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AFRICAN RAINBOW MINERALS LIMITED - Interim results for the six months ended 31 December 2018

Release Date: 01/03/2019 07:05
Code(s): ARI     PDF:  
 
Wrap Text
Interim results for the six months ended 31 December 2018

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

INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2018

Shareholder information                                           
      
Issued share capital at 31 December 2018           221 933 850 shares   
Market capitalisation at 31 December 2018             ZAR31.6 billion   
Market capitalisation at 31 December 2018              US$2.2 billion   
Closing share price at 31 December 2018                       R142.35   
Six-months high (1 July 2018 - 31 December 2018)              R144.33   
Six-months low (1 July 2018 - 31 December 2018)               R106.80   
Average daily volume traded for the six months         587 884 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 13% to R2 201 million (1H F2018: R1 945 million).
- Headline earnings per share were 1 149 cents compared to 1 023 cents in 1H F2018.
- Interim dividend of 400 cents per share declared (1H F2018: 250 cents per share).
- Basic earnings were R1 306 million (1H F2018: R1 753 million) and include an attributable
  impairment of the Nkomati Mine assets of R892 million after tax.
- Dividends received from the Assmang joint venture were R1 750 million (1H F2018: R1 000 million).
- The consolidated financial position improved by R2 267 million to net cash of R1 165 million (net
  debt of R1 102 million as at 31 December 2017).
- The coal debt attributable to ARM was reduced to R2 033 million.

Results overview

The ARM Board of Directors (the Board) announces a 13% increase in headline earnings to R2 201 million (R11.49 per
share) for the six months ended 31 December 2018 (1H F2018: R1 945 million or R10.23 per share) and declares an
interim dividend of 400 cents per share (1H F2018: 250 cents per share). The increase in headline earnings was driven
mainly by improved headline earnings at Modikwa Mine, the iron ore division and the manganese ore operations which
were partly offset by a headline loss at Nkomati Mine.

Basic earnings for the period were R1 306 million (1H F2018: R1 753 million) and include an impairment of the Nkomati
Mine assets of R892 million after tax. Basic earnings per share therefore decreased from 922 cents to 682 cents.

The Nkomati Mine impairment is discussed in further detail on page 48 and a reconciliation of basic earnings to headline
earnings is provided in note 12 to the financial statements.

US Dollar prices realised for all commodities, except platinum, were higher and the 1H F2019 average Rand/US Dollar
was R14.19/US$ (1H F2018: R13.39/US$). For reporting purposes, the closing exchange rate at 31 December 2018 was
R14.38/US$ (31 December 2017: R12.29/US$).

Sales from continuing operations (which are consolidated into ARM's revenue) were marginally lower in 1H F2019 at R4 147
million (1H F2018: R4 174 million). Sales for ARM Ferrous increased by 17% to R7 999 million (1H F2018: R6 816 million).

The average gross profit margin was 19% for both reporting periods. The gross profit margins achieved at each operating
division may be ascertained from the detailed segment reports provided in note 2 to the financial statements.

ARM's earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations, excluding special
items and income from associates and joint ventures, were 11% lower at R889 million (1H F2018: R999 million). The
change was largely as a result of a lower EBITDA contribution from Nkomati Mine (of R267 million) and ARM Corporate (of
R113 million) which was partially offset by a higher EBITDA contribution from Modikwa Mine (of R243 million).

The income from joint venture (ARM Ferrous) was R2 121 million (1H F2018: R1 765 million) after special items and is 20%
higher than the corresponding period.

The detailed and expanded segmental contribution analysis is provided in note 2 to the financial statements.

ARM Ferrous - Headline earnings at ARM Ferrous were 21% higher at R2 127 million (1H F2018: R1 765 million). The
iron ore division delivered a 41% increase in headline earnings as average realised US Dollar prices for export iron ore
increased by 15%, driven by a combination of higher fines market prices, increased lump premiums and a higher lump
to fines ratio in iron ore sales volumes. The manganese ore operations delivered a 41% increase in headline earnings,
however, a 62% decrease in headline earnings at the manganese alloy operations (mainly comprising of Cato Ridge Works
and Alloys) resulted in the manganese division's overall earnings increasing by 5%.

ARM Platinum - Interventions implemented at Modikwa Mine to improve the operational and financial performance of
the mine are yielding results. These, together with a higher Rand basket price and an improved purchase of concentrate
agreement (as concluded in F2018 for three years from 1 January 2017), contributed to the R173 million headline earnings
reported by Modikwa Mine (1H F2018: R36 million). Two Rivers Mine continues to experience grade challenges as a
result of complexity of the ore body. This impacted both PGM and chrome volumes in the six months under review. The
mine reported headline earnings of R180 million (1H F2018: R173 million). Nkomati Mine recorded a headline loss of
R186 million mainly as a result of reduced nickel and by-product sales volumes together with above inflation cost increases.
ARM has completed its review given the mine's operational challenges, cash support that could be required from the
partners and the relatively limited (eight year) life of the open pit mine. Part of this review indicated a decline in head grade,
resulting in decreased metal output, the mine's inability to generate sufficient cash to meet operational requirements and
an increase in production costs.

We are in discussions with our partner on the future of the mine.

ARM Coal - Headline earnings for ARM Coal were 59% lower at R65 million (1H F2018: R160 million) and include a
re-measurement loss of R206 million on the revaluation of the loans between ARM, ARM Coal and Glencore which were
restructured in F2018. The coal operations delivered improved operational cash flows which has resulted in accelerated
loan repayments. The value of the restructured loans is revalued at each reporting period to reflect the net present value
of the expected loan repayment profile. Where the repayment profile is expected to accelerate compared to expectations
in the previous reporting period, a re-measurement loss is recognised.

Although ARM Corporate EBITDA was lower, headline loss by R158 million improved by R42 million compared to the
corresponding period. EBITDA was lower mainly due to a R62 million increase in research and development costs.
Headline earnings were higher mainly due to R93 million lower tax expense.

A detailed segmental headline earnings contribution analysis is provided in note 2 to the financial statements.

Headline earnings/(loss) by division/operation

                                                                                           six months ended 31 December
R million                                                                               2018             2017   % change   
ARM Platinum                                                                             167              226       (26)   
Two Rivers Mine                                                                          180              173          4   
Modikwa Mine                                                                             173               36       >200   
Nkomati Mine                                                                           (186)               17              
ARM Ferrous                                                                            2 127            1 765         21   
Iron Ore Division                                                                      1 230              873         41   
Manganese Division                                                                       919              872          5   
Chrome Division*                                                                         (4)              (9)         56   
Consolidation adjustment                                                                (18)               29              
ARM Coal*                                                                                 65              160       (59)   
Goedgevonden Mine                                                                        (7)               35      (120)   
PCB Operations                                                                            72              125       (42)   
ARM Copper                                                                                 -              (6)              
ARM Corporate and other*                                                               (158)            (200)         21   
Headline earnings                                                                      2 201            1 945         13   
Headline earnings from continuing operations                                           2 201            1 951         13   
Headline earnings from discontinued operations                                             -              (6)              

*  1H F2019 includes a re-measurement loss of R206 million at ARM Coal and a re-measurement loss of R59 million at ARM
   Corporate on the valuation of the loans between ARM, ARM Coal and Glencore which were restructured in F2018.

 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) and Glencore South Africa (Glencore).

 The interim results for the six months ended 31 December 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.

Capital allocation guiding principles

Cash generated from operations was R781 million (1H F2018: R 940 million) and is reported after a R570 million increase
in working capital requirements outflow (1H F2018: R471 million). Dividends received from the ARM Ferrous joint venture
were R 1 750 million (1H F2018: R1 000 million).

Net cash outflow from investing activities of R 707 million was recorded (1H F2018: R160 million inflow) mainly as a result
of a R211 million investment in Harmony in July 2018, as previously reported, while 1H F2018 included R741 million
proceeds on disposal of the Lubambe Mine received in December 2017.

The net decrease in cash and cash equivalents was R8 million for the year (1H F2018: R359 million increase).

Capital expenditure to maintain operations was 16% lower at R505 million for the period (1H F2018: R603 million).
Attributable capital expenditure at the Assmang joint venture was 70% higher at R946 million (1H F2018: R558 million).

Further details on the Assmang capital expenditure are included in the ARM Ferrous section on page 50.

Total borrowings repaid were R167 million (1H F2018: R325 million).

Gross debt at the end of the period was 29% lower than the corresponding period at R2 132 million (31 December 2017:
R3 021 million). This was mainly due to R390 million reduction in ARM Corporate and R461 million reduction in ARM Coal
debt. There was no debt at ARM Ferrous at 31 December 2018 (31 December 2017: nil).

ARM Company's Revolving Credit Facility expired on 24 August 2018. A new facility for R2 250 million which matures in
August 2021 was finalised on improved terms and conditions. This facility was undrawn as at 31 December 2018.

Dividends paid to ARM shareholders in October 2018 were R1 433 million (1H F2018: R1 236 million).

At 31 December 2018 cash and cash equivalents were R3 297 million (31 December 2017: R1 919 million), details of which
are reflected in note 9 to the financial statements. This excludes the attributable cash and cash equivalents held at ARM
Ferrous (50% of Assmang) of R2 186 million (31 December 2017: R3 198 million).

Net cash at 31 December 2018 of R1 165 million (31 December 2017: R1 102 million net debt).

Assets

The consolidated ARM total assets of R34.7 billion (1H F2018: R32.5 billion) include ARM's investment in Harmony which
was R1 882 million as at 31 December 2018 (31 December 2017: R1 444 million). Harmony's share price was R25.20 per
share at 31 December 2018 (31 December 2017: R22.69 per share, 30 June 2018: R21.22 per share).

Nkomati Impairment

As at 31 December 2018, an impairment loss of the Nkomati Mine cash generating unit was recognised, largely due to a
combination of:

- A decline in head grade, resulting in decreased metal output;
- An inability to generate sufficient cash to meet operational requirements; and
- An increase in production costs.

ARM's attributable share of the impairment loss amounted to R1 166 million before tax and R892 million after tax. The
difference between the pre and post-tax charge does not correspond with the South African Corporate tax rate of 28%, as
the tax charge on the impairment was limited to the deferred tax liability available for off-set on the Statement of financial
position. Management did not recognise a deferred tax asset as the recoverability of such an asset is uncertain in the
foreseeable future.

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

A pre-tax discount rate of 20.2% was used for the impairment calculation together with the following metal prices and
exchange rate assumptions:

                                                                      2H F2019     F2020     F2021     F2022   Long-term   
                                                                       Nominal   Nominal   Nominal   Nominal        Real   
Nickel                                                        US$/t     12 998    13 498    13 999    15 539      15 364   
Platinum                                                     US$/oz        855     1 090     1 138     1 172       1 173   
Palladium                                                    US$/oz      1 027     1 050     1 050     1 032         965   
Gold                                                         US$/oz      1 273     1 315     1 323     1 355       1 183   
Copper                                                        US$/t      6 221     6 925     7 040     7 241       6 516   
Cobalt                                                       US$/lb         35        33        30        25          19   
Chrome concentrate-FOT*                                       US$/t         62        75        75        77          72   
Exchange rate                                                 R/US$      14.40     14.08     13.61     13.92       13.27   

Operating safely

We are committed to creating and maintaining a safe work environment for all our employees. There were no fatalities at
any of the ARM operations in the period under review. The Lost Time Injury Frequency Rate (LTIFR) improved to 0.36 in 1H
F2019 from 0.41 per 200 000 man-hours for 1H F2018. 40 Lost Time Injuries (LTIs) were recorded compared to 51 in the
corresponding period. All the South African ARM operations held annual Safety Days in alignment with the Mineral Council
South Africa's National Safety Day.

Safety achievements in the period under review:

-    At the annual Mine Safe Conference held in August 2018, Beeshoek Mine was awarded the first prize for "best improved
     safety performance" and second prize for "best safety performance in class". The mine recorded 17 000 fatality-free
     production shifts on 18 September 2018, an accomplishment that took 15 years and 6 months to achieve. In addition,
     Beeshoek Mine was announced second runner-up for the Best Performing Surface Mine in the annual Northern Cape
     Mine Managers' Association on 23 November 2018.
-    As at 31 December 2018, Cato Ridge Works has been lost time injury free for 18 months.
-    As at December 2018, Nkomati Mine has been lost time injury free for 8 months.

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

Changes to Mineral Resources and Mineral Reserves

There has been no material change to ARM's Mineral Resources and Mineral Reserves as disclosed in the Integrated
Annual Report for the financial year ended 30 June 2018, other than depletion due to continued mining activities at the
operations. An updated Mineral Resources and Mineral Reserves Statement will be issued in the Company's F2019
Integrated Annual Report.

ARM Ferrous

Headline earnings were 21% higher at R2 127 million (1H F2018: R1 765 million) driven by a 41% and 26% increase in
headline earnings at the iron ore and manganese ore operations, respectively. Headline earnings for the alloy operations
(including Sakura Ferroalloys) were 62% lower, impacted by reduced sales volumes and above inflation cost increases.

ARM Ferrous headline earnings (on 100% basis)

                                                                                         six months ended 31 December
R million                                                                             2018               2017   % change   
Iron ore division                                                                    2 459              1 746         41   
Manganese division                                                                   1 837              1 743          5   
Chrome division                                                                        (7)               (18)              
Total                                                                                4 289              3 471         24   
ARM share                                                                            2 145              1 736         24   
Consolidation adjustments*                                                            (18)                 29              
Headline earnings attributable to ARM                                                2 127              1 765         21   

* The consolidation adjustment of R18 million relates to capitalised fees adjustments.

Capital expenditure

Assmang capital expenditure (on 100% basis) increased by 70% to R1 978 million (1H F2018: R1 166 million).

Capital expenditure at the Iron ore division (on a 100% basis) increased from R609 million to R1 028 million mainly due to:

- Commencement of capitalised waste stripping in the Bruce Pit;
- Increased capitalised waste stripping at the Khumani King Pit and Beeshoek Village Pit; and
- Fleet and mining equipment replacement at Khumani Mine as part of the life cycle of the machinery.

The Manganese division's capital expenditure increased by 71% to R950 million (1H F2018: R557 million). R713 million
of the capital expenditure related to the modernisation and optimisation of the Gloria Mine within the Black Rock Mine
as approved in F2018. The Gloria Mine decline shaft shut-down commenced in November 2018 and is on schedule
for completion in April 2019. Site establishment of the civils and earthworks contractor has also commenced while the
design work for the new Gloria Plant has been completed. The capital approved for Gloria Mine will enable 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 addition, production capacity at Black Rock Mine
will increase to approximately 5 million tonnes per annum with any ramp up to be closely synchronised with Transnet rail
availability.

Cato Ridge Works' capital expenditure (on 100% basis) was R20 million compared to R12 million in 1H F2018.

ARM Ferrous capital expenditure (on 100% basis)

                                                                                           six months ended 31 December
R million                                                                                 2018           2017   % change   
Iron ore                                                                                 1 028            609         69   
Manganese                                                                                  950            557         71   
Total                                                                                    1 978          1 166         70   

Iron ore division

Assmang's average realised US Dollar prices for export iron ore were 12% higher at US$69/t (1H F2018: US$59/t) (on an
FOB basis). This increase in realised prices was driven mainly by an increase in lump premiums together with higher lump
to fines ratio in iron ore sales (58% compared to 52% in 1H F2018).

Total iron ore sales volumes were 4% lower at 8.8 million tonnes (1H F2018: 9.1 million). Of the 8.8 million tonnes sold
7.2 million tonnes were exported (1H F2018: 7.4 million tonnes) and 1.6 million tonnes were sold locally (1H F2018:
1.7 million tonnes).

