African Rainbow - Provisional Results For The Year 30-6-12

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African Rainbow - Provisional Results For The Year 30-6-12

African Rainbow Minerals Limited - Provisional Results For The Year Ended 30 June 2012

Release Date: 03/09/2012 07:05:00 Code(s): ARI
Provisional results for the year ended
30 June 2012

African Rainbow Minerals Limited
Incorporated in the Republic of South Africa
Registration number: 1933/004580/06
JSE share code: ARI
ISIN: ZAE000054045
("ARM" or the "Company")

Provisional results for the year ended
30 June 2012

Shareholder information
Issued share capital at 30 June 2012 214 851 896 shares
Market capitalisation at 30 June 2012 ZAR35.7 billion
Market capitalisation at 30 June 2012 US$4.37 billion
Closing share price at 30 June 2012 R166.02

12 month high (1 July 2011 30 June 2012) R198.88
12 month low (1 July 2011 30 June 2012) R159.01

Average daily volume traded for the 12 months 393 388 shares

Primary listing JSE Limited

Ticker symbol ARI

Investor relations

Jongisa Klaas
Head of Investor Relations and Corporate Development
Telephone: +27 11 779 1507
Fax: +27 11 779 1312
E-mail: jongisa.klaas@arm.co.za

Corné Dippenaar
Corporate Development
Telephone: +27 11 779 1478
Fax: +27 11 779 1312
E-mail: corne.dippenaar@arm.co.za

Company secretary
Alyson D'Oyley, LL.B., LL.M.
Telephone: +27 11 779 1300
Fax: +27 11 779 1318
E-mail: alyson.doyley@arm.co.za

Salient features

- Headline earnings increased 2% to R3.45 billion (F2011 restated: R3.37 billion)
in difficult market conditions. The headline earnings per share were 1 615 cents
compared to 1 585 cents in F2011 (restated).

- Sales revenue increased 18% to R17.53 billion due to increased sales volumes
achieved.

- ARM declared an increased dividend of 475 cents per share, compared to the F2011 dividend
of 450 cents per share.

- Significant sales volumes increase across all ARM commodities except ferrochrome and
Nkomati Mine chrome ore.

- Satisfactory cost containment at Two Rivers Mine, the PCB coal operations, the
manganese ore mines, the manganese alloy operations, the Nkomati Mine and the
chrome ore mine.

- Update on growth projects:

The Khumani Iron Ore Expansion Project from 10 million tonnes per annum (mtpa)
to 16mtpa was successfully handed over to the mine approximately one year ahead
of schedule and well below budget.
Full production ramp-up to 6.4 mtpa was achieved at Goedgevonden Coal Mine.
Significant improvement in the operational performance during the ramp-up phase
of the Nkomati Nickel Mine in the second half of the financial year.
Konkola North Copper Project (which was renamed Lubambe Copper Project) is
progressing on time and within budget with plant commissioning expected by the
end of the 2012 calendar year.

- ARM maintained a robust financial position with net cash (excluding partner
loans) of R2.3 billion (F2011: R2.6 billion).

ARM operational review

The ARM Board of Directors (the Board) announces a 2% improvement in headline earnings for the financial
year ended 30 June 2012 (F2012). These improved results were achieved despite challenging conditions in the
global macroeconomic environment which have negatively impacted most commodity prices. Headline earnings for
the year were R3 451 million compared to the restated headline earnings of R3 374 million in the previous year
ended 30 June 2011 (F2011). Headline earnings per share were 1 615 cents per share (F2011 restated: 1 585 cents
per share).

ARM was able to mitigate the negative impact of lower US Dollar commodity prices by significantly increasing sales
volumes across its portfolio of commodities as three of its four growth projects continue ramp-up to design capacity.
ARM achieved higher sales volumes across all its commodities with the exception of ferrochrome and Nkomati
chrome ore, as follows:

- 48% increase in iron ore sales from 10.0 million to 14.8 million tonnes;
- 43% increase in nickel sales from 8.9 thousand tonnes to 12.7 thousand tonnes;
- 40% increase in ARM Ferrous chrome ore sales from 373 thousand tonnes to 521 thousand tonnes;
- 35% increase in GGV Eskom coal sales from 2.7 million tonnes to 3.7 million tonnes;
- 24% increase in manganese alloy sales from 218 thousand tonnes to 270 thousand tonnes;
- 16% increase in the Nkomati chrome concentrate sales from 381 thousand tonnes to 441 thousand tonnes;
- 15% increase in GGV export coal sales from 2.7 million tonnes to 3.1 million tonnes;
- 4% increase in Platinum Group Metal (PGM) production (including Nkomati) from 680 thousand ounces to
708 thousand ounces; and
- 1% increase in manganese ore sales from 2.88 million tonnes to 2.91 million tonnes.

The provisional results for the year ended 30 June 2012 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.

Contribution to headline earnings

Commodity group 12 months ended 30 June

R million Reviewed Restated % change
2012 2011
Platinum Group Metals 190 350 (46)
Nkomati nickel and chrome (130) 165 (179)
Ferrous metals 3 495 2 897 21
Coal 52 (103)
Copper (31) (173) 82
Exploration (113)
Gold 64 32 100
Corporate and other (76) 206 (137)
ARM headline earnings 3 451 3 374 2

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 Proprietary Limited ("Norilsk"), Xstrata South Africa Proprietary Limited ("Xstrata"), Vale S.A. ("Vale") and
Zambian Consolidated Copper Mines Investment Holdings ("ZCCM-IH).

ARM's growth projects deliver

ARM's focus on quality growth has had a substantially positive impact on the F2012 results as three of our four growth
projects ramped up to steady state.

The Khumani Iron Ore Mine Expansion from 10 mtpa to 16 mtpa was handed over to the mine approximately one
year ahead of schedule. Khumani Mine, which was expected to deliver export sales volumes of 11.4 million tonnes
in F2012, achieved sales of 13.4 million tonnes export iron ore in F2012. The two million tonnes higher than planned
volumes were achieved as the mine accelerated development of the project in order to take advantage of additional
rail capacity available following Transnet's advanced ramp up of the expansion of the Saldanha Export Channel from
47 mtpa to 60 mtpa.

Additional improvements at Khumani Mine are underway following the approval of the R1.2 billion Wet High Density
Magnetic Separation (WHIMS) Plant which will improve ore recovery (i.e. yield) and extend the life of the mine. An
additional stockpile area is in its final stages of commissioning to enable Khumani Mine to continue being opportunistic
in its utilisation of available rail capacity.

Ramp-up of production at the Nkomati Mine Large Scale Expansion Project delivered a 39% increase in contained
nickel in F2012. After having experienced significant head-grade and recovery challenges in the preceding 18 months,
Nkomati Mine has shown significant improvement in its operational performance. Through various interventions,
including advanced stripping of waste, the Nkomati Mine achieved a marked improvement in the operation's head-
grade and recoveries. The mine, however, continues to be negatively impacted by weak US Dollar nickel, chrome
concentrate and platinum prices which decreased 22%, 40% and 6%, respectively. The Nkomati attributable loss was
R130 million in F2012.

Goedgevonden (GGV) Mine achieved design capacity in the second half of F2012. Performance of the mine's Coal
Handling Processing Plant (CHPP), which was commissioned in F2011, improved significantly in the second half of
the year resulting in saleable production at GGV increasing by 9% compared to F2011.

Quality growth is expected to continue

ARM continues to pursue growth from its existing assets. Re-affirmation by the South African Government to allocate
the necessary resources to upgrade the country's rail, port and electricity infrastructure bodes very well for the
maximised utilisation of ARM's existing assets.

Transnet recently announced its Market Demand Strategy (MDS), in which they commit to spend approximately
R300 billion. Most of the capital expenditure is expected to be spent on the expansion of the South African iron
ore, manganese ore and coal rail and port infrastructure. To ensure that the Company is well positioned when the
infrastructure growth is delivered, ARM has feasibility studies underway to consider the growth of its iron ore and
manganese ore assets.

The management and allocation of capital in ARM is a central focus of the Board and senior executive management.
ARM reviews and evaluates all its capital expenditure programmes on a continuous basis.

A feasibility study into the expansion of the manganese ore mines from 3 mtpa to 4 mtpa is in progress.

At the Beeshoek Mine, capital has been approved for the diversion of the road between Postmasburg and Olifantshoek,
to allow future mining of the Beeshoek Village Pit which would enable increased iron ore production from Beeshoek.

In line with ARM's growth strategy, acquisition and joint venture opportunities are continually
evaluated.

Increased focus on operational efficiencies

In 2005 ARM set a target to have all its operations (with the exception of the nickel and copper mine) positioned within
the 50th percentile of each commodity's respective cost curve by the 2012 financial year. The Nkomati Nickel and
Lubambe Copper (previously Konkola North Copper) mines were excluded from the F2012 target as these operations
will only achieve full ramp-up in the 2014 and 2015 financial years respectively.

ARM has successfully achieved its cost target for its operations through volume growth and a number of
capital interventions to improve efficiencies. The ferrochrome operations however remain positioned above the
50th percentile, therefore ARM (together with its joint venture partner Assore) has undertaken to convert three of
the ferrochrome furnaces at Machadodorp Works from ferrochrome to ferromanganese production. One of the
furnaces has been successfully converted whilst the conversion of two additional furnaces is under way and is
expected to be completed by the end of the 2012 calendar year.

Above inflation increases in wage rates, electricity tariffs, diesel and consumables have put pressure on costs. In
F2012 production unit costs increased 20% at the GGV Mine, 19% at the ferrochrome operations, 18% at Modikwa
Mine and 13% at the iron ore mines. Cost increases in line with or below the consumer price inflation (CPI) were
achieved at Two Rivers Mine (5%), the manganese ore mines (4%), the manganese alloy operations (1%) and at
Nkomati Mine (0%). The chrome ore mine and PCB operations achieved a 10% and 5% reduction in unit costs,
respectively.

The high inflation rates being experienced in the mining environment in South Africa are expected to continue placing
considerable pressure on costs. ARM however remains committed to maintaining the unit operating cost at its
operations below the 50th percentile of each commodity's respective cost curve.

Exploration

ARM is conscious of the need to ensure growth beyond its existing assets and in this regard has restructured its
Exploration division under the leadership of Jan Steenkamp. The exploration team has a focus on identifying and
assessing ferrous metals, base metals, Platinum Group Metals (PGMs) and coal exploration targets.

The division has commenced with exploration in Mozambique in conjunction with a Mozambican company Rovuma
Resources. Initial results are encouraging and as a result ARM has agreed to continue with the option for the second
year (commencing April 2012) to fund exploration at a cost of US$7 million per year. ARM will have exclusive rights to
exercise options to purchase prospecting and/or mining rights to the resources currently being investigated.

