 to US$6.88/mtu in F2018. The index for 37%
manganese ore (FOB Port Elizabeth) increased by 23% from US$4.56/mtu in F2017 to US$5.59/mtu. Prices
for manganese alloy were up 35% from US$1 151/t for F2017 to US$1 553/t for F2018. Average iron ore prices
on the other hand, as referenced by 62% iron ore fines (CIF North China), decreased marginally to US$69.27/t
(F2017: US$69.41/t).

The mines and the smelters were able to deliver into this generally improved price environment, increasing
production and sales volumes at all the operations.

Production and sales volume performance

Iron ore production volumes increased by 864 thousand tonnes (5%) to a production record of 18.58 million
tonnes in F2018 (F2017: 17.7 million tonnes). Most of the increase was due to Beeshoek Mine which delivered
730 thousand tonnes higher production as an opportunity to export 404 thousand tonnes of iron ore from
Beeshoek Mine was created through the newly established rail loop to the Saldanha Export Channel. Khumani
Mine production volumes increased by 134 thousand tonnes to 14.7 million tonnes by practising selective mining
methods and improving the in-pit blending of the feed ore. This resulted in the on-grade ratio improving from 32%
on-grade in F2017 to 35% in F2018. Khumani Mine's production of lumpy to fines ratio decreased from 57:43 in
F2017 to 55:45 in F2018 as a result of mining more ore from the King Pit. The deterioration in lumpy ratio is a
direct result of mining more ore from the King Pit which is aligned to the exploitation schedule for the total iron
ore resource at Khumani Mine.

Commensurate to the higher production, total sales volumes increased by 600 thousand tonnes (4%) to a sales
record of 17.9 million tonnes in F2018. Beeshoek Mine sales volume increased by 750 thousand tonnes while
Khumani Mine sales volumes decreased by 150 thousand tonnes. The decrease in the sales volume from Khumani
Mine is directly related to the derailments experienced on the export line to Saldanha Port. Of the 17.9 million
tonnes sold 14.3 million tonnes was exported and 3.6 million tonnes was sold locally.

At Black Rock Mine, manganese ore production volumes increased by 21% to 3.72 million tonnes (F2017:
3.07 million tonnes). 84% of the additional manganese ore produced was lumpy. The main reasons for the
improved production volumes were:

-    Benefits of the Black Rock Project - the upgrade of the Nchwaning II shaft was completed during F2017,
     which enabled the full utilisation of the shaft infrastructure during F2018; and
-    Successful execution of productivity improvements initiatives at the various shafts.

Black Rock Mine sales volume increased by 6% to 3.41 million tonnes (F2017: 3.24 million tonnes).

Cato Ridge Works high-carbon ferromanganese production volume decreased by 10 thousand tonnes (6%) to
151 thousand tonnes compared to 161 thousand tonnes in F2017. The decrease in production volumes relates
to a decision taken to reduce the amount of furnaces operating at Cato Ridge Works from four in F2017 to three
in F2018 as part of the business improvement strategy. Cato Ridge Alloys' medium-carbon ferromanganese
production volume decreased by 6% to 57 thousand tonnes in F2018 compared to 61 thousand tonnes in F2017.
The sales volumes for both high-carbon and medium-carbon ferromanganese matched the production volumes
achieved for F2018.

Sakura Works' high-carbon ferromanganese production volume increased by 63 thousand tonnes (35%) to
244 thousand tonnes in F2018 compared to 181 thousand tonnes in F2017. This increase was as a result of the
ramp-up of both furnaces during F2018, which are currently producing at higher than design capacity. Sales
volumes at Sakura Works increased by 86% to 240 thousand tonnes (F2017: 129 thousand tonnes).

Assmang production volumes (on 100% basis)

                                                                                                  12 months ended 30 June
Thousand tonnes                                                                                 2018            2017        % change
Iron ore                                                                                      18 578          17 714               5
Manganese ore                                                                                  3 717           3 069              21
Manganese alloys (local)                                                                         218             222             (2)
Manganese alloys (Sakura)                                                                        244             181              35
Charge chrome                                                                                      2              11            (82)

ARM Ferrous sales volumes (on 100% basis)

                                                                                                  12 months ended 30 June
Thousand tonnes                                                                                 2018            2017        % change
Iron ore                                                                                      17 874          17 275               3
Manganese ore*                                                                                 3 177           2 974               7
Manganese alloys (local)                                                                         138             174            (21)
Manganese alloys (Sakura)                                                                        240             129              86
Charge chrome                                                                                     13              18            (28)

* Excluding intra-group sales.

Unit cost performance

Through improved operational efficiencies and higher production volumes, Khumani and Beeshoek mines' unit
production costs were managed to well below inflation and increased by only 2% and 1% respectively.

Black Rock Mine's year-on-year unit production costs increased by 16%. In F2017, the on-mine unit production
costs had reduced to R453 per tonne mainly due to the exclusion of fixed costs of R208 million from on-mine
production costs as the Nchwaning II Shaft was closed for 10 months of the financial year. In F2018 these
associated costs were included in on-mine production costs as the shaft was fully operational for the whole of
F2018. Further, there was an increase in operating costs as a result of manning new plant and infrastructure,
but not yet realising the full production volume potential, due to the Black Rock Project still being completed.

Both Khumani Mine and Black Rock Mine are currently in negotiations with the Sedibeng Water Board for the
capital user charge related to the upgrade of the Vaal Gamagara Water pipeline which supplies water to both
mines. This charge may increase unit costs at both mines going forward.

Cato Ridge Works unit production costs increased by 6% as a result of higher input cost for sinter (due to the
price improvements experienced in the index price for manganese ores) and an increase in the delivered price
of coke and anthracite reductants. The unit cost of sales for Cato Ridge increased as the sales prices of alloys
increased substantially during F2018 resulting in increased sales commissions. Sakura's unit production cost
increased by only 5% despite significant increases in raw material input costs (especially manganese ore and
reductants). This was achieved through improved efficiencies and increased production volumes.

ARM Ferrous cost and EBITDA margin performance

                                                                                               Unit cost      On-mine unit    EBITDA
                                                                                                of sales   production cost    margin
Commodity group                                                                                 % change          % change         %
Iron ore                                                                                               2                 2        39
Manganese ore                                                                                         15                16        48
Manganese alloys: Cato Ridge                                                                          20                 6        29
Manganese alloys: Sakura                                                                               6                 5        12

Capital expenditure

ARM Ferrous capital expenditure (on a 100% basis) increased by 9% to R3 081 million in F2018
(F2017: R2 817 million) (on 100% basis).

Khumani Mine capital expenditure was R1 306 million (F2017: R892 million). This increase mainly related to:

-    Additional trackless mining machinery that was acquired to enable the selective mining strategy deployed
     during F2018;
-    Waste stripping at the Bruce and King pits; and
-    The replacement of mining equipment and fleet.

Beeshoek Mine capital expenditure was R474 million compared to R277 million for F2017. The increase relates to:

-    R98 million additional expenditure on waste stripping in the Village Pit in-line with the development and
     exploitation schedule of the Village Pit; and
-    R85 million additional expenditure for the replacement of trackless mining machinery and the replacement
     of crusher spares.

Black Rock Mine capital expenditure decreased by 19% to R1 240 million (F2017: R1 617 million) mainly due to
lower expenditure incurred for the Black Rock Project as most of the surface infrastructure improvements were
completed and commissioned in F2017. At the end of F2018 approximately 90% of the approved R6.7 billion
capital expenditure was committed or spent.

Capital of approximately R2.7 billion (on a 100% basis) has been approved for the modernisation and optimisation
of the Gloria Mine within the Black Rock Mine. This capital, which is expected to be spent over the next few
years, will enable the Black Rock Mine flexibility to produce different product specifications (from high to medium
grade) as the ability to deliver different specification products to customers has become a key differentiator in
the current dynamic manganese ore market. The Gloria Mine is expected to be shut for six months of F2019 as
part of this modernisation. Sales are planned to be met from inventory which has been built up in anticipation of
the shutdown. Production capacity at Gloria Mine will be increased and will bring Black Rock Mine's production
capacity to approximately 5 million tonnes per annum.

Cato Ridge Works capital expenditure was R45 million compared to R30 million in F2017. Sakura Works capital
expenditure reduced from R221 million to R34 million in F2018 mainly due to successful completion of the
project in F2018.

ARM Ferrous capital expenditure (on a 100% basis)

100% basis                                                                                        12 months ended 30 June
                                                                                            Reviewed         Audited
R million                                                                                       2018            2017        % change
Iron ore                                                                                       1 780           1 169              52
Manganese                                                                                      1 285           1 648            (22)
Chrome                                                                                            16               -               -
Total                                                                                          3 081           2 817               9

Logistics

Transnet performed well and all local and export sales volumes were achieved in F2018 as planned.

ARM Ferrous has signed the MECA2 (Manganese Export Capacity Allocation) Agreement with Transnet,
valid from 15 September 2015 until the later of 31 March 2023 or when the Port of Ngqura is fully operational.
Rail and port capacity is secured through the ports of Port Elizabeth and Saldanha in line with the ramp up of
Black Rock Mine. Engagements with Transnet with regards to synchronising the planned production ramp up of
Black Rock Mine beyond 2023 and the rail and port capacity provisions in the longer-term (MECA3) are ongoing.

Transnet enabled Khumani Mine to export 14.3 million tonnes of iron ore for F2018. Although port stock piles
are low due to various Transnet Freight Rail (TFR) derailments, the Ferrous division has successfully managed
to achieve planned iron ore sales volume. A junior iron ore producer and exporter was able to export more than
1 million tonnes of product using the load-out facility of Khumani Mine during the reporting period.

In collaboration with Transnet, a link to the iron ore export line to Saldanha Port has been established, from
Beeshoek Mine, to provide for additional iron ore export volume flexibility. This opportunity enabled Beeshoek
Mine to export 404 thousand tonnes of iron ore, through Saldanha, in F2018.

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

ARM Platinum

ARM Platinum's attributable headline earnings increased by 20% to R420 million (F2017: R350 million). Concentrate
offtake agreements for both Modikwa and Nkomati mines were renegotiated with temporary improvement to
agreement terms and conditions. These impacted positively on the F2018 ARM Platinum results.

ARM Platinum attributable headline earnings/(loss)

                                                                                                 12 months ended 30 June
                                                                                          Reviewed          Audited
R million                                                                                     2018             2017         % change
Two Rivers Mine                                                                                306              325              (6)
Modikwa Mine                                                                                   105             (66)
Nkomati Mine                                                                                     9               91             (90)
Total                                                                                          420              350               20

Improved US Dollar and Rand palladium, rhodium, cobalt, nickel and copper prices also contributed to this result.
Rand and US Dollar prices for platinum and chrome concentrate, however, were lower than the corresponding
period. Due to Modikwa Mine's higher palladium content, the mine's average Rand per 6E kilogram basket price
increased by 14% to R380 603 (F2017: R334 051), whereas the average basket price at Two Rivers Mine increased
by 11% to R370 755 per 6E kilogram (F2017: R333 749). The tables below set out the relevant price comparison:

Average US Dollar metal prices

                                                                                                  12 months ended 30 June
                                                                                                2018            2017        % change
Platinum                                     US$/oz                                              936             987             (5)
Palladium                                    US$/oz                                              974             734              33
Rhodium                                      US$/oz                                            1 540             783              97
Nickel                                       US$/t                                            12 397           9 882              25
Cobalt                                       US$/lb                                               35              19              85
Copper                                       US$/t                                             6 798           5 474              24
UG2 chrome concentrate - Two Rivers (CIF*)   US$/t                                               174             193            (10)
High sulphur chrome concentrate - Nkomati
(FOT**)                                      US$/t                                                82             165            (50)

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

Average Rand metal prices

                                                                                                  12 months ended 30 June
                                                                                                2018            2017        % change
Exchange Rate                                R/US$                                             12.84           13.60             (6)
Platinum                                     R/oz                                             12 020          13 408            (10)
Palladium                                    R/oz                                             12 509           9 973              25
Rhodium                                      R/oz                                             19 780          10 636              86
Nickel                                       R/t                                             159 172         134 295              19
Cobalt                                       R/lb                                                443             254              74
Copper                                       R/t                                              87 282          74 387              17
UG2 chrome concentrate - Two Rivers (CIF*)   R/t                                               2 232           2 629            (15)
High sulphur chrome concentrate - Nkomati
(FOT**)                                      R/t                                               1 059           2 245            (53)

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

An 11% increase in PGM production at Modikwa Mine was fully offset by an 11% decrease in PGM production
at both Nkomati and Two Rivers mines, resulting in ARM Platinum PGM ounces (on a 100% basis) decreasing
by 3% to 792 583 6E ounces (F2017: 815 188 6E ounces).

Nkomati Mine nickel production decreased by 16% to 13 302 tonnes (F2017: 15 875 tonnes) as a result of reduced
tonnes mined, combined with a 19% decrease in the mill head grade due to additional Very Low Grade (VLG)
stock pile material being milled.