Production volumes decreased by 4% mainly due to water supply challenges at Khumani Mine. Assmang continues to
engage with the Sedibeng Water Board to address challenges experienced on the Vaal Gamagara Water System and
is part of a collaborative team effort to recapitalise and upgrade the water system to ensure sufficient capacity and the
sustainability of the system. The financial impact of possible adjustments to the capital user charge, as a result of the
upgrade of the Vaal Gamagara Water System, remains uncertain.

In addition, availability challenges were experienced on the Sishen Saldanha Export Channel. In December 2018 a truck
carrying an abnormal load which exceeded the bridge height collided into a railway bridge, causing structural damage to
the bridge and the railway line above. Train movements in both directions were therefore impacted. Transnet responded
by putting in place a temporary bridge during the construction of a new bridge, which was delivered two days earlier than
scheduled.

On-mine unit production costs at Khumani Mine increased by 8% to R218//t compared to R201/t in 1H F2018 mainly due
to the 5% decline in production volumes and above inflation increases in diesel and labour costs. Beeshoek Mine achieved
a 1% reduction in on-mine unit production costs.

Iron ore division operational statistics (on 100% basis)

                                                                                   6 months ended 31 December
                                                                           unit       2018               2017   % change   
Volumes                                                                                                                    
Export sales                                                               000t      7 246              7 387        (2)   
Domestic sales                                                             000t      1 507              1 743       (14)   
Total sales                                                                000t      8 752              9 121        (4)   
Production                                                                 000t      8 742              9 143        (4)   
Export lump/fines split                                                       %      58/42              52/48              
Export sales CIF/FOB split *                                                  %      48/52              47/53              
Prices                                                                                                                     
Average realised price FOB **                                             US$/t         69                 59         12   
Unit costs                                                                                                                 
Change in on-mine production unit costs                                       %          6                (1)              
Change in unit cost of sales                                                  %          6                  9              

* CIF refers to sales on a Cost, Insurance and Freight basis while FOB refers to sales on a Free On Board basis.
** This is the average realised price of total sales where the CIF sales are adjusted to an FOB basis by taking off the freight rate.

Manganese ore division

Manganese ore sales volumes increased by 3% from 1.56 million tonnes in 1H F2018 to 1.61 million tonnes in 1H F2019. Of
the 1.61 million tonnes sold 1.53 million tonnes were exported. Production volumes at Black Rock Mine decreased by 7%
mainly as a result of the planned shutdown of the Gloria Mine conveyor together the commissioning of new infrastructure
at the mine as part of the Black Rock Project.

Black Rock on-mine unit production costs increased by 14% from R534 per tonne in 1H F2018 to R608 per tonne in
1H F2019. The main reasons for this above-inflation increase were higher labour costs and fuel prices, as well as lower
production volumes as discussed above.

Total manganese alloy sales volumes increased by 1% to 164 thousand tonnes (1H F2018: 162 thousand tonnes).
Manganese alloy production at Sakura increased from 122 thousand tonnes to 129 thousand tonnes.

At Cato Ridge (Works and Alloys) production volumes were lower by 1% to 68 thousand tonnes, however, sales volumes
were 9% higher at 62 thousand tonnes (1H F2018: 57 thousand tonnes).

Manganese division operational statistics (on 100% basis)

                                                                                           6 months ended 31 December
                                                                           unit         2018             2017   % change   
Manganese ore volumes                                                                                                      
Export sales                                                               000t        1 531            1 516          1   
Domestic sales                                                             000t           74               40         85   
Total sales                                                                000t        1 605            1 556          3   
Production                                                                 000t        1 737            1 865        (7)   
Manganese alloy volumes                                                                                                    
South African operations - sales                                           000t           64               57         12   
Sakura - sales                                                             000t          100              105        (5)   
South African operations - production                                      000t           68               68        (4)   
Sakura - production                                                        000t          129              122          6   
Unit costs - manganese ore                                                                                                 
Change in on-mine production unit costs                                       %           14               23              
Change in unit cost of sales                                                  %           11                5              
Unit costs - manganese alloy                                                                                               
Change in unit production costs                                               %           16               23              
Change in unit cost of sales                                                  %           15             (12)              

Logistics:

Assmang's manganese ore export volumes are fully contracted with Transnet for F2019, F2020 and F2021 through both
the Port Elizabeth and Saldanha export channels. In terms of the long-term allocation from F2022 onwards, Assmang is
in ongoing negotiations with Transnet to synchronise the ramp up of Black Rock Mine with the medium and longer-term
(MECA2 and MECA3) Transnet capacity process.

Transnet is expected to run short on deliveries for Assmang's export contractual commitments for manganese ore and
iron ore for F2019, due to availability challenges on the Sishen Saldanha Export Channel. Management have introduced
alternative modes of transport to achieve sales targets by the end of F2019.


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

ARM Platinum

ARM Platinum's attributable headline earnings decreased by 26% to R167 million (1H F2018: R226 million), mainly due to
a headline loss reported for Nkomati Mine. Modikwa Mine's attributable headline earnings improved due to an increase in
metal prices combined with a reduction in unit costs. As previously reported, the concentrate offtake agreements for both
Modikwa and Nkomati mines were renegotiated with temporary improvement to the agreement terms and conditions. This
impacted positively on Modikwa Mine's headline earnings and partly offset the headline loss at Nkomati Mine.


ARM Platinum attributable headline earnings/(loss)

                                                                                              6 months ended 31 December
R million                                                                                     2018       2017   % change   
Two Rivers Mine                                                                                180        173          4   
Modikwa Mine                                                                                   173         36       >200   
Nkomati Mine                                                                                 (186)         17          -   
Total                                                                                          167        226       (26)   

Improved Rand palladium (18%), rhodium (111%), nickel (23%) and cobalt (40%) prices contributed significantly to the
Modikwa and Two Rivers results. The average Rand per 6E kilogram basket price for both Modikwa Mine and Two Rivers
Mine increased by 20% to R452 307/kg (1H F2018: R375 776/kg) and R437 441/kg (1H F2018: R365 825/kg) respectively.
The tables below set out the relevant price comparison:


Average US Dollar metal prices

                                                                                            6 months ended 31 December
                                                                            unit         2018            2017   % change   
Platinum                                                                  US$/oz          818             936       (13)   
Palladium                                                                 US$/oz        1 055             947         11   
Rhodium                                                                   US$/oz        2 391           1 199         99   
Nickel                                                                     US$/t       13 030          11 213         16   
Copper                                                                     US$/t        6 390           6 690        (4)   
Cobalt                                                                    US$/lb           36              27         33   
UG2 chrome concentrate - Two Rivers (CIF*)                                 US$/t          157             159        (1)   
High sulphur chrome concentrate - Nkomati                                                                                  
(FOT**)                                                                    US$/t           66              69        (4)   

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

Average Rand metal prices                                                                                                  
                                                                                          6 months ended 31 December
                                                                            unit       2018              2017   % change   
Exchange Rate                                                              R/US$      14.19             13.39          6   
Platinum                                                                    R/oz     11 610            12 538        (7)   
Palladium                                                                   R/oz     14 967            12 677         18   
Rhodium                                                                     R/oz     33 932            16 050        111   
Nickel                                                                       R/t    184 896           150 145         23   
Copper                                                                       R/t     90 679            89 577          1   
Cobalt                                                                      R/lb        505               360         40   
UG2 chrome concentrate - Two Rivers (CIF*)                                   R/t      2 227             2 130          5   
High sulphur chrome concentrate - Nkomati                                                                                  
(FOT**)                                                                      R/t        940               920          2   

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

Lower PGM production at Modikwa Mine (2%), Two Rivers Mine (10%) and Nkomati Mine (23%) resulted in ARM Platinum's
PGM ounces (on a 100% basis) reducing by 9% to 384 849 6E ounces (1H F2018: 422 104 6E ounces).

Nkomati Mine's nickel production decreased by 2% to 6 624 tonnes (1H F2018: 6 733 tonnes) as a result of a 5% decrease
in the average concentrator recovery due to Very Low Grade (VLG) MMZ stock pile material being milled.

Capital expenditure

Capital expenditure at ARM Platinum operations (on a 100% basis) slightly increased to R655 million (1H F2018:
R644 million).

Capital expenditure at Modikwa Mine (on 100% basis) decreased by 30% to R152 million (1H F2018: R218 million). Of
the capital spent in 1H F2018, 31% is associated with the North Shaft Project and 6% with the South Shaft Project, (both
of which are discussed further under Projects in this section). Thirty-nine percent of the capital expenditure was spent on
fleet refurbishment and critical spares.

Of the R247 million capital spent at Two Rivers in 1H F2019, 35% is associated with fleet replacement and refurbishment.
The deepening of the Main and North declines, together with its electrical and mechanical installations, comprised 55% of
the total capital expenditure.

Nkomati Mine's 1H F2019 capital expenditure of R256 million (on 100% basis) was mainly for capitalised waste stripping
which increased by 97% to R225 million as a result of accelerated waste stripping in order to expose higher grade MMZ ore.

ARM Platinum capital expenditure (on 100% basis)

                                                                                          six months ended 31 December
R million                                                                               2018             2017   % change   
Modikwa                                                                                  152              218       (30)   
Two Rivers                                                                               247              226          9   
Nkomati                                                                                   31               86       (64)   
Nkomati capitalised waste stripping                                                      225              114         97   
Total                                                                                    655              644          2   

Two Rivers Mine

Attributable headline earnings at Two Rivers Mine increased by 4% to R180 million (1H F2018: R173 million). A 3%
decrease in tonnes milled and a 5% reduction in head grade, led to PGMs produced declining by 10% to 160 971 6E
ounces (1H F2018: 178 702 6E ounces). In addition, chrome concentrate sales volumes declined by 10% to 104 555
tonnes as a result of a lower chrome yield, a direct consequence of the lower PGM grade. This, combined with a 24%
decline in the Rand chrome price from July 2018 to December 2018, resulted in chrome cash operating profit declining
by 23% to R79 million (1H F2018: R102 million).

Continued complexity in the ore body resulted in lower grades delivered to the plant. The decline in head grade is largely
attributable to geologically-induced dilution associated with high variability in the UG2 Reef on the Southern extent of the Main
Decline. This has resulted in the adaption of mining cuts to suit the highly variable split reef which results in lower grades.
There is also limited face length flexibility in obtaining the optimal blend of ore from split reef and normal reef sources at Main
Decline. An accelerated sinking programme is under execution to address the face length flexibility constraint. It is planned
to sink Main Decline and establish an additional two levels per year going forward, which will improve the mining mix blend.
Areas of thick, lower grade split reef are expected to continue affecting the overall mining grade negatively at Main Decline
for the next 12 months, resulting in overall mining grades of between 3.50 and 3.60 6E grams per tonne. Undercutting of the
thick internal waste within the split reef is also undertaken wherever practically possible.

Unit production costs on a Rand per tonne milled basis were well controlled increasing by 2% to R709 per tonne
(1H F2018: R694 per tonne). The Rand per PGM ounce, however, increased by 10% to R7 338 per 6E ounce (1H F2018:
R6 655 per 6E ounce), as a direct result of the decline in grade. There was a 16 310 tonne increase in the UG2 Run-of-
Mine stockpile to a total of 267 973 tonnes of ore as at 31 December 2018.

Two Rivers Mine operational statistics (on 100% basis)

                                                                                         six months ended 31 December
                                                                          unit        2018               2017   % change   
Cash operating profit                                                R million         707                681          4   
- PGMs                                                               R million         628                580          8   
- Chrome                                                             R million          79                102       (23)   
Tonnes milled                                                               Mt        1.67               1.71        (2)   
Head grade                                                             g/t, 6E        3.53               3.70        (5)   
PGMs in concentrate                                                 ounces, 6E     160 971            178 702       (10)   
Chrome concentrate sold                                                 Tonnes     104 555            115 657       (10)   
Average basket price                                                  R/kg, 6E     437 441            365 825         20   
Average basket price                                                US$/oz, 6E         959                850         13   
Cash operating margin                                                        %          34                 35              
Cash cost                                                             R/kg, 6E     235 930            213 971         10   
Cash cost                                                              R/tonne         709                694          2   
Cash cost                                                              R/Pt oz      15 615             14 253         10   
Cash cost                                                             R/oz, 6E       7 338              6 655         10   
Cash cost                                                           US$/oz, 6E         517                497          4   
Headline earnings attributable to ARM                                R million         180                173          4   

Modikwa Mine

Modikwa Mine achieved attributable headline earnings of R173 million (1H F2018: R36 million). Tonnes milled remained
flat, but a 2% decrease in head grade resulted in PGM production decreasing by 2% to 171 704 6E ounces (1H F2018:
175 899 6E ounces). The decline in head grade was mainly due to a thinner main seam mined near challenging geological
structures and in-stope dilution caused by adverse hanging wall conditions. The above conditions are expected to improve
over the next two years as mining moves closer to the shaft barrels away from the geological structures causing dilution
and as South 2 Shaft deepens.

Unit production costs decreased by 3%, to R8 560 per 6E PGM ounce (1H F2018: R8 832 per 6E PGM ounce) and were
5% lower on a Rand per tonne basis at R1 189 per tonne (1H F2018: R1 258 per tonne).

South 2 Shaft phase 1 achieved on average 47 thousand tonnes per month for the past six months. It is anticipated that
steady state production rates of 50 thousand tonnes will be achieved in F2019.

Modikwa Mine operational statistics (on 100% basis)

                                                                                          six months ended 31 December
                                                                          unit         2018              2017   % change   
Cash operating profit/(loss)                                         R million          708               200       >200   
Tonnes milled                                                               Mt         1.24              1.24          -   
Head grade                                                             g/t, 6E         5.07              5.15        (2)   
PGMs in concentrate                                                 ounces, 6E      171 704           175 899        (2)   
Average basket price                                                  R/kg, 6E      452 307           375 776         20   
Average basket price                                                US$/oz, 6E          991               873         14   
Cash operating margin                                                        %           33                12              
Cash cost                                                             R/kg, 6E      275 207           283 964        (3)   
Cash cost                                                              R/tonne        1 189             1 258        (5)   
Cash cost                                                              R/Pt oz       21 867            22 548        (3)   
Cash cost                                                             R/oz, 6E        8 560             8 832        (3)   
Cash cost                                                           US$/oz, 6E          603               660        (9)   
Headline earnings/(loss) attributable to ARM                         R million          173                36       >200   

Nkomati Mine

Nkomati Mine reported an attributable headline loss of R186 million (1H F2018: R17 million headline earnings) for the
period under review as spot nickel prices reduced from US$14 940 on 1 July 2018 to US$10 595 on 31 December
2018, resulting in a negative mark-to-market adjustment of R158 million. In the corresponding period, the nickel spot price
increased from US$9 375/t on 1 July 2017 to US$12 645/t on 31 December 2017, resulting in a positive mark-to-market
of R308 million during that period. Lower nickel sales volumes (3 532 tonnes compared to 4 178 tonnes) also contributed
to the headline loss.

The poor financial performance was intensified by lower chrome concentrate sales (160 769 tonnes compared to 198 928
tonnes) combined with a 36% decrease in the average Rand chrome price from July 2018 to December 2018.

Nkomati Mine's total tonnes milled increased by 1% to 4.12 million tonnes (1H F2018: 4.08 million tonnes). Nickel
production volumes, however, decreased to 2% to 6 624 tonnes (1H F2018: 6 733 tonnes). The main reasons for this were:

-      Pit 3 mining operations remain constrained as a result of the historical insufficient waste stripping, resulting in
       insufficient MMZ ore availability during the reporting period;

-      As a result of insufficient ore supply, higher than expected processing of Very Low Grade (VLG) MMZ stockpile
       material (approximately 0,8 million tonnes during the period) was used to supplement 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 of 0.27% nickel for the period.