Changes to the Board

On 1 June 2012 ARM announced changes to the composition of its Board and executive management in line with
global best practice. ARM reduced the number of executive directors on its Board from eight to five with effect from
1 June 2012. The former executive directors continue to be full-time executives of the Company.

Changes to resources and reserves

Please note the following material changes to the mineral resources and reserves relative the resources and reserves
disclosed in the Integrated Annual Report in 2011 as follows:

- Measured and Indicated Resource tonnes of the King orebody at Khumani Mine increased by 28% after drilling new
boreholes and remodeling.
- Mineral reserve tonnes for the Lower Manganese Seam at Gloria Mine increased by 37% due to in-fill drilling.

At all other operations there has been no material change to the ARM mineral resources and reserves as disclosed in
the Integrated Annual Report for the financial year ended 30 June 2011, other than depletion due to continued mining
activities at the operations.

Financial commentary

Headline earnings for the year to 30 June 2012 at R3 451 million were 2% or R77 million higher than the prior year
restated headline earnings (F2011: R3 374 million).

ARM has implemented an early adoption of the International Financial Reporting Interpretations Committee (IFRIC)
IFRIC 20: Stripping costs in the production phase of a surface mine. This interpretation would have become
mandatorily effective for financial years commencing on or after 1 January 2013. This implementation is treated as
a change in accounting policy and has resulted in a restatement of ARM's prior year results. The net adjustment to
earnings and headline earnings for F2011 amounts to R55 million. Thus, the previously published results for ARM's
headline earnings for the year to 30 June 2011 of R3 319 million have been restated to R3 374 million. The early
adoption of this interpretation has a dual impact: (i) the amount of the restatement is minimised and (ii) it results
in working costs at surface operations where excessive waste stripping is required being more representative
of the years' operations. The impact of the application of IFRIC 20 on the F2012 headline earnings was an increase of
R70 million. Note 3 to the financial statements provides a detailed analysis of this change.

Sales for the year increased by 18% to R17.5 billion (F2011: R14.9 billion). The average gross profit margin of 35%
(F2011: 40%) is lower than the corresponding period largely due to decreased US Dollar commodity prices for most
commodities as well as above inflation cost increases at some operations. Nkomati, which remains in ramp-up,
operated at a gross profit of R57 million for the year (F2011 restated: R450 million gross profit); the decrease is largely
due to the significant fall in the nickel and chrome prices during the year.

The F2012 average Rand/US Dollar of R7.77/$ was 11% higher than the average of R6.99/$ for F2011. For reporting
purposes the closing exchange rate was R8.16/$ (F2011: R6.76/$).

ARM's earnings before interest, tax, depreciation and amortisation (EBITDA) excluding exceptional items and income
from associates were R6.53 billion, compared to the F2011 restated amount of R6.52 billion.

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

- The ARM Ferrous contribution to ARM's headline earnings amounted to R3 495 million (F2011: R2 897 million).
This is an increase of 21% over the F2011 result.
- The ARM Platinum segment contribution, which includes the results of Nkomati, was R60 million representing a
substantial reduction when compared to the F2011 restated result of R515 million.
- The ARM Coal segment result improved to a profit of R52 million (F2011: R103 million loss).
- The new ARM Exploration segment costs amounted to R113 million (F2011: R nil).
- The ARM Copper result was a loss of R31 million (F2011: R173 million loss). All costs on the Lubambe Copper
Project including exploration costs on Area A are being capitalised.
- The ARM Corporate, other companies and consolidation segment shows a headline loss of R76 million for the
year as compared to a positive contribution of R206 million for F2011. The negative variance largely relates
to increased tax charges, increased share option accounting expenses and higher corporate expenses. The
tax charges include the settlement reached with the South African Revenue Services on the loan stock tax
dispute. In addition there is a tax charge of R85 million reflecting the reversal of the deferred tax asset raised
at 30 June 2011 pertaining to Secondary Tax on Companies (STC) which ceased on 1 April 2012. The results
also include attributable insurance premium income of R157 million recognised in a cell captive, representing
premium income earned following the restructuring of an underlying policy providing annual insurance protection
to Group operations. This insurance income and the STC charge are not expected to be recurring.
- ARM received dividends of R64 million from its investment in Harmony during the year (F2011: R32 million).

ARM's basic earnings for F2012 approximate the reported headline earnings as net exceptional items amounted to a
loss of R13 million for the year (F2011: R8 million loss).

The net cash/(debt) position at 30 June 2012 amounts to net cash of R327 million and is marginally less than the net
cash position of R599 million at 30 June 2011.

Cash generated from operations decreased by R19 million from R5 988 million to R5 969 million despite an increased
working capital requirement which is R556 million more than the requirement in 2011.

Capital expenditure amounted to R4 321 million for the year (F2011: R3 494 million) and was mainly expended at the
growth projects of Khumani and Lubambe Copper Project (formerly the Konkola North Copper Project).

Net cash at 30 June 2012 excluding partner loans (Implats: R50 million, Anglo Platinum: R114 million, Vale/ARM
joint venture: R195 million and Xstrata: R1 617 million) amounted to R2.3 billion as compared to R2.6 billion at
30 June 2011.

The ARM corporate loan facility of R1.75 billion has, subsequent to year-end, been refinanced and increased to
R2.25 billion. The new facility matures in August 2015. The consolidated ARM total assets of R35.3 billion (F2011:
R32.4 billion) include the marked-to-market valuation of ARM's investment in Harmony of R4.9 billion at a share price
of R76.50 per share (F2011: R89.95 per share).

The effective tax rate for the year including STC was 31% (F2011: 32%). The expense for mineral royalty tax is
included in Other Operating Expenses and amounts to R492 million for the year (F2011: R162 million plus State share
of profit for manganese ore sales of R93 million totalling R255 million).

Safety

Safety is key to ARM and all its operations. In F2012 the Lost Time Injury Frequency Rate (LTIFR) improved from
0.43 to 0.42 per 200 000 man hours.

Despite concerted efforts to maintain the highest safety standards at all our operations, regrettably ARM lost four
employees in three fatal accidents.

Two of the fatalities occurred at Two Rivers Mine. On 13 December 2011, Mr Ananias Silvano Chambale, a team
leader was injured underground by a trackless mobile machine. He passed away in hospital on 15 December 2011.
On 21 January 2012, Mr Daniel Vusi Ntuli, a contractor employee, was fatally injured in a fall of ground accident.

Modikwa experienced a tragic double fatality on 27 January 2012 when Ms Patricia Moropa and Mr Khateane Lenong
were fatally injured in a fall of ground accident whilst installing support in an old underground working area.

The ARM Board and management extend their sincerest condolences to the family, friends and colleagues of the
deceased.

Safety achievements

- Nkomati Mine, Beeshoek Mine and Khumani Mine achieved in excess of two million fatality-free shifts.
- Dwarsrivier Mine, Black Rock Mine and Cato Ridge Works achieved in excess of one million fatality-free shifts.
- Dwarsrivier Mine achieved 3 000 fatality-free production shifts in the DMR's 1 000 fatality-free production shift
competition during the first quarter.
- Beeshoek Mine completed 13 consecutive months without a Lost Time Injury (LTI).

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

ARM Ferrous

ARM Ferrous reported headline earnings of R3 495 million, an increase of 21% compared to F2011 headline earnings
of R2 897 million. The increase in earnings can be attributed mainly to an increase in iron ore sales volumes. Higher
sales volumes were also achieved in manganese alloys and chrome ore. Manganese ore sales volumes remained
largely unchanged.

Assmang headline earnings

100% basis 12 months ended 30 June
R million Reviewed Audited % change
2012 2011
Iron ore division 5 935 4 654 28
Manganese division 1 222 1 377 (11)
Chrome division (171) (234) 27
Total 6 986 5 797 21
Headline earnings attributable to ARM (50%) 3 495 2 897 21

Iron ore sales volumes increased 47% to 14.8 million tonnes as Khumani Mine ramped up ahead of schedule and
Transnet delivered better than expected efficiencies on the Saldanha Export Channel. Chrome ore sales increased
40% from 373 thousand tonnes to 521 thousand tonnes as more chrome ore became available for external sales due
to the conversion of Furnaces No. 2 and No. 3 from ferrochrome to ferromanganese production. Ferromanganese
sales volumes increased 24% to 270 thousand tonnes after the successful conversion of Furnace No.1 at
Machadodorp Works.

Assmang sales volumes

100% basis 12 months ended 30 June

Thousand tonnes 2012 2011 % change
Iron ore 14 753 10 006 47
Manganese ore* 2 905 2 882 1
Manganese alloys* 270 218 24
Charge chrome 174 238 (27)
Chrome ore* 521 373 40

*Excluding intra-group sales

Assmang production volumes

100% basis 12 months ended 30 June

Thousand tonnes 2012 2011 % change
Iron ore 13 658 9 685 41
Manganese ore 3 296 3 048 8
Manganese alloys 373 291 28
Charge chrome 186 237 (22)
Chrome ore 1 004 866 16

Realised US Dollar prices for iron ore and manganese ore decreased 10% and 24% respectively owing to challenging
conditions in commodity markets. The reduction in iron ore and manganese ore prices was to some extent offset by
an 11% weakening of the Rand against the US Dollar.

Costs at the iron ore operations remained under pressure as additional waste stripping and reduced capitalisation
of overburden led to a 13% increase in production unit costs. Below inflation unit cost increases of 4% and 1%
were achieved at the manganese ore and manganese alloy operations respectively whilst unit production costs were
reduced at Dwarsrivier Chrome Mine as a result of increased volumes and improved efficiencies.

Assmang cost and EBITDA margin performance

Commodity group Rand per tonne EBITDA
cost change margin
% %
Iron ore 13 60
Manganese ore 4 25
Manganese alloys 1 24
Charge chrome 19 (10)
Chrome Ore (10) 20

Capital expenditure (on 100% basis) was R4.5 billion (F2011: R4.1 billion). The main expenditure items included
on-going development of the Khumani Iron Ore 16 mtpa Expansion Project (R2.5 billion) and the conversion at
Machadodorp Works of furnaces from ferrochrome to ferromanganese production. The remainder of the capital
expenditure related to feasibility studies, information technology, replacement of vehicles and ensuring compliance
to legislative changes.

Assmang capital expenditure

100% basis 12 months ended 30 June

R million Reviewed Audited
2012 2011
Iron ore 3 339 3 225
Manganese 886 656
Chrome 293 216
Total 4 518 4 097

Projects

Khumani Iron Ore Expansion Project

The Khumani Expansion Project from 10 mtpa to 16 mtpa has been handed over to the operation and is now in the
process of ramping-up to full production.