F2018 unit production costs, on a Rand per tonne milled basis, were well controlled at all operations with Two
Rivers and Modikwa mines' unit cost being flat, while Nkomati Mine showed a 6% increase. Unit production
costs, on a Rand per PGM ounce basis were higher than inflation at 10% and 9% for Two Rivers and Modikwa
mines, respectively, due to a decline in grade at both mines. Nkomati Mine C1 unit cash costs net of by-products
(which include capitalised waste stripping costs) were 22% higher at US$5.86/lb (F2017: US$4.81/lb) of nickel
produced. The C1 unit cash costs were also negatively impacted by a grade decline which resulted in a 16%
decrease in nickel units produced.

Capital expenditure at ARM Platinum operations (on a 100% basis) decreased by 10% to R1.15 billion
(F2017: R1.27 billion).

Capital expenditure at Modikwa Mine increased by 2% to R266 million (F2017: R262 million). Of the capital spent
in F2018, 33% is associated with the North Shaft Mine project and 16% with the South Shaft project, while 33%
was spent on fleet refurbishment and critical spares.

Of the capital spent at Two Rivers Mine in F2018, 19% is associated with fleet replacement and refurbishment.
The deepening of the Main and North declines, together with its electrical and mechanical installations, comprised
59% of the total capital expenditure.

Nkomati Mine's F2018 capital expenditure was mainly for the replacement of the Onverwacht tailings pipeline
(R63 million), as well as the completion of the second anchored pile wall (R26 million). Following a minor
geotechnical slope failure on the Western side of the pit, remedial work was required to relocate the infrastructure
(tailings pipeline and road) (R18 million). The support and buttressing work done to stabilise the pile wall in the
Western section has been completed and is now stable. Capitalised waste stripping cost decreased by 51% as
waste mined reduced to 22 million tonnes from 27 million tonnes in F2017.

ARM Platinum capital expenditure (on 100% basis)

                                                                                                            12 months ended 30 June
                                                                                                           Reviewed          Audited
R million                                                                                                      2018             2017
Modikwa                                                                                                         266              262
Two Rivers                                                                                                      455              293
Nkomati                                                                                                         124              101
Nkomati capitalised waste stripping                                                                             304              617
Total                                                                                                         1 149            1 273

Two Rivers Mine

Attributable headline earnings at Two Rivers reduced by 6% to R306 million (F2017: R325 million). A 1% decrease
in tonnes milled and a 7% reduction in grade, led to PGMs produced declining by 11% to 348 405 6E ounces
(F2017: 390 214 6E ounces). In addition, chrome concentrate sales volumes declined by 17% to 229 642 tonnes
as a result of a lower chrome yield, a direct consequence of the lower PGM grade. This, combined with a 15%
decline in the Rand chrome price, resulted in chrome cash operating profit declining by 40% to R210 million
(F2017: R352 million).

Continued complexity in the ore body resulted in lower grades being delivered to the plant. The decline in head
grade is largely attributable to geological induced dilution associated with an increase in split reef proportion in
the ore mix mined from the southern sections of Main Decline. Currently, there is limited flexibility in blending the
ore from split reef and normal reef sources due to face length constraints at Main Decline. Areas of thick, lower
grade split reef are expected to continue affecting the overall mining grade negatively for the next 18 months,
resulting in overall mining grades being between 3.70 and 3.80 6E grams per tonne (F2017: 3.90 grams per
tonne). To mitigate the declining grade, there is a drive to increase the sinking rate at the Main Decline and mine
volumes from higher-grade panels as mining flexibility increases to enhance the ore mix. Undercutting of the
internal waste within the split reef is also being undertaken wherever practically possible.

Unit production costs on a Rand per tonne milled basis were flat at R688 per tonne (F2017: R690 per tonne).
The Rand per PGM ounce produced, however, increased by 10% to R6 822 per 6E ounce (F2017: R6 195 per
6E ounce), as a direct result of the decline in grade. There was a 9 581 tonne decrease in the UG2 Run-of-Mine
stockpile to a total of 207 171 tonnes of ore as at 30 June 2018.

Two Rivers Mine operational statistics (on 100% basis)

                                                                                                  12 months ended 30 June
                                                                                                2018            2017        % change
Cash operating profit                   R million                                              1 314           1 359             (3)
-    PGMs                               R million                                              1 104           1 006              10
-    Chrome                             R million                                                210             352            (40)
Tonnes milled                           Mt                                                      3.46            3.50             (1)
Head grade                              g/t, 6E                                                 3.63            3.90             (7)
PGMs in concentrate                     Ounces, 6E                                           348 405         390 214            (11)
Chrome concentrate sold                 Tonnes                                               229 642         275 189            (17)
Average basket price                    R/kg, 6E                                             370 755         333 749              11
Average basket price                    US$/oz, 6E                                               895             764              17
Cash operating margin                   %                                                         34              34
Cash cost                               R/kg, 6E                                             219 334         199 168              10
Cash cost                               R/tonne                                                  688             690               -
Cash cost                               R/Pt oz                                               14 623          13 291              10
Cash cost                               R/oz, 6E                                               6 822           6 195              10
Cash cost                               US$/oz, 6E                                               531             456              17
Headline earnings attributable to ARM   R million                                                306             325             (6)

Modikwa Mine

Modikwa Mine achieved attributable headline earnings of R105 million (F2017: R66 million headline loss).
A 20% (413 thousand tonnes) increase in tonnes milled was partially offset by an 8% decrease in head grade,
which resulted in PGM production increasing by only 11% to 333 888 6E ounces (F2017: 301 228 6E ounces).
The decline in head grade was mainly due to increased in-stope dilution as the stoping width at South 1 Shaft
was negatively impacted by adverse geotechnical conditions in the hanging wall. Additional hanging-wall support
methods as well as drilling controls are being implemented to reduce the dilution.

Anglo American Platinum and ARM have been in on-going discussions to find a holistic solution to ensure the
sustainability of Modikwa Mine. By agreeing to temporarily improve the commercial terms of the existing purchase
of concentrate agreement, it is expected that this will improve the cash flow generation of the mine while the
turnaround and operational improvement plan is implemented. These terms are effective for concentrate deliveries
for a three-year period which commenced 1 January 2017. The financial results for the year ended 30 June 2018
include an adjustment for 18 months. The negotiations have been on-going since F2017, however the terms and
conditions only became unconditional in F2018. As such the adjustment resulted in additional revenue being
recognised and included in the Modikwa headline earnings attributable to ARM.

Unit production cost increased by 9%, to R9 197 per 6E PGM ounce (F2017: R8 463 per 6E PGM ounce) and
was flat on a Rand per tonne basis at R1 265 per tonne (F2017: R1 265 per tonne).

South 2 Shaft phase 1 has been capitalised to achieve production of 50 thousand tonnes per month. The shaft
achieved on average 31 thousand tonnes per month for the past 12 months. It is anticipated that steady state
production rates will be achieved in F2019.

Modikwa Mine operational statistics (on 100% basis)

                                                                                                   12 months ended 30 June
                                                                                                 2018            2017       % change
Cash operating profit/(loss)               R million                                              521            (36)           >200
Tonnes milled                              Mt                                                    2.43            2.01             20
Head grade                                 g/t, 6E                                               4.98            5.43            (8)
PGMs in concentrate                        Ounces, 6E                                         333 888         301 228             11
Average basket price                       R/kg, 6E                                           380 603         334 051             14
Average basket price                       US$/oz, 6E                                             922             765             21
Cash operating margin                      %                                                       14             (1)
Cash cost                                  R/kg, 6E                                           295 685         272 104              9
Cash cost                                  R/tonne                                              1 265           1 265            (0)
Cash cost                                  R/Pt oz                                             23 311          21 878              7
Cash cost                                  R/oz, 6E                                             9 197           8 463              9
Cash cost                                  US$/oz, 6E                                             716             623             15
Headline earnings/(loss) attributable to
ARM                                        R million                                              105            (66)

Nkomati Mine

Nkomati Mine generated attributable headline earnings of R9 million (F2017: R91 million) for the period under
review. The decline was mainly due to lower nickel production volumes (13 302 tonnes versus 15 875 tonnes)
and a 53% decline in realised Rand chrome price.

The Nkomati Joint Venture partners entered into an addendum to the existing offtake agreement with Metal
Trade Overseas AG (MTO), under which the short delivery and grade penalties were relaxed for a period of two
years, effective 23 April 2018, and the tenure of the base agreement was extended to the life of the open pit mine
(which was 8.5 years as at 30 June 2018). The relaxation of penalties is to assist Nkomati while it is ramping up
to its normal production levels. This adjustment had a R21 million positive impact on the headline earnings for
two months ended 30 June 2018.

Despite chrome concentrate sales volumes increasing by 36% to 328 371 tonnes (F2017: 241 265 tonnes), the
chrome contribution to cash operating profit reduced by 42% to R235 million as a result of the lower chrome
price realised.

Nkomati's total tonnes milled increased by 7% to 8.04 million tonnes nickel units produced declining by 16% to
13 302 tonnes (F2017: 15 875 tonnes). The main reasons for this were:

-    Pit 3 mining operations remain constrained as a result of the historical insufficient waste stripping and
     geotechnical issues, resulting in insufficient MMZ ore availability during the reporting period;
-    Higher than expected processing of Very Low Grade (VLG) MMZ stockpile material (approximately 1.5 million
     tonnes during the period) to complement the shortfall of MMZ ore to ensure that both mills operate at maximum
     capacity. The VLG MMZ material had an average nickel grade of 0.18%, which resulted in the average mill
     feed grade declining by 16%; and
-    Waste stripping on the Western section of Pit 3 commenced during October 2017. Minor saprolite failures
     occurred, which resulted in the mine having to re-evaluate the design parameters for the saprolite zones of
     the pit's Western high wall and the waste stripping plan. Waste stripping of 23 million tonnes per annum is
     planned for the next two years as a result of constraints in the pit.

Nkomati Mine's on-mine unit production cost (excluding capitalised waste stripping) was 6% higher at R301 per
tonne (F2017: R284 per tonne). The reduction in waste stripping volumes resulted in unit cost per tonne milled
(including capitalised waste stripping) declining by 8% to R339 per tonne (F2017: R367 per tonne).

C1 unit cash cost net of by-products (which includes capitalised waste stripping cost) was 22% higher at
US$5.86/lb (F2017: US$4.81/lb) of nickel produced. The increase in C1 unit cash costs was due to the decrease in
nickel units produced. R304 million of waste stripping cost (F2017: R617 million) was capitalised during the period.

Nkomati Mine operational statistics (on 100% basis)

                                                                                                  12 months ended 30 June
                                                                                                2018            2017        % change
Cash operating profit                           R million                                        494             660            (25)
-   Nickel                                      R million                                        259             252               2
-   Chrome                                      R million                                        235             408            (42)
Cash operating margin                           %                                                 15              17
Tonnes milled                                   Mt                                              8.04            7.49               7
Head grade                                      % nickel                                        0.24            0.30            (19)
Nickel on-mine cash cost per tonne milled       R/tonne                                          301             284               6
Nickel on-mine cash cost per tonne milled
(including capitalised waste stripping costs)   R/tonne                                          339             367             (8)
Cash cost net of by-products*                   US$/lb                                          5.86            4.81              22
Contained metal
Nickel                                          Tonnes                                        13 302          15 875            (16)
PGMs                                            Ounces                                       110 290         123 745            (11)
Copper                                          Tonnes                                         7 371           7 637             (3)
Cobalt                                          Tonnes                                           716             813            (12)
Chrome concentrate sold                         Tonnes                                       328 371         241 265              36
Headline earnings attributable to ARM           R million                                          9              91            (90)

* 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 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 - Entails the deepening of North Shaft from Level 6 to Level 9 thereby establishing
     two new mining levels. The 9 Level mining development and equipping is on track to meet the revised
     schedule; anticipated handover for the ore transfer system is F2020.
-    Sinking of South 2 Shaft - Scope included 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 by F2022.

Kalplats

ARM recorded an attributable impairment charge of R40 million after tax (F2017: nil) of Kalplats exploration assets.
This was mainly due to the expiry of the prospecting right relating to the Kalplats project and ARM Platinum not
having applied for a mining right.
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 8 November 2017, when Two Rivers' amended mining right, including the
          mining rights transferred to it, was executed by the Department of Mineral Resources.
     -    Nkomati - a 50:50 partnership between ARM and Norilsk Nickel Africa.

-    The Kalplats Project:
     -    in which ARM Platinum holds 46% and Stella Platinum holds 44%, with Anglo American holding 10%.

ARM Coal

Restructuring of ARM Coal debt

ARM and GOSA a wholly-owned subsidiary of Glencore Holdings South Africa Proprietary Limited ("GHSA"),
hold 51% and 49% of the issued share capital in ARM Coal Proprietary Limited ("ARM Coal"), respectively. ARM
Coal and GOSA, own and operate the GGV Mine through an unincorporated joint venture in which ARM Coal and
GOSA hold 51% and 49% participation rights, respectively, giving ARM an effective interest of 26% in GGV Mine.