The mine revaluated of design parameters for the saprolite zones of the pit's Western high wall and design changes were
implemented to improve structural stability of the soft weathered zone. This has resulted in more stable high wall conditions
and hence improved mining efficiencies and volumes were achieved during the review period.

Nkomati Mine had 23 thousand tonnes of nickel concentrate in stock as at 31 December 2018 due to shipping delays.

Nkomati Mine's on-mine unit production cost (excluding capitalised waste stripping) was 11% higher at R346/t
(1H F2018: R311/t) as a result of above inflation increase in mining costs, diesel price, maintenance costs and tyres.
C1 unit cash cost net of by-products (including capitalised waste stripping cost) was 59% higher at US$7.87/lb (1H F2018:
US$4.95/lb) of nickel produced. The increase in C1 unit cash costs was due to reduced by-product credits, increased
mining cost and lower nickel units produced. Waste stripping costs of R225 million (1H F2018: R114 million) were
capitalised during the period.

Nkomati Mine operational statistics (on 100% basis)

                                                                                          six months ended 31 December
                                                                          unit         2018              2017   % change   
Cash operating profit                                                R million        (260)               293              
- Nickel Mine                                                        R million        (373)               175              
- Chrome Mine                                                        R million          112               118        (5)   
Cash operating margin                                                        %         (24)                17              
Tonnes milled                                                               Mt         4.12              4.08          1   
Head grade                                                            % nickel         0.25              0.24          4   
Nickel on-mine cash cost per tonne milled                              R/tonne          346               311         11   
Nickel on-mine cash cost per tonne milled                                                                                  
(including capitalised waste stripping costs)                          R/tonne          401               339         18   
Cash cost net of by-products*                                           US$/lb         7.87              4.95         59   
Contained metal                                                                                                            
Nickel                                                                  tonnes        6 624             6 733        (2)   
PGMs                                                                    ounces       52 174            67 503       (23)   
Copper                                                                  tonnes        3 222             4 482       (28)   
Cobalt                                                                  tonnes          386               356          8   
Chrome concentrate sold                                                 tonnes      160 769           198 928       (19)   
Headline (loss)/earnings attributable to ARM                         R million        (186)                17              

* 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 eventually 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 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%. ARM's shareholding in
      Two Rivers increased from 51% to 54% effective from 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.

ARM Coal

ARM Coal attributable headline earnings decreased by 59% to R65 million (1H F2018: R160 million). Headline earnings
were negatively impacted by re-measurement losses of R206 million as discussed in the financial results overview section.
Interest expense reduced by 45% to R141 million (1H F2018: R257 million) due to the ARM Coal debt restructuring. The
notional interest together with the re-measurement loss, are not tax deductible, resulting in a substantial increase in the tax
charge for the period under review.

Seaborne coal prices were positively impacted by an increase in demand from India and China, slightly offset by a reduction
in demand from Europe. The impact of the higher US Dollar prices was enhanced by the weakening of the average realised
Rand/US Dollar exchange rate. Realised Rand prices for export coal increased by 15% from R1 000 per tonne in 1H F2018
to R1 154 per tonne in 1H F2019.

More than 80% of the export volumes at GGV Mine were high quality coal while only approximately 38% of PCB exports
were high quality. This resulted in PCB's average received export price (US$77.69/t) being lower compared to GGV Mine
(US$87.18/t).

ARM attributable saleable tonnes produced of 2.51 million tonnes were 3% lower than the 2.59 million tonnes produced
in 1H F2018.

ARM Coal attributable headline earnings analysis

                                                                                    six months ended 31 December
                                                                                            2017                           
R million                                                                2018          published        % change   2017*   
Cash operating profit                                                     873                751              16     751   
Interest expense**                                                      (141)              (257)              45   (164)   
Amortisation                                                            (302)              (249)            (21)   (249)   
(Re-measurement loss)/fair value gain                                   (201)               (29)          >(200)   1 081   
Impairment reversal/(charge)                                                3               (19)               -    (19)   
Profit before tax                                                         232                197              18   1 400   
Plus/(less): Impairment                                                   (3)                 19               -      19   
Less: Tax                                                               (164)               (56)             191    (86)   
Headline earnings attributable to ARM                                      65                160            (59)   1 333   

*  The ARM Coal debt was restructured with effect from 1 July 2017. The terms of the restructuring were finalised on 25 June 2018.
   This 2017 column which is presented on the restructured basis is provided for information purposes.
** Post restructuring of the ARM Coal loans all interest expense is notional.

Goedgevonden (GGV) Mine

Average received export US Dollar prices increased by 9% compared to 1H F2018. The impact of the higher prices was
enhanced by a 6% weakening of the Rand versus the US Dollar. Export sales volumes was 13% lower compared to 1H
F2018 due to inclement weather causing port closures at Richards Bay Coal Terminal, as well as an underperformance
by Transnet Freight Rail. This resulted in an increase in coal stockpiles at GGV Mine. Attributable export revenue of R458
million in 1H F2019 was in line with 1H F2018.

An increase in local sales resulted in total attributable revenue increasing by 4.8% in 1H F2019 compared to 1H F2018.

Saleable production at GGV Mine was 9% higher than 1H F2018 due to an increase in plant feed resulting from a steady
improvement in ROM production.

On-mine unit production costs per saleable tonne increased by 8.6% to R342. The increase was largely due to above
inflationary increases in diesel costs.

Cash operating profit of R246 million was 3% higher than the previous period, however, GGV Mine reported a headline
loss of R7 million (1H F2018: R35 million headline earnings) mainly due to re-measurement loss of R48 million and an
increase in tax.

Goedgevonden Mine operational statistics (100% basis)

                                                                                         six months ended 31 December
                                                                           unit        2018              2017   % change   
Total production and sales(100% basis)                                                                                     
Saleable production                                                          Mt        3.59              3.30          9   
Export thermal coal sales                                                    Mt        1.42              1.64       (13)   
Domestic thermal coal sales                                                  Mt        1.81              1.75          3   
ARM attributable production and sales                                                                                      
Saleable production                                                          Mt        0.93              0.86          8   
Export thermal coal sales                                                    Mt        0.37              0.43       (14)   
Domestic thermal coal sales                                                  Mt        0.47              0.46          2   
Average received coal price                                                                                                
Export (FOB*)                                                         US$/tonne       87.18             80.22          9   
Domestic (FOT**)                                                        R/tonne         259               232         12   
On-mine saleable cost                                                   R/tonne         343               315          9   
Cash operating profit                                                                                                      
Total                                                                 R million         948               923          3   
Attributable (26%)                                                    R million         246               240          3   
Headline (loss)/earnings attributable to ARM                          R million         (7)                35      (120)   

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

Goedgevonden Mine attributable profit analysis

                                                                                    six months ended 31 December
                                                                                              2017                         
R million                                                                       2018     published      % change   2017*   
Cash operating profit                                                            247           240             3     240   
Interest expense**                                                              (72)         (113)            36    (77)   
Amortisation                                                                    (84)          (78)           (8)    (78)   
(Re-measurement loss)/fair value gain                                           (49)           (6)        >(200)     755   
Profit before tax                                                                 42            43             2     840   
Less: Tax                                                                       (49)           (8)        >(200)    (23)   
Headline earnings attributable to ARM                                            (7)            35                   817   

*  The ARM Coal debt was restructured with effect from 1 July 2017. The terms of the restructuring were finalised on 25 June 2018.
   This 2017 column which is presented on the restructured basis is provided for information purposes.
** Post restructuring of the ARM Coal loans all interest expense is notional.

Participating Coal Business (PCB)

PCB attributable cash operating profit increased by 23% to R626 million (1H F2018: R511 million). Revenue increased by
7% compared to 1H F2018 largely as a result of a 9% increase in US Dollar coal prices together with a 7% weakening of
the Rand versus the US Dollar. This was partially offset by a 6% reduction in overall sales volumes.

Unit production costs per saleable tonne increased by 18% from R334 per tonne in 1H F2018 to R395 per tonne in
1H F2019. The increase in unit costs is largely due to a decline in saleable production and above inflation increases in
diesel costs. Saleable production was 9% lower compared to 1H F2018.

The PCB operation was negatively impacted by industrial action in July 2018. ROM production was further impacted by
the occurrence of sinkholes arising from old underground mined areas currently being mined at the Tweefontein Mine.
Technical feasibilities have been performed and the mine is in the process of adopting a mining technique which will
address possible instabilities in advance.

Headline earnings attributable to ARM was R72 million. (1H F2018: R125 million), and includes a fair value loss of
R152 million.

PCB operational statistics

                                                                                         six months ended 31 December
                                                                           unit         2018             2017   % change   
Total production sales (100% basis)                                                                                        
Saleable production                                                          Mt         7.84             8.57        (9)   
Export thermal coal sales                                                    Mt         5.86             6.71       (13)   
Domestic thermal coal sales                                                  Mt         1.39             0.97         43   
ARM attributable production and sales                                                                                      
Saleable production                                                          Mt         1.58             1.73        (9)   
Export thermal coal sales                                                    Mt         1.18             1.36       (13)   
Domestic thermal coal sales                                                  Mt         0.28             0.20         40   
Average received coal price                                                                                                
Export (FOB*)                                                         US$/tonne        77.69            71.13          9   
Domestic (FOT**)                                                        R/tonne          459              244         88   
On-mine saleable cost                                                   R/tonne          395              334         18   
Cash operating profit                                                                                                      
Total                                                                 R million        3 100            2 529         23   
Attributable (20.2%)                                                  R million          626              511         23   
Headline earnings attributable to ARM                                 R million           72              125       (42)   

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

PCB attributable profit analysis

                                                                                  six months ended 31 December
                                                                                                 2017                      
R million                                                                    2018           published   % change   2017*   
Cash operating profit                                                         626                 511         23     511   
Interest expense **                                                          (69)               (144)         52    (87)   
Amortisation                                                                (218)               (171)       (27)   (171)   
(Re-measurement loss)/fair value gain                                       (152)                (23)     >(200)     325   
Impairment reversal/(charge)                                                    3                (19)               (19)   
Profit before tax                                                             190                 154         23     559   
Plus: Impairment                                                              (3)                  19                 19   
Less: Tax                                                                   (116)                (43)      (170)    (58)   
Less: Tax on impairment                                                         1                 (5)                (5)   
Headline earnings attributable to ARM                                          72                 125       (42)     515   

*  The ARM Coal debt was restructured with effect from 1 July 2017. The terms of the restructuring were finalised on 25 June 2018.
   This 2017 column which is presented on the restructured basis is provided for information purposes
** Post restructuring of the ARM Coal loans all interest expense is notional.

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

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

Harmony Gold Mining Company Limited (Harmony)

Harmony reported a 93% decrease in headline earnings from R990 million to R73 million for 1H F2019 mainly due to
translation loss of R180 million on US Dollar denominated debt at 31 December 2018 and lower derivative gains recognised
in 1H F2019 of R20 million (1H F2018: R337 million). Headline earnings per share were 14 cents per share compared with
224 cents per share in 1H F2018.

Revenue increased by 40% mainly due to the inclusion of the Moab Khotsong operations (R2.7 billion) and Hidden Valley's
production (R1.7 billion increase) for the full six-month period to 31 December 2018. The average gold price received
declined by 1% to R572 898/kg (1H F2018: R580 672/kg).

Gold production increased by 34% to 23 359kg (1H F2018: 17 418kg) and was significantly boosted by the acquisition of
Moab Khotsong Mine (effective 1 March 2018) and by Hidden Valley Mine, which achieved commercial levels of production
in June 2018.

Harmony's all-in sustaining unit costs increased by 6% to R528 265/kg mainly as a result of lower production at Tshepong
Mine, deferred stripping at Hidden Valley Mine and increased capital development expenditure at the Tshepong, Joel,
Doornkop and Target 1 mines.

As announced on 11 December 2018, the Wafi-Golpu Joint Venture (WGJV) signed a Memorandum of Understanding
(MOU) with the Independent State of Papua New Guinea (PNG) which affirmed the parties' intent to proceed with the Wafi-
Golpu Project, subject to finalisation of the permitting process and Harmony and Newcrest Mining Limited board approvals.
The MOU also re-affirmed the intention of the parties to complete the permitting process and achieve the grant of a Special
Mining Lease (SML) by 30 June 2019.

The Harmony investment is reflected on the ARM Statement of Financial Position at R1 882 million as at 31 December
2018 (31 December 2016: R1 444 million). Harmony's share price was R25.20 per share at 31 December 2018
(31 December 2017: R22.69 per share, 30 June 2018: R21.22 per share). Gains and losses are recognised in equity (other
comprehensive income) and will not be reclassified through profit or loss. Dividends from Harmony are recognised in the
ARM Income Statement on the last day of registration following dividend declaration.

Harmony's results for interim period ended 31 December 2018 can be viewed on Harmony's website at
www.harmony.co.za.

 ARM owns 14.03% of Harmony's issued share capital.

Events after the reporting date

Events after the reporting date are set out in note 20 to the financial statements. Since 31 December 2018, ARM received
a dividend of R1 500 million from Assmang.

On 6 February 2019 the Competition Commission of South Africa approved the acquisition by ARM of the Machadodorp
Works business. The acquisition includes the assets and assumption of certain liabilities relating to the business. The
purchase price amounted to R130 million which will be adjusted for cash amounts received and paid during the period
1 January 2017 to 28 February 2019. Since ARM owns 50% of Assmang, effectively 50% of the purchase price received
by Assmang is attributable to ARM. These assets will be used for research and development purposes in the fields of
alternative smelting and extraction technologies.

Outlook

US Dollar commodity prices remain well supported despite concerns about a potential slowdown in China's growth.
China's focussed legislation and environmental restrictions in addressing pollution concerns continued to drive demand
and provided price support for the high-quality bulk metals that we produce. Supply disruptions in some bulk metals are
also contributing to commodity price strength in the short-term.

In the medium to long-term, China's shift to high-quality commodities and closure of high-cost and inefficient mines appears
to be structural and together with reduced investment in expansionary capital across a number of commodities globally, is
expected to provide price support for the commodities that we produce.

We are pleased to have moved towards improved regulatory certainty in the South African mining industry as evidenced
by the finalisation of Mining Charter III. This has reduced one of ARM's top 10 risks namely "Uncertainty regarding policy
change in South Africa". We anticipate the same level of engagement in effecting the Implementation Guidelines to Mining
Charter III which were published in December 2018.

We have seen an increased level of business interruption due to community unrest in communities where our mines are
located. While we have dedicated resources at executive and operational level for stakeholder engagement, along with
formal communication structures with surrounding communities, we expect that there is likely to be an increase in these
interruptions, which are primarily related to service delivery, as we approach national elections in May 2019.

Mining remains a long-term capital-intensive industry and we are committed to investing in current operations to grow
the business and be well positioned to take advantage of ever-changing pricing cycles in the commodities we mine. We
continue to assess value-accretive external growth opportunities and prioritise our policy to pay dividends bi-annually in line
with our communicated capital allocation framework.

ARM's financial position remains robust, allowing ARM to take advantage of future growth opportunities and realign existing
non-performing businesses where required.

Dividends

The Board has approved and declared an interim dividend of 400 cents per share (gross) in respect of the six months
ended 31 December 2018 (1H F2018: 250 cents per share). The amount to be paid is approximately R888 million.

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% (twenty percent);
-  The gross local dividend amount is 400 cents per ordinary share for shareholders exempt from the Dividends Tax;
-  The net local dividend amount is 320.00000 cents per share for shareholders liable to pay the Dividends Tax;
-  As at the date of this declaration ARM has 221 933 850 ordinary shares in issue; and
-  ARM's income tax reference number is 9030/018/60/1.