In 1H F2012 Assmang approved an amount of R1.2 billion for the development of a Wet High Density Magnetic
Separation (WHIMS) Plant at Khumani Mine. Development of this plant, which is expected to improve the recovery of
ore and optimise the life of the mine, has commenced. Building of the additional stockpile area at the mine is in the
final commissioning stage and the capital for the diversion of the Transnet Rail Freight main line, which runs through
the future King mining area, has been approved.

Beeshoek Iron Ore Mine

The R885 million development of the East pit to extend production at Beeshoek Mine by approximately 20 years,
has started and to date some 5.5 million tonnes of overburden has been mined from this pit. The diversion of the
road between Postmasburg and Olifantshoek (the R385) to allow for future mining of the Beeshoek Village pit is
progressing on schedule. The development of the housing stands in Postmasburg is also continuing on schedule.

Manganese Ore Expansion

The feasibility study for the expansion of the manganese ore mine from 3 mtpa to 4 mtpa is in progress. This
expansion may include the sinking of two additional shafts or the refurbishing of the Nchwaning No. 2 shaft. The study
into building a sinter plant has been completed and will form part of the total feasibility study of the 3 mtpa to 4 mtpa
expansion.

The scoping study to expand the manganese mine further, from 4 mtpa to 5 mtpa, has been completed. A more
detailed feasibility study to align this further expansion with Transnet's growth of the manganese export channel
will be completed during the latter part of the 2012 calendar year. Thereafter a decision on whether to proceed with
the 4 mtpa to 5 mtpa expansion will be made.

Furnace conversions

Furnace No. 5 at Machadodorp Works was successfully converted from ferrochrome to ferromanganese production
in 1H F2012. Work is now progressing on the conversion of Furnaces No. 2 and No. 3 at Machadodorp Works.
The conversion of these two furnaces is expected to be completed by end September 2012 and the upgrading of the
raw material section, which is in an advanced stage, is expected to be completed in January 2013.

Logistics

ARM Ferrous iron ore export sales volumes were significantly higher than those planned due to additional rail and
port capacity made available as part of Transnet's expansion of the Saldanha Export Channel. The iron ore operations
were able to opportunistically utilise the additional capacity as the Khumani Expansion Project was ahead of schedule.
In addition, ore was moved from Beeshoek Mine to Khumani Mine due to the second load-out station at Khumani
being commissioned ahead of time.

ARM Ferrous through Assmang continues to engage Transnet regarding further expansion of export capacity growth
for iron ore and manganese ore export channels.

Iron ore and manganese ore producers together with Transnet have completed a feasibility study to expand the
iron ore export capacity from the current 60 mtpa capacity to 82 mtpa through the port of Saldanha. This study was
handed-over to Transnet to complete to a higher level of accuracy.

Assmang and Transnet will start to engage regarding a new manganese ore export contract through the port of
Port Elizabeth and future export allocation for the period 1 April 2013 until 31 March 2017. Assmang currently also
export manganese ore through the ports of Durban and Richards Bay.

Transnet is in the process of concluding a feasibility study to expand its manganese ore export capacity to
approximately 12 mtpa through the Port of Ngqura commencing April 2017.

Assmang has reduced its road transport volumes of chrome ore by successfully securing rail capacity through the
port of Richards Bay.

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

PGM production (on 100% basis including Nkomati) increased 4% to 708 201 ounces (F2011: 680 108 ounces) while
total nickel produced increased by 39% to 14 004 tonnes (F2011: 10 100 tonnes).

Attributable headline earnings decreased by R455 million to R60 million driven mainly by a significant fall in commodity
prices, above inflation wage increases, utility tariff increases, coupled with safety stoppages and industrial action.

Despite the negative impact which the above developments has had on unit production costs, Two Rivers and
Modikwa continue to be positioned below the 50th percentile of the global PGM cost curve with respective unit costs
of R4 779/6E PGM oz and R5 864/PGM oz.

Dollar PGM prices were lower than the corresponding period but an 11% weakening in the Rand against the US Dollar
compensated for the dampened PGM prices, resulting in the basket prices for Modikwa and Two Rivers remaining
essentially unchanged at R267 998/kg and R279 804/kg, respectively. The weakening of the Rand from R6.99/US$ to
R7.77/US$ however was not sufficient to compensate for the significant reduction in Dollar nickel and chrome prices.
This reduction severely impacted the earnings at Nkomati Mine.

The table below sets out the relevant price comparison:

Average metal prices

R million 2012 2011 % change
Platinum $/oz 1 603 1 707 (6)
Palladium $/oz 673 680 (1)
Rhodium $/oz 1 495 2 248 (33)
Nickel $/t 18 815 23 970 (22)
Chrome concentrate (CIF) $/t 168 278 (40)

Realising the debtors at 30 June 2011 resulted in a positive mark-to-market adjustment of R97 million (F2011:
negative R23 million).

Capital expenditure at ARM Platinum was R1.4 billion (R928 million attributable). Modikwa's major capital items
included the deepening of North shaft, the sinking of South 2 shaft, an underground mining fleet replacement
programme, a housing project and the establishment of a UG2 open pit operation. Of the capital spent at Two Rivers,
22% is associated with the replacement of the underground mining fleet, while the balance was incurred in the
deepening of the Main and North declines as well as a PGM scavenger plant to enhance recoveries. Capital
expenditure at Nkomati was R484 million of which R16 million was spent on the completion of the Large-Scale
Expansion Project and the balance to sustain operations.

ARM Platinum capital expenditure

100% basis
R million Reviewed Audited
2012 2011
Modikwa 438 250
Two Rivers 467 304
Nkomati 484 808
Total 1 389 1 362

Modikwa

Modikwa experienced a challenging year caused by prolonged industrial action and safety stoppages. Cash operating
profits decreased by 53% as a combined result of decreased production and increased cost. Production, both
tonnes milled and PGM ounces produced, declined by 5%, with PGMs for the year totalling 304 044 6E ounces
(F2011: 319 336 ounces). Unit cost increased 18% to R819 per tonne milled (F2011: R692 per tonne milled) while
Rand unit cost per 6E PGM ounce increased 18% to R5 864 per ounce (F2011: R4 979 per ounce). The cost increases
are a result of wage associated industrial action that lasted five weeks, high industry inflation (in particular on labour),
higher electricity tariffs and increased diesel costs.

Modikwa operational statistics

100% basis 12 months ended 30 June

2012 2011 % change
Cash operating profit R million 267 572 (53)
Tonnes milled Mt 2.18 2.30 (5)
Head grade g/t, 6E 5.39 5.48 (2)
PGMs in concentrate Ounces, 6E 304 044 319 336 (5)
Average basket price R/kg, 6E 267 998 263 530 2
Average basket price $/oz 1 073 1 172 (8)
Cash operating margin % 13 26
Cash cost R/kg, 6E 186 012 160 084 16
Cash cost R/tonne 819 692 18
Cash cost R/Pt oz 14 706 12 468 18
Cash cost R/oz, 6E 5 864 4 979 18
Cash cost $/oz, 6E 755 712 6
Headline earnings attributable to ARM (41.5%) R million 26 122 (79)

Two Rivers

Operationally Two Rivers performed well, increasing tonnes milled by 5%. PGMs produced increased to 320 113 ounces
(F2011: 307 162 ounces). The decline in cash operating profit at Two Rivers can be attributed to the 9% decrease
in the PGM basket price and the 6% increase in cash cost. Unit cash cost per PGM ounce only increased by 6% to
R4 779 per 6E PGM ounce (F2011: R4 499 per 6E PGM ounce).

Two Rivers operational statistics

100% basis 12 months ended 30 June

2012 2011 % change
Cash operating profit R million 788 881 (11)
Tonnes milled Mt 3.10 2.95 5
Head grade g/t, 6E 3.86 3.94 (2)
PGMs in concentrate Ounces, 6E 320 113 307 162 4
Average basket price R/kg, 6E 279 804 277 279 1
Average basket price $/oz, 6E 1 120 1 233 (9)
Cash operating margin % 34 39
Cash cost R/kg, 6E 153 642 144 638 6
Cash cost R/tonne 493 468 5
Cash cost R/Pt oz 10 205 9 509 7
Cash cost R/oz, 6E 4 779 4 499 6
Cash cost $/oz, 6E 615 643 (4)
Headline earnings attributable to ARM (55%) R million 164 228 (28)

Nkomati

A 21% increase in total tonnes milled combined with a 6% improvement in the head grade and a 5% increase in
recoveries delivered a 39% growth in nickel output. The recovery in head grade can be attributed to mining starting to
move into the deeper, higher grade ore in Pit 3.

Chrome ore sales declined to 64 144 tonnes (F2011: 334 803 tonnes) while chrome concentrate sales increased
by 16% to 441 173 tonnes (F2011: 381 196 tonnes). A 40% decline in chrome concentrate prices from US$278/t to
US$168/t negatively affected the earnings from chrome. In April 2012 Nkomati Mine put the chrome spiral plant on
care and maintenance owing to deteriorating chrome market conditions. The spiral plant will be restarted as soon as
market dynamics improve.

Nkomati's cash operating profit of R130 million is 84% lower relative to the previous corresponding period. The decline
in profits can be attributed mainly to a 22% decline in the nickel price and depressed chrome and PGM markets. The
unit cost remained flat at R272 per tonne milled (F2011: R271 per tonne milled) as a result of an increase in volumes.
The C1 unit cash cost net of by-products increased to US$8.58/lb (F2011: US$4.99). Chrome credits contributing to
the cash cost net of by-products reduced to US$0.06/lb (F2011: US$3.99/lb) whilst other commodity credits (including
PGMs, copper and cobalt) reduced from US$4.51/lb to US$3.42/lb in F2012.

Nkomati operational statistics

100% basis 12 months ended 30 June

2012 2011 % change
Cash operating profit R million 130 824 (84)
Nickel Mine R million 115 256 (55)
Chrome Mine R million 15 567 (97)
Cash operating margin % 4 28
Tonnes milled Thousand 6.39 5.26 21
Head grade % nickel 0.34 0.32 6
Nickel on-mine cash cost per tonne milled R/tonne 272 271
Cash cost net of by-products* $/lb 8.58 4.99 72
Contained metal
Nickel Tonnes 14 004 10 100 39
PGMs Ounces 84 044 53 610 57
Copper Tonnes 7 371 5 210 41
Cobalt Tonnes 744 553 35
Chrome ore sold Tonnes 64 144 334 803 (81)
Chrome concentrate sold Tonnes 441 173 381 196 16
Headline (loss)/earnings attributable to
ARM (50%) R million (130) 165** (179)

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

Projects

Modikwa Expansion

The UG2 Phase 2 replacement project to increase production at Modikwa to design capacity of 240 000 tonnes per
month is ongoing. The capital expenditure required for the replacement project exceeds the cash currently being
generated by the mine with cash shortfalls being funded by the partners.