GOSA owns and operates several coal mining operations in South Africa referred to as the Participative Coal
Business ("PCB"). ARM and ARM Coal hold preference shares in GOSA which entitle them to participate in the
underlying assets and profits of the PCB. ARM and ARM Coal's interests in the PCB through these preference
shares are 10% and 20%, respectively.

ARM, ARM Coal, GHSA and GOSA have successfully concluded the restructuring of debt on 25 June 2018,
with an effective date of 1 July 2017. The tables below detail the loans payable and receivable, comprising the
net debt relevant to the ARM Coal structure, whether or not these are reflected on ARM's Statement of Financial
Position (SoFP), and the outstanding balances as at 30 June 2017:

Debt payable                                                                                        Attributable to     Per ARM SoFP
R million                                                                                 ARM Coal              ARM     30 June 2017
Owed by ARM Coal to GOSA/GHSA
GGV acquisition loan                                                                         1 794              915              290
Loan balance                                                                                 1 794              915              915
Consolidation adjustment                                                                         -                -            (625)
GGV project facility phase 1 loan                                                            1 934              986              987
GGV project facility phase 2 loan                                                              493              251              251
RBCT phase V loan                                                                              151               77               77
PCB/ARM Coal loan                                                                              627              320               -*
Owed by ARM to GOSA/GHSA
PCB/ARM loan                                                                                     -              734               -*
PCB revolving credit facility                                                                    -              700               -*
Total owed to GOSA/GHSA                                                                      4 999            3 983            1 605

                                                                                                                            Per SoFP
ARM Coal shareholder loans                                                                         Attributable to      in ARM F2017
R million                                                                              ARM Coal                ARM     Annual Report
Shareholder loan from ARM                                                                 1 133                578                -#
Shareholder loan from GOSA                                                                1 088                555                -#
Total                                                                                     2 221              1 133                 -

                                                                                                                            Per SoFP
Receivable from GOSA (PCB)                                                                         Attributable to      in ARM F2017
R million                                                                               ARM Coal               ARM     Annual Report
PCB shareholders loan from ARM Coal                                                      (2 221)           (1 133)                -*
PCB shareholders loan from ARM                                                                 -             (700)                -*
Total                                                                                    (2 221)           (1 833)                 -
Total net debt as at 30 June 2017                                                          4 999             3 283             1 605

* Not disclosed separately on the face of the SoFP as these loans are equity-accounted.
# Eliminates on consolidation.

The impact of the restructuring on the F2018 results is as follows:

-    A deemed interest charge, in accordance with International Accounting Standard 39: Financial Instruments
     - Recognition and Measurement (IAS 39), attributable to ARM for the year is R321 million. On the old loan
     terms, this charge would have been R501 million for F2018, resulting in a saving of R180 million. Deemed
     interest received on certain intercompany fair value adjustments, attributable to ARM, amount to R8 million.
-    A net fair value gain recognised in the statement of comprehensive income amounting to R1 210 million,
     comprising of the following:
     -    In respect of the GGV debt: R885 million;
     -    In respect of the PCB debt: R325 million.

The net present value calculations performed to arrive at the reported fair value gain, were based on the prime
interest rate, which is considered to be a market related interest rate.

The fair value gain is as a result of changes in the future repayment cash flows due to changes in the timing of
cash flows due to deferred bullet payments and interest holidays under the new loan terms. The fair value gain
is in accordance with IAS 39, which states that a modified debt is considered 'substantially different' if the net
present value of the cash flows under the new loan terms discounted at the original interest rate, differs by more
than 10% from the discounted present values of the remaining cash flows of the original debt instrument. Where
a financial liability is considered substantially different, the existing loan is derecognised and the new loan is
recognised, the net effect of the modification is recognised immediately in the statement of comprehensive income.

The outstanding loan balances will be revalued at the end of each reporting period with the resultant gains and
losses recognised in the statement of comprehensive income. These future gains and losses will be dependent
on changes in coal prices and Rand versus US Dollar exchange rate, all of which are expected to have an impact
on the timing by which the loans are modelled to be fully repaid.

The impact of the restructuring on the F2018 ARM SoFP is:

                                                                                             at 30 June 2018
R million                                                                           Old loan terms      New loan terms    Difference
Owed by ARM Coal to GOSA/GHSA
GGV acquisition loan                                                                         1 008                 421         (587)
GGV project facility phase 1 loan                                                            1 087                 602         (485)
GGV project facility phase 2 loan                                                              275                 208          (67)
RBCT phase V loan                                                                               75                   -          (75)
Total                                                                                        2 445               1 231       (1 214)

The impact of the restructuring on the equity accounted PCB is as follows*:
                                                                                             at 30 June 2018
R million                                                                           Old loan terms      New loan terms    Difference
Owed by ARM and ARM Coal to GHSA                                                                                                    
PCB 1 loan                                                                                     352                 201         (151)
PCB 2 loan                                                                                     809                 464         (345)
Total                                                                                        1 161                 665         (496)

* Not disclosed separately on the face of the SOFP as these loans are equity accounted.

The impact of the restructuring on the cash flows attributable to ARM is:

R million                                                                                                                      F2018
Cash flow to ARM under old loan terms                                                                                            352
Cash flow to ARM under new loan terms                                                                                              -

ARM Coal operational and financial results

ARM Coal's attributable headline earnings increased to R1 485 million (F2017: R82 million) mainly due to the
debt restructuring. In addition, earnings also improved due to the average realised US Dollar export prices being
22% higher compared to F2017.

Seaborne coal prices were positively impacted by an increase in demand from India and China. 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 by 17% from R843 per tonne in F2017 to R990 per tonne in F2018.

More than 80% of the export volumes at GGV Mine were high quality (RB1) coal while only 39% 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 4.93 million tonnes is 1.8% lower than the 5.02 million tonnes
produced in F2017.

ARM Coal attributable profit analysis

                                                                                                  12 months ended 30 June
R million                                                                                       2018            2017        % change
Cash operating profit                                                                          1 365           1 211              13
Plus: Interest received                                                                            8               -               -
Less: Interest paid                                                                            (321)           (533)              40
Less: Amortisation                                                                             (592)           (502)            (18)
Plus/(less): Fair value adjustments                                                            1 210            (62)               -
Profit before tax                                                                              1 670             114            >200
Less: Tax                                                                                      (185)            (32)            >200
Headline earnings attributable to ARM                                                          1 485              82            >200

Goedgevonden (GGV) Mine

Average received export US Dollar prices increased by 36% compared to F2017. The impact of the higher prices
was partially reduced by a 10% reduction in export sales volumes and a 6% strengthening of the Rand versus
the US Dollar. This resulted in an increase in attributable export revenue of R107 million.

Saleable production at GGV Mine was 7% lower than F2017 partially due to a rollover of low in-pit inventory levels
from F2017. The in-pit inventory levels have marginally improved during F2018. The mine remains focused on
improving the in-pit inventory levels. Production was further negatively impacted by underperformance of the
mining contractors, underperformance of the truck and shovel fleet, safety-related stoppages and labour unrest.

On-mine unit production costs per saleable tonne increased by 9% to R351, mainly as a result of a decrease in
production volumes.

Attributable headline earnings increased to R852 million (F2017: R99 million headline loss). This amount was
positively impacted by a R885 million fair value gain relating to the debt restructuring.

GGV Mine operational statistics

                                                                                                  12 months ended 30 June
                                                                                                2018            2017        % change
Total production and sales (100% basis)
Saleable production                                  Mt                                         6.05            6.47             (7)
Export thermal coal sales                            Mt                                         2.85            3.18            (10)
Eskom thermal coal sales                             Mt                                         3.12            3.03               3
Local thermal coal sales                             Mt                                         0.14            0.12              17
Attributable production and sales
Saleable production                                  Mt                                         1.57            1.68             (7)
Export thermal coal sales                            Mt                                         0.74            0.83            (10)
Eskom thermal coal sales                             Mt                                         0.81            0.79               3
Local thermal coal sales                             Mt                                         0.04            0.03              33
Average received coal price
Export (FOB*)                                        US$/tonne                                 84.57           62.07              36
Eskom (FOT**)                                        R/tonne                                     235             229               2
Local (FOR***)                                       R/tonne                                     863             537              61
On-mine saleable cost                                R/tonne                                     351             323               9
Cash operating profit
Total                                                R million                                 1 290             905              43
Attributable (26%)                                   R million                                   335             235              43
Headline earnings/(loss) attributable to
ARM                                                  R million                                   852            (99)               -

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

GGV Mine attributable profit analysis

                                                                                                     12 months ended 30 June
                                                                                               Reviewed        Audited
R million                                                                                          2018           2017      % change
Cash operating profit                                                                               335            235            43
Plus: Interest received                                                                               3              -             -
Less: Interest paid                                                                               (157)          (213)            26
Less: Amortisation                                                                                (167)          (147)          (14)
Plus/(less): Fair value adjustments                                                                 885           (12)
Profit/(loss) before tax                                                                            899          (137)
Less: Tax                                                                                          (47)             38
Headline earnings/(loss) attributable to ARM                                                        852           (99)

Participative Coal Business (PCB)

The mines comprising the PCB all performed well during F2018 and achieved increases of 5% and 1% in ROM
and saleable production respectively.

PCB attributable cash operating profit increased by 6% to R1 030 million (F2017: R976 million) as a result of a
R238 million increase in revenue offset by a R184 million increase in operating costs.

The increase in revenue was largely as a result of a 1% increase in sales volumes together with a 19% increase
in US Dollar coal prices. This was partially offset by a 6% strengthening of the Rand versus the US Dollar.
Revenue from inland coal sales was R36 million lower than the corresponding period, due to a decrease in local
coal sales volumes.

Unit production costs per saleable tonne increased by 19% from R278 per tonne in F2017 to R330 per tonne in
F2018. On-mine production costs in the corresponding 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 5% increase in ROM production together with the reduction in the benefits obtained from the low cost
stockpile resulted in an increase in on-mine costs of R188 million.

Headline earnings attributable to ARM was R633 million. (F2017: R181 million). This amount was positively
impacted by a R325 million fair value gain relating to the debt restructuring.

PCB operational statistics

                                                                                                  12 months ended 30 June
                                                                                                2018            2017        % change
Total production sales (100% basis)
Saleable production                         Mt                                                 16.64           16.55               1
Export thermal coal sales                   Mt                                                 13.44           13.42               -
Eskom thermal coal sales                    Mt                                                  1.58            1.53               3
Local thermal coal sales                    Mt                                                  0.76            1.11            (32)
Attributable production and sales
Saleable production                         Mt                                                  3.36            3.34               1
Export thermal coal sales                   Mt                                                  2.71            2.71               -
Eskom thermal coal sales                    Mt                                                  0.32            0.31               3
Local thermal coal sales                    Mt                                                  0.15            0.22            (32)
Average received coal price
                                            US$/
Export (FOB*)                               tonne                                              73.51           61.89              19
Eskom (FOT**)                               R/tonne                                              240             242             (1)
Local (FOR***)                              R/tonne                                              637             758            (16)

On-mine saleable cost                       R/tonne                                              330             278              19
Cash operating profit
Total                                       R million                                          5 099           4 830               6
Attributable (20.2%)                        R million                                          1 030             976               6
Headline earnings attributable to ARM       R million                                            633             181            >200

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

PCB attributable profit analysis

                                                                                                  12 months ended 30 June
                                                                                            Reviewed         Audited
R million                                                                                       2018            2017        % change
Cash operating profit                                                                          1 030             976               6
Plus: Interest received                                                                            5               -               -
Less: Interest paid                                                                            (164)           (320)            (49)
Less: Amortisation                                                                             (425)           (355)            (20)
Plus/(less): Fair value adjustments                                                              325            (50)               -
Profit before tax                                                                                771             251            >200
Less: Tax                                                                                      (138)            (70)            (97)
Headline earnings attributable to ARM                                                            633             181            >200

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

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

Discontinued operation: ARM Copper

ARM Copper's headline loss improved from R203 million in F2017 to R6 million in F2018. The disposal of the
only operation in ARM Copper, Lubambe Mine was completed on 22 December 2017 with the final proceeds
from the sale received in December 2017.

Harmony

Harmony reported a 42% decrease in headline earnings from R1 306 million to R763 million for F2018 mainly
due to translation loss of R669 million on US Dollar denominated debt at 30 June 2018 and lower derivative
gains recognised in F2018 of R99 million. Headline earnings per share were 171 cents per share compared with
298 cents per share in F2017.

Revenue increased by 6% mainly due to a 6% increase in gold sold (excluding capitalised gold sales from Hidden
Valley) with the inclusion of the Moab Khotsong operations from 1 March 2018. The average gold price received
in Rand terms (including the gold hedge realised) remained steady at R570 709/kg (F2017: R570 164/kg) while
in US Dollar terms, the price received increased by 12% to US$1 380/oz. The Rand gold hedges, included as
part of revenue realised gains of R1 197 million in F2018 (realised gains of R728 million in F2017).