A gross dividend of 400 cents per ordinary share, being the dividend for the six months ended 31 December 2018 has
been declared payable on Monday, 8 April 2019 to those shareholders recorded in the books of the Company at the close
of business on Friday, 5 April 2019. The dividend is declared in the currency of South Africa. Any change in address or
dividend instruction to apply to this dividend must be received by the Company's transfer secretaries or registrar not
later than Friday, 5 April 2019. The last day to trade ordinary shares cum dividend is Tuesday, 2 April 2019. Ordinary
shares trade ex-dividend from Wednesday, 3 April 2019. The record date is Friday, 5 April 2019 whilst the payment date
is Monday, 8 April 20189.

No dematerialisation or rematerialisation of share certificates may occur between Wednesday, 3 April 2019 and
Friday, 5 April 2019, both dates inclusive, nor may any transfers between registers take place during this period.

Review by independent auditors

The financial results for the six months ended 31 December 2018 have not been reviewed or audited by the Company's
registered auditors, Ernst & Young Inc.

Signed on behalf of the Board:

P T Motsepe                                           M P Schmidt
Executive Chairman                                    Chief Executive Officer

Johannesburg
1 March 2019

Group financial statements

Group statement of financial position
as at 31 December

                                                                                                        Unaudited                     Audited
                                                                                                    Six months ended               Year ended
                                                                                                      31 December                     30 June
                                                                                                                         *Restated
                                                                                                   2018             2017                 2018
                                                                                         Notes       Rm               Rm                   Rm
ASSETS
Non-current assets
Property, plant and equipment                                                                4     6 981           7 989                7 916
Intangible assets                                                                                    115             124                  120
Deferred tax assets                                                                                  525             663                  620
Loans and long-term receivables                                                              5       406              38                  462
Investment in associate                                                                      6     1 628           1 445                1 798
Investment in joint venture                                                                  7    15 904          15 626               15 504
Other investments                                                                            8     2 165           1 648                1 561
                                                                                                  27 724          27 533               27 981
Current assets
Inventories                                                                                          806             692                  591
Trade and other receivables                                                                        2 649           2 283                2 357
Taxation                                                                                             258              97                   85
Cash and cash equivalents                                                                    9     3 297           1 919                3 291
                                                                                                   7 010           4 991                6 324
Assets held for sale                                                                                   -               1                    -
Total assets                                                                                      34 734          32 525               34 305
EQUITY AND LIABILITIES
Capital and reserves
Ordinary share capital                                                                                11              11                   11
Share premium                                                                                      4 689           4 396                4 398
Treasury shares                                                                                  (2 405)         (2 405)              (2 405)
Other reserves                                                                                     1 517           1 310                1 419
Retained earnings                                                                                 22 452          20 073               22 484
Equity attributable to equity holders of ARM                                                      26 264          23 385               25 907
Non-controlling interest                                                                           1 617           1 541                1 471
Total equity                                                                                      27 881          24 926               27 378
Non-current liabilities
Long-term borrowings                                                                        10     1 679           2 311                1 744
Deferred tax liabilities                                                                           1 543           1 574                1 634
Long-term provisions                                                                               1 193           1 181                1 135
                                                                                                   4 415           5 066                4 513
Current liabilities
Trade and other payables                                                                           1 654           1 505                1 406
Short-term provisions                                                                                252             235                  374
Taxation                                                                                              79              83                   82
Overdrafts and short-term borrowings                                                        10       453             710                  552
                                                                                                   2 438           2 533                2 414
Total equity and liabilities                                                                      34 734          32 525               34 305

Group statement of profit or loss
for the six months ended 31 December

                                                                                                                            Unaudited
                                                                                                          Six months ended         Year ended
                                                                                                            31 December               30 June
                                                                                                                            Restated(1)
                                                                                                         2018            2017            2018
                                                                                          Notes            Rm              Rm              Rm
Revenue                                                                                                 4 524           4 794           9 112
Revenue from continuing operations                                                            3         4 524           4 454           8 772
Revenue from discontinued operations                                                          3             -             340             340
Sales                                                                                       1&3         4 147           4 174           8 142
Cost of sales                                                                               1&3       (3 346)         (3 369)         (6 696)
Gross profit                                                                                              801             805           1 446
Other operating income(2)                                                                                 496             453           1 527
Other operating expenses(3)                                                                             (797)           (620)         (1 263)
Profit from operations before special items                                                               500             638           1 710
Income from investments                                                                                   130             103             177
Finance costs                                                                                           (145)           (174)           (360)
Income from associate(4)                                                                      6            75             111             619
Income from joint venture(5)                                                                  7         2 121           1 765           3 510
Profit before taxation and special items                                                                2 681           2 443           5 656
Special items                                                                                11       (1 166)               1            (42)
Profit before taxation from continuing
operations                                                                                              1 515           2 444           5 614
Taxation                                                                                     13          (19)           (334)           (573)
Profit for the period from continuing
operations                                                                                              1 496           2 110           5 041
Discontinued operations
Loss for the period from discontinued operations                                                            -           (219)           (219)
Profit/(loss) for the period (all operations)                                                           1 496           1 891           4 822
Attributable to:
Equity holders of ARM
Profit for the period from continuing operations                                                        1 306           1 938           4 747
Loss for the period from discontinued operations                                                            -           (185)           (185)
Basic earnings for the period                                                                           1 306           1 753           4 562
Non-controlling interest
Profit for the period from continuing operations                                                          190             172             294
Loss for the period from discontinued operations                                                            -            (34)            (34)
                                                                                                          190             138             260
Profit for the period                                                                                   1 496           1 891           4 822
(1) 1HF2018 and F2018 were restated as a result of implementing IFRS 15 -
    Revenue from contracts with customers (refer note 1 and 3).
(2) Includes a R4 million fair value gain on investment in RBCT in terms of
    IFRS 9 adopted this period (refer note 1).
(3) Includes a R4 million re-measurement loss on loans in Modikwa in
    terms of IFRS 9 adopted this period (refer note 1).The re-measurement
    adjustment loss on the ARM Coal loans was R113 million (1H F2018: nil),
    (1H F2018: R652 million).
(4) The re-measurement adjustment loss on the ARM Coal loans was
    R152 million (1H F2018: Nil), (F2018: R325 million).
(5) Impairment included in income from joint venture of R20 million before tax
    of R6 million (1H F2018: nil), (F2018: R26 million before tax of R7 million).
Earnings per share                                                                           12
Basic earnings per share (cents)                                                                          682             922           2 393
Basic earnings from continuing operations per share (cents)                                               682           1 019           2 490
Basic loss from discontinued operation per share (cents)                                                    -            (97)            (97)
Diluted basic earnings per share (cents)                                                                  667             895           2 325
Diluted basic earnings from continuing operations
per share (cents)                                                                                         667             990           2 419
Diluted basic loss from discontinued operation
per share (cents)                                                                                           -            (95)            (94)

Group statement of comprehensive income
for the six months ended 31 December 2018

                                                                                Financial
                                                                              instruments
                                                                            at fair value
                                                                                  through
                                                                                    other                          Total
                                                                                  compre-                         share-        Non-
                                                                                  hensive             Retained   holders controlling
                                                                                   income    Other    earnings    of ARM    interest    Total
                                                                                       Rm       Rm          Rm        Rm          Rm       Rm
Six months ended 31 December 2018 (Unaudited)
Profit for the period                                                                   -        -       1 306     1 306         190    1 496
Total other comprehensive income                                                      248       41           -       289           -      289
Other comprehensive income that will not be
reclassified to the statement of profit or loss in
subsequent periods:
Net impact of revaluation of listed investment                                        248        -           -       248           -      248
Revaluation of listed investment(1)                                                   320        -           -       320           -      320
Deferred tax on above                                                                (72)        -           -      (72)           -     (72)
Other comprehensive income that may be reclassified
to the statement of profit or loss in subsequent periods:
Foreign currency translation reserve movement                                           -       41           -        41           -       41
Total comprehensive income for the period                                             248       41       1 306     1 595         190    1 785
Six months ended 31 December 2017 (Unaudited)
Profit for the period                                                                   -        -       1 753     1 753         138    1 891
Profit for the period from continuing operations                                        -        -       1 938     1 938         172    2 110
Loss for the period from discontinued operations                                        -        -       (185)     (185)        (34)    (219)
Other comprehensive income that may be reclassified
to the statement of profit or loss in subsequent periods:
Total other comprehensive income/(loss)                                                50    (687)           -     (637)           -    (637)
Net impact of revaluation of listed investment                                         50        -           -        50           -       50
Revaluation of listed investment(1)                                                    64        -           -        64           -       64
Deferred tax on above                                                                (14)        -           -      (14)           -     (14)
Foreign currency translation reserve movement from
continuing operations                                                                   -     (37)           -      (37)           -     (37)
Foreign currency translation reserve movement from
discontinued operation in prior year(2)                                                 -    (730)           -     (730)           -    (730)
Foreign currency translation reserve movement from
discontinued operation current year(2)                                                  -       80           -        80           -       80
Total comprehensive loss for the period                                                50    (687)       1 753     1 116         138    1 254

                                                                                 Financial                                                      
                                                                               instruments                                                      
                                                                             at fair value                                                      
                                                                                   through                                                      
                                                                                     other                        Total                         
                                                                                   compre-                       share-          Non-           
                                                                                   hensive           Retained   holders   controlling           
                                                                                    income   Other   earnings    of ARM      interest   Total   
                                                                                        Rm      Rm         Rm        Rm            Rm      Rm   
Year ended 30 June 2018 (Audited)                                                                                                               
Profit for the period                                                                    -       -      4 562     4 562           260   4 822   
Profit for the year from continuing operations                                           -       -      4 747     4 747           294   5 041   
Loss for the year from discontinued operation                                            -       -      (185)     (185)          (34)   (219)   
Other comprehensive income that may be reclassified                                                                                             
to the statement of profit or loss in subsequent periods:                                                                                       
Total other comprehensive loss                                                        (22)   (526)          -     (548)             -   (548)   
Net impact of revaluation of listed investment                                        (22)       -          -      (22)             -    (22)   
Revaluation of listed investment(1)                                                   (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 movement2                                            -    (80)          -      (80)             -    (80)   
Foreign currency translation reserve movement from                                                                                              
discontinued operation current year reversed -                                                                                                  
included in sale of Lubambe(2)                                                           -      80          -        80             -      80   
Foreign currency translation reserve movement                                                                                                   
from discontinued operation(2)                                                           -   (650)          -     (650)             -   (650)   
Total comprehensive loss for the period                                               (22)   (526)      4 562     4 014           260   4 274   

(1) The share price of Harmony Limited at 31 December 2018 was R 25.20, R21.22 at 30 June 2018, R22.69 at 31 December 2017,
    and R21.68 at 30 June 2017 per share. The valuation of the investment in Harmony is based on a level 1 fair value hierarchy
    level  in  terms of IFRS. The current period amount includes the revaluation of the additional 11  032  623 shares purchased at a
    total  cost of R211 million (refer cash flow statement). ARM shareholding at 31 December 2018 was 14.03% (1H2018:14.3%,
    30 June 2018: 12.7%).
(2) This relates to the foreign currency translation reserve on presentation of Lubambe Mine financial results from US dollars translated
    into South African Rands.

Group statement of changes in equity
for the six months ended 31 December 2018

                                                                     Financial                                                                  
                                                                    instrument                                                                  
                                                                 at fair value                                                                  
                                              Share                    through                                  Total                           
                                            capital   Treasury      other com-    Share-                       share-          Non-             
                                                and      share      prehensive     based           Retained   holders   controlling             
                                            premium    capital          income   payment   Other   earnings    of ARM      interest     Total   
                                                 Rm         Rm              Rm        Rm      Rm         Rm        Rm            Rm        Rm   
Six months ended
31 December 2018 (Unaudited)                                                                                                   
Balance at 30 June 2018                       4 409    (2 405)             392     1 107    (80)     22 484    25 907         1 471    27 378   
Restatements                                                                                                                                    
Fair value adjustment ARM Coal
RBCT1                                             -          -               -         -       -         72        72             -        72   
Re-measurement adjustment                                                                                                                       
Modikwa(1)                                        -          -               -         -       -         23        23             -        23   
Opening balance restated                                                                                                                        
1 July 2018                                   4 409    (2 405)             392     1 107    (80)     22 579    26 002         1 471    27 473   
Total comprehensive income for
the period                                        -          -             248         -      41      1 306     1 595           190     1 785   
Profit for the period                             -          -               -         -       -      1 306     1 306           190     1 496   
Other comprehensive income                        -          -             248         -      41          -       289             -       289   
Bonus and performance shares                                                                                                                    
issued to employees                             291          -               -     (291)       -          -         -             -         -   
Dividend paid                                     -          -               -         -       -    (1 433)   (1 433)             -   (1 433)   
Dividend paid to Impala Platinum                  -          -               -         -       -          -         -          (44)      (44)   
Share-based payments                              -          -               -       100       -          -       100             -       100   
Balance at 31 December 2018                   4 700    (2 405)             640       916    (39)     22 452    26 264         1 617    27 881   
Six months ended
31 December 2017 (Unaudited)                                                                                                   
Balance at 30 June 2017                       4 290    (2 405)             414     1 017     625     19 556    23 497           543    24 040   
Total comprehensive income/(loss)
for the period                                    -          -              50         -   (687)      1 753     1 116           138     1 254   
Profit for the period                             -          -               -         -       -      1 753     1 753           138     1 891   
Other comprehensive income/(loss)                 -          -              50         -   (687)          -     (637)             -     (637)   
Bonus and performance shares
issued to employees                             117          -               -     (117)       -          -         -             -         -   
Tamboti asset sale to Two Rivers                  -          -               -         -    (99)          -      (99)            99         -   
Non-controlling interest derecognised
on sale of Lubambe                                -          -               -         -       -          -         -           822       822   
Dividend paid                                     -          -               -         -       -    (1 236)   (1 236)             -   (1 236)   
Dividend paid to Impala Platinum                  -          -               -         -       -          -         -          (61)      (61)   
Share-based payments                              -          -               -       107       -          -       107             -       107   
Balance at 31 December 2017                   4 407    (2 405)             464     1 007   (161)     20 073    23 385         1 541    24 926   

(1) This relates to the adoption adjustments in terms of IFRS 9 on the investment in RBCT and loans in Modikwa (refer note 1).

