SOFP
Page 1
CONDENSED GROUP INTERIM STATEMENT OF FINANCIAL POSITION
Unaudited Unaudited Audited
Six months ended Year ended
31 December 30 June
2022 2021 2022
Note Rm Rm Rm
ASSETS
Non-current assets
Property, plant and equipment 4 13 861 8 679 9 621
Investment properties 25 24 24
Intangible assets 58 69 63
Deferred tax assets 5 968 174 215
Loans and long-term receivables -0 41 -0
Non-current financial assets 11 205 233 214
Investment in associate 6 2 936 239 2 048
Investment in joint venture 7 20 381 19 903 22 145
Other investments 8 4 606 5 204 4 104
Non-current inventories 9 259 -0 52
43 299 34 566 38 486
Current assets
Inventories 483 423 343
Trade and other receivables 10 6 245 6 272 7 737
Taxation 85 17 116
Financial assets 11 656 823 830
Cash and cash equivalents 12 9 837 12 082 11 659
17 306 19 617 20 685
Total assets 60 605 54 183 59 171
EQUITY AND LIABILITIES
Capital and reserves
Ordinary share capital 11 11 11
Share premium 5 267 5 213 5 267
Treasury shares (2 405) (2 405) (2 405)
Other reserves 2 970 3 892 2 668
Retained earnings 41 083 34 437 40 617
Equity attributable to equity holders of ARM 46 926 41 148 46 158
Non-controlling interest 4 644 3 819 4 205
Total equity 51 570 44 967 50 363
Non-current liabilities
Long-term borrowings 13 262 795 305
Deferred tax liabilities 5 3 461 3 100 3 226
Long-term provisions 21 2 098 1 934 1 979
5,821 5,829 5,510
Current liabilities
Trade and other payables 2 149 2 132 2 148
Short-term provisions 745 490 716
Taxation 293 534 255
Overdrafts and short-term borrowings 13
- interest-bearing 27 50 40
- non-interest-bearing - 181 139
3 214 3 387 3 298
Total equity and liabilities 60 605 54 183 59 171
Profit or loss
Page 2
CONDENSED GROUP INTERIM STATEMENT OF PROFIT OR LOSS
Unaudited Unaudited Audited
Six months ended Year ended
31 December 30 June
2022 2021 2022
Note Rm Rm Rm
Revenue 3 9 374 7 709 18,406
Sales 3 8 744 7 066 16,917
Cost of sales (4 368) (3 670) (7,660)
Gross profit 4 376 3 396 9,257
Other operating income 837 870 1,983
Other operating expenses (1 488) (1 361) (3,239)
Profit from operations 3 725 2 905 8,001
Income from investments 419 307 685
Finance costs ( 129) ( 130) (290)
Profit from associate 17 888 - 927
Income from joint venture 7 1 682 2 387 6 649
Profit before taxation and capital items 6 585 5 469 15,972
Capital items 14 54 238 1,128
Profit before taxation 6 639 5 707 17,100
Taxation 18 (1 343) (1 074) (2,736)
Profit for the period 5 296 4 633 14 364
Attributable to:
Equity holders of ARM
Profit for the period 4,387 3,893 12 426
Basic earnings for the period 4,387 3,893 12 426
Non - controlling interest
Profit for the period 909 740 1 938
909 740 1 938
Profit for the period 5 296 4 633 14 364
Earnings per share
Basic earnings per share (cents) 15 2 238 1 988 6 343 -0
Diluted basic earnings per share (cents) 15 2 234 1 968 6 338
Comprehensive income
CONDENSED GROUP INTERIM STATEMENT OF COMPREHENSIVE INCOME Page 3
Financial instruments at fair value through other comprehensive income Other Retained earnings Total share holders of ARM Non controlling interest Total
Rm Rm Rm Rm Rm Rm
Six months ended 31 December 2022 (Unaudited)
Profit for the period -0 -0 4 387 4 387 909 5 296