Gold production from the South African operations increased 14% of which Moab Khotsong produced
105 900 ounces (contributing 10% of the increase in SA gold production) for the four months the operation
was included in Harmony's asset portfolio (since 1 March 2018). All-in sustaining unit cost were R508 970/kg
(US$1 231/oz), beating annual guidance of R520 000 kg and the all-in sustaining unit cost of R516 687/kg
(US$1 182/oz) reported F2017.

An updated feasibility study on Wafi Golpu was released on 19 March 2018, proposing a larger mine and
increased production profile, resulting in a 33% increase in net present value to US$2.6 billion (applying a real
discount rate of 8.5%).

ARM subscribed for Harmony shares as part an accelerated book build process. As Harmony's strategic black
economic empowerment partner ARM subscribed to approximately 11 million shares to maintain its shareholding
in Harmony at approximately 14%.

The Harmony investment is reflected on the ARM statement of financial position at R1 351 million based on the
Harmony share price at 30 June 2018 of R21.22 per share (30 June 2017: R21.68 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 statement of profit or loss, 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 statement of profit or loss on the last day of registration following dividend declaration.

Harmony's results for the year ended 30 June 2018 can be viewed on Harmony's website at
http://www.harmony.co.za. ARM owns 14.6% of Harmony's issued share capital.

Outlook

Global GDP growth appears to be recovering steadily. China remains a significant consumer of the commodities
we produce as infrastructure and consumer demand underpins demand for commodities. Quality of commodities,
especially amongst the bulk metals, has become a key differentiator as China seeks to address its pollution
challenges through improved efficiencies in heavy industries. This can be seen in the increase of premiums
associated with high-grade bulk metals which we believe represents a structural shift in these markets. ARM is
well positioned to deliver into this shift given the high quality iron ore and manganese ore produced. We continue
to invest in our business to enable us flexibility of product specifications to respond to changing customer needs.

We are also closely watching other global trends especially in the context of the Fourth Industrial Revolution and
the potential challenges and opportunities these may create for our business. One such trend of interest has
been the advancements made in mobility, particularly clean mobility. Although an increase in electric vehicles as
a percentage of total vehicle sales creates opportunities for some of the metals in our portfolio, including nickel
and manganese ore, it negatively impacts demand for platinum group metal (which are mostly used in internal
combustion engines). We continue to research these potential impacts to ensure that we are well positioned in
the future to maximise on opportunities created by these trends but also address the challenges.

Investor confidence and sentiment towards South Africa continues to improve. The Rand versus the US Dollar
is expected to remain volatile, impacted by monetary policy direction in the United States, international trade
concerns as well as other global and domestic risks.

Our operating environment is not without significant headwinds: community unrest, geopolitical uncertainty,
regulatory risk, technology and cyber risks, and social licence risks continue to increase.

We continue to focus on those elements that are within our control. These include adhering to our commitment
to capital allocation discipline by striking a balance between maintaining our current business, investing in
expansionary and value-enhancing growth and improving on the overall shareholder returns through long-term
share price appreciation and dividend growth. To enable this, we will keep a focus on maintaining operating
costs to levels at or below inflation, maximising the cash generation from our assets, maximising profit margins
and sustaining our available flexibility through a strong financial position.

Dividends

The Board has approved and declared a final dividend of 750 cents per share (gross) in respect of the year ended
30 June 2018. The amount to be paid is approximately R1 648 million. A maiden interim dividend of 250 cents
per share was declared and paid in F2018 bringing the cumulative dividend for F2018 is 1 000 cents per share
(F2017: 650 cents per share).

This declaration 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 declared 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 750 cents per ordinary share for shareholders exempt from the Dividends
     Tax;
-    The net local dividend amount is 600.00000 cents per share for shareholders liable to pay the Dividends Tax;
-    As at the date of this declaration ARM has 219 709 127 ordinary shares in issue; and
-    ARM's income tax reference number is 9030/018/60/1.

A gross dividend of 750 cents per ordinary share, being the dividend for the year ended 30 June 2018 has been
declared on Friday, 7 September 2018 and is payable on Monday, 1 October 2018 to those shareholders recorded
in the books of the Company at the close of business on Friday, 28 September 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 Tuesday, 25 September 2018. The last
day to trade ordinary shares cum dividend is Tuesday, 25 September 2018. Ordinary shares trade ex-dividend
from Wednesday, 26 September 2018. The record date is Friday, 28 September 2018 whilst the payment date
is Monday, 1 October 2018.

No dematerialisation or rematerialisation of share certificates may occur between Wednesday, 26 September
2018 and Friday, 28 September 2018, both dates inclusive, nor may any transfers between registers take place
during this period.

Signed on behalf of the Board:

PT Motsepe                                              MP Schmidt
Executive Chairman                                      Chief Executive Officer

Johannesburg
7 September 2018

Financial statements

Review by independent auditors

The financial information has been reviewed by the external auditors, Ernst & Young Inc. (the partner in charge is LIN
Tomlinson CA (SA)) whose unqualified review report is available for inspection at the Company's registered office.
The Integrated Annual Report containing a detailed review of the operations of the Company together with the
audited financial statements will be distributed to shareholders in October 2018.
Any reference to future financial performance included in these results has not been reviewed or reported on
by ARM's external auditors.

Basis of preparation

The Group provisional results for the year under review have been prepared under the supervision of the Finance Director
Miss AM Mukhuba CA(SA). The Group provisional financial statements have been prepared on the historical
cost basis, except for certain financial instruments that are fairly valued. The accounting policies used are in
terms of IFRS and are consistent with those in the most recent annual financial statements, apart from the new
standards adopted in the current period. Please refer to note 1 to the financial statements.

Group statement of financial position
at 30 June 2018

                                                                                                                     F2018     F2017
                                                                                                                        Rm        Rm
                                                                                                         Notes    Reviewed   Audited
ASSETS
Non-current assets
Property, plant and equipment                                                                                3       7 916     7 801
Intangible assets                                                                                                      120       130
Deferred tax assets                                                                                                    620       656
Loans and long-term receivables                                                                              4         462        34
Investment in associate                                                                                      5       1 798     1 334
Investment in joint venture                                                                                  8      15 504    14 860
Other investments                                                                                                    1 561     1 573
                                                                                                                    27 981    26 388
Current assets
Inventories                                                                                                            591       663
Trade and other receivables                                                                                          2 357     2 096
Taxation                                                                                                                85         6
Cash and cash equivalents                                                                                    9       3 291     1 488
                                                                                                                     6 324     4 253
Assets held for sale                                                                                        16           -     1 605
Total assets                                                                                                        34 305    32 246
EQUITY AND LIABILITIES
Capital and reserves
Ordinary share capital                                                                                                  11        11
Share premium                                                                                                        4 398     4 279
Treasury shares                                                                                                    (2 405)   (2 405)
Other reserves                                                                                                       1 419     1 326
Other reserves discontinued operation                                                                                    -       730
Retained earnings                                                                                                   22 484    19 556
Equity attributable to equity holders of ARM                                                                        25 907    23 497
Non-controlling interest                                                                                             1 471       543
Total equity                                                                                                        27 378    24 040
Non-current liabilities
Long-term borrowings                                                                                        10       1 744     2 002
Deferred tax liabilities                                                                                             1 634     1 297
Long-term provisions                                                                                                 1 135     1 166
                                                                                                                     4 513     4 465
Current liabilities
Trade and other payables                                                                                             1 406     1 307
Short-term provisions                                                                                                  374       393
Taxation                                                                                                                82       112
Overdrafts and short-term borrowings-interest-bearing                                                       10         552       757
                                                                                                                     2 414     2 569
Liabilities directly associated with assets held for sale                                                   16           -     1 172
Total equity and liabilities                                                                                        34 305    32 246

Group statement of profit or loss
for the year ended 30 June 2018

                                                                                                                    F2018      F2017
                                                                                                                       Rm         Rm
                                                                                                        Notes    Reviewed    Audited
Continuing operations
Revenue                                                                                                             9 603      9 019
Sales                                                                                                               8 346      8 158
Cost of sales                                                                                                     (6 900)    (6 951)
Gross profit                                                                                                        1 446      1 207
Other operating income*                                                                                    12       1 527        757
Other operating expenses                                                                                          (1 263)    (1 750)
Profit from operations before special items                                                                         1 710        214
Income from investments                                                                                               177        238
Finance costs                                                                                                       (360)      (423)
Income from associate*                                                                                     13         619        181
Income from joint venture**                                                                                 8       3 510      3 265
Profit before taxation and special items                                                                            5 656      3 475
Special items before tax                                                                                    6        (42)    (2 322)
Profit before taxation from continuing operation                                                                    5 614      1 153
Taxation                                                                                                   14       (573)        409
Profit for the year from continuing operation                                                                       5 041      1 562
Discontinued operation
Loss after tax for the year from discontinued operation                                                    16       (219)      (130)
Profit for the year                                                                                                 4 822      1 432
Attributable to:
 Equity holders of ARM
 Profit for the year from continuing operations                                                                     4 747      1 431
 Loss for the year from discontinued operation                                                                      (185)       (59)
Basic earnings for the year                                                                                         4 562      1 372
 Non-controlling interest
 Profit for the year from continuing operations                                                                       294        131
 Loss for the year from discontinued operation                                                                       (34)       (71)
                                                                                                                      260         60
Profit for the year                                                                                                 4 822      1 432
*  The restructuring of the ARM coal loans had an impact of
   R652 million profit with no tax effect in other operating income and
   R325 profit in income from associate with no tax effect (refer notes
   10, 11 and 12). Impairment included in income from associate is
   R19 million (F2017: nil) less tax of R5 million (F2017: nil).

** Impairments included in income from joint venture of R26 million
   before tax of R7 million (F2017: R470 million before tax of
   R27 million).

Earnings per share                                                                                          7
Basic earnings per share (cents)                                                                                    2 393        723
Basic earnings from continuing operations per share (cents)                                                         2 490        754
Basic loss from discontinued operation per share (cents)                                                             (97)       (31)
Diluted basic earnings per share (cents)                                                                            2 325        703
Diluted basic earnings from continuing operations per share
(cents)                                                                                                             2 419        733
Diluted basic loss from discontinued operation per share (cents)                                                     (94)       (30)

Group statement of comprehensive income
for the year ended 30 June 2018

                                                                                                       Total
                                                                Available-                            Share-          Non-
                                                                  for-sale            Retained    holders of   controlling
                                                                   reserve    Other   earnings           ARM      interest     Total
                                                                        Rm       Rm         Rm            Rm            Rm        Rm
For the year ended 30 June 2017
(Audited)
Profit for the year to 30 June 2017                                      -        -      1 372         1 372            60     1 432
Profit for the year to 30 June 2017 from
continuing operations                                                    -        -      1 431         1 431           131     1 562
Loss for the year to 30 June 2017 from
discontinued operations                                                  -        -       (59)          (59)          (71)     (130)
Other comprehensive (loss)/income that
may be reclassified to the statement of
profit or loss 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                                                                 -    (365)          -         (365)             -     (365)
Foreign currency translation reserve
movement from discontinued operation                                     -      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)
For the year ended 30 June 2018
(Reviewed)
Profit for the year to 30 June 2018                                      -        -      4 562         4 562           260     4 822
Profit for the year to 30 June 2018 from
continuing operations                                                    -        -      4 747         4 747           294     5 041
Loss for the year to 30 June 2018 from
discontinued operation                                                   -        -      (185)         (185)          (34)     (219)
Other comprehensive (loss)/income that
may be reclassified to the statement of
profit or loss in subsequent periods
Net impact of revaluation of listed
investment                                                            (22)        -          -          (22)             -      (22)
Revaluation of listed investment *                                    (29)        -          -          (29)             -      (29)
Deferred tax on above                                                    7        -          -             7             -         7
Premium on non-controlling interest
release                                                                  -       14          -            14             -        14
Foreign currency translation reserve
movement from continuing operations                                      -      110          -           110             -       110
Foreign currency translation reserve
movement from discontinued operation
current year movement                                                    -     (80)          -          (80)             -      (80)
Foreign currency translation reserve
movement from discontinued operation
current year reversed - included in sale of
Lulambe                                                                  -       80          -            80             -        80
Foreign currency translation reserve
movement from discontinued operation                                     -    (650)          -         (650)             -     (650)
Total other comprehensive loss                                        (22)    (526)          -         (548)             -     (548)
Total comprehensive (loss)/income for
the year                                                              (22)    (526)      4 562         4 014           260     4 274

*   The share price of Harmony decreased from R21.68 per share at 30 June 2017 to R21.22 at 30 June 2018 and decreased
    from R52.47 at 30 June 2016 to R 21.68 per share at 30 June 2017. The valuation of the investment in Harmony is based on a
    level 1 fair value hierarchy level in terms of International Financial Reporting Standards (IFRS).