                                                                     Financial                                                                  
                                                                    instrument                                                                  
                                                                 at fair value                                                                  
                                              Share                    through                                  Total                           
                                            capital   Treasury      other com-     Share                       share-          Non-             
                                                and      share      prehensive     based           Retained   holders   controlling             
                                            premium    capital          income   payment   Other   earnings    of ARM      interest     Total   
                                                 Rm         Rm              Rm        Rm      Rm         Rm        Rm            Rm        Rm   
Year ended 30 June 2018 (Audited)                                                                                                               
Balance at 30 June 2017                       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 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)       -          -         -             -         -   
Tamboti assets sale to Two Rivers                 -          -               -         -    (99)          -      (99)            99         -   
Reclassification of foreign currency
translation reserve included in loss
on sale of Lubambe                                -          -               -         -    (80)         80         -             -         -   
Dividend paid                                     -          -               -         -       -    (1 714)   (1 714)             -   (1 714)   
Dividend paid to Impala Platinum                  -          -               -         -       -          -         -         (253)     (253)   
Non-controlling interest derecognised                                                                                                           
on sale of Lubambe                                -          -               -         -       -          -         -           822       822   
Share based payments                              -          -               -       209       -          -       209             -       209   
Balance at 30 June 2018                       4 409    (2 405)             392     1 107    (80)     22 484    25 907         1 471    27 378   

Group statement of cash flows
for the six months ended 31 December 2018

                                                                                                                  Unaudited           Audited
                                                                                                              Six months ended     Year ended
                                                                                                                31 December           30 June 
                                                                                                               2018         2017         2018   
                                                                                                    Notes        Rm           Rm           Rm   
CASH FLOW FROM OPERATING ACTIVITIES                                                                                                             
Cash receipts from customers                                                                                  4 412        4 748        9 195   
Cash paid to suppliers and employees                                                                        (3 631)      (3 808)      (7 261)   
Cash generated from operations                                                                         14       781          940        1 934   
Interest received                                                                                               111           54          159   
Interest paid                                                                                                  (35)         (48)        (100)   
Taxation paid                                                                                                 (264)        (325)        (426)   
                                                                                                                593          621        1 567   
Dividends received from joint venture                                                                   7     1 750        1 000        3 000   
                                                                                                              2 343        1 621        4 567   
Dividends paid to non-controlling interest - Impala Platinum                                                   (44)         (61)        (253)   
Dividends paid                                                                                              (1 433)      (1 236)      (1 714)   
Net cash inflow from operating activities                                                                       866          324        2 600   
CASH FLOW FROM INVESTING ACTIVITIES                                                                                                             
Additions to property, plant and equipment to maintain                                                                                          
operations                                                                                                    (505)        (603)      (1 150)   
Dividends received from investments                                                                               8           22           22   
Proceeds on disposal of property, plant and equipment                                                             1            2            3   
Proceeds on disposal of investment                                                                                -          741          741   
Investment in Harmony                                                                                   8     (211)            -            -   
Investments in Richards Bay Coal Terminal                                                                         -          (2)            -   
Loans and receivables received                                                                                    -            -            3   
Net cash (outflow)/inflow from investing activities                                                           (707)          160        (381)   
CASH FLOW FROM FINANCING ACTIVITIES                                                                                                             
Long-term borrowings raised                                                                                       -          200          496   
Long-term borrowings repaid                                                                                   (137)        (173)        (746)   
Short-term borrowings raised                                                                                      -            -           27   
Short-term borrowings repaid                                                                                   (30)        (152)        (132)   
Net cash outflow from financing activities                                                                    (167)        (125)        (355)   
Net (decrease)/increase in cash and cash equivalents                                                            (8)          359        1 864   
Cash and cash equivalents at beginning of period                                                              2 910        1 031        1 031   
Foreign currency translation on cash balances                                                                    12         (12)           15   
Cash and cash equivalents at end of period                                                              9     2 914        1 378        2 910   
Made up as follows:                                                                                                                             
- Available                                                                                                   1 714          195        1 779   
- Restricted                                                                                                  1 200        1 183        1 131   
                                                                                                              2 914        1 378        2 910   
Cash generated from operations per share (cents)                                                                408          494        1 015   

Notes to the financial statements
for the six months ended 31 December 2018

1.    Statement of compliance

      The Group financial statements for the six months ended 31 December 2018 have been prepared in accordance with and
      contain the information required by IAS 34 - Interim Financial Reporting and comply with International Financial Reporting
      Standards (IFRS) and Interpretations of those standards, as adopted by the International Accounting Standards Board (IASB),
      requirements of the South African Companies Act 2008, the SAICA Financial Reporting Guides as issued by the Accounting
      Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and the Listings
      Requirements of the JSE Limited.
      
      Basis of preparation

      The Group financial statements for the six months ended 31 December 2018 have been prepared on the historical cost basis,
      except for certain financial instruments, which include listed investments, and unlisted investments that are fair valued. The
      accounting policies used are consistent with those in the most recent annual financial statements except for those listed below
      and comply with IFRS.

      The Group financial statements for the period have been prepared under the supervision of the Finance Director, Miss
      AM Mukhuba CA(SA).

      The presentation and functional currency is the South African Rand and the Group financials statements are rounded to the
      nearest R million.

      Adoption of new and revised accounting standards

      The Group has adopted the following new and/or and revised standards and interpretations issued by the International Financial
      Reporting Interpretation Committee (IFRIC) of the IASB during the period under review.
                                                                                                                    Effective date
      IAS 28            Investment in associates and joint ventures - clarification that measuring investees
                        at fair value through profit or loss is an investment - by - investment choice               1 January 2018
      IFRS 1            First-time adoption of International Financial Reporting Standards -
                        Deletion of short-term exemptions for first-time adopters                                    1 January 2018
      IFRS 2            Share-based payment (Amendment)                                                              1 January 2018
      IFRS 4 and IFRS 9 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts -
                        Amendments to IFRS 4                                                                         1 January 2018
      IFRS 9            Financial Instruments                                                                        1 January 2018
      IFRS 15           Revenue from Contracts with Customers                                                        1 January 2018
      IFRIC 22          Foreign currency transactions and Advance Consideration                                      1 January 2018
  
      Apart from IFRS 9 and IFRS 15 (refer note 1 and 3) the adoption of the other standards had no significant effect on the Group
      Financial Statements.

      IFRS 9 FINANCIAL INSTRUMENTS

      IFRS 9 is effective for ARM from 1 July 2018. ARM has opted to apply the modified approach, whereby opening retained income
      at 1 July 2018 is adjusted and the figures for F2018 were not restated.
       
      The following financial instruments were impacted by the implementation of IFRS 9:
 
      Equity investments (other than investments in subsidiaries, associates and joint ventures)
  
      Listed investments

      ARM continues to classify the listed shares in Harmony as fair value through other comprehensive income, whereby fair value
      gains and losses are recognised in equity (other comprehensive income) and will not be reclassified through profit or loss.
 
      Unlisted investments

      Previously, unlisted investments were measured at cost. Under IFRS 9, these investments in equities should be measured at
      fair value.

      Unlisted investments subject to adjustment - Investment in Richards Bay Coal Terminal (RBCT).
 
      This investment is held by ARM Coal which is a jointly-controlled operation of ARM and Glencore Operations South Africa
      Proprietary Limited (GOSA), and hence ARM's share of the investment is recognised in the ARM company financial statements.
      Up until 30 June 2018, this investment was carried at cost.

      For 1H F2019, the fair value of this investment was determined by calculating the present value of the future wharfage cost
      savings by being a shareholder in RBCT as opposed to the wharfage payable by non-shareholders. The cumulative fair value
      adjustment is R76 million, of which R72 million relates to prior periods (adjusted against retained earnings), and R4 million
      relates to 1H F2019. The current period's fair value adjustment is accounted for through profit or loss.
      
      This is a level 3 valuation in terms of IFRS 7 and 13. The fair value is most sensitive to the wharfage cost.

      Trade and other receivables (including loans advanced)
      
      Previously, receivables that contained provisional pricing features linked to commodity prices and exchange rates have been
      designated to be measured at fair value through profit or loss because of the embedded derivative which would otherwise
      require separation. Under IFRS 9, such instruments continue to be measured on the same basis. Other receivables, including
      loans advanced, 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 expected credit loss
      model had no material impact on ARM's results.
      
      The long-term loans to ARM Coal, Glencore and PCB continue to be accounted for at amortised cost.
      
      Non-current liabilities
      
      An interest free non-current liability owed by ARM Mining Consortium Ltd to Rustenburg Platinum Mines Ltd (Anglo American
      Platinum Ltd) was impacted by IFRS 9, resulting in a cumulative fair value adjustment of R19 million, of which R23 million relates
      to prior periods (fair value gain recorded against retained earnings), and R4 million loss recorded in statement of profit or loss.

                                                                                                                                     1H F2019   
      Impact of adopting IFRS 9 - Financial Instruments                                                                                    Rm   
      Effect in statement of profit or loss is as follows:                                                                                      
      Fair value gain on the RBCT investment                                                                                                4   
      Re-measurement loss on the Anglo American Platinum Limited loan                                                                     (4)   
      Net movement through statement of profit or loss                                                                                      -   
      Effect in statement of equity is as follows:                                                                                              
      Fair value gain on the RBCT investment                                                                                               72   
      Re-measurement gain on the Anglo American Platinum Limited loan                                                                      23   
      Net movement against opening retained earnings                                                                                       95   
      Statement of Financial Position - impact                                                                                                  
      Other investments - increase - Investment in RBCT                                                                                    76   
      Long-term borrowing - Anglo American Platinum Limited 31 December  2018                                                              95   
      Re-measurement loss on the Anglo American Platinum Limited loan                                                                       4   
      Re-measurement gain on the Anglo American Platinum Limited loan                                                                    (23)   
      Long-term borrowing - increase - Anglo American Platinum Limited  (reclassified from short-term)                                    114   
      Short-term borrowing - decrease - Anglo American Platinum Limited  (reclassified to long-term)                                      114   

      IFRS 15 REVENUE FROM CONTRACTS WITH CUSTOMERS
      
      IFRS 15 became applicable to ARM for the financial year commencing 1 July 2018. ARM has selected the full retrospective
      approach, requiring comparative years to be restated. The impact of IFRS 15 has been assessed based on the operating
      segments of the group.
      
      IFRS 15 replaces the risks and rewards principle that was applicable under IAS 18.
      
      Revenue under IFRS 15 is recognised under the following five step model:
      
      - Identify the contract with customers;
      - Identify the performance obligations;
      - Determine the transaction price;
      - Allocate the transaction price; and
      - Recognise revenue when performance obligations are satisfied.
      
      The impact of the adoption of IFRS 15 on the segments in ARM:
      
      ARM Corporate
      
      ARM provides management services to operations within the group. ARM invoices and recognises revenue on a monthly basis
      using the actual results of the component meaning no uncertainty surrounding the transaction price. The adoption of IFRS 15
      therefore had no impact on the revenue recognition in ARM Corporate.
      
      ARM Ferrous

      The change that had the most significant impact was on sales with cost, insurance and freight (CIF)/cost and freight (CFR) Inco
      terms. Sales with CIF/CFR Inco terms result in two distinct performance obligations -namely the supply of the commodity and
      shipping of the commodity.
      
      IFRS 15 had no impact on the equity accounted earnings of Assmang. However the composition of sales has changed as
      reflected below:
      
                                                                                    1H 2019     1H 2018      1H 2018       F2018        F2018   
                                                                                         Rm          Rm           Rm          Rm           Rm   
                                                                                  Currently   Currently   Previously   Currently   Previously   
                                                                                      under       under        under       under        under   
      On a 50% basis                                                                IFRS 15     IFRS 15       IAS 18     IFRS 15       IAS 18   
      Revenue from contracts with customers                                           7 885       6 842        6 816      13 836       13 774   
      Cost, insurance and freight (CIF) and                                                                                                     
      cost and freight (CFR)                                                          4 583       3 376                    6 443                
      Free on board (FOB and free carrier                                                                                                       
      (FCA)                                                                           3 302       3 466                    7 393                
      Sales                                                                               -           -        6 816                   13 774   
      Fair value adjustments to contract                                                                                                        
      revenue                                                                           107        (30)                     (84)                
      Other sales                                                                         7           4            -          22                
      Sales per segments                                                              7 999       6 816        6 816      13 774       13 774   

      ARM Platinum
      
      The following areas are impacted:
      
      Assay estimates
      
      Commodity sales are subject to assay estimates, which means that the transaction price is variable. IFRS 15 constrains the
      estimate of variable consideration recognised such that amounts are only included 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 the sale by the customer. The assay differences are typically not significant at approximately 1% of
      commodity sales revenue and therefore management did not change the approach followed under IAS 18. The adjustments
      to revenue arising from assay adjustments will continue to be recognised consistently as per the prior accounting treatment,
      i.e. included in revenue from contracts with customers.
      
      Provisional pricing
      
      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.
      
      On initial recognition, revenue is recognised at fair value. The revenue and related trade receivable is then re-measured at every
      subsequent month-end until the sale has been finalised. The sale is finalised at average commodity prices and exchange rate
      for the month preceding the month of invoicing.
      
      Previously, the changes in the fair value were recognised as part of revenue. These changes arise from re-measuring the
      related trade receivable to fair value at every month-end.
      
      The related trade receivables will continue to be measured at fair value under IFRS 9, which was adopted at the same time as
      IFRS 15. The resultant changes in fair value are not within the scope of IFRS 15, since they are re-measurements of a financial
      asset. Accordingly, they are not subject to the IFRS 15 variable consideration constraint. IFRS 9 requires the full change in fair
      value to be recognised.

      Since the changes in fair value relate to sales, management believes it is appropriate to continue to present such fair value
      changes as revenue (albeit not 'revenue from contracts with customers'). The revenue note disclosure disaggregates total
      revenue such that 'revenue from contracts with customers' is distinguished from these fair value adjustments.
      
      Penalties and treatment charges
      
      Adjustments, in the form of penalties and treatment charges, are made to the pricing to the extent the commodities sold do not
      meet certain specifications and as part of the terms of the various off-take agreement. 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.
      
      The following changes are applicable to the various ARM Platinum operations:
      
      Modikwa
      
      Chrome and moisture penalties were previously a deduction to revenue under IAS 18 and this is consistent with the requirements
      of IFRS 15, there is therefore no impact on Modikwa's revenue.
      
      Two Rivers Platinum
      
      Previously, grade, chrome and moisture penalties as well as smelting, refining and drying fees were classified as cost of sales.
      In terms of IFRS 15, the grade, chrome and moisture penalties as well as smelting, refining and drying fees are to be off-set
      against revenue.
      
      Nkomati
      
      Previously, arsenic and MGO penalties as well as transport recoveries were classified as cost of sales. In terms of IFRS 15, the
      arsenic and MGO penalties as well as transport recoveries will be debited against revenue.
      
      ARM Coal
      
      Management's assessment of domestic and export contracts against the requirements of IFRS 15 indicated that the adoption
      of IFRS 15 will have no impact.

      Group impact of IFRS 15 - Revenue from contracts with customers
      The impact on the group was as follows:
      
                                                                                                                 1H F2019   1H F 2018   F2018   
                                                                                                                       Rm          Rm      Rm   
      Revenue impact                                                                                                                            
      Penalty and treatment charges  - now deducted from revenue                                                                                
      - Nkomati                                                                                                      (29)        (31)    (62)   
      Penalty and treatment charges - now deducted from revenue                                                                                 
      - Two Rivers                                                                                                  (143)        (55)   (142)   
                                                                                                                    (172)        (86)   (204)   
      Cost of sales impact                                                                                                                      
      Penalty and treatment charges  - no longer included in cost of sales                                                                      
      - Nkomati                                                                                                        29          31      62   
      Penalty and treatment charges  - no longer included in cost of sales                                                                      
      - Two Rivers                                                                                                    143          55     142   
                                                                                                                      172          86     204   
      Net effect                                                                                                        -           -       -   
      
      These changes had no effect on basic earnings, headline earnings or diluted earnings.
      
      Please refer to note 3: Revenue, for the disaggregation of revenue into "revenue from contracts with customers'' and fair value
      adjustment to revenue.
      
      NEW STANDARDS ISSUED BUT NOT YET EFFFECTIVE

      The following amendments, standards or interpretations have been issued but are not yet effective. The effective date refers to
      periods beginning on or after, unless otherwise indicated.
      
      Standard          Subject                                                                                                Effective date
      IAS 1             Presentation of financial statement - new definition                                                   1 January 2020
      IAS 8             Accounting policies, changes in accounting estimates and errors - new definition                       1 January 2020
      IAS 12            Income taxes - clarification                                                                           1 January 2019
      IAS 19            Employee benefits                                                                                      1 January 2019
      IAS 23            Borrowing costs                                                                                        1 January 2019
      IFRS 3            Business Combinations - Amendment                                                                      1 January 2019
      IFRS 9            Financial Instruments - Classification and Measurement (Amendment)                                     1 January 2019
      IFRS 16           Leases                                                                                                 1 January 2019
      IFRS 17           Insurance                                                                                              1 January 2022
      IFRIC 23          Uncertainty over Income Tax Treatments                                                                 1 January 2019
      
      The Group does not intend early adopting any of the above amendments, standards or interpretations.
      ARM continuously evaluates the impact of these standards and amendments, the most prominent being IFRS 16 Leases. In
      summary the following are the current expectations in relation to IFRS 16.
      