Work on the South 2 decline system continues as expected. The materials decline has advanced 418 metres and the
Chairlift decline has advanced 409 metres from surface. Reef was intersected at approximately 335 metres.

Two Rivers additional ore sources

A feasibility study has been completed on the extraction of UG2 ore from the deeper southern strike extent of the
Main Decline. Two Rivers is currently conducting Merensky Reef trial mining and milling. To date 220 000 Merensky
tonnes have been mined and 73 000 tonnes have been milled. It is planned to stop the trial mining in September
2012 and to mill an additional 60 000 tonnes in June 2013. Infill drilling to further verify metallurgical recoveries in
the shallow UG2 ore at the proposed North Open Pit has been completed. An updated investment proposal will be
completed in F2013.

Nkomati Nickel Large Scale Expansion Project

Total funds committed at 30 June 2012 amount to R3.5 billion of the total R3.7 billion approved for the capital project.
The upgrade of the 132kV overhead distribution lines was delayed as a result of Eskom processes and completion is
now expected by March 2013. This has no material impact on Nkomati in the short to medium term.

Kalplats PGM Exploration Project

The review by ARM Platinum of the Definitive Feasibility Study (DFS) submitted by Platinum Australia (PLA) in 2010
continued during the year and the planned bulk sample exercise proposed for 2012 was deferred. The viability of a
possible mining operation at Kalplats is adversely affected by the lack of Eskom power and the uncertainty regarding
the timing of its delivery. An application for a Retention Permit was submitted in July 2012.

The ARM Platinum division comprises three operating mines, Modikwa, Two Rivers and Nkomati. It has an effective
41.5% interest in Modikwa where local communities hold an 8.5% effective interest. The remaining 50% is held
by Anglo Platinum. Two Rivers is an incorporated joint venture with Implats, with ARM holding 55% and Impala
(Implats) 45%. Nkomati is a 50:50 partnership with Norilsk Nickel Africa. ARM Platinum also has an interest in two joint
ventures with PLA. The first is the "Kalplats Platinum Project" in which ARM Platinum owns 90% and PLA can earn-
in up to 49% by completing a bankable feasibility study. The second joint venture, "Kalplats Extended Area Project",
is a 50:50 partnership between ARM Platinum and PLA.

ARM Coal

ARM Coal's operational performance improved significantly in the year under review as the Goedgevonden (GGV)
Coal Handling Processing Plant (CHPP) achieved consistent design capacity levels of production in the second half
of the financial year, resulting in a 9% increase in saleable production to 6.4 million tonnes. Saleable production at the
Participating Coal Business (PCB) increased by 3% as performance of the iMpunzi CHPP improved.

ARM Coal realised higher US Dollar export prices despite Richards Bay spot coal prices (API 4) having reduced
from US$116 per tonne to US$88 per tonne in the year under review. The higher prices were achieved as a result of
previously negotiated long-term contracts.

Increased export and Eskom sales volumes, both at GGV and PCB, coupled with the 28% increase in the realised
US Dollar export prices and an 11% weaker Rand contributed significantly to the improvement in ARM Coal's cash
operating profit. Cash operating profit therefore increased by 55% from R443 million to R685 million in F2012.

Headline earnings for F2012 were R52 million (F2011: R103 million headline loss) due to an increase in cash
operating profit which was offset by an increase in taxation as well as an increase in finance charges, due to higher
borrowing levels.

Transnet showed a marked improvement in performance since August 2011. ARM Coal however did not fully
benefit from this improvement due to industrial action on two occasions during the year which hampered production
during 1H F2012.

Goedgevonden Coal Mine (GGV)

The GGV Mine achieved full ramp-up in the year under review. Challenges were experienced at the mine's
CHPP during 1H F2012; despite these challenges saleable production increased by 9% for F2012. Production in the
second half of the 2012 financial year (2H F2012) showed a marked improvement increasing 28% when compared
with 1H F2012 with sustainable good performance being achieved.

The consistent improvement in Transnet's performance since the second half of the 2011 calendar year resulted in
increased export and Eskom sales volumes of 15% and 35%, respectively.

The positive variance in sales volumes together with the increase of realised prices resulted in the attributable cash
operating profit increasing by 48% from R214 million to R316 million. Headline earnings of R78 million are 144%
higher than F2011. Attributable export revenue in F2012 increased by R256 million of which R56 million was due to
higher sales volumes, R154 million due to higher export prices and R46 million as a result of a weaker Rand.

Total attributable on mine costs increased by R77 million due to an increase in overburden removal volumes, higher
diesel costs and the cessation of the capitalisation of working costs during F2011. The increase in overburden removal
costs resulted in increased in-pit inventory levels which will have a positive impact on costs going forward. Operating
costs per saleable tonne increased by 20% to R200 per tonne (F2011: R166 per tonne).

Goedgevonden operational statistics

100% basis 12 months ended 30 June

2012 2011 % change
Total production sales
Saleable production Mt 6.37 5.87 9
Export thermal coal sales Mt 3.06 2.67 15
Eskom thermal coal sales Mt 3.69 2.73 35
Attributable production and sales
Saleable production Mt 1.66 1.53 8
Export thermal coal sales Mt 0.80 0.69 16
Eskom thermal coal sales Mt 0.96 0.71 35
Average received coal price
Export (FOB) $/tonne 101.90 77.00 32
Eskom (FOT) R/tonne 146.06 183.05 (20)
On mine saleable cost R/tonne 199.80 165.85 20
Cash operating profit
Total R million 1 216 824 48
Attributable (26%) R million 316 214 48
Headline earnings attributable to ARM R million 78 32 144

Attributable profit analysis
12 months ended 30 June

Reviewed Audited % change
2012 2011
Cash operating profit 316 214 48
Less: interest paid (97) (82) (18)
amortisation (98) (77) (27)
fair value adjustments (11) (17) 35
Profit before tax 110 38 189
Less: Tax (32) (6) >(200)
Headline earnings attributable to ARM 78 32 144

Participative Coal Business (PCB)

The PCB attributable cash operating profit increased by 61% to R369 million (F2011: R229 million). Attributable
headline earnings improved from a R135 million loss to a R26 million loss mainly due to the increase of R140 million
in operating profit, offset by an increase of R42 million in taxation.

The disposal transaction relating to the Mpumalanga assets was finalised on 15 December 2011 and realised an
attributable exceptional profit after tax of R38 million.

Increased demand resulted in Eskom sales volumes being 18% higher whilst other domestic sales declined by 39%.
Export sales volumes in F2012 were marginally higher than F2011. The export sales for F2011 included 120 000
export tonnes from the Mpumalanga assets which were disposed of in F2012.

Attributable run of mine (ROM) production was 6% lower than F2011 mainly due to the inclusion of 310 000 tonnes
from the Mpumalanga complex in F2011 and the closure of the South Stock underground operation during F2012.
An increase in production at iMpunzi East partially compensated for these reductions.

Attributable saleable production was 3% higher than F2011 even though F2011 included 153 000 tonnes of production
from the Mpumalanga assets. PCB on mine unit saleable cost at R321 per tonne was well controlled and 5% lower
than F2011.

As at 30 June 2012, 92% of the capital of R2.8 billion to complete the ATCOM East project had been committed and
the project is expected to be completed by December 2012.

The Tweefontein Optimisation Project (TOP) which is estimated to cost some R8.2 billion was approved by ARM
and Xstrata during the financial year. Work on the project commenced towards the end of F2012 and this project is
expected to be completed in F2016.

Participative Coal Business (PCB) operational statistics

100% basis 12 months ended 30 June

2012 2011 % change
Total production sales
Saleable production Mt 13.23 12.85 3
Export thermal coal sales Mt 9.29 9.20 1
Eskom thermal coal sales Mt 3.28 2.78 18
Local thermal coal sales Mt 0.74 1.22 (39)
Attributable production and sales
Saleable production Mt 2.67 2.59 3
Export thermal coal sales Mt 1.88 1.86 1
Eskom thermal coal sales Mt 0.66 0.57 16
Local thermal coal sales Mt 0.15 0.24 (38)
Average received coal price
Export (FOB) $/tonne 98.75 79.30 25
Eskom (FOT) R/tonne 120.31 105.98 14
Local (FOR) R/tonne 262.12 296.59 (12)
On mine saleable cost R/tonne 321.37 338.07 (5)
Cash operating profit
Total R million 1 828 1 133 61
Attributable (20.2%) R million 369 229 61
Headline loss attributable to ARM R million (26) (135) 81

Attributable profit analysis
12 months ended 30 June

Reviewed Audited % change
2012 2011
Cash operating profit 369 229 61
Less: interest paid (117) (107) (9)
amortisation (268) (282) 5
fair value adjustments (20) (27) 26
Loss before tax (36) (187) 81
Less: Tax 10 52 81
Headline loss attributable to ARM (26) (135) 81

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

Attributable refers to 20.2% of Xstrata Coal South Africa Operations whilst total refers to 100%.

ARM Copper

Due to the similarity of the name Konkola North Copper Mine to the name of a neighbouring mine, a decision was
taken to change the name from Konkola North Copper Project to Lubambe Copper Project. The name of the registered
company was also changed from Konnoco (ZAMBIA) Ltd. to Lubambe Copper Mine Ltd. The new registered name
of the company has been approved by the relevant authorities in Zambia. Lubambe is the Bemba (one of the local
languages in Zambia) word for a Black Eagle and was chosen by the people working on the mine.

During 1H F2012 Zambian Consolidated Copper Mines Investment Holdings (ZCCM-IH) exercised their right to
acquire a 20% shareholding in Lubambe Copper Mine Limited (previously Konnoco (ZAMBIA) Ltd.) and fulfilled their
obligations in terms of the signed shareholders' agreement.

After the inauguration of the newly elected President and Government of the Republic of Zambia (GRZ) in October
2011, all the required agreements between the GRZ and the Vale/ARM Joint Venture were signed by the duly
authorised representatives of all the parties involved securing the tenure of the mining lease area as stipulated in
the agreements.

The Lubambe Copper Project

The Lubambe Copper Project is progressing within budget and in line with the baseline schedule and the planned
commissioning of the concentrator plant, which is expected by the end of the 2012 calendar year.