Group statement of changes in equity
for the year ended 30 June 2018

                                           Share                                                          Total        Non-
                                         capital            Available-    Share-                         Share-        con-
                                             and  Treasury    for-sale     based            Retained    holders    trolling
                                         premium    shares     reserve  payments   Other*   earnings     of ARM    interest    Total
                                              Rm        Rm          Rm        Rm       Rm         Rm         Rm          Rm       Rm
Balance at 30 June 2016
(Audited)                                  4 228   (2 405)       1 934        874     587     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 to
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)
Share-based payments expense                   -         -           -       201        -          -        201           -      201
Dividend reserve reversed in
ARM BBEE Trust                                 -         -           -         -        -          9          9           -        9
Balance at 30 June 2017
(Audited)                                  4 290   (2 405)         414     1 017      625     19 556     23 497         543   24 040
Total comprehensive (loss)/
income for the year                            -         -        (22)         -    (526)      4 562      4 014         260    4 274
Profit for the year to 30 June 2018            -         -           -         -        -      4 562      4 562         260    4 822
Other comprehensive loss                       -         -        (22)         -    (526)          -      (548)           -    (548)
Bonus and performance shares
issued to employees                          119         -           -     (119)        -          -          -           -        -
Dividend paid                                  -         -           -         -        -    (1 714)    (1 714)           -  (1 714)
Tamboti assets sale to
Two Rivers                                     -         -           -         -     (99)          -       (99)          99        -
Reclassification of foreign
currency translation reserve
included in loss on sale of
Lubambe                                        -         -           -         -     (80)         80          -           -        -
Non-controlling interest
derecognised on sale of
Lubambe                                        -         -           -         -        -          -          -         822      822
Dividend paid to Impala Platinum               -         -           -         -        -          -          -       (253)    (253)
Share-based payments expense                   -         -           -       209        -          -        209           -      209
Balance at 30 June 2018
(Reviewed)                                 4 409   (2 405)         392     1 107     (80)     22 484     25 907       1 471   27 378

* Other reserves consist of the following:

                                                                                                             F2018    F2017    F2016
                                                                                                                Rm       Rm       Rm
Dilution in Two Rivers                                                                                        (26)     (26)     (26)
Foreign currency translation on loans - discontinued operation                                                   -       61       61
Foreign currency translation reserve - Assmang                                                                  13    (121)      103
Foreign currency translation reserve - other entities                                                            4       28      164
Foreign currency translation reserve - discontinued operation                                                    -      669      266
Capital redemption and prospecting loans written off                                                            28       28       28
Insurance contingency                                                                                            -        -        5
Premium paid on purchase of non-controlling interest                                                             -     (14)     (14)
Tamboti assets sale to Two Rivers                                                                             (99)        -        -
Total                                                                                                         (80)      625      587

Group statement of cash flows
for the year ended 30 June 2018

                                                                                                                    F2018      F2017
                                                                                                                       Rm         Rm
                                                                                                        Notes    Reviewed    Audited
CASH FLOW FROM OPERATING ACTIVITIES
Cash receipts from customers                                                                                        9 195      9 779
Cash paid to suppliers and employees                                                                              (7 261)    (8 168)
Cash generated from operations                                                                             15       1 934      1 611
Interest received                                                                                                     159        122
Interest paid                                                                                                       (100)      (247)
Taxation paid                                                                                                       (426)      (401)
                                                                                                                    1 567      1 085
Dividends received from joint venture                                                                               3 000      2 488
                                                                                                                    4 567      3 573
Dividend paid to non-controlling interest - Impala Platinum                                                         (253)      (279)
Dividend paid to shareholders                                                                                     (1 714)      (426)
Net cash inflow from operating activities                                                                           2 600      2 868
CASH FLOW FROM INVESTING ACTIVITIES
Additions to property, plant and equipment to maintain operations                                                 (1 150)      (949)
Dividends received from investments - Harmony                                                                          22         64
Proceeds on disposal of property, plant and equipment                                                                   3          7
Proceeds on disposal of investment                                                                  16 and 17         741        238
Investment in RBCT                                                                                                      -        (6)
Loans and receivables received                                                                                          3          6
Net cash outflow from investing activities                                                                          (381)      (640)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from exercise of share options                                                                                 -          4
Long-term borrowings raised                                                                                           496          -
Long-term borrowings repaid                                                                                         (746)    (1 475)
Short-term borrowings raised                                                                                           27          -
Short-term borrowings repaid                                                                                        (132)      (394)
Net cash outflow from financing activities                                                                          (355)    (1 865)
Net increase in cash and cash equivalents                                                                           1 864        363
Cash and cash equivalents at beginning of year                                                                      1 031        667
Foreign currency translation on cash balance                                                                           15          1
Cash and cash equivalents at end of year                                                                            2 910      1 031
Made up as follows:
- Available                                                                                                 9       1 779       (68)
- Restricted                                                                                                9       1 131      1 099
Cash generated from operations per share (cents)                                                                    1 015        849

Notes to the financial statements for the year ended 30 June 2018

1.    STATEMENT OF COMPLIANCE

      The Group provisional financial statements have been prepared in accordance with the framework
      concepts and the measurement and recognition requirements of International Financial Reporting
      Standards (IFRS), the SAICA Financial Reporting Guides as issued by the Accounting Practices
      Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and
      contains the information required by IAS 34 - Interim Financial Reporting, requirements of the South
      African Companies Act and the Listings Requirements of the JSE Limited.

      The group has adopted the following new and revised standards and interpretations issued by the IASB
      that became effective.
      
      Standard   Subject                                                                              Effective date
      IAS 7      Disclosure initiative (Amendment)                                                    1 January 2017
      IAS 12     Income taxes (Amendment)                                                             1 January 2017
      IFRS 12    Disclosure of Interests in Other Entities - Clarification of the scope of the        1 January 2017
                 disclosure requirements in IFRS 12 (Annual improvement project)
      
      The adoption of these had no significant effect on the Group financial statements.
      
      ARM Coal loan restructuring
      
      Fair value adjustments arising from substantially modified loans
      In the event that loan modifications are deemed to be substantial, the group is required to derecognise
      the original loans and recognise new financial instruments at its fair value.
      
      The group has elected to record the fair value adjustments arising on the derecognition of the substantially
      modified loans and the recognition of the new financial instruments, in the statement of profit or loss.
      
      In addition the following amendments, standards or interpretations have been issued but are not yet effective.
      The effective date refers to financial reporting periods beginning on or after, unless otherwise indicated.
      
      Standard            Subject                                                                     Effective date
      
      IAS 28             Investment in associates and joint ventures - clarification that measuring   1 January 2018
                         investees at fair value through profit or loss is an investment - by -
                         investment choice
      IFRS 1             First-time adoption of International Financial Reporting Standards           1 January 2018
                         - Deletion of short-term exemptions for first-time adopters
      IFRS 2             Share-based payment (Amendment)                                              1 January 2018
      IFRS 4 and IFRS 9  Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts        1 January 2018
                         - Amendments to IFRS 4
      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 2021
      IFRIC 22           Foreign currency transactions and Advance Consideration                      1 January 2018
      IFRIC 23           Uncertainty over Income Tax Treatments                                       1 January 2019
      
      New accounting st  ndards and amendments issued to accounting standards and interpretations which
      are relevant to ARM, but not yet effective on 30 June 2018, have not been adopted.
      
      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.
      
      IFRS 9 Financial Instruments
      
      IFRS 9 becomes effective for ARM for the financial year beginning 1 July 2018.
      
      ARM will adopt IFRS 9 by adjusting opening retained income at 1 July 2018. Figures for F2018 will not
      be restated.
      
      The key changes for ARM include the following:
      
      Equity investments (other than investments in subsidiaries, associates and joint ventures)
      
      Currently, ARM has classified the listed shares in Harmony as available-for-sale, whereby fair value
      gains and losses are recognised in equity (other comprehensive income), except upon impairment
      or disposal when such amounts previously recognised in equity are reclassified into profit or loss.
      Other equity investments have been measured at fair value through profit or loss, except for some unlisted
      investments which are carried at cost because the fair value cannot be determined reliably.
      
      Under IFRS 9, all equity investments are measured at fair value. There is a choice to designate where the
      remeasurements of particular equity investments are recognised - either equity (other comprehensive
      income) or profit or loss. ARM has designated the listed shares in Harmony to be remeasured through
      equity with no subsequent reclassification to profit or loss.
      
      Dividends received will continue to be recognised in profit or loss, unless dividends clearly represent a
      recovery of part of the cost of the investment.
      
      Currently, unlisted investments are measured at cost where the fair value cannot be reliably measured.
      Under IFRS 9, there is no possibility to use the cost method, and as such, investments in equities need
      to be measured at fair value. The impact of measuring unlisted investments at fair value instead of cost
      is still being determined.
      
      Trade and Other Receivables (including loans advanced)
      
      The majority of trade receivables contain provisional pricing features linked to commodity prices and
      exchange rates. Currently, these receivables have been designated to be measured at fair value through
      profit or loss. Under IFRS 9, such instruments would continue to be measured on the same basis.
      
      Other receivables, including loans advanced, are expected to continue to be measured at amortised
      cost under IFRS 9. The impairment model for amortised cost financial assets under IFRS 9 requires the
      recognition of expected losses, rather than only incurred losses. The impact of adopting the expected
      credit loss model is still being determined.
      
      Loans to associated entities are currently carried at cost or amortised cost - management are in the
      process of evaluating whether these now need to be carried at fair value as per IFRS 9 and if so,
      determine the fair value.
      
      IFRS 15 Revenue from Contracts with Customers
      
      The key issues identified, and the Group's views and perspectives, are set out below. These are based
      on the Group's current interpretation of IFRS 15 and may be subject to changes as interpretations
      evolve more generally. Furthermore, the Group is considering and will continue to monitor any further
      development.
      
      IFRS 15 requires revenue from contracts with customers to be recognised when the separate performance
      obligations are satisfied, which is when control of the promised goods or services is transferred to the
      customer.
      
      ARM will adopt IFRS 15 on 1 July 2018 using the fully retrospective approach, whereby opening retained
      income at 1 July 2017 will be adjusted and the figures for F2018 will be restated. The diagnostic impact
      assessment performed during the year identified gaps between IAS 18 Revenue and IFRS 15.
      
      Financial impact
      
      Performance obligations
      
      Revenue, primarily comprises commodity sales - both local and export. Currently revenue is recognised
      when the risks and rewards of ownership of the commodities have been transferred. Under IFRS 15, the
      timing of revenue recognition for sales of commodities remains the same, except with respect to export
      sales subject to Cost, Insurance and Freight ('CIF') and Cost and Freight ('CFR') International Commercial
      Terms ('Incoterms'). Under such shipping terms, the Group is required to procure and pay for freight and/
      or insurance ('shipping services') after transfer of control of the commodities. In such contracts, these
      shipping services will need to be treated as separate performance obligations under IFRS 15, and a
      portion of the total transaction price recognised as revenue over time as such services are provided.
      Although, the quantification of such differences is still in progress, at this stage it is not expected that this
      change will have a material impact on the amount of revenue recognised under IFRS 15.
      
      Assay estimates
      
      Some of the Group's commodity sales are subject to assay estimates. When considering the initial assay
      estimate, the Group has considered the requirements of IFRS 15 in relation to the constraint on estimates
      of variable consideration - that it will only include amounts in the calculation of revenue where it is
      highly probable that a significant revenue reversal will not occur when the uncertainty relating to final
      assay/quality is subsequently resolved, i.e., finalisation of sale by customer. The assay differences are
      not usually material to the Group, hence, no change is expected when compared to the current IAS
      18 approach. Consistent with current practice, any subsequent changes that arise due to differences
      between initial and final assay will be recognised as an adjustment to revenue from contracts with
      customers.
      
      Provisional pricing
      
      Some of the Group's commodity sales are subject to provisional pricing features such as commodity
      prices and foreign exchange rates which are only finalised sometime after transfer of the commodities.
      Currently, the changes in these variables are recognised as part of revenue. Although changes in
      these variables are not within the scope of variable consideration under IFRS 15, they will continue to
      be presented as revenue, therefore there will be no change to the amount of overall revenue, but the
      disclosure of the disaggregation of revenue will change as a result.
      
      Penalties
      
      Adjustments, in the form of penalties, are made to the pricing to the extent the commodities sold do not
      meet certain specifications. As a result, the IFRS 15 constraint on variable consideration applies, which
      seeks to limit the amount of revenue recognised to guard against significant reversals in subsequent
      reporting periods. It is not expected that this constraint will have a material impact on revenue recognised
      under IFRS 15.
      
      Management fees
      
      The Group's revenue also includes management fees which are variable, and hence are subject to the
      IFRS 15 variable consideration constraint. It is not expected that this constraint will have a material impact
      on revenue recognised under IFRS 15.
      
      Cost to acquire contracts
      
      The requirement under IFRS 15 to capitalise and amortise costs to acquire contracts is not expected to
      have a material impact on the Group.
      