      IFRS 16 - LEASES
      
      IFRS 16 was issued in January 2016 and 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 does not intend to adopt the standard before its effective date.
      
      IFRS 16 requirements will result in almost all leases being recognised on the statement of financial position, as the distinction
      between operating and finance leases is removed.
      
      Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognised. The
      only exceptions are short-term and low-value leases.
      
      The standard will affect primarily the accounting for the Group's operating leases and embedded leases in service contracts.
      
      The Group has opted to adopt the modified retrospective transition approach such that the cumulative effect of transition to IFRS
      16 will be recognised in retained earnings and the comparative period will not be restated.
      
      ARM continues its assessment in determining the impact of IFRS 16. Management has appointed external advisors who are
      in the process of reviewing all potential contracts which could contain possible leases under IFRS 16. Once this review is
      completed, management would be in a position to quantify the potential impact on ARM's financial statements.
      
      Apart from IFRS 16 discussed above, the adoption of the other standards are not expected to have a significant effect on the
      Group Financial Statements.

2.    SEGMENTAL INFORMATION

      Primary segmental information

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

                                                                                                                                    Total per
                                                                                                                                         IFRS
                                                                                                                             IFRS   financial
                                                                        ARM         ARM       ARM         ARM             Adjust-      state-
                                                                Platinum(1)  Ferrous(2)      Coal   Corporate     Total   ment(3)       ments
                                                                         Rm          Rm        Rm          Rm        Rm        Rm          Rm
2.1   Six months ended
      31 December 2018 (Unaudited)
      Sales                                                           3 550       7 999       597           -    12 146   (7 999)       4 147
      Cost of sales                                                 (2 920)     (4 516)     (437)          27   (7 846)     4 500     (3 346)
      Other operating income(4)                                          44          86        11         398       539      (43)         496
      Other operating expenses(5)                                     (155)       (786)      (55)       (587)   (1 583)       786       (797)
      Segment result                                                    519       2 783       116       (162)     3 256   (2 756)         500
      Income from investments                                            19         138         6         105       268     (138)         130
      Finance cost                                                     (28)        (19)      (80)        (37)     (164)        19       (145)
      Income from associate(6)                                            -           -        75                    75         -          75
      (Loss)/income from joint venture                                    -        (47)         -           -      (47)     2 168       2 121
      Special items before tax                                      (1 166)         (7)         -           -   (1 173)         7     (1 166)
      Taxation                                                          120       (709)      (49)        (81)     (719)       700        (19)
      (Loss)/profit after tax                                         (536)       2 139        68       (175)     1 496         -       1 496
      Non-controlling interest                                        (189)           -         -         (1)     (190)         -       (190)
      Consolidation adjustment(7)                                         -        (18)         -          18         -         -           -
      Contribution to basic (losses)/
      earnings                                                        (725)       2 121        68       (158)     1 306         -       1 306
      Contribution to headline earnings/                       
      (losses)                                                          167       2 127        65       (158)     2 201         -       2 201
      Other information
      Segment assets including investment                       
      in associate and joint venture                                  8 368      20 744     3 639       6 823    39 574   (4 840)      34 734
      Investment in associate                                                               1 628                 1 628                 1 628
      Investment in joint venture                                                                                          15 904      15 904
      Segment liabilities                                             1 948       1 946     1 391       1 892     7 177   (1 946)       5 231
      Unallocated - Deferred taxation 
      and taxation                                                                                                4 516   (2 894)       1 622
      Consolidated total liabilities                                                                             11 693   (4 840)       6 853
      Cash generated from operations                                    620       2 831       155           6     3 612   (2 831)         781
      Cash inflow/(outflow) from
      operating activities                                              507       2 320       158     (1 549)     1 436     (570)         866
      Cash outflow from investing
      activities                                                      (392)       (890)     (109)       (206)   (1 597)       890       (707)
      Cash outflow from financing
      activities                                                       (30)           -      (42)        (95)     (167)         -       (167)
      Capital expenditure                                               451         946       165           3     1 565     (946)         619
      Amortisation and depreciation                                     303         526        84           2       915     (526)         389
      Impairment loss/(reversal)                                        892          14       (3)           -       903      (14)         889

      There were no significant inter - division sales
      (1) Refer note 2.4 for more detail on the ARM Platinum segment.
      (2) Refer note 2.7 and note 7 for more detail on the ARM Ferrous segment.
      (3) Includes IFRS 11 - Joint Arrangements - adjustments related to ARM Ferrous.
      (4) Included in the ARM Coal segment is R4 million fair value gain in terms of IFRS 9 adopted during this period (refer note 1).
      (5) Included in Modikwa is R4 million re-measurement loss in terms of IFRS 9 adopted during this period (refer note 1). ARM
          Platinum (Modikwa) and ARM corporate segments' IFRS 9 adjustments (gain for ARM Platinum and losses for ARM
          corporate) of R18 million and interest of R20 million resulting from the revaluation of interest-free intercompany loans, which
          eliminate on consolidation for group, were not included. This is representative of the manner in which ARM's chief decision
          maker in terms of IFRS 8: Operating segments, reviews and analyses the business. The re-measurement adjustment on the
          ARM Coal loans was R113 million (ARM Coal segment R54 million and the ARM Corporate segment R59 million).
      (6) Impairment included in income from associate is R4 million less tax of R1 million. Re-measurement loss on the ARM Coal
          loans of R152 million.
      (7) Relates to capitalised fees in ARM Ferrous.


                                                                Continuing operations
                                                                                                                        Total per     Discon-
                                                                                                                             IFRS      tinued
                                                                                                                IFRS    financial  operations
                                                 ARM         ARM         ARM         ARM                     Adjust-       state-         ARM
                                         Platinum(1)  Ferrous(2)        Coal   Corporate       Total         ment(3)        ments      Copper
                                                  Rm          Rm          Rm          Rm          Rm              Rm           Rm          Rm
2.2   Six months ended
      31 December 2017 Restated(1)
      (Unaudited)
      Sales(1)                                 3 603       6 816         571           -      10 990         (6 816)        4 174         340
      Cost of sales(1)                       (2 940)     (4 029)       (433)          69     (7 333)           3 964      (3 369)       (282)
      Other operating income                      26          29          23         379         457             (4)          453           4
      Other operating expenses                 (120)       (641)         (3)       (497)     (1 261)             641        (620)        (70)
      Segment result                             569       2 175         158        (49)       2 853         (2 215)          638         (8)
      Income from investments                     15         151           -          88         254           (151)          103           -
      Finance cost                              (25)        (19)       (115)        (34)       (193)             19         (174)        (12)
      Finance cost ZCCM:
      Shareholders loan Vale/
      ARM joint venture                            -           -           -           -           -               -            -        (20)
      Income from associate(4)                     -           -         111           -         111               -          111           -
      Income from joint venture                    -         111           -           -         111           1 654        1 765           -
      Special items before tax                     1           -           -           -           1               -            1       (117)
      Taxation                                 (163)       (682)         (8)       (174)     (1 027)            693         (334)        (62)
      Profit/(loss) after tax                    397       1 736         146       (169)       2 110                        2 110       (219)
      Non-controlling interest                 (170)           -           -         (2)       (172)               -        (172)          34
      Consolidation adjustment(5)                  -          29           -        (29)           -               -            -           -
      Contribution to basic
      earnings/(losses)                          227       1 765         146       (200)       1 938               -        1 938       (185)
      Contribution to headline
      earnings/(losses)                          226       1 765         160       (200)       1 951               -        1 951         (6)
      Other information
      Segment assets including
      investment in associate
      and joint venture                        9 371      20 063       3 588       3 940      36 962         (4 437)       32 525
      Investment in associate                                          1 445                   1 445                        1 445
      Investment in joint venture                                                                             15 626       15 626
      Segment liabilities                      1 894       1 595       1 825       2 223       7 537         (1 595)        5 942
      Unallocated liabilities -
      Deferred taxation and taxation                                                           4 550         (2 893)        1 657
      Consolidated total liabilities                                                          12 087         (4 488)        7 599
      Cash generated/(utilised) from 
      operations                                 784       1 918         210          19       2 931         (1 918)        1 013        (73)
      Cash inflow/(outflow) from
      operating activities                       637       1 505         211     (1 448)         905           (505)          400        (76)
      Cash (outflow)/inflow from
      investing activities                     (431)       (471)       (127)         577       (452)             471           19         141
      Cash (outflow)/inflow from
      financing activities                      (78)           -        (86)          46       (118)               -        (118)         (7)
      Capital expenditure                        435         558         108           -       1 101           (558)          543          46
      Amortisation and depreciation              274         467          85           2         828           (467)          361
      EBITDA                                     843       2 642         243        (47)       3 681         (2 682)          999         (8)
      
      There were no significant inter - division sales
      (1) Refer note 2.5 for more detail on the ARM Platinum segment.
          Restated in terms of IFRS 15 - Revenue from contracts with customers (refer note 1 and 3).
      (2) Refer note 2.8 and note 7 for more detail on the ARM Ferrous segment.
      (3) Includes IFRS 11 - Joint Arrangements - adjustments related to ARM Ferrous.
      (4) Impairment included in income from associate is R19 million less tax of R5 million.
      (5) Relates to capitalised fees after tax and reversal of provision in ARM Ferrous.


                                                                      Continuing operations
                                                                                                                        Total per     Discon-
                                                                                                                             IFRS      tinued
                                                                                                                IFRS    financial  operations
                                                     ARM          ARM        ARM         ARM                 Adjust-       state-         ARM
                                                Platinum   Ferrous(2)       Coal   Corporate       Total     ment(3)        ments      Copper
                                                      Rm           Rm         Rm          Rm          Rm          Rm           Rm          Rm
2.3   Year ended 30 June 2018 -
      Restated(1) (Unaudited)
      Sales(1)                                     7 114       13 774      1 028           -      21 916    (13 774)        8 142         340
      Cost of sales(1)                           (5 846)      (8 103)      (857)          37    (14 769)       8 073      (6 696)       (282)
      Other operating income(4)                       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(5)                      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 venture                                -            -          -           -           -           -            -        (20)
      Profit from associate(6)                         -            -        619           -         619           -          619           -
      Profit form joint venture(7)                     -          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(8)                      -         (27)          -          27           -           -            -           -
      Contribution to basic earnings/
      (losses)                                       381        3 510      1 469       (613)       4 747           -        4 747       (185)
      Contribution to headline
      earnings/(losses)                              420        3 528      1 485       (613)       4 820           -        4 820         (6)
      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 - Deferred
      taxation and taxation                                                                        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)
      
      There were no significant inter - division sales
      (1) Refer note 2.6 for more detail on the ARM Platinum segment.
          Restated in terms of IFRS 15 - Revenue from contracts with customers (refer note 1 and 3).
      (2) Refer note 2.9 and note 7 for more detail on the ARM Ferrous segment.
      (3) Includes IFRS 11 - Joint Arrangements - adjustments related to ARM Ferrous.
      (4) The restructuring of the ARM Coal loans had an impact of R652 million profit with no tax effect.
      (5) Intercompany interest of R127 million receivable by ARM Corporate and accrued by ARM Copper is presented in terms of IFRS 5.
      (6) 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.
      (7) Impairment loss included in income from joint venture R26 million before tax of R7 million.
      (8) Relates to capitalised fees in ARM Ferrous.

      Additional information

      The ARM platinum segment is analysed further into Nkomati, Two Rivers Platinum Proprietary Limited and ARM Mining
      Consortium Limited which includes 50% of the Modikwa Platinum Mine.
                                                                                                                                          ARM
                                                                            Two Rivers(1)          Modikwa         Nkomati(1)        Platinum
                                                                                       Rm               Rm                 Rm              Rm
2.4   Six months ended 31 December 2018 (Unaudited)
      Sales(1)                                                                      1 912            1 089                549           3 550
      Cost of sales(1)                                                            (1 367)            (788)              (765)         (2 920)
      Other operating income(2)                                                        11               22                 11              44
      Other operating expenses(2)                                                    (74)             (31)               (50)           (155)
      Segment result                                                                  482              292              (255)             519
      Income from investments                                                           5               11                  3              19
      Finance cost                                                                   (16)              (6)                (6)            (28)
      Special items before tax                                                          -                -            (1 166)         (1 166)
      Taxation                                                                      (137)             (89)                346             120
      Profit/(loss) after tax                                                         334              208            (1 078)           (536)
      Non-controlling interest                                                      (154)             (35)                  -           (189)
      Contribution to earnings                                                        180              173            (1 078)           (725)
      Contribution to headline earnings                                               180              173              (186)             167
      Other information
      Segment and consolidated assets                                               5 035            2 597                736           8 368
      Segment liabilities                                                           1 134              331                483           1 948
      Cash inflow/(outflow) from operating activities                                 323              273               (89)             507
      Cash outflow from investing activities                                        (188)             (76)              (128)           (392)
      Cash outflow from financing activities                                         (27)                -                (3)            (30)
      Capital expenditure                                                             247               76                128             451
      Amortisation and depreciation                                                   157               51                 95             303
      Impairment                                                                        -                -                892             892
      EBITDA                                                                          639              343              (160)             822
2.5   Six months ended 31 December 2017 (Unaudited) Restated(1)
      Sales                                                                         1 895              877                831           3 603
      Cost of sales                                                               (1 363)            (822)              (755)         (2 940)
      Other operating expenses                                                         11               12                  3              26
      Other operating expenses                                                       (58)             (12)               (50)           (120)
      Segment result                                                                  485               55                 29             569
      Income from investments                                                           6                6                  3              15
      Finance cost                                                                   (14)              (2)                (9)            (25)
      Special items before tax                                                          -                -                  1               1
      Taxation                                                                      (141)             (16)                (6)           (163)
      Profit after tax                                                                336               43                 18             397
      Non-controlling interest                                                      (163)              (7)                  -           (170)
      Contribution to basic earnings                                                  173               36                 18             227
      Contribution to headline earnings                                               173               36                 17             226
      Other information
      Segment and consolidated assets                                               5 143            2 367              1 861           9 371
      Segment liabilities                                                           1 153              431                310           1 894
      Cash inflow from operating activities                                           347              177                113             637
      Cash outflow from investing activities                                        (223)            (110)               (98)           (431)
      Cash outflow from financing activities                                         (17)                -               (61)            (78)
      Capital expenditure                                                             226              109                100             435
      Amortisation and depreciation                                                   151               45                 78             274
      EBITDA                                                                          636              100                107             843

       (1) Restated in terms of IFRS 15 - Revenue from contracts with customers (refer note 1 and 3).
       (2) Included in the Modikwa segment is a R4 million re-measurement loss in terms of IFRS 9 adopted during this period (refer
           note 1).
           ARM Platinum (Modikwa) and ARM corporate segments' IFRS 9 adjustments (gain for ARM Platinum and losses for ARM
           corporate) of R18 million and interest of R20 million resulting from the revaluation of interest-free intercompany loans, which
           eliminate on consolidation for group, were not included. This is representative of the manner in which ARM's chief decision
           maker in terms of IFRS 8: Operating segments, reviews and analyses the business.