Even though worse than expected ground conditions were encountered in the East Limb, the mechanised development
for the mine is progressing well. The first ore body intersection from the East Decline was made on 4 December 2011
and the first owner mining crews commenced access development on 23 November 2011. The first ore from stoping
will be delivered to the stockpile on surface before the end of September 2012.

The refurbishing of the No. 2 Vertical Shaft has been negatively affected by the steel industry strike in South Africa
and resultant late delivery of the steel to site, but this delay was largely mitigated due to early access development to
the 100 metre level of the vertical shaft from the East Decline. This early access enables development operations at
No. 2 Shaft Complex to commence before the commissioning of the vertical shaft system. Production ramp-up to full
production of 45 000 tonnes of contained copper is still expected to be reached during F2015.

Project expenditure in July 2010 terms is estimated at US$410 million, of which 94% was committed by 30 June 2012.
All these costs will be capitalised and includes the cost of relocating about 205 informal houses built on a potential
mining subsidence area, as defined by Zambian Mining Legislation.

The mine's throughput design from both the South and East Limb ore bodies remains at 2.5 mtpa of ore at an average
mill head grade of 2.3% copper, producing 45 000 tonnes of contained copper in concentrate per annum for 28 years.
The copper concentrate produced will be toll smelted and refined in Zambia. Commissioning of the concentrator plant
is expected by the end of the 2012 calendar year and all off-take agreements have been agreed and signed.

The Lubambe Copper Project: Area A

The second phase of the Lubambe Copper Project, which provides for the exploitation of Area A South located six
kilometres to the south of the present mine development, will require a vertical shaft as well as the expansion of the
Lubambe Copper Mine processing plant potentially increasing the total production to 100 000 tonnes of copper in
concentrate.

Exploration drilling is continuing in Area A and during F2012 five exploration drill rigs were deployed and 15 ore
shale intersections were achieved. A total of 24 164 meters were drilled to determine continuity of mineralisation
and to investigate ore shale presence at moderate depths on the up-dip eastern side of the Lubengele synclinal
structure. Most of the drilling results have been analysed and initial results are encouraging. Feasibility study work
will commence in early 2013.

In addition to the drilling programme an aero magnetic survey was carried out across the whole mining lease area
with the intention to identify further exploration target areas. This information is being analysed to establish additional
target areas.
Ce que l'on conçoit bien, s'énonce clairement, Et les mots pour le dire arrivent aisément. BOILEAU
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Re: African Rainbow - Provisional Results For The Year 30-6-

la suite et fin

The Kalumines Copper Project

The feasibility study at the Kalumines prospecting area has been completed and submitted to the shareholders.
Variability drilling and test work was done, but further areas of optimisation did not achieve project value enhancements.
The mining permit has been extended to 2 January 2013.

ARM owns 100% of ARM Copper. ARM Copper owns 50% of the Vale/ARM Joint Venture. Previously, ARM owned
65% of TEAL which was listed on the Toronto Stock Exchange.

ARM Exploration

ARM is conscious of the need to ensure continued growth beyond the ore bodies that currently comprise its portfolio
and is in the process of implementing changes and a strategic review under the leadership of Jan Steenkamp. This
will ensure that the ARM Exploration Division strategy will focus on identifying, exploring for, evaluating and acquiring
mineral resource projects that have the ability to outline and define sustainable mineral resource for mine development.

ARM Exploration is a new division, and previously represented the Vale/ ARM Joint Venture which was subsequently
renamed ARM Copper.

ARM Exploration has established a large database of mining and exploration undertakings in Africa, focusing on
Platinum Group Metals, manganese ore, base metals and coal.

The agreement with Rovuma Resources Limited, a British Virgin Island registered Mozambican exploration company,
was signed in July 2011. Rovuma has been exploring in Mozambique since 2007 and numerous occurrences of
copper/zinc/silver/gold, nickel/copper/PGE, chromite/nickel and graphite mineralisation have been identified.

ARM agreed to continue with the second year of exploration (commencing April 2012) and to fund exploration
at a cost of US$7 million per year. ARM will have exclusive rights to exercise options to purchase prospecting
and/or mining rights to the resources. An airborne gravity survey to further enhance the geological understanding
of the previously defined base metal mineralisation and identify drill targets has been completed. Four major target
cluster areas, each comprising numerous identified areas of base metal mineralisation have been defined over a
strike of approximately 100 kilometres. Drilling has now commenced and geological mapping and ground geophysical
surveys are progressing to firm up other drill targets. It is planned that 8 000 metres will be drilled.

In Zambia, ARM Exploration has undertaken reconnaissance exploration work on prospective areas for high grade
manganese mineralisation. Numerous targets have been identified and discussion with the rights holders has
commenced.

The headline loss attributable to ARM in F2012 is R113 million (F2011: R nil) and was largely due to the investment
in Rovuma.

Harmony Gold Mining Company Limited

Harmony reported an 80% increase in operating profit to R5 896 million compared to R3 275 million in F2011.
Headline earnings were 148% higher at R2 372 million (F2011: R957 million). These significantly improved results
were driven mainly by a 23% improvement in the realised US Dollar gold price together with an 11% increase in the
R/US$ exchange rate.

Gold sold decreased by 4% from 41 043/kg to 39 545/kg whilst cash operating cost per kilogram produced increased
by 20% to R270 918/kg. The US$/oz cash operating costs increased only 8% due to the weakening of the Rand
against the US Dollar.

As exploration on the Walfi-Golpu deposit continues results from the resource definition programme continue to
be extremely encouraging. At Golpu four holes targeting the upper levels of the resource model intersected broad
zones of strongly mineralised hornblende porphyry containing up to 5% chalcopyrite. The resource drilling has also
confirmed a new zone of gold mineralisation located immediately west of the Golpu copper-gold ore body. The results
of the Golpu pre-feasibility study were shared with the market on 29 August 2012.

Harmony continued to focus on the optimisation of its South African assets and in 1H F2012 announced the disposal of
its Evander operations to Pan African Resources plc for a purchase consideration of R1.5 billion. The main conditions
precedent for the transaction are expected to be fulfilled by 31 December 2012.

After declaring an interim dividend of 40 cents per share in February 2012, Harmony declared a final dividend of
50 cents per share for F2012 in August 2012 bringing the total dividend for F2012 to 90 cents per share. ARM has
accounted for the interim dividend in its 2H F2012 results and will account for the final dividend in the first half of the
2013 financial year.

The ARM Statement of Financial Position at 30 June 2012 reflects a mark-to-market investment in Harmony of
R4.9 billion which is based on a Harmony share price of R76.50 per share. Changes in the value of the investment
in Harmony are accounted for by ARM through the Statement of Comprehensive Income, net of deferred capital
gains tax. Dividends are recognised in the ARM income statement on the last day of registration following dividend
declaration.

Harmony's results for the year ended 30 June 2012 can be viewed on Harmony's website (www.harmony.co.za).

ARM owns 14.8% of Harmony's issued share capital.

Outlook

Commodity markets in the year under review have been extremely strained as concerns about global growth
persisted, driven by European economic and political uncertainty, lower growth in infrastructure spending in China,
and uncertainty on US economic growth.

The impact of the European economic crisis on global markets has highlighted the dependence on eastern economies
as a market for western products and commodities. With the sovereign debt and economic recovery challenges
in some European economies unresolved, the European crisis is expected to continue putting pressure on global
markets in the short term. This coupled with a benign growth outlook in the US points to a subdued global growth
outlook for at least the next 12 months.

Demand for ARM Ferrous products is mostly influenced by demand from China. The slowdown in China has been
influenced by demand fundamentals from Europe and the US and the deterioration in export markets. China's demand
for metals will be dependent on improved regional fixed capital formation, urbanisation, re-urbanisation, rebalancing
towards consumer spending and decisive reflationary policies. Deteriorating global credit and economic conditions
could act as a catalyst for further Chinese government stimulus measures, which have remained more conservative
than previous efforts.

Demand fundamentals in the PGM, nickel and chrome markets are expected to remain subdued in the short term
due to uncertainty in the developed markets and over supply. The long-term fundamentals of these commodities are
positive with a recovery in the developed markets together with supply side challenges being experienced by PGM
producers expected to provide price support.

ARM is positioned well financially with a strong cash position. The Company continues to focus on further enhancing
operational efficiencies to ensure we maintain a favourable cost positioning to maximise margins in the currently
challenging price environment.

ARM continues to look at quality acquisitive opportunities.

Dividends

The ARM Board has approved and declared a sixth annual dividend of 475 cents per share (gross) in respect of the year
ended 30 June 2012 (F2011 450 cents per share). The amount to be paid is approximately R 1 020 million. This dividend
represents a 6% increase compared to the F2011 dividend of 450 cents per share, and is consistent with ARMs commitment
as a globally competitive company to pay dividends and fund growth of the company.

The dividend will be subject to the new Dividend Withholding Tax that was introduced with effect from 1 April 2012.
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 rate is 15% (fifteen per cent);
- The dividend per share is 475 cents and the Secondary Tax on Companies (STC) credits utilised are 475 cents per share;
- STC credits remain after this dividend;
- The gross local dividend amount is 475 cents per ordinary share for shareholders exempt from the Dividends Tax;
- The net local dividend amount is 475 cents per ordinary share for shareholders liable to pay the Dividends Tax;
- ARM currently has 214 851 896 ordinary shares in issue; and
- ARM's income tax reference number is 9030/018/60/1.

A gross dividend of 475 cents per ordinary share, being the dividend for the year ended 30 June 2012, has been
declared payable on Monday, 1 October 2012 to those shareholders recorded in the books of the Company at the
close of business on Friday, 28 September 2012. The dividend is declared in the currency of the Republic 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 Thursday, 20 September 2012. The last date to trade ordinary shares
cum dividend is Thursday, 20 September 2012. Ordinary shares trade ex-dividend from Friday, 21 September 2012.
The record date is Friday, 28 September 2012 whilst the payment date is Monday, 1 October 2012.

No dematerialisation or rematerialisation of share certificates may occur between Friday, 21 September 2012 and
Friday, 28 September 2012, both dates inclusive, nor may any transfers between registers take place during this
period.

Review by independent auditors

The financial information has been reviewed by E A L Botha, CA(SA) of Ernst & Young Inc. whose unqualified review
report will be available for inspection at the Company's registered office.

The annual report containing a detailed review of the operations of the Company together with the audited financial
statements will be posted to shareholders at the end of October 2012 and will be available on the ARM website (www.arm.co.za).

These results are a summary of the annual financial statements of ARM as at 30 June 2012.

Any reference to future financial performance included in these results has not been reviewed or reported on by
ARM's auditors.