      Disclosure impact
      
      IIFRS 15 requires additional detailed disclosures about the amount and timing of revenue recognition.
      The key areas for ARM include information about the nature of its performance obligations, how they are
      satisfied, the transaction price for contracts not yet satisfied and the disaggregation of revenue.
      
      At this stage, ARM expects that the majority of the additional disclosure will relate to updating its
      accounting policies and disaggregation of revenue due to provisional pricing.
      
      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).
      
      -    ARM has made the decision not to early adopt IFRS 16.
      -    ARM continues with the detail assessment of the potential impact of this standard on the financial
           statements.
      -    ARM must still make a decision on the transition method to be applied as well as the practical
           expedients to be used.
      
2.    PRIMARY SEGMENTAL INFORMATION

      Business segments

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

                                                                                                                              Discon-
                                                                               Continuing                                      tinued
                                                                               operations                                   operation
                                                                                                                 Total per
                                                                                                          IFRS        IFRS
                                                   ARM         ARM      ARM          ARM               Adjust-   financial        ARM
                                              Platinum  Ferrous(1)     Coal    Corporate     Total     ment(2)  statements     Copper
      Attributable                                  Rm          Rm       Rm           Rm        Rm          Rm          Rm         Rm
2.1   Year to 30 June 2018
      Sales                                      7 318      13 774    1 028            -    22 120    (13 774)       8 346        340
      Cost of sales                            (6 050)     (8 103)    (857)           37  (14 973)       8 073     (6 900)      (282)
      Other operating income(3)                     60         217      896          504     1 677       (150)       1 527          4
      Other operating expenses                   (284)     (1 249)      (7)        (972)   (2 512)       1 249     (1 263)       (70)
      Segment result                             1 044       4 639    1 060        (431)     6 312     (4 602)       1 710        (8)
      Income from investments                       34         299       10          133       476       (299)         177          -
      Finance cost                                (80)        (34)    (172)        (108)     (394)          34       (360)       (12)
      Finance cost ZCCM:
      Shareholders' loan Vale/
      ARM joint operation                            -           -        -            -         -           -           -       (20)
      Finance cost ARM:
      Shareholders' loan Vale/ 
      ARM joint operation(4)                         -           -        -            -         -           -           -          -
      Profit from associate(5)                       -           -      619            -       619           -         619          -
      Income from joint
      venture(6)                                     -         118        -            -       118       3 392       3 510          -
      Special items before tax                    (39)        (25)      (3)            -      (67)          25        (42)      (117)
      Taxation                                   (287)     (1 460)     (45)        (231)   (2 023)       1 450       (573)       (62)
      Profit/(loss) after tax                      672       3 537    1 469        (637)     5 041           -       5 041      (219)
      Non-controlling interest                   (291)           -        -          (3)     (294)           -       (294)         34
      Consolidation adjustment(7)                    -        (27)        -           27         -           -           -          -
      Contribution to basic
      earnings                                     381       3 510    1 469         (613)    4 747           -       4 747      (185)
      Contribution to
      headline earnings                            420       3 528    1 485         (613)    4 820           -       4 820        (6)

      (1) Refer to ARM Ferrous segment note 2.3 and note 8 for more detail.
      (2) Includes IFRS 11 - Joint Arrangements - adjustments related to ARM Ferrous.
      (3) The restructuring of the ARM Coal loans had an impact of R652 million profit with no tax effect.
      (4) Intercompany interest of R127 million receivable by ARM Corporate and accrued by ARM Copper is presented
          in terms of IFRS 5.
      (5) The restructuring of the ARM Coal loans had an impact of R325 million profit with no tax effect. Impairment loss
          included in income from associate are R19 million less tax of R5 million.
      (6) Impairment loss included in income from joint venture R26 million before tax of R7 million.
      (7) Relates to capitalised fees in ARM Ferrous.
      
      There were no significant inter-company sales.

                                                                                                                             Discon-
                                                                          Continuing                                          tinued
                                                                          operations                                       operation
                                                                                                              Total per
                                                                                                      IFRS         IFRS
                                               ARM        ARM      ARM         ARM                 Adjust-    financial          ARM
                                          Platinum Ferrous(1)     Coal   Corporate      Total      ment(2)   statements       Copper
      Attributable                              Rm         Rm       Rm          Rm         Rm           Rm           Rm           Rm
      Other information
      Segment assets,
      including investment in
      associate                              9 009     20 223    4 689       5 103     39 024      (4 719)       34 305
      Investment in associate                                    1 798                  1 798                     1 798
      Investment in joint
      venture                                                                                       15 504       15 504
      Segment liabilities                    1 880      1 883    1 453       1 878      7 094      (1 883)        5 211
      Unallocated liabilities
      (tax and deferred tax)                                                            4 552      (2 836)        1 716
      Consolidated total
      liabilities                                                                      11 646      (4 719)        6 927
      Cash inflow/(outflow)
      generated from
      operations                             1 593      4 880      305         109      6 887      (4 880)        2 007         (73)
      Cash inflow/(outflow)
      from operating activities              1 120      3 789      309     (1 753)      3 465        (789)        2 676         (76)
      Cash (outflow)/inflow
      from investing activities              (907)    (1 447)    (188)         573    (1 969)        1 447        (522)          141
      Cash outflow from
      financing activities                    (38)          -    (115)       (195)      (348)            -        (348)          (7)
      Capital expenditure                      802      1 474      140           2      2 418      (1 474)          944           46
      Amortisation and
      depreciation                             572        971      167           2      1 712        (971)          741            -
      Impairment before tax                     39         26       19           -         84         (26)           58            -
      EBITDA                                 1 616      5 610    1 227       (429)      8 024      (5 573)        2 451          (8)

      (1) Refer to ARM Ferrous segment note 2.3 and note 8 for more detail.
      (2 )Includes IFRS 11 - Joint Arrangements - adjustments related to ARM Ferrous.
      
                                                                                                                             Discon-
                                                                               Continuing                                     tinued
                                                                               operations                                  operation
                                                                                                                Total per
                                                                                                         IFRS        IFRS
                                                 ARM          ARM      ARM        ARM                 Adjust-   financial        ARM
                                            Platinum   Ferrous(1)     Coal  Corporate      Total      ment(2)  statements     Copper
      Attributable                                Rm           Rm       Rm         Rm         Rm           Rm          Rm         Rm
      Primary segmental
      information
      Year to 30 June 2017
      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 operation                          -            -        -          -          -            -           -       (56)
      Finance cost ARM:
      Shareholders' loan Vale/
      ARM joint operation(3)                       -            -        -          -          -            -           -          -
      Profit from associate                        -            -      181          -        181            -         181          -
      Income from joint
      venture(4)                                   -         (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(5)                                -         (14)        -         14          -            -           -          -
      Contribution to basic
      earnings                               (1 095)        3 265       82      (821)      1 431            -       1 431       (59)
      Contribution to
      headline earnings                          350        3 709       82      (742)      3 399            -       3 399      (203)
      
      (1) Refer to ARM Ferrous segment note 2.3 and note 8 for more detail.
      (2) Includes IFRS 11 - Joint Arrangements - adjustments related to ARM Ferrous.
      (3) Intercompany interest of R219 million receivable by ARM Corporate and accrued by ARM Copper represented in
          terms of IFRS 5.
      (4) Impairment included in income from joint venture R470 million before tax of R27 million.
      (5) Relates to capitalised fees in ARM Ferrous.
      
      There were no significant inter-company sales.
      
                                                                                                                             Discon-
                                                                              Continuing                                      tinued
                                                                              operations                                   operation
                                                                                                               Total per
                                                                                                       IFRS         IFRS
                                                  ARM         ARM     ARM        ARM                Adjust-    financial         ARM
                                             Platinum  Ferrous(1)    Coal  Corporate       Total    ment(2)   statements      Copper
      Attributable                                 Rm          Rm      Rm         Rm          Rm         Rm           Rm          Rm
      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 liabilities (tax        
      and deferred tax)                                                                    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 before tax                   (2 243)       (470)       -          -     (2 713)        470      (2 243)         180
      EBITDA                                    1 498       5 469     237      (832)       6 372    (5 450)          922       (128)
      
      (1) Refer to ARM Ferrous segment note 2.3 and note 8 for more detail.
      (2) Includes IFRS 11 - Joint Arrangements - adjustments related to ARM Ferrous.

                                                                                                                            Platinum
                                                                                         Nkomati Two Rivers  Modikwa(1)        Total
      Attributable                                                                            Rm         Rm          Rm           Rm
2.2   Year to 30 June 2018 (Reviewed)
      External sales                                                                       1 639      3 883       1 796        7 318
      Cost of sales                                                                      (1 540)    (2 879)     (1 631)      (6 050)
      Other operating income                                                                   7         22          31           60
      Other operating expenses                                                              (88)      (152)        (44)        (284)
      Segment result                                                                          18        874         152        1 044
      Income from investments                                                                  7         11          16           34
      Finance cost                                                                          (14)       (63)         (3)         (80)
      Special items before tax                                                                 1          -        (40)         (39)
      Taxation                                                                               (2)      (239)        (46)        (287)
      Profit after tax                                                                        10        583          79          672
      Non-controlling interest                                                                 -      (277)        (14)        (291)
      Contribution to basic earnings                                                          10        306          65          381
      Contribution to headline earnings                                                        9        306         105          420
      Other information
      Segment and consolidated assets                                                      1 914      4 774       2 321        9 009
      Segment liabilities                                                                    374      1 158         348        1 880
      Unallocated liabilities (tax and deferred tax)                                                                             913
      Consolidated total liabilities                                                                                           2 793
      Cash inflow generated from operations                                                  269      1 175         149        1 593
      Cash inflow from operating activities                                                  271        688         161        1 120
      Cash outflow from investing activities                                               (211)      (560)       (136)        (907)
      Cash (outflow)/inflow from financing activities                                       (65)         27           -         (38)
      Capital expenditure                                                                    214        455         133          802
      Amortisation and depreciation                                                          162        318          92          572
      (Reversal)/impairment before tax                                                       (1)          -          40           39
      EBITDA                                                                                 180      1 192         244        1 616

      (1) Anglo American Platinum and ARM have been in ongoing discussions to find a holistic solution to ensure the
          sustainability of Modikwa. On 16 July 2018, the partners agreed to temporarily amend the terms of the existing
          Sale of Concentrate agreement to improve the cash flow generation of the mine while a turnaround and operational
          improvement plan is implemented. The negotiations have been ongoing since F2017 and became unconditional
          in F2018. As a result, the financial results for the year ended 30 June 2018 include an adjustment for 18 months,
          1 January 2017 to 30 June 2018.

      There were no significant inter-company sales.

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

                                                                                                                           Total per
                                                                                                                                IFRS
                                                                        Manga-                 ARM                  IFRS   financial
                                                            Iron ore      nese   Chrome    Ferrous       ARM     Adjust-      state-
                                                            Division  Division Division      Total     share     ment(1)       ments
                                                                  Rm        Rm       Rm         Rm        Rm          Rm          Rm
2.3   Pro forma analysis of the ARM
      Ferrous segment on a 100%
      basis
      Year to 30 June 2018 (Reviewed)
      Sales                                                   14 534    12 833      180     27 547    13 774    (13 774)           -
      Other operating income                                     692       664        -      1 356       217       (217)           -
      Other operating expense                                (1 853)   (1 645)       78    (3 420)   (1 249)       1 249           -
      Operating profit                                         4 230     5 105     (58)      9 277     4 639     (4 639)           -
      Contribution to earnings                                 3 343     3 772     (42)      7 073     3 537        (27)       3 510
      Contribution to headline earnings                        3 343     3 808     (42)      7 109     3 555        (27)       3 528
      Other information
      Consolidated total assets                               23 149    17 992      524     41 665    20 223     (4 719)      15 504
      Consolidated total liabilities                           6 165     3 190      426      9 781     1 883     (1 883)           -
      Capital expenditure                                      1 780     1 285       16      3 081     1 474     (1 474)           -
      Amortisation and depreciation                            1 401       594        8      2 003       971       (971)           -
      Cash inflow from operating activities                 1 522(2)     3 001       55      4 578     3 789     (3 789)           -
      Cash outflow from investing activities                 (1 725)   (1 153)     (15)    (2 893)   (1 447)       1 447           -
      EBITDA                                                   5 631     5 699     (50)     11 280     5 610     (5 610)           -
      Additional information for ARM
      Ferrous at 100%
      Non-current assets
      Property, plant and equipment                                                         22 712              (22 712)           -
      Investment in joint venture                                                            3 011               (3 011)           -
      Other non-current assets                                                                 786                 (786)           -
      Current assets
      Inventories                                                                            4 392               (4 392)           -
      Trade and other receivables                                                            5 522               (5 522)           -
      Financial assets                                                                         228                 (228)           -
      Cash and cash equivalents                                                              5 014               (5 014)           -
      Non-current liabilities
      Other non-current liabilities                                                          6 796               (6 796)           -
      Current liabilities
      Trade and other payables                                                               1 819               (1 819)           -
      Short-term provisions                                                                    961                 (961)           -
      Taxation                                                                                 206                 (206)           -

      (1) Includes consolidation and IFRS 11 - Joint Arrangements - adjustments.
      (2) Dividend paid amounting to R3 billion included in cash flows from operating activities.
      