                                                                                                                                          ARM
                                                                              Two Rivers(1)       Modikwa(2)      Nkomati(1)         Platinum
      Platinum                                                                           Rm               Rm              Rm               Rm
2.6   For the year ended 30 June 2018 Restated(1) (Unaudited)
      Sales(1)                                                                        3 741            1 796           1 577            7 114
      Cost of sales(1)                                                              (2 737)          (1 631)         (1 478)          (5 846)
      Other operating income                                                             22               31               7               60
      Other operating expenses                                                        (152)             (44)            (88)            (284)
      Segment result                                                                    874              152              18            1 044
      Income from investments                                                            11               16               7               34
      Finance cost                                                                     (63)              (3)            (14)             (80)
      Special items before tax                                                            -             (40)               1             (39)
      Taxation                                                                        (239)             (46)             (2)            (287)
      Profit after tax                                                                  583               79              10              672
      Non-controlling interest                                                        (277)             (14)               -            (291)
      Contribution to basic earnings                                                    306               65              10              381
      Contribution to headline earnings                                                 306              105               9              420
      Other information
      Segment and consolidated assets                                                 4 774            2 321           1 914            9 009
      Segment liabilities                                                             1 158              348             374            1 880
      Cash inflow generated from operations                                           1 175              149             269            1 593
      Cash inflow from operating activities                                             688              161             271            1 120
      Cash outflow from investing activities                                          (560)            (136)           (211)            (907)
      Cash inflow/(outflow) from financing activities                                    27                -            (65)             (38)
      Capital expenditure                                                               455              133             214              802
      Amortisation and depreciation                                                     318               92             162              572
      Impairment loss/(reversal) before tax                                               -               40             (1)               39
      EBITDA                                                                          1 192              244             180            1 616

      (1) Restated in terms of IFRS 15 - Revenue from contracts with customers (refer note 1).
      (2) On 16 July 2018, Anglo American Platinum and ARM agreed to temporarily amend the terms of the Sale of Concentrate
          agreement to improve the cash flow generation of the mine while a turnaround and operational improvement plan is
          implemented. These terms are effective for concentrate deliveries for a three- year period which commenced 1 January 2017.
          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.

    Analysis of the ARM Ferrous segment
                                                                                                                                    Total per   
                                                                                                                                         IFRS   
                                                                                 Manga-                   ARM                IFRS   financial   
                                                                    Iron ore       nese      Chrome   Ferrous      ARM    Adjust-      state-   
                                                                    division   division division(1)     Total    share    ment(2)       ments   
                                                                          Rm         Rm          Rm        Rm       Rm         Rm          Rm   
                                                                                  at 100% basis                                            
2.7   Six months ended 31 December 2018                                                                                                         
      (Unaudited)                                                                                                                               
      Sales                                                            8 828      7 170           -    15 998    7 999    (7 999)           -   
      Other operating income                                             356        251           -       607       86       (86)           -   
      Other operating expenses                                       (1 089)      (927)          11   (2 005)    (786)        786           -   
      Operating profit/(loss)                                          3 064      2 513        (10)     5 567    2 783    (2 783)           -   
      Contribution to basic earnings and total                                                                                                  
      comprehensive income                                             2 432      1 854         (7)     4 279    2 139       (18)       2 121   
      Contribution to headline earnings                                2 459      1 837         (7)     4 289    2 145       (18)       2 127   
      Other information                                                                                                                         
      Segment assets                                                  22 529     19 713         519    42 761   20 744    (4 840)      15 904   
      Segment liabilities                                              6 453      3 158         428    10 039    1 946    (1 946)           -   
      Cash (outflow)/inflow from operating activities(3)             (1 630)      2 769           -     1 139    2 320    (2 320)           -   
      Cash outflow from investing activities                           (994)      (786)           -   (1 780)    (890)        890           -   
      Cash (outflow)/inflow from financing activities                    (4)          4           -         -        -          -           -   
      Capital expenditure                                              1 028        950           -     1 978      946      (946)           -   
      Amortisation and depreciation                                      743        341           -     1 084      526      (526)           -   
      EBITDA                                                           3 807      2 854        (10)     6 651    3 309    (3 309)           -   
      Additional information for ARM Ferrous                                                                                                    
      at 100%                                                                                                                                   
      Non-current assets                                                                                                                        
      Property, plant and equipment                                                                    23 555            (23 555)           -   
      Investment in joint venture                                                                       2 779             (2 779)           -   
      Other non-current assets                                                                            748               (748)           -   
      Current assets                                                                                                                            
      Inventories                                                                                       4 788             (4 788)           -   
      Trade and other receivables                                                                       6 288             (6 288)           -   
      Financial asset                                                                                     230               (230)           -   
      Cash and cash equivalents                                                                         4 372             (4 372)           -   
      Non-current liabilities                                                                                                                   
      Other non-current liabilities                                                                     7 149             (7 149)           -   
      Current liabilities                                                                                                                       
      Trade and other payables                                                                          1 750             (1 750)           -   
      Short-term provisions                                                                             1 130             (1 130)           -   
      Taxation                                                                                              9                 (9)           -   

      Refer note 2.1 and note 7 for more detail on the ARM Ferrous segment
      (1) Refer to events after reporting date note 20.
      (2) Includes consolidation and IFRS 11 - Joint Arrangements - adjustments.
      (3) Iron ore division includes dividend paid amounting to R3.5 billion included in cash flows from operating activities.

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

      Refer note 2.2 and note 7 for more detail on the ARM Ferrous segment
      (1) Includes consolidation and IFRS 11 - Joint Arrangements - adjustments.
      (2) Iron ore division includes dividend paid amounting to R2 billion included in cash flows from operating activities.

                                                                                                                                    Total per   
                                                                                         Continued                                       IFRS   
                                                                                Manga-   operation       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   
                                                                                at 100    0% basis                                              
2.9   For the year ended                                                                                                                        
      30 June 2018 (Audited)                                                                                                                    
      Sales                                                          14 534     12 833         180    27 547    13 774   (13 774)           -   
      Other operating income                                            692        664           -     1 356       217      (217)           -   
      Other operating expenses                                      (1 853)    (1 645)          78   (3 420)   (1 249)      1 249           -   
      Operating profit/(losses)                                       4 230      5 105        (58)     9 277     4 639    (4 639)           -   
      Contribution to basic earnings and total                                                                                                  
      comprehensive income                                            3 343      3 772        (42)     7 073     3 537       (27)       3 510   
      Contribution to headline earnings/(losses)                      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)           -   
      Cash inflow from operating activities(2)                        1 522      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           -   
      Capital expenditure                                             1 780      1 285          16     3 081     1 474    (1 474)           -   
      Amortisation and depreciation                                   1 401        594           8     2 003       971      (971)           -   
      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 asset                                                                                    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)           -   

      Refer note 2.3 and note 7 for more detail on the ARM Ferrous segment
      (1) Includes consolidation and IFRS 11 - Joint Arrangements - adjustments.
      (2) Iron ore division included dividend paid amounting to R3 billion included in cash flows from operating activities.
    
      ARM Corporate as presented in the table on page 83 to 85 is analysed further into the ARM Corporate and other and Gold
      segments.

                                                1H F2019                            1H F2018                            June 2018              
                                                                                                                                        Total   
                                    Corporate              Total ARM    Corporate              Total ARM    Corporate                     ARM   
                                 and other(1)       Gold   Corporate and other(1)       Gold   Corporate and other(1)        Gold   Corporate   
      Primary segmental                                                                                                                         
      information                          Rm         Rm          Rm           Rm         Rm          Rm           Rm          Rm          Rm   
2.10  (Unaudited)                                                                                                                               
      Cost of sales                        27          -          27           69          -          69           37           -          37   
      Other operating income              398          -         398          379          -         379          504           -         504   
      Other operating                                                                                                                           
      expenses(2)                       (587)          -       (587)        (497)          -       (497)        (972)           -       (972)   
      Segment result                    (162)          -       (162)         (49)          -        (49)        (431)           -       (431)   
      Income from investments             105          -         105           66         22          88          111          22         133   
      Finance cost                       (37)          -        (37)         (34)          -        (34)        (108)           -       (108)   
      Taxation                           (81)          -        (81)        (174)          -       (174)        (231)           -       (231)   
      Loss/(profit) after tax           (175)          -       (175)        (191)         22       (169)        (659)          22       (637)   
      Non-controlling interest            (1)          -         (1)          (2)          -         (2)          (3)           -         (3)   
      Consolidation                                                                                                                             
      adjustment(3)                        18          -          18         (29)          -        (29)           27           -          27   
      Contribution to basic                                                                                                                     
      losses                            (158)          -       (158)        (222)         22       (200)        (635)          22       (613)   
      Contribution to headline                                                                                                                  
      losses                            (158)          -       (158)        (222)         22       (200)        (635)          22       (613)   
      Other information                                                                                                                         
      Segment assets                    4 941      1 882       6 823        2 496      1 444       3 940        3 752       1 351       5 103   
      Segment liabilities               1 862          -       1 862        2 223          -       2 223        1 878           -       1 878   
      Cash generated from                                                                                                                       
      operations                            6          -           6           19          -          19          109           -         109   
      Cash (outflow)/inflow from                                                                                                                
      operating activities            (1 550)          -     (1 550)      (1 470)         22     (1 448)      (1 753)          22     (1 731)   
      Cash (outflow)/inflow from                                                                                                                
      investing activities              (206)          -       (206)          577          -         577          573           -         573   
      Cash (outflow)/inflow from                                                                                                                
      financing activities               (95)          -        (95)           46          -          46        (195)           -       (195)   
      Capital expenditure                   3          -           3            -          -           -            2           -           2   
      Amortisation and                                                                                                                          
      depreciation                          2          -           2            2          -           2            2           -           2   
      EBITDA                            (160)          -       (160)         (47)          -        (47)        (429)           -       (429)   

      (1) Corporate, other companies and consolidation adjustments.
      (2) Included is R59 million loss on loan re-measurement adjustment on the ARM Coal intercompany loan (gain in ARM Coal).
      (3) Relates to capitalised fees in ARM Ferrous which are reversed at ARM Corporate for consolidation purposes.

                                                                                                         Unaudited
                                                                                               Six months ended                Year ended
                                                                                                 31 December                    30 June
                                                                                     2018          2017         2017        2018         2018   
                                                                                       Rm            Rm           Rm          Rm           Rm   
                                                                                Currently     Currently   Previously   Currently   Previously   
                                                                                    under         under     under(1)       under     under(1)   
                                                                                  IFRS 15       IFRS 15       IAS 18     IFRS 15       IAS 18   
3.    REVENUE AND COST OF SALES                                                                                                                 
      Revenue                                                                       4 524         4 794        5 020       9 112        9 603   
      Revenue - continuing operations                                               4 524         4 454        4 680       8 772        9 263   
      Revenue - discontinued operations                                                 -           340          340         340          340   
      Total Revenue(2)                                                              4 524         4 794        5 020       9 112        9 603   
      Fair value adjustments to revenue(2)                                            267           288            -          62            -   
      Revenue from contracts with customers(2)                                      4 257         4 506        5 020       9 050        9 603   
      Sales of commodities continuing operations                                    4 052         3 972        4 260       8 284        8 346   
      Sales of commodities discontinued operations                                      -           340          340         340          340   
      Penalty and treatment charges(2)                                              (172)          (86)            -       (204)            -   
      Dividends received                                                                -             -           22           -           22   
      Fees received                                                                   377           280          280         630          630   
      Interest received                                                                 -             -           81           -          155   
      Insurance income received                                                         -             -           22           -           72   
      Property rental received                                                          -             -            5           -           16   
      Royalty received                                                                  -             -           10           -           22   
      SALES                                                                                                                                     
      Sales previously - IAS 18                                                     4 319         4 260        4 260       8 346        8 346   
      Penalty and treatment charges(2)                                              (172)          (86)            -       (204)            -   
      Sales per statement of profit or loss (IFRS 15)                               4 147         4 174        4 260       8 142        8 346   
      COST OF SALES                                                                                                                             
      Cost of sales previously - IAS 18                                           (3 518)       (3 455)      (3 455)     (6 900)      (6 900)   
      Penalty and treatment charges(2)                                                172            86                      204            -   
      Cost of sales per statement of profit or loss - IFRS 15                     (3 346)       (3 369)      (3 455)     (6 696)      (6 900)   

      (1) The prior periods were restated in terms of IFRS 15 where penalty and treatment charges are now deducted from revenue
          and not included in cost of sales and dividend, interest, rental, insurance and royalties received does not form part of
          revenue anymore.
      (2) Refer note 1 for details of the impact of adopting and implementing IFRS 15.
      

4.    PROPERTY, PLANT AND EQUIPMENT

      Nkomati Nickel Mine

      Notwithstanding the increase in the nickel price over the reporting period as at 31 December 2018, an impairment loss of the
      Nkomati Nickel Mine was recognised, largely as a result of:

      i) A decline in head grade, resulting in decreased metal output.
      ii) Inability to generate sufficient cash for operational requirements; and
      iii) An increase in production costs.

      ARM's attributable share of the impairment charge amounted to R1 166 million before tax and R892 million after tax.

      The difference between the pre and post tax charge does not correspond with the South African Corporate tax rate of 28%, as
      the tax charge on the impairment was limited to the corresponding deferred tax liability available for off-set on the statement
      of financial position.  Management did not recognise a deferred tax asset as the recoverability of such an asset is uncertain in
      the foreseeable future.

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

      A pre-tax discount rate of 20.2% was used for the impairment calculation together with the following metal prices and exchange
      rate assumptions.
      
                                                                                             F2019     F2020     F2021     F2022   Long-term   
                                                                                           Nominal   Nominal   Nominal   Nominal        Real   
      Platinum - US$/ounce                                                                     855     1 090     1 138     1 172       1 173   
      Palladium - US$/ounce                                                                  1 027     1 050     1 050     1 032         965   
      Gold - US$/ounce                                                                       1 273     1 315     1 323     1 355       1 183   
      Nickel - US$/tonne                                                                    12 998    13 498    13 999    15 539      15 364   
      Copper - US$/tonne                                                                     6 221     6 925     7 040     7 241       6 516   
      Cobalt - US$/lb                                                                           35        33        30        25          19   
      Chrome concentrate - US$/tonne                                                            62        75        75        77          72   
      Exchange rate - R/US$                                                                  14.40     14.08     13.61     13.92       13.27   

                                                                                                                     Unaudited
                                                                                                                    Six months       Audited
                                                                                                                      ended       Year ended
                                                                                                                   31 December       30 June
                                                                                                               2018        2017         2018   
                                                                                                                 Rm          Rm           Rm   
5.    LOANS AND LONG - TERM RECEIVABLES                                                                                                        
      ARM Platinum (Modikwa)                                                                                      -          17           17   
      ARM Coal                                                                                                   60          21           58   
      Glencore South Africa                                                                                     346           -          387   
      Total                                                                                                     406          38          462   
      The ARM Coal loans were restructured in June 2018.                                                                                       


                                                                                                                Unaudited             Audited
                                                                                                            Six months ended       Year ended
                                                                                                              31 December             30 June
                                                                                                                  2018      2017         2018   
                                                                                                                    Rm        Rm           Rm   
6.    INVESTMENT IN ASSOCIATE                                                                                                                   
      Opening balance                                                                                            1 798     1 334        1 334   
      Income from associate per statement of profit or loss                                                         75       111          619   
      Profit for the period                                                                                        227       111          294   
      Re-measurement on loans                                                                                    (152)         -          325   
      Movement in loans                                                                                          (245)         -        (155)   
      Closing balance                                                                                            1 628     1 445        1 798   