Signed on behalf of the Board:

PT Motsepe MP Schmidt
Executive Chairman Chief Executive Officer

Johannesburg
3 September 2012

Financial statements

Group statement of financial position
as at 30 June 2012
Reviewed Restated* Audited
2012 2011 1 July 2010
Note Rm Rm Rm
ASSETS
Non-current assets
Property, plant and equipment 18 707 15 584 13 256
Investment property 12 12 12
Intangible assets 191 202 212
Deferred tax asset 3 87 44
Loans and long-term receivables 221 186 51
Financial assets 74 45 84
Inventories 141 130 148
Investment in associate 1 354 1 331 1 292
Other investments 4 959 5 798 5 191
25 662 23 375 20 290
Current assets
Inventories 2 458 2 155 1 834
Trade and other receivables 3 606 3 113 3 026
Taxation 26 75 44
Cash and cash equivalents 6 3 564 3 668 3 039
9 654 9 011 7 943
Total assets 35 316 32 386 28 233
EQUITY AND LIABILITIES
Capital and reserves
Ordinary share capital 11 11 11
Share premium 3 937 3 840 3 803
Other reserves 571 1 201 728
Retained earnings 18 681 16 160 13 223
Equity attributable to equity holders of ARM 23 200 21 212 17 765
Non-controlling interest 1 205 958 764
Total equity 24 405 22 170 18 529
Non-current liabilities
Long-term borrowings 7 2 216 2 337 2 582
Deferred tax liabilities 3 777 3 593 2 961
Long-term provisions 892 549 500
6 885 6 479 6 043
Current liabilities
Trade and other payables 2 318 2 448 2 315
Short-term provisions 463 287 268
Taxation 224 270 314
Overdrafts and short-term borrowings 8 1 021 732 764
4 026 3 737 3 661
Total equity and liabilities 35 316 32 386 28 233

* Restated after early adoption of IFRIC 20: Accounting for stripping costs in the production phase of a surface mine
(Refer notes 1 and 3).

Group income statement
for the year ended 30 June 2012
Reviewed Restated*
2012 2011
Note Rm Rm
Revenue 18 142 15 360
Sales 17 530 14 893
Cost of sales (11 463) (8 875)
Gross profit 6 067 6 018
Other operating income 859 511
Other operating expenses 10 (1 710) (1 130)
Profit from operations before exceptional items 5 216 5 399
Income from investments 279 216
Finance costs (232) (216)
Income/(loss) from associate** 4 11 (135)
Profit before taxation and exceptional items 5 274 5 264
Exceptional items 4 (70) (11)
Profit before taxation 5 204 5 253
Taxation 9 (1 633) (1 693)
Profit for the year 3 571 3 560
Attributable to:
Non-controlling interest 133 194
Equity holders of ARM 3 438 3 366
3 571 3 560
Additional information
Headline earnings (R million) 5 3 451 3 374
Headline earnings per share (cents) 1 615 1 585
Basic earnings per share (cents) 1 609 1 581
Diluted headline earnings per share (cents) 1 604 1 578
Diluted basic earnings per share (cents) 1 598 1 574
Number of shares in issue at end of year (thousands) 214 852 213 133
Weighted average number of shares in issue (thousands) 213 689 212 889
Weighted average number of shares used in calculating diluted
earnings per share (thousands) 215 118 213 871
Net asset value per share (cents) 10 798 9 952
EBITDA (R million) 6 531 6 517
Dividend declared after year-end (cents per share) 475 450

* Restated after early adoption of IFRIC 20: Accounting for stripping costs in the production phase of a surface mine
(Refer notes 1 and 3).
** Exceptional gain net of tax included in income/(loss) from associate R38 million (F2011: R nil).

Group statement of comprehensive income
for the year ended 30 June 2012
Total
Available- share- Non-
for-sale Retained holders controlling
reserve Other earnings of ARM interest Total
Group Rm Rm Rm Rm Rm Rm
For the year ended 30 June 2011
(restated*)
Profit for the year to 30 June 2011 3 366 3 366 194 3 560
Other comprehensive income
Revaluation of listed investment 544 544 544
Deferred tax on revaluation of listed
investment (76) (76) (76)
Net impact of revaluation of listed
investment 468 468 468
Foreign exchange on loans to foreign
Group entity (82) (82) (82)
Deferred tax on foreign exchange on
loans to foreign Group entity 11 11 11
Cash flow hedge reserve (4) (4) (4)
Foreign currency translation
reserve movement 40 40 40
Total comprehensive income
for the year 468 (35) 3 366 3 799 194 3 993
For the year ended 30 June 2012
(reviewed)
Profit for the year to 30 June 2012 3 438 3 438 133 3 571
Other comprehensive income
Revaluation of listed investment (856) (856) (856)
Deferred tax on revaluation of listed
investment 81 81 81
Net impact of revaluation of listed
investment (775) (775) (775)
Foreign exchange on loans to foreign
Group entity 117 117 117
Deferred tax on foreign exchange on
loans to foreign Group entity (20) (20) (20)
Cash flow hedge reserve (11) (11) (11)
Foreign currency translation
reserve movement 16 16 16
Total comprehensive income
for the year (775) 102 3 438 2 765 133 2 898

* Restated after early adoption of IFRIC 20: Accounting for stripping costs in the production phase of a surface mine
(Refer notes 1 and 3).

Group statement of changes in equity
for the year ended 30 June 2012
Share Total
capital Available- share- Non-
and for-sale Retained holders controlling
premium reserve Other* earnings of ARM interest Total
Group Rm Rm Rm Rm Rm Rm Rm
Balance at 30 June 2010
(audited) 3 814 446 282 13 223 17 765 764 18 529
Profit for the year to
30 June 2011 (restated)** 3 366 3 366 194 3 560
Other comprehensive income 468 (35) 433 433
Total comprehensive income
for the year 468 (35) 3 366 3 799 194 3 993
Share-based payments 37 37 37
Share options exercised 37 37 37
Dividend paid (426) (426) (426)
Other 3 (3)
Balance at 30 June 2011
(restated)** 3 851 914 287 16 160 21 212 958 22 170
Profit for the year to
30 June 2012 3 438 3 438 133 3 571
Other comprehensive income (775) 102 (673) (673)
Total comprehensive income
for the year (775) 102 3 438 2 765 133 2 898
Share-based payments 47 47 47
Share options exercised 97 97 97
Dividend paid (959) (959) (959)
Part disposal of interest in
Lubambe (previously called
Konnoco) 38 38 114 152
Other (4) 4
Balance at 30 June 2012
(reviewed) 3 948 139 432 18 681 23 200 1 205 24 405

2012 2011 2010
* Other reserves consist of the
following: Rm Rm Rm
General reserve 32 32 32
Insurance contingency 12 18 15
Share-based payments 351 304 267
Cash flow hedge reserve 1 12 16
Foreign exchange on loans
to foreign Group entity 20 (77) (6)
Foreign currency translation
reserve 30 12 (28)
Premium paid on purchase
of non-controlling interest (14) (14) (14)
Total 432 287 282

** Restated after early adoption of IFRIC 20: Accounting for stripping costs in the production phase of a surface mine
(Refer notes 1 and 3).

Group statement of cash flows
for the year ended 30 June 2012
Reviewed Restated*
2012 2011
Note Rm Rm
CASH FLOW FROM OPERATING ACTIVITIES
Cash receipts from customers 17 883 15 409
Cash paid to suppliers and employees (11 914) (9 421)
Cash generated from operations 11 5 969 5 988
Interest received 214 181
Interest paid (106) (117)
Dividends received 64 33
Dividend paid (959) (426)
Taxation paid (1 294) (1 240)
Net cash inflow from operating activities 3 888 4 419
CASH FLOW FROM INVESTING ACTIVITIES
Additions to property, plant and equipment to maintain operations (1 180) (797)
Additions to property, plant and equipment to expand operations (2 866) (2 241)
Proceeds on disposal of property, plant and equipment 1 3
Investment in associate (23) (178)
Investment in RBCT (17) (63)
Decrease/(increase) in loans and long-term receivables 8 (106)
Net cash outflow from investing activities (4 077) (3 382)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds on exercise of share options 50 37
Long-term borrowings raised 501 283
Long-term borrowings repaid (294) (596)
Decrease in short-term borrowings (78) (312)
Net cash inflow/(outflow) from financing activities 179 (588)
Net (decrease)/increase in cash and cash equivalents (10) 449
Cash and cash equivalents at beginning of year 3 227 2 791
Foreign currency translation on cash balance 10 (13)
Cash and cash equivalents at end of year 6 3 227 3 227

* Restated after early adoption of IFRIC 20: Accounting for stripping costs in the production phase of a surface mine
(Refer notes 1 and 3).

Notes to the financial statements
for the year ended 30 June 2012 (reviewed)

1 STATEMENT OF COMPLIANCE

The Group provisional financial statements are prepared in accordance with International Financial Reporting Standards
(IFRS) and interpretations of those standards as adopted by the International Accounting Standards Board (IASB), the
AC 500 standards as issued by the Financial Reporting Standards Council or its successor, requirements of the South
African Companies Act and the Listings Requirements of the JSE Limited.

BASIS OF PREPARATION

The Group provisional results for the year under review have been prepared under the supervision of the financial director
Mr M Arnold, CA(SA). The Group provisional financial statements have been prepared on the historical cost basis, except
for certain financial instruments that are fairly valued by mark to market. The accounting policies used are consistent with
those in the most recent annual financial statements, except for those listed below and are in terms of the disclosure
requirements of IAS 34: Interim Financial Reporting.

The Group has adopted the following new and revised standards and interpretations, issued by the International Financial
Reporting Interpretation Committee (IFRIC) of the IASB, that became effective during the course of the year:

Standard Subject
IFRS 1 First-time adoption of International Financial Reporting Standards Accounting policy changes in the year
of adoption (Annual improvements project 2010)
First-time adoption of International Financial Reporting Standards Severe hyperinflation and removal of
fixed dates for first time adaptors (Amendment)
First-time adoption of International Financial Reporting Standards Revaluation basis as deemed cost
(Annual improvements project 2010)
First-time adoption of International Financial Reporting Standards Replacement of fixed dates for certain
exceptions with the date of transition to IFRS (Amendment)
First-time adoption of International Financial Reporting Standards Use of deemed cost for operations
subject to date regulation (Annual improvements project 2010)
IFRS 7 Financial instruments: Disclosures Transfer of financial assets (Amendment)
Financial instruments: Disclosures Clarification of disclosures (Annual improvements project 2010)
IAS 1 Presentation of financial statements Clarification of statements of changes in equity (Annual improvements
project 2010)
IAS 24 Related party disclosure (revised)
IAS 34 Interim financial reporting Significant events and transactions (Annual improvements project 2010)
IFRIC 13 Customer loyalty programmes Fair value of award credit (Annual improvements project 2010)
IFRIC 14 IAS 19 The limit on a defined benefit asset, minimum funding requirements and their interactions Pre-
payments of a minimum funding requirement (Amendment)

The adoption of these amendments, standards and interpretations only resulted in changes to the manner in which the
annual financial statements are presented as well as additional disclosures in the annual financial statements.