      Refer note 2.1 and note 8 for more detail on the ARM Ferrous segment.

                                                                  Continuing           Dis-                                Total per
                                                    Continuing    operations   continued(1)                                     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(2)      ments
                                    Rm         Rm           Rm            Rm             Rm        Rm       Rm         Rm         Rm
2.3   Pro forma analysis of the
      ARM Ferrous segment on a
      100% basis
      Year to 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
      expense                  (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
      earnings                   4 373      2 182          (7)         6 548             10     6 558    3 279       (14)      3 265
      Contribution to
      headline earnings          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)          -
      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)          -
      Cash inflow from
      operating activities    1 188(3)      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          -
      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 assets                                                                            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)          -

      (1) This relates to the Dwarsrivier operation.
      (2) Includes consolidation and IFRS 11 - Joint Arrangements - adjustments.
      (3) Dividend paid amounting to R2.5 billion included in cash flows from operating activities.
      
      Refer to note 2.1 and note 8 for more detail on the ARM Ferrous segment.

2.4   Additional information

      ARM Corporate as presented in the table on pages 76 to 79 is analysed further into Corporate and other,
      ARM Exploration and Gold segments.

                                                                                                ARM           ARM              Total
                                                                                        Exploration  Corporate(1)     Gold       ARM
                                                                                                 Rm            Rm       Rm        Rm
      Year to 30 June 2018 (Reviewed)
      Cost of sales                                                                               -            37                 37
      Other operating income                                                                      -           504                504
      Other operating expenses                                                                 (23)         (949)              (972)
      Segment result                                                                           (23)         (408)              (431)
      Income from investments                                                                     -           111       22       133
      Finance costs(2)                                                                            -         (108)              (108)
      Taxation                                                                                    -         (231)              (231)
      (Loss)/profit after tax                                                                  (23)         (636)       22     (637)
      Non-controlling interest                                                                    -           (3)                (3)
      Consolidation adjustments(3)                                                                             27                 27
      Contribution to basic earnings                                                           (23)         (612)       22     (613)
      Contribution to headline earnings                                                        (23)         (612)       22     (613)
      Other information
      Segment and consolidated assets                                                             -         3 752    1 351     5 103
      Segment liabilities                                                                         -         1 878              1 878
      Cash outflow from operating activities                                                   (23)       (1 730)            (1 753)
      Cash inflow from investing activities                                                       -           551       22       573
      Cash outflow from financing activities                                                      -         (195)              (195)
      Capital expenditure                                                                         -             2                  2
      Amortisation and depreciation                                                               -             2                  2
      EBITDA                                                                                   (23)         (406)              (429)
      Year to 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 costs(2)                                                                            -         (138)              (138)
      Special items before tax                                                                    -          (79)               (79)
      (Loss)/profit after tax                                                                  (28)         (880)       64     (844)
      Non-controlling interest                                                                    -             9                  9
      Consolidation adjustment(3)                                                                 -            14                 14
      Contribution to basic earnings                                                           (28)         (857)       64     (821)
      Contribution to headline 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)

      (1) Corporate, other companies and consolidation adjustments.
      (2) Intercompamy interest of R127 million (F2017: R219 million) receivable by ARM Corporate and accrued by ARM
          Copper re-presented in terms of IFRS 5.
      (3) Relates to capitalised fees in ARM Ferrous.

3.    PROPERTY, PLANT AND EQUIPMENT IMPAIRMENT

3.1   Kalplats
      An impairment loss of R40 million (tax nil) was recognised at 30 June 2018 as a result of the
      prospecting right relating to the Kalplats project having expired and ARM Platinum Proprietary
      Limited has not applied for a mining right.

3.2   ARM Coal - PCB
      An impairment loss was recognised on property, plant and equipment for R19 million before tax of
      R5 million (Refer to notes 2.1 and 6). This is accounted for in the income from associate line in the
      statement of profit or loss.

3.3   ARM Ferrous
      An impairment loss was recognised on property plant and equipment for R26 million before tax of
      R7 million (Refer to notes 2.1 and 6). This is accounted for in the income from joint venture line in
      the statement of profit or loss.

3.4   Tamboti
      During the year, the mineral rights held in Tamboti Platinum Proprietary Limited was sold to
      Two Rivers. The net effect was R99 million increase in the non-controlling interest of the Group.
      This increased the ARM shareholding in Two Rivers from 51% to 54%.

3.5   Nkomati Nickel Mine
      As previously disclosed at 30 June 2017 and at 31 December 2016, an impairment loss of the Nkomati
      Nickel Mine cash-generating unit was recognised at 31 December 2016, largely as a result of:

      (i) a revision of the mine plan with a resultant lower metal output profile; and

      (ii) A significant 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.

      At 30 June 2018 and 2017, there were no further impairments or reversals.

3.6   Modikwa Platinum Mine
      As previously disclosed at 30 June 2017 and at 31 December 2016, an impairment loss of the
      Modikwa Platinum Mine cash generating unit attributable to ARM at 31 December 2016, 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.

      At 30 June 2018 and 2017 there were no further impairments or reversals.

3.7   Lubambe Copper Mine
      At 30 June 2017, there was an impairment reversal following the classification of Lubambe as an
      asset held for sale (refer to note 6 and 16.3). This was subsequently sold.

                                                                                                                Reviewed     Audited
                                                                                                                    2018        2017
                                                                                                                      Rm          Rm
4.    LOANS AND LONG-TERM RECEIVABLES
      ARM Platinum (Modikwa)                                                                                          17          17
      ARM Coal - loan restructuring                                                                                  445          17
      Total                                                                                                          462          34

5.    INVESTMENT IN ASSOCIATE
      Through ARM's 51 % investment in ARM Coal, the Group holds a 10.2% investment in
      the existing coal operations (PCB) of GOSA.
      Opening balance                                                                                              1 140       1 049
      Total profit for the current year                                                                              212          91
      Profit for the current year                                                                                    127          91
      Fair value gains on loans (refer note 11)                                                                       85           -
      Restructuring allocations                                                                                    (155)           -
      Closing balance                                                                                              1 197       1 140
      ARM invested directly in 10% of the existing coal operations (PCB) of GOSA on
      1 September 2007.
      Opening balance                                                                                                332         242
      Total profit for the current year                                                                              407          90
      Profit for the current year                                                                                    167          90
      Fair value gains on loans (refer note 11)                                                                      240           -

      Closing balance                                                                                                739         332
      Less: Dividend received prior years                                                                          (138)       (138)
      Closing balance                                                                                              1 798       1 334

6.    SPECIAL ITEMS
      Loss on sale of property, plant and equipment - ARM Coal                                                       (3)           -
      Impairment loss of property, plant and equipment - Kalplats                                                   (40)           -
      Impairment loss of property, plant and equipment - Modikwa                                                       -     (1 255)
      Reversal of impairment /(loss) of property, plant and equipment - Nkomati                                        1       (988)
      Loss on disposal of investment                                                                                   -        (79)
      Special items per statement of profit or loss before taxation effect                                          (42)     (2 322)
      Impairment loss on property, plant and equipment accounted for directly
      in associate - ARM Coal                                                                                       (19)           -
      Impairment loss on property, plant and equipment accounted for directly
      in joint venture - Assmang                                                                                    (26)       (470)
      Impairment reversal on property, plant and equipment - Lubambe (discontinued operation)                          -         180
      Pretax loss on sale of Lubambe                                                                               (117)           -
      Profit on sale of property, plant and equipment accounted for directly
      in joint venture - Assmang                                                                                       1           -
      Loss on sale of property, plant and equipment accounted for directly
      in joint venture - Assmang                                                                                       -         (1)
      Special items before taxation effect                                                                         (203)     (2 613)
      Taxation accounted for in joint venture - impairment loss at Assmang                                             7          27
      Taxation accounted for in associate - impairment loss at ARM Coal                                                5           -
      Taxation loss on sale of property ARM Coal                                                                       1           -
      Taxation - impairment loss of Modikwa assets                                                                     -         365
      Taxation - impairment loss of Nkomati assets                                                                     -         277
      Taxation - sale of Lubambe                                                                                    (62)           -
      Special items after taxation effect                                                                          (252)     (1 944)
      Non-controlling interest - impairment reversal of assets at Lubambe (discontinued operation)                     -        (36)
      Non-controlling interest - impairment loss of assets at Modikwa                                                  -         156
      Total                                                                                                        (252)     (1 824)

                                                                                                                Reviewed     Audited
                                                                                                                    2018        2017
                                                                                                                      Rm          Rm
7.    EARNINGS PER SHARE
      Headline earnings (R million)                                                                                4 814       3 196
      Headline earnings from continuing operations (R million)                                                     4 820       3 399
      Headline loss from discontinued operation (R million)                                                          (6)       (203)
      Headline earnings per share (cents)                                                                          2 526       1 684
      Headline earnings per share from continuing operations (cents)                                               2 529       1 791
      Headline loss per share from discontinued operation (cents)                                                    (3)       (107)
      Basic earnings per share (cents)                                                                             2 393         723
      Basic earnings from continuing operations per share (cents)                                                  2 490         754
      Basic loss from discontinued operation per share (cents)                                                      (97)        (31)
      Diluted headline earnings per share (cents)                                                                  2 453       1 638
      Diluted headline earnings per share from continuing operations (cents)                                       2 456       1 742
      Diluted headline loss per share from discontinued operation (cents)                                            (3)       (104)
      Diluted basic earnings per share (cents)                                                                     2 325         703
      Diluted basic earnings from continuing operations per share (cents)                                          2 419         733
      Diluted basic loss from discontinued operation per share (cents)                                              (94)        (30)
      Number of shares in issue at end of year (thousands)                                                       219 709     218 702
      Weighted average number of shares (thousands)                                                              190 622     189 768
      Weighted average number of shares used in calculating
      diluted earnings per share (thousands)                                                                     196 217     195 112
      Net asset value per share (cents)                                                                           11 792      10 744
      EBITDA (R million)                                                                                           2 443         794
      EBITDA from continuing operations (R million)                                                                2 451         922
      Interim dividend declared (cents per share)                                                                    250           -
      Dividend declared after year-end (cents per share)                                                             750         650
      Reconciliation to headline earnings (R million)
      Basic earnings attributable to equity holders of ARM                                                         4 562       1 372
      - Impairment loss on property, plant and equipment - Kalplats                                                   40           -
      - Impairment loss on property, plant and equipment - Modikwa                                                     -       1 255
      - (Reversal of impairment)/loss on property, plant and equipment - Nkomati                                     (1)         988
      - Impairments loss of property, plant and equipment in associate - ARM Coal                                     19           -
      - Impairments loss of property, plant and equipment in joint venture - Assmang                                  26         470
      - (Profit)/loss on sale of property, plant and equipment in joint venture Assmang                              (1)           1
      - Loss on disposal of investment                                                                                 -          79
      - Pretax loss on sale of Lubambe                                                                               117           -
      - Loss on disposal of property, plant and equipment - ARM Coal                                                   3           -
      - Reversal of impairment loss on property, plant and equipment - Lubambe                                         -       (180)
                                                                                                                   4 765       3 985
      - Taxation accounted for in joint venture - impairment loss at Assmang                                         (7)        (27)
      - Taxation accounted for in associate ARM Coal - impairment loss at ARM Coal                                   (5)           -
      - Taxation loss on sale of property ARM Coal                                                                   (1)           -
      - Taxation sale of Lubambe                                                                                      62           -
      - Taxation - impairment loss of Modikwa assets                                                                   -       (365)
      - Taxation - impairment loss of Nkomati assets                                                                   -       (277)
                                                                                                                   4 814       3 316
      Non-controlling interest - impairment reversal/(loss) of assets at Lubambe (discontinued
      operation)                                                                                                       -          36
      Non-controlling interest - impairment loss of assets at Modikwa                                                  -       (156)
      Headline earnings                                                                                            4 814       3 196

                                                                                                                 Reviewed    Audited
                                                                                                                     2018       2017
                                                                                                                       Rm         Rm
8.    INVESTMENT IN JOINT VENTURE
      The investment relates to ARM Ferrous and consists of Assmang
      as a joint venture which includes iron ore, manganese and chrome
      operations.
      Opening balance                                                                                              14 860     14 623
      Net income for the period                                                                                     3 510      3 265
      Income for the period                                                                                         3 537      3 279
      Consolidation adjustment                                                                                       (27)       (14)
      Foreign currency translation reserve                                                                            134      (224)
      Less: - Cash dividend received for the period                                                               (3 000)    (2 488)
      - in specie dividend received for the period                                                                      -      (316)
      Closing balance                                                                                              15 504     14 860
      Refer to notes 2.1 and 2.3 for more detail on the ARM Ferrous segment.