7.    INVESTMENT IN JOINT VENTURE                                                                               
      This investment relates to ARM Ferrous and comprises Assmang                                              
      as a joint venture which includes iron ore, manganese and chrome                                          
      operations.                                                                                               
      Opening balance                                                                                           15 504    14 860       14 860   
      Net income for the period                                                                                  2 121     1 765        3 510   
      Income for the period                                                                                      2 139     1 736        3 537   
      Consolidation adjustments                                                                                   (18)        29         (27)   
      Foreign currency translation reserve                                                                          29         1          134   
      Less dividends received for the period                                                                   (1 750)   (1 000)      (3 000)   
      Closing balance                                                                                           15 904    15 626       15 504   
      Refer to notes 2.1, 2.2, 2.3, 2.7, 2.8 and 2.9 for further detail                                                                         
      relating to the ARM Ferrous segment.                                                                                                      

8     OTHER INVESTMENTS                                                                                                                         
      Harmony                                                                                                    1 882     1 444        1 351   
      Opening balance                                                                                            1 351     1 380        1 380   
      Fair value in other comprehensive income                                                                     320        64         (29)   
      Additional shares acquired refer statement of cash flow                                                      211         -            -   
      Guardrisk                                                                                                     30        34           33   
      Preference shares                                                                                              1         1            1   
      RBCT (refer note 1)                                                                                          252       169          176   
      Closing balance                                                                                            2 165     1 648        1 561   

                                                                                                                      Unaudited       Audited
                                                                                                                  Six months ended Year ended
                                                                                                                    31 December       30 June
                                                                                                                    2018    2017         2018   
                                                                                                                      Rm      Rm           Rm   
9.    CASH AND CASH EQUIVALENTS                                                                                                                 
      Total unrestricted                                                                                           2 097     736        2 160   
      - African Rainbow Minerals Limited                                                                           1 447     225        1 634   
      - ARM BBEE Trust                                                                                                 1       1            1   
      - ARM Coal                                                                                                       7       -            -   
      - ARM Finance Company SA                                                                                       238     203          228   
      - ARM Platinum Proprietary Limited                                                                             307     173          123   
      - ARM Treasury Investments Proprietary Limited                                                                  39      37           39   
      - Nkomati                                                                                                       16      27           88   
      - Two Rivers Platinum Proprietary Limited                                                                       11      35           14   
      - Teal Minerals Barbados Incorporated                                                                           19      22           22   
      - Teal Exploration and Mining Barbados Incorporated                                                              8       8            8   
      - Teal Exploration and Mining Incorporated                                                                       1       1            1   
      - Venture Building Trust Proprietary Limited                                                                     3       4            2   
      Total restricted                                                                                             1 200   1 183        1 131   
      - Mannequin Cell Captive (restricted)                                                                          866     797          819   
      - Other restricted cash(1)                                                                                     334     386          312   
      Total as per statement of financial position                                                                 3 297   1 919        3 291   
      Less - Overdrafts (refer note 10)                                                                            (383)   (541)        (381)   
      Total as per statement of cash flows                                                                         2 914   1 378        2 910   

      (1) This relates largely to rehabilitation trust funds at respective operations.                                                        

10.   BORROWINGS                                                                                                                                
      Long-term borrowings are held as follows:                                                                                                 
      - African Rainbow Minerals Limited                                                                               -     200            -   
      - Anglo Platinum Limited (partner loan)1                                                                        95                        
      - ARM BBEE Trust                                                                                               398     473          470   
      - ARM Coal Proprietary Limited (partner loan)                                                                1 117   1 578        1 231   
      - Nkomati                                                                                                        2       9            6   
      - Two Rivers Platinum Proprietary Limited                                                                       67      51           37   
                                                                                                                   1 679   2 311        1 744   
      Short-term borrowings are held as follows:                                                                                                
      - Anglo Platinum Limited (partner loan)(1)                                                                       -     114          114   
      - Nkomati                                                                                                        7       7            7   
      - Two Rivers Platinum Proprietary Limited                                                                       63      48           50   
                                                                                                                      70     169          171   
      Overdrafts are held as follows:                                                                                                           
      - African Rainbow Minerals Limited                                                                               -     190            -   
      - Nkomati                                                                                                       42       -           21   
      - Two Rivers Platinum Proprietary Limited                                                                      322     327          336   
      - Other                                                                                                         19      24           24   
                                                                                                                     383     541          381   
      Overdrafts and short-term borrowings                                                                           453     710          552   
      Total borrowings                                                                                             2 132   3 021        2 296   

      (1) This loan was reclassified from short-term after fair value adjustment as reflected in note 1.

                                                                                                                      Unaudited       Audited
                                                                                                                  Six months ended Year ended
                                                                                                                    31 December       30 June 
                                                                                                                    2018    2017         2018   
                                                                                                                      Rm      Rm           Rm   
11.   SPECIAL ITEMS                                                                                                                             
      Impairment on property, plant and equipment - Nkomati                                                      (1 166)       -            -   
      Impairment reversal on property, plant and equipment - Nkomati                                                   -       1            1   
      Impairment loss on property, plant and equipment - Kalplats                                                      -       -         (40)   
      Loss on sale of property, plant and equipment - ARM Coal                                                         -       -          (3)   
      Special items per statement of profit or loss before                                                                                      
      taxation effect                                                                                            (1 166)       1         (42)   
      Impairment loss on property, plant and equipment accounted                                                                                
      for directly in joint venture - Assmang                                                                       (20)       -         (26)   
      Impairment reversal/(loss) on property, plant and equipment                                                                               
      accounted for directly in associate - PCB                                                                        4    (19)         (19)   
      Pre-tax loss on sale of Lubambe                                                                                  -   (117)        (117)   
      Profit on sale of  property, plant and equipment accounted for                                                                            
      directly in joint venture - Assmang                                                                             12       -            1   
      Special items before taxation effect                                                                       (1 170)   (135)        (203)   
      Taxation accounted for in associate - impairment loss in PCB                                                   (1)       5            5   
      Taxation accounted for in joint venture - impairment loss in                                                                              
      Assmang                                                                                                          6                    7   
      Taxation accounted for in joint venture - profit on sale of                                                                               
      property, plant and equipment in Assmang                                                                       (4)       -            -   
      Taxation - impairment loss of Nkomati assets (refer note 4)                                                    274                        
      Taxation loss on sale of property ARM Coal                                                                       -       -            1   
      Taxation - sale of Lubambe                                                                                       -    (62)         (62)   
      Total amount adjusted for headline earnings                                                                  (895)   (192)        (252)   

                                                                                                                     Unaudited        Audited
                                                                                                                 Six months ended  Year ended
                                                                                                                   31 December        30 June 
                                                                                                                  2018      2017         2018   
                                                                                                                    Rm        Rm           Rm   
12.   EARNINGS PER SHARE                                                                                                                        
      Headline earnings (R million)                                                                              2 201     1 945        4 814   
      Headline earnings from continuing operations (R million)                                                   2 201     1 951        4 820   
      Headline loss from discontinued operation (R million)                                                          -       (6)          (6)   
      Headline earnings per share (cents)                                                                        1 149     1 023        2 526   
      Headline earnings per share from continuing operations (cents)                                             1 149     1 026        2 529   
      Headline loss per share from discontinued operation (cents)                                                    -       (3)          (3)   
      Basic earnings per share (cents)                                                                             682       922        2 393   
      Basic earnings from continuing operations per share (cents)                                                  682     1 019        2 490   
      Basic loss from discontinued operation per share (cents)                                                       -      (97)         (97)   
      Diluted headline earnings per share (cents)                                                                1 123       994        2 453   
      Diluted headline earnings per share from continuing operations                                                                            
      (cents)                                                                                                    1 123       997        2 456   
      Diluted headline loss per share from discontinued operation                                                                               
      (cents)                                                                                                        -       (3)          (3)   
      Diluted basic earnings per share (cents)                                                                     667       895        2 325   
      Diluted basic earnings from continuing operations per share                                                                               
      (cents)                                                                                                      667       990        2 419   
      Diluted basic loss from discontinued operation per share (cents)                                               -      (95)         (94)   
      Number of shares in issue at end of the period (thousands)                                               221 934   219 692      219 709   
      Weighted average number of shares (thousands)                                                            191 575   190 163      190 622   
      Weighted average number of shares used in calculating                                                                                     
      diluted earnings per share (thousands)                                                                   195 919   195 740      196 217   
      Net asset value per share (cents)                                                                         11 834    10 644       11 792   
      EBITDA (R million)                                                                                           889       991        2 443   
      EBITDA from continuing operations (R million)                                                                889       999        2 451   
      Interim dividend declared (cents per share)                                                                  400       250          250   
      Dividend declared after period end (cents per share)                                                           -         -          750   
      Reconciliation to headline earnings                                                                                                       
      Basic earnings attributable to equity holders of ARM                                                       1 306     1 753        4 562   
      Impairment loss on property, plant and equipment - Kalplats                                                    -         -           40   
      Impairment loss on property, plant and equipment - Nkomati                                                 1 166         -            -   
      Impairment reversal on property, plant and equipment - Nkomati                                                 -       (1)          (1)   
      Impairment loss of property, plant and equipment in joint venture                                                                         
      - Assmang                                                                                                     20         -           26   
      Impairment (reversal)/loss of property, plant and equipment in                                                                            
      associate - PCB                                                                                              (4)        19           19   
      Pre -tax loss on sale of Lubambe                                                                               -       117          117   
      Loss on disposal of investment                                                                                 -         -            3   
      Profit on sale of property, plant and equipment in joint venture                                                                          
      -  Assmang                                                                                                  (12)         -          (1)   
                                                                                                                 2 476     1 888        4 765   
      Taxation accounted for directly in associate and joint venture                                               (1)       (5)         (12)   
      Taxation - impairment loss of Nkomati assets                                                               (274)         -            -   
      Taxation loss on sale of property ARM Coal                                                                     -         -          (1)   
      Taxation - sale of Lubambe                                                                                     -        62           62   
      Headline earnings                                                                                          2 201     1 945        4 814   



                                                                                                                    Unaudited         Audited
                                                                                                                Six months ended   Year ended
                                                                                                                  31 December         30 June 
                                                                                                                  2018      2017         2018   
                                                                                                                    Rm        Rm           Rm   
13.   TAXATION                                                                                                                                  
      South African normal tax - current year                                                                       87        79          193   
      South African normal tax - mining                                                                             18        89          141   
      South African normal tax - non-mining                                                                         69      (10)          154   
      South African normal tax - prior year                                                                          -         -        (102)   
      Deferred tax - current year                                                                                 (68)       255          380   
      Total taxation from continuing operations                                                                     19       334          573   
      Tax from discontinued operation                                                                                -        62           62   
                                                                                                                    19       396          635   
14.   CASH GENERATED FROM OPERATIONS                                                                                                            
      Cash generated from operations before working capital movement                                             1 351     1 411        2 451   
      Working capital changes outflow                                                                            (570)     (471)        (517)   
      Movement in inventories (outflow)/inflow                                                                   (216)      (36)           48   
      Movement in payables and provisions outflow                                                                 (83)     (192)        (266)   
      Movement in receivables (outflow)                                                                          (271)     (243)        (299)   
      Cash generated from operations (per statement of cash flows)                                                 781       940        1 934   

15.   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
      Anglo American Platinum                                                                                    1 089       877        1 796   
      Impala Platinum                                                                                            1 912     1 895        3 883   
      Joint venture                                                                                                                             
      Assmang  Proprietary Limited                                                                                                              
      - Provision of services                                                                                      336       277          627   
      - Dividends received                                                                                       1 750     1 000        3 000   
      Subsidiary                                                                                                                                
      Impala Platinum - dividend paid                                                                               44        61          253   
      Amounts outstanding at year-end (owing to)/receivable by
      ARM on current account                                                                                         
      Joint venture                                                                                                                             
      Assmang - debtor                                                                                              42        26          101   
      Joint operations                                                                                                                          
      Anglo American Platinum - debtor                                                                             732       545          610   
      Norilsk  Nickel - creditor                                                                                   (7)         -          (2)   
      Norilsk  Nickel - debtor                                                                                      51        95          134   
      Anglo American Platinum - long - term borrowing                                                                                           
      (reclassified from long-term)                                                                                 95         -            -   
      Anglo American Platinum - short - term borrowing                                                                                          
      (reclassified to long-term)                                                                                    -     (114)        (114)   
      Glencore Operations SA  - long-term borrowing                                                            (1 117)   (1 578)      (1 231)   
      Subsidiary                                                                                                                                
      Impala Platinum - debtor                                                                                   1 221     1 083        1 146   



                                                                                                     Unaudited                        Audited
                                                                                                 Six months ended                  Year ended
                                                                                                   31 December                        30 June
                                                                                                2018              2017                   2018
                                                                                                  Rm                Rm                     Rm

16.   ASSET HELD FOR SALE AND DISCONTINUED OPERATIONS

      The sale of Lubambe Copper Mine in Zambia was completed on 22 December 2017. The sale resulted in a loss on sale
      before tax of R179 million. Details of this sale are included in the financial results for the year ended 30 June 2018 and the
      interim results for the six-months results ended 31 December 2017 which can be found on www.arm.co.za.

17.   PROVISIONS

      Silicosis and tuberculosis class action provision
      The provision has not materially changed since 30 June 2018.
      Details of this is included in the financial results for the year ended 30 June 2018 and the interim results for the six-months
      results ended 31 December 2017 which can be found on www.arm.co.za.

18.   COMMITMENTS

      Commitments in respect of future capital expenditure which will be
       funded from operating cash flows and by utilising debt facilities at
       entity and corporate levels, are summarised below:
      Approved by directors
      - contracted for                                                                           237                92                    108
      - not contracted for                                                                        16                21                     16
       Total commitments                                                                         253               113                    124

19.   CONTINGENT LIABILITIES

      The Assmang guarantee previously reported relating to the Sarawak Energy Board is now $109million. This guarantee includes an
      amount of $87million which is based in Malaysian Ringgit.
      AEL Mining Limited has instituted arbitration proceedings against Assmang, claiming an amount up to R381 million. Assmang
      is defending this matter.
      There have been no other significant changes in the contingent liabilities of the Group as disclosed since 30 June 2018
      integrated annual report.
      For a detailed disclosure on contingent liabilities, refer to ARM's integrated annual report for the year ended 30 June 2018
      available on the group's website (www.arm.co.za).

20.   EVENTS AFTER REPORTING DATE

      Since the period end ARM received a dividend of R1.5 billion from Assmang.
      On 6 February 2019, the Competition Commission of South Africa approved the acquisition by ARM of 100% of the Machadodorp
      Works business. The acquisition includes assets and assumption of certain liabilities relating to the business. The purchase
      price for the business amounted to R130 million. Since ARM owns 50% of Assmang, effectively R65 million of the purchase
      price received by Assmang is attributable to ARM. The purchase price will be adjusted for cash amounts received and paid
      during the period 1 January 2017 and 28 February 2019. For this reason we cannot disclose all the requirements of IFRS 3 -
      Business Combinations (refer note 2.7).
      No other significant events have occurred subsequent to the reporting date that could materially affect the reported results.


Contact details and administration
African Rainbow Minerals Limited                 Transfer secretaries
Incorporated in the Republic of South Africa     Computershare Investor Services
Registration number 1933/004580/06               Proprietary Limited
ISIN code: ZAE000054045                          Rosebank Towers, 15 Biermann Avenue
                                                 Rosebank, Johannesburg, 2196
Registered office
ARM House                                        PO Box 61051, Marshalltown, 2107
29 Impala Road                                   Telephone:  +27 11 370 5000
Chislehurston, Sandton, 2196                     Telefax:      +27 11 688 5222
South Africa                                     E-mail:       web.queries@computershare.co.za
PO Box 786136, Sandton, 2146                     Website: http://www.computershare.co.za
South Africa
                                                 Sponsor
Telephone:  +27 11 779 1300                      Investec Bank 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 MOller*
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

www.arm.co.za

Sponsor: Investec Bank Limited

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