The Group has early adopted the following interpretation:

IFRIC 20 Accounting for stripping costs in the production phase of a surface mine.

This interpretation is effective for annual periods commencing on or after 1 January 2013, which would ordinarily mean it
would apply to ARM from the year ending 30 June 2013, however ARM has elected to early adopt this interpretation and
apply it for the year ended 30 June 2012. In accordance of the transitional provision of the interpretation, the requirements
were applied retrospectively to production stripping costs incurred on or after 1 July 2010 (commencement of the
comparative financial period). The interpretation now clarifies that an entity can recognise production stripping costs of a
surface mining operation as part of a stripping activity asset if certain requirement as per the IFRIC 20 are met. Refer to
note 3 for details of the financial effect of early adoption of this interpretation.

In addition, the following amendments, standards or interpretations have been issued but are not yet effective. The
effective date refers to reporting periods beginning on or after, unless otherwise indicated.

Standard Subject Effective date
IFRS 9 Financial instruments Classification and measurement 1 January 2015
IFRS 10 Consolidated financial statements 1 January 2013
IFRS 11 Joint arrangements 1 January 2013
IFRS 12 Disclosure of interest in other entities 1 January 2013
IFRS 13 Fair value measurement 1 January 2013
IAS 1 Presentation of other comprehensive income (Amendment) 1 January 2012
IAS 12 Income taxes Recovery of underlying assets (Amendment) 1 January 2012
IAS 19 Employee benefits (Amendment) 1 January 2013
IAS 27 Separate financial statements (as revised in 2011) 1 January 2013
IAS 28 Investment in associate and joint ventures (as revised in 2011) 1 January 2013

The Group does not intend early adopting any of the above amendments, standards or interpretations.

PRIMARY SEGMENTAL INFORMATION
ARM Corporate
ARM ARM ARM ARM Explora- and
Platinum Ferrous Coal Copper** tion other* Gold Total
Rm Rm Rm Rm Rm Rm Rm Rm
2.1 Year to 30 June 2012
(reviewed)
Sales 4 914 11 844 772 17 530
Cost of sales (4 261) (6 690) (557) 45 (11 463)
Other operating income 33 435 23 368 859
Other operating expenses (355) (893) (1) (33) (113) (315) (1 710)
Segment result 331 4 696 214 (10) (113) 98 5 216
Income from investments 33 124 58 64 279
Finance cost (47) (14) (103) (34) (26) (224)
Finance cost Implats:
Shareholders' loan
Two Rivers (4) (4)
Finance cost ARM:
Shareholders' loan
Two Rivers (4) (4)
Income from associate 11 11
Exceptional items 1 (71) (70)
Taxation (110) (1 292) (32) (5) (194) (1 633)
Non-controlling interest (139) 18 (12) (133)
Contribution to
basic earnings 61 3 443 90 (31) (113) (76) 64 3 438
Contribution to
headline earnings 60 3 495 52 (31) (113) (76) 64 3 451
Other information:
Segment assets,
including investment
in associate 8 821 14 751 3 628 2 000 1 248 4 868 35 316
Investment in associate 1 354 1 354
Segment liabilities 1 828 1 548 1 855 427 1 252 6 910
Unallocated liabilities
(tax and deferred tax) 4 001
Consolidated
total liabilities 10 911
Cash inflow/(outflow)
from operating activities 651 3 879 368 (51) (113) (910) 64 3 888
Cash outflow from
investing activities (828) (2 179) (108) (959) (3) (4 077)
Cash (outflow)/inflow
from financing activities (78) (2) (269) 191 337 179
Capital expenditure 928 2 171 151 1 065 6 4 321
Amortisation and
depreciation 521 677 109 4 4 1 315
Impairment (1) 69 68
EBITDA 852 5 373 323 (7) (113) 103 6 531

* Corporate, other companies and consolidation adjustments.
** With effect from 1 July 2011 ARM Copper segment comprises an effective 40% share in the Lubambe (previously
Konkola North) Project, an effective 30% shareholding in the Kalumines Copper project, and an effective 50%
shareholding in the Lusaka Kabwe Project. All these projects are held within the Vale/ARM joint venture.

Corporate
ARM ARM ARM ARM and
Platinum Ferrous Coal Copper** * other* Gold Total
Rm Rm Rm Rm Rm Rm Rm
2.2 Year to 30 June 2011
(restated)
Total sales 4 854 9 538 505 14 897
Inter-Group sales to ARM Ferrous (4) (4)
Sales 4 850 9 538 505 14 893
Cost of sales (3 522) (5 009) (381) 37 (8 875)
Other operating income 31 125 355 511
Other operating expenses (332) (425) (2) (151) (220) (1 130)
Segment result 1 027 4 229 122 (151) 172 5 399
Income from investments 33 71 80 32 216
Finance cost (45) (13) (85) (47) 10 (180)
Finance cost Implats:
Shareholders' loan
Two Rivers (16) (16)
Finance cost ARM:
Shareholders' loan
Two Rivers (20) (20)
Loss from associate (135) (135)
Exceptional items (4) (7) (11)
Taxation (251) (1 388) (5) (2) (47) (1 693)
Non-controlling interest (212) 27 (9) (194)
Contribution to basic earnings 512 2 892 (103) (173) 206 32 3 366
Contribution to
headline earnings 515 2 897 (103) (173) 206 32 3 374
Other information:
Segment assets, including
investment in associate 8 620 11 923 3 544 683 1 892 5 724 32 386
Investment in associate 1 331 1 331
Segment liabilities 1 811 1 271 1 924 209 1 138 6 353
Unallocated liabilities
(tax and deferred tax) 3 863
Consolidated total liabilities 10 216
Cash inflow/(outflow) from
operating activities 1 483 3 413 174 (136) (547) 32 4 419
Cash outflow from investing
activities (776) (1 822) (427) (313) (44) (3 382)
Cash (outflow)/inflow from
financing activities (329) (3) 78 (334) (588)
Capital expenditure 923 1 967 85 475 44 3 494
Amortisation and depreciation 513 499 95 6 5 1 118
Impairment 4 4
EBITDA 1 540 4 728 217 (145) 177 6 517

* Corporate, other companies and consolidation adjustments.
** ARM Copper was previously called ARM Exploration and comprises an effective 40% share in the Lubambe
(previously Konkola North) Project, an effective 30% shareholding in the Kalumines Copper project, and an effective
50% shareholding in the Lusaka Kabwe Project. All these projects are held within the Vale/ARM joint venture.

The ARM platinum segment is analysed further into Two Rivers Platinum (Pty) Limited, ARM Mining Consortium Limited which
includes Modikwa Platinum Mine and Nkomati nickel mine.
Platinum
Nkomati Two Rivers Modikwa Total
Rm Rm Rm Rm
2.3 Year to 30 June 2012
(reviewed)
Sales
External sales 1 554 2 335 1 025 4 914
Cost of sales (1 497) (1 811) (953) (4 261)
Other operating income 11 10 12 33
Other operating expenses (234) (68) (53) (355)
Segment result (166) 466 31 331
Income from investments 6 13 14 33
Finance cost (3) (42) (2) (47)
Finance cost Implats: Shareholders' loan
Two Rivers Platinum (Pty) Limited (4) (4)
Finance cost ARM: Shareholders' loan
Two Rivers Platinum (Pty) Limited (4) (4)
Exceptional items 1 1
Taxation 33 (132) (11) (110)
Non-controlling interest (133) (6) (139)
Contribution to basic earnings (129) 164 26 61
Contribution to headline earnings (130) 164 26 60
Other information:
Segment and consolidated assets 2 786 3 443 2 592 8 821
Segment liabilities 366 1 048 414 1 828
Unallocated liabilities (tax and deferred tax) 1 224
Consolidated total liabilities 3 052
Cash inflow from operating activities 13 588 50 651
Cash outflow from investing activities (272) (332) (224) (828)
Cash outflow from financing activities (3) (74) (1) (78)
Capital expenditure 242 467 219 928
Amortisation and depreciation 192 249 80 521
Impairment (1) (1)
EBITDA 26 715 111 852

Platinum
Nkomati Two Rivers Modikwa Total
Rm Rm Rm Rm
2.4 Year to 30 June 2011
(restated)
Sales
External sales 1 495 2 274 1 081 4 850
Cost of sales (1 045) (1 634) (843) (3 522)
Other operating income 11 12 8 31
Other operating expenses (236) (30) (66) (332)
Segment result 225 622 180 1 027
Income from investments 8 8 17 33
Finance cost (2) (41) (2) (45)
Finance cost Implats: Shareholders' loan
Two Rivers Platinum (Pty) Limited (16) (16)
Finance cost ARM: Shareholders' loan
Two Rivers Platinum (Pty) Limited (20) (20)
Exceptionals (4) (4)
Taxation (65) (138) (48) (251)
Non-controlling interest (187) (25) (212)
Contribution to basic earnings 162 228 122 512
Contribution to headline earnings 165 228 122 515
Other information:
Segment and consolidated assets 2 717 3 173 2 730 8 620
Segment liabilities 226 1 001 584 1 811
Unallocated liabilities (tax and deferred tax) 1 230
Consolidated total liabilities 3 041
Cash inflow from operating activities 495 669 319 1 483
Cash outflow from investing activities (483) (174) (119) (776)
Cash outflow from financing activities (329) (329)
Capital expenditure 494 304 125 923
Amortisation and depreciation 209 228 76 513
Impairment 4 4
EBITDA 434 850 256 1 540