9.    CASH AND CASH EQUIVALENTS
      - African Rainbow Minerals Limited                                                                            1 634        233
      - ARM BBEE Trust                                                                                                  1          2
      - ARM Finance Company SA                                                                                        228          7
      - ARM Platinum Proprietary Limited                                                                              123         82
      - ARM Treasury Investments Proprietary Limited                                                                   39         36
      - Nkomati                                                                                                        88          -
      - Two Rivers Platinum Proprietary Limited                                                                        14         10
      - TEAL Minerals Barbados Incorporated(1)                                                                         22          1
      - TEAL Exploration and Mining Barbados Incorporated(1)                                                            8         13
      - TEAL Exploration and Mining Incorporated(1)                                                                     1          1
      - Venture Building Trust Proprietary Limited                                                                      2          4
      - Mannequin Cell Captive (restricted)                                                                           819        745
      - Other restricted cash(2)                                                                                      312        354
      Total as per statement of financial position                                                                  3 291      1 488
      Less: Overdrafts (refer to note 10)                                                                           (381)      (292)
            Overdrafts relating to asset held for sale (refer to notes 16)(3)                                           -      (168)
            Cash relating to asset held for sale (refer to note 16)                                                     -          3
      Total as per Group statement of cash flows                                                                    2 910      1 031

      (1)  Entities remaining after the sale of the Vale/ARM discontinued operation.
      (2)  This is made up guarantees to Department of Minerals Resources (DMR) in respect of
           rehabilitation and guarantees to Eskom.
      (3)  Discontinued operation (refer to note 16)
    
      Overdraft                                                                                                          -       168

                                                                                                                  Reviewed   Audited
                                                                                                                      2018      2017
                                                                                                                        Rm        Rm
10.   BORROWINGS
      Long-term borrowings are held as follows:
      ARM BBEE Trust                                                                                                   470       528
      ARM Coal Proprietary Limited (partner loan)                                                                    1 231     1 433
      Nkomati                                                                                                            6        13
      Two Rivers Platinum Proprietary Limited                                                                           37        28
                                                                                                                     1 744     2 002
      Short-term borrowings
      Anglo Platinum Limited (partner loan)                                                                            114       114
      ARM Coal Proprietary Limited (partner loan)                                                                        -       172
      ARM Finance Company SA                                                                                             -        78
      Nkomati                                                                                                            7        64
      Two Rivers Platinum Proprietary Limited                                                                           50        37
                                                                                                                       171       465
      Overdrafts (refer to note 9)
      Nkomati                                                                                                           21        11
      Two Rivers Platinum Proprietary Limited                                                                          336       261
      Other                                                                                                             24        20
                                                                                                                       381       292
      OVERDRAFTS AND SHORT-TERM BORROWINGS                                                                             552       757
      TOTAL BORROWINGS                                                                                               2 296     2 759
      Discontinued operation (refer to note 16)
      Long-term borrowings                                                                                               -       656
      Short-term borrowing                                                                                               -        15

                                                                                                                 Reviewed    Audited
                                                                                                                     2018       2017
                                                                                                                       Rm         Rm
11.   ARM COAL LOAN RESTRUCTURING
      Included in other operating income and profit from associate are fair value gains
      attributable to ARM of R652 million (tax nil) and R325 million (tax nil) respectively
      relating to the recognition of the GGV and PCB loans following the successful
      conclusion of the restructuring of debt between ARM and Glencore Operations South
      Africa Proprietary Limited (GOSA) and ARM Coal Proprietary Limited.
      The fair value gain is as a result of changes in the future repayment cash flows applied
      to the net present value calculations.
      The changes emanate mainly from the timing applicable to cash flows as a result of the
      extension of the loan repayment period holidays under the new loan terms.
      The fair value gain are in accordance with International Accounting Standard 39:
      Financial Instruments - Recognition and Measurement, which states that a modified
      debt is considered substantially different if the net present value of the cash flows
      under the new loan terms discounted at the original interest rate, differs by more than
      10% from the discounted present value of the remaining cash flows of the original debt
      instrument. Where a financial liability is considered substantially different, the existing
      loan is derecognised and the new loan is recognised, the net effect of the modification
      is recognised immediately in the statement of profit or loss.
      The discount rate used in the calculation of the fair value was 10%.

      The fair value adjustment are as follows:
      Other operating income increase (fair value gain on loans)                                                      885          -
      ARM Corporate (fair value loss)                                                                               (233)          -
      Fair value gain in operating income                                                                             652          -
      Income from associate (fair value gain on loans) - refer note 5                                                 325          -
      Group fair value gain                                                                                           977          -

12.   OTHER OPERATING INCOME
      Management fees                                                                                                 630        519
      Other                                                                                                           245        238
      Fair value gain (refer to note 11)                                                                              652          -
      Total                                                                                                         1 527        757

13.   INCOME FROM ASSOCIATE
      Profit (before fair value on loans)                                                                             294        181
      Fair value gain (refer to note 11)                                                                              325          -
      Total                                                                                                           619        181

14.   TAXATION
      South African normal taxation
      - current year                                                                                                  295        329
      - mining                                                                                                        141        212
      - non-mining                                                                                                    154        117
      - prior year                                                                                                  (102)          8
      Withholding tax                                                                                                   -         37
      Deferred taxation                                                                                               380      (783)
      Total tax from continuing operations                                                                            573      (409)
      Tax from discontinued operation                                                                                  62          -
      Total tax                                                                                                       635      (409)

                                                                                                                 Reviewed    Audited
                                                                                                                     2018       2017
                                                                                                                       Rm         Rm
15.   CASH GENERATED FROM OPERATIONS PER CASH FLOW (INCLUDING
      DISCONTINUED OPERATION) BEFORE WORKING CAPITAL MOVEMENTS
      Cash generated from operations before working capital movement                                                2 451      1 885
      Working capital changes                                                                                       (517)      (274)
      Movement in inventories                                                                                          48       (51)
      Movement in receivables                                                                                       (299)        307
      Movement in payables and provisions                                                                           (266)      (530)
      Cash generated from operations (per cash flow)                                                                1 934      1 611

16.   ASSETS HELD FOR SALE AND DISCONTINUED OPERATION
16.1  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 are 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 - interest-bearing                                                           -        183
      Liabilities directly associated with assets held for sale                                                         -      1 172
      The cash flows were as follows:
      Cash outflow from operating activities                                                                         (76)      (155)
      Cash outflow from investing activities                                                                          141       (32)
      Cash outflow from financing activities                                                                          (7)        (4)
      The statement of profit or loss effect is as follows:
      Sales                                                                                                           340        600
      Cost of sales                                                                                                 (282)      (601)
      Other operating income                                                                                            4          4
      Other operating expenses                                                                                       (70)      (238)
      Segment result                                                                                                  (8)      (235)
      Finance cost                                                                                                   (12)       (19)
      Finance cost ZCCM: Shareholders' loan Vale/ARM joint operation                                                 (20)       (56)
      Special items before tax1                                                                                     (117)       180
      Taxation                                                                                                       (62)          -
      Loss after tax                                                                                                (219)      (130)
      Non-controlling interest                                                                                         34         71
      Contribution to basic earnings                                                                                (185)       (59)
      Contribution to headline earnings                                                                               (6)      (203)
      Basic loss from discontinued operation per share (cents)                                                       (97)       (31)
      Diluted basic loss from discontinued operation per share (cents)                                               (94)       (30)

      (1) The R117 million loss resulted from the sale of Lubambe (refer to note 16.3). An impairment reversal (refer to
          note 3.7) of R180 million was recorded by determining the recoverable amount using the fair value less cost to sell at
          30 June 2017.

                                                                                                                 Reviewed    Audited
                                                                                                                     2018       2017
                                                                                                                       Rm         Rm
16.2  Nkomati Mine
      The underground operations at Nkomati were classified as held for sale following the                              -          1
      decision to cease operations in the underground area.
      Total assets held for sale                                                                                        -      1 605
16.3  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 (before NCI and FCTR)                                                           437          -
      Profit on sale of Lubambe                                                                                        55          -
      Foreign currency translation reserve (FCTR)                                                                     650          -
      Non-controlling interest (NCI)                                                                                (822)          -
      Loss on sale before tax (refer note 6)                                                                        (117)          -
      Taxation (refer note 6)                                                                                        (62)          -
      Net loss on sale of Lubambe                                                                                   (179)          -

17.   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).
      (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).

                                                                                                                  Reviewed   Audited
                                                                                                                      2018      2017
                                                                                                                        Rm        Rm

18.   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 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, and the subsequent settlement offer arrangement
      reached with the claimants' legal representative, ARM has recognised a net
      present value provision of R330 million at 30 June 2018 (F2017:R330 million).

      The subsequent settlement offer reached is conditional on the process of
      ratification by the high court.

      The Working Group continues to defend the legal proceedings.

      ARM does not believe that it is liable in respect of the claims brought.

      The negotiations with the claimants' lawyers are confidential and the Working
      Group companies are accordingly not able to provide any details of the
      negotiations.
      The provision movement is as follows:
      Opening balance                                                                                                  330         -
      Provision raised                                                                                                   -       330
      Settlement term changes                                                                                         (21)         -
      Interest unwinding                                                                                                13         -
      Demographic assumptions changes                                                                                  (5)         -
      Administration costs                                                                                               6         -
      Additional special purpose vehicle trust                                                                           7         -
      Closing balance                                                                                                  330       330

                                                                                                                Reviewed     Audited
                                                                                                                    2018        2017
                                                                                                                      Rm          Rm

19.   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 statement of profit or loss relating to transactions with
      related parties
      Subsidiaries
      Sales
      Anglo American Platinum                                                                                      1 796       1 256
      Impala Platinum                                                                                              3 883       3 996
      Joint venture
      Assmang Proprietary Limited
      - Provision of services                                                                                        627         513
      - Dividends received                                                                                         3 000       2 804
      Amounts outstanding at year-end (owing to)/receivable by
      ARM on current account
      Joint venture
      Assmang - debtor                                                                                               101          93
      Joint operations
      Anglo American Platinum - debtor                                                                               610         468
      Norilsk Nickel - creditor                                                                                      (2)         (2)
      Norilsk Nickel - debtor                                                                                        134         174
      Anglo American Platinum - short-term borrowing                                                               (114)       (114)
      Vale/ARM joint operation - ZCCM - long-term borrowing (refer to note 16)                                         -         656
      Glencore Operations SA - long-term borrowing                                                               (1 231)     (1 433)
      Glencore Operations SA - short-term borrowing                                                                    -       (172)
      Subsidiary
      Impala Platinum - debtor                                                                                     1 146       1 003
      Impala Platinum - dividend paid                                                                                253         279

                                                                                                                Reviewed     Audited
                                                                                                                    2018        2017
                                                                                                                      Rm          Rm

20.   COMMITMENTS
      Commitments in respect of future capital expenditure, which will be funded from
      operating cash flows and by utilising available cash and borrowing resources, are
      summarised below:
      Commitments
      Commitments in respect of capital expenditure:
      Approved by directors
      - contracted for                                                                                               108         134
      - not contracted for                                                                                            16           3
      Total commitments                                                                                              124         137

21.   CONTINGENT LIABILITIES
      Assmang has issued a guarantee to the Sarawak Energy Board amounting to
      $100 million. Sponsor indemnities amounting to $45.64 million have been received by
      Assmang in respect of this guarantee. The potential exposure for Assmang is therefore
      $54.36 million.
      ARM's 50 percent interest in Assmang would equate to R373 million ($27.18 million).
      There have been no other significant changes in the contingent liabilities of the Group
      as disclosed in the 30 June 2017 integrated annual report.

22.   EVENTS AFTER REPORTING DATE
22.1  Harmony Gold Mining Company Limited ("Harmony") conducted a placing of new ordinary shares to
      qualifying investors to raise up to ZAR1.26 billion/US$100 million through an accelerated book-building
      process launched on 5 June 2018.
      As Harmony's strategic black economic empowerment partner, ARM subscribed for shares necessary to
      ensure that its 30 June 2018 shareholding of approximately 14% is maintained post Harmony's placement of
      new ordinary shares.
      On 17 July, ARM subscribed to 11 032 623 shares at a total cost of R210 million (i.e. R19.12 per share) to
      maintain its shareholding in Harmony at 14.5%.


                                                                                             30 June     31 Dec     30 Jun    17 Jul
                                                                                                2017       2017       2018      2018
      Discontinued operation (refer to note 16)                                               14.50%     14.30%     12.70%    14.60% 

22.2  ARM Company's Revolving Credit Facility (facility) expired on 24 August 2018. At 30 June 2018 to the date
      of expiry, the facility was fully repaid and unutilised. ARM Company is in the process of finalising a new
      facility which is expected to be in place for the coming three years.

      No other significant events have occurred subsequent to the reporting date that could materially affect the
      reported results.

Contact details and administration

                                               Transfer secretaries
                                               Computershare Investor Services
                                               Proprietary Limited
                                               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 M�ller*
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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