Additional information

2.5 Pro forma analysis of the Iron Ore Manganese Chrome Attributable
Ferrous segment on a 100% basis Division Division Division Total to ARM
Year to 30 June 2012 (reviewed) Rm Rm Rm Rm Rm
Sales 15 296 6 352 2 040 23 688 11 844
Other operating income 1 022 417 163 1 602 435
Other operating expense (1 688) (596) (234) (2 518) (893)
Operating profit 8 370 1 280 (258) 9 392 4 696
Contribution to earnings 5 835 1 223 (174) 6 884 3 443
Contribution to headline
earnings 5 935 1 222 (171) 6 986 3 495
Other information:
Consolidated total assets 19 718 9 316 1 172 30 206 14 751
Consolidated total liabilities 5 042 1 934 838 7 814 1 548
Capital expenditure 3 339 886 293 4 518 2 171
Amortisation and depreciation 910 321 163 1 394 677
Cash inflow from operating activities 4 284* 1 244 229 5 757 3 879
Cash outflow from investing activities (3 262) (602) (494) (4 358) (2 179)
Cash outflow from financing activities (5) (5) (2)
EBITDA 9 280 1 601 (95) 10 786 5 373
2.6 Year to 30 June 2011 (audited)
Sales 10 342 6 466 2 267 19 075 9 538
Other operating income 378 147 36 561 125
Other operating expense (691) (317) (152) (1 160) (425)
Operating profit 6 485 2 289 (315) 8 459 4 229
Contribution to earnings 4 650 1 369 (234) 5 785 2 892
Contribution to headline earnings 4 654 1 377 (234) 5 797 2 897
Other information:
Consolidated total assets 15 051 7 902 1 460 24 413 11 923
Consolidated total liabilities 4 203 1 984 718 6 905 1 271
Capital expenditure 3 225 656 216 4 097 1 967
Amortisation and depreciation 593 287 148 1 028 499
Cash inflow/(outflow) from
operating activities 5 996 (980)* (189) 4 827 3 413
Cash outflow from investing activities (2 788) (649) (207) (3 644) (1 822)
Cash outflow from financing activities (6) (6) (3)
EBITDA 7 078 2 576 (167) 9 487 4 728

* Dividend paid amounting to R2 billion (F2011: R2 billion) included in cash flows from operating activities.

3 Financial effect of early adoption of IFRIC 20
Accounting for stripping costs in the production phase of a surface

Previously, ARM expensed all production phase stripping costs as incurred and did not capitilise any as deferred stripping
assets. Accordingly, the adoption of IFRIC 20 did not have any impact on the opening balances in respect of the financial
year ended 30 June 2011.

Adopting IFRIC 20 had the following impact on the Group's profit before income taxes, net profit after income taxes, and
the statement of financial position as of and for the year ended 30 June 2011:

Income statement for the year ended 30 June 2011 Pre-tax Tax effect Post-tax
Rm Rm Rm
Increase due to the reversal of certain production
phase stripping costs previously expensed 90 (25) 65
Change in inventory valuation as a result of capitalised
stripping costs changing the value of cost per tonne (7) 2 (5)
Decrease due to depreciation of the stripping activity asset (6) 1 (5)
Net increase in profit 77 (22) 55

Statement of financial position as at 30 June 2011 Effect Restated
As previously of adoption after adoption
reported of IFRIC 20 of IFRIC 20
Rm Rm Rm
Property, plant and equipment 15 500 84 15 584
Inventories 2 162 (7) 2 155
Deferred taxation (3 571) (22) (3 593)
Retained earnings (16 105) (55) (16 160)


Impact on the 30 June 2012 financial information

Adopting IFRIC 20 had the following impact on the Group's profit before income taxes, net profit after income taxes, and
the statement of financial position as of and for the current year ended 30 June 2012:

Income statement for the year ended 30 June 2012 Pre-tax Tax effect Post-tax
Rm Rm Rm
Increase due to the reversal of certain production
phase stripping costs previously expensed 156 (44) 112
Change in inventory valuation as a result of capitalised
stripping costs changing the value of cost per tonne (5) 2 (3)
Decrease due to depreciation of the stripping activity asset (54) 15 (39)
Net increase in profit 97 (27) 70

Statement of financial position as at 30 June 2012 Effect
of adoption
of IFRIC 20
Rm
Property, plant and equipment 102
Inventories (5)
Deferred taxation (27)
Retained earnings (70)

Effect on per share information

The effect of adopting IFRIC 20 on earnings per share and headline earnings per share for the years ended 30 June 2011
and 2012 were as follows:

2012 2011
cents cents
Basic earnings per share increase 33 26
Headline earnings per share increase 33 26
Diluted basic earnings per share increase 33 26
Diluted headline earnings per share increase 33 26

Reviewed Restated
2012 2011
Rm Rm
4 EXCEPTIONAL ITEMS

Loss on sale of property, plant and equipment (2) (7)
Impairments of property, plant and equipment (68) (4)
Exceptional items per income statement (70) (11)
Profit on sale of property, plant and equipment accounted for directly
in associate ARM Coal 52
Taxation accounted for in associate (14)
Taxation 19 3
Total amount adjusted for headline earnings (13) (8)

5 HEADLINE EARNINGS

Basic earnings per income statement 3 438 3 366
Profit on sale of property, plant and equipment in associate ARM Coal (52)
Impairments of property, plant and equipment 68 4
Loss on sale of property, plant and equipment 2 7
3 456 3 377
Taxation (5) (3)
Headline earnings 3 451 3 374

6 CASH AND CASH EQUIVALENTS

African Rainbow Minerals Limited 161 962
ARM Finance Company SA 107
Assmang Limited 2 160 1 473
ARM Platinum Proprietary Limited 152 285
Kingfisher Insurance Co Limited 146 139
Nkomati 43 176
Two Rivers Platinum Proprietary Limited 2 4
Vale/ARM joint venture 60 36
Venture Building Trust Proprietary Limited 4 5
Restricted cash 729 588
Total as per statement of financial position 3 564 3 668
Less: Overdrafts (included in note 8) 337 441
Total as per statement of cash flows 3 227 3 227

7 LONG-TERM BORROWINGS

African Rainbow Minerals Limited 410
ARM Finance Company SA 277
ARM Mining Consortium Limited 1
ARM Coal Proprietary Limited 1 604 1 781
Two Rivers Platinum Proprietary Limited 140 145
Vale/ARM joint venture 195
2 216 2 337
8 OVERDRAFTS AND SHORT-TERM BORROWINGS

African Rainbow Minerals Limited 415
Assmang Limited 2
ARM Mining Consortium Limited 171 129
ARM Coal Proprietary Limited 13 27
Two Rivers Platinum Proprietary Limited Bank loans and overdrafts 337 464
Two Rivers Platinum Proprietary Limited Impala Platinum 50 73
Other 35 37
1 021 732

Reviewed Restated
2012 2011
Rm Rm
9 TAXATION

South African normal taxation
current year 1 184 975
mining 1 043 875
non-mining 141 100
prior year 69
State's share of profits 93
Deferred taxation 329 525
Foreign taxes 1
Secondary Tax on Companies 50 100
1 633 1 693
10 MINERAL ROYALTY TAXATION

Included in other operating expenses are amounts relating to ARM's
attributable portion of mineral royalty taxes paid.
Assmang Limited 438 137
ARM Mining Consortium Limited 3 6
ARM Coal Proprietary Limited 1 1
Nkomati 7 7
Two Rivers Platinum Proprietary Limited 43 11
492 162
11 CASH GENERATED FROM OPERATIONS BEFORE WORKING CAPITAL
MOVEMENTS

Cash generated from operations before working capital movement 7 158 6 621
Working capital changes (1 189) (633)
Movement in receivables (528) (10)
Movement in payables and provisions (286) (216)
Movement in inventories (375) (407)
Cash generated from operations per cash flow 5 969 5 988

12 COMMITMENTS

Commitments in respect of future capital expenditure, which will be funded
from operating cash flows and by utilising available cash and borrowing
resources, are summarised below:
Commitments
Commitments in respect of capital expenditure:
Approved by directors
contracted for 3 580 3 383
not contracted for 419 600
Total commitments 3 999 3 983


13 CONTINGENT LIABILITIES

During the current financial year the Company entered into a cash settlement of R40 million with the South African
Revenue Services (SARS) relating to the previously reported contingent liability which arose from it's dispute with SARS
over the deductibility of a loan stock redemption premium claimed in the Company's 1998 tax submission.

There have been no other significant changes in the contingent liabilities of the Group as disclosed in the 30 June 2011
annual report.

14 EVENTS AFTER REPORTING DATE

The ARM corporate loan facility of R1.75 billion has been refinanced and increased to R2.25 billion. The new facility
matures in August 2015.

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

Contact details and administration

African Rainbow Minerals Limited
Incorporated in the Republic of South Africa
Registration number: 1933/004580/06
JSE share code: ARI
ISIN: ZAE000054045
("ARM" or the "Company")

Registered office
ARM House
29 Impala Road
Chislehurston, Sandton, 2196
South Africa

PO Box 786136, Sandton, 2146
South Africa

Telephone: +27 11 779 1300
Fax: +27 11 779 1312

E-mail: ir.admin@arm.co.za

Website: http://www.arm.co.za

Transfer secretaries
Computershare Investor Services (Pty) Limited
Ground Floor, 70 Marshall Street
Johannesburg, 2001

PO Box 61051, Marshalltown, 2107

Telephone: +27 11 370 5000
Telefax: +27 11 688 5222

E-mail: web.queries@computershare.co.za
Website: http://www.computershare.co.za

Sponsor
Deutsche Securities (SA) (Proprietary) Limited

Forward-looking statements

Certain statements in this report constitute forward-looking statements that are neither reported
financial results nor other historical information. They include but are not limited to statements
that are predictions of or indicate future earnings, savings, synergies, events, trends, plans or
objectives. Such forward-looking statements may or may not take into account and may or may
not be affected by known and unknown risks, uncertainties and other important factors that could
cause the actual results, performance or achievements of the Company to be materially different
from the future results, performance or achievements expressed or implied by such forward-looking
statements. Such risks, uncertainties and other important factors include among others: economic,
business and political conditions in South Africa; decreases in the market price of commodities;
hazards associated with underground and surface mining; labour disruptions; changes in
government regulations, particularly environmental regulations; changes in exchange rates;
currency devaluations; inflation and other macroeconomic factors; and the impact of the AIDS
crisis in South Africa. These forward-looking statements speak only as of the date of publication of
these pages. The Company undertakes no obligation to update publicly or release any revisions
to these forward-looking statements to reflect events or circumstances after the date of publication
of these pages or to reflect the occurrence of unanticipated events.

Directors
PT Motsepe (Executive Chairman) WM Gule
MP Schmidt (Chief Executive Officer) MW King*
F Abbott* AK Maditsi*
M Arnold Dr RV Simelane*
Dr MMM Bakane-Tuoane* ZB Swanepoel*
TA Boardman* AJ Wilkens
AD Botha*
JA Chissano (Mozambican)*

*Independent non-executive

www.arm.co.za
Date: 03/09/2012 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Ce que l'on conçoit bien, s'énonce clairement, Et les mots pour le dire arrivent aisément. BOILEAU

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