Total other comprehensive income 400 65 -0 465 -0 465
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 400 -0 -0 400 -0 400
Revaluation of listed investment ¹ 510 -0 -0 510 -0 510
Deferred tax on above ( 110) -0 -0 ( 110) -0 ( 110)
Other comprehensive income that may be reclassified to the statement
of profit or loss in subsequent periods:
Foreign currency translation reserve movement -0 65 -0 65 -0 65
-0 -0 -0 -0 -0 -0
Total comprehensive income for the period 400 65 4 387 4 852 909 5 761
Six months ended 31 December 2021 (Unaudited)
Profit for the period -0 -0 3 893 3 893 740 4 633
Total other comprehensive income 802 110 -0 912 -0 912
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 802 -0 -0 802 -0 802
Revaluation of listed investment ¹ 1 033 -0 -0 1 033 -0 1 033
Deferred tax on above ( 231) -0 -0 ( 231) -0 ( 231)
Other comprehensive income that may be reclassified to the statement
of profit or loss in subsequent periods:
Foreign currency translation reserve movement -0 110 -0 110 -0 110
Total comprehensive income for the period 802 110 3 893 4 805 740 5 545
Year ended 30 June 2022 (Audited)
Profit for the year - - 12,426 12,426 1,938 14,364
Total other comprehensive (loss) / income ( 49) 97 -0 48 -0 48
Other comprehensive loss that will not be reclassified to the statement
of profit or loss in subsequent periods:
Net impact of revaluation of listed investment ( 49) -0 -0 ( 49) -0 ( 49)
Revaluation of listed investment ¹ ( 59) -0 -0 ( 59) -0 ( 59)
Deferred tax on above 10 -0 -0 10 -0 10
Other comprehensive income that may be reclassified to the statement
of profit or loss in subsequent periods:
Foreign currency translation reserve movement -0 97 -0 97 -0 97
Total comprehensive (loss) / income for the year ( 49) 97 12 426 12 474 1 938 14 412
¹ The share price of Harmony Limited at 31 December 2022 was R58.80, R51.97 at 30 June 2022 and R66.60 at 31 December 2021 per share.
The valuation of the investment in Harmony is based on a level 1 fair value hierarchy level in terms of IFRS.
ARM shareholding at 31 December 2022 was 12.08% (31 December 2021: 12.11%, 30 June 2022: 12.11%).
equity
CONDENSED GROUP INTERIM STATEMENT OF CHANGES IN EQUITY Page 4
Other reserves
Financial instruments at fair value through other comprehensive income
Share capital and premium Treasury Share based payments Total Non-
share Retained earnings shareholders controlling
capital Other of ARM interest Total
Rm Rm Rm Rm Rm Rm Rm Rm Rm
Six months ended 31 December 2022 (Unaudited)
Balance at 30 June 2022 5 278 (2 405) 2 188 405 75 40 617 46 158 4 205 50 363
Total comprehensive income for the period -0 -0 400 -0 65 4 387 4 852 909 5 761
Profit for the period -0 -0 -0 -0 -0 4 387 4 387 909 5 296
Other comprehensive income -0 -0 400 -0 65 -0 465 -0 465
Conditional shares issued to employees -0 -0 -0 ( 214) -0 -0 ( 214) -0 ( 214)
Dividend paid -0 -0 -0 -0 -0 (3 921) (3 921) -0 (3 921)
Dividend declared to non-controlling interests -0 -0 -0 -0 -0 -0 -0 ( 470) ( 470)
Share based payment expense -0 -0 -0 76 -0 -0 76 -0 76
Other -0 -0 -0 ( 25) -0 -0 ( 25) -0 ( 25)
-0 -0 -0 -0 -0 -0 -0 -0 -0
Balance at 31 December 2022 5 278 (2 405) 2 588 242 140 41 083 46 926 4 644 51 570
Six months ended 31 December 2021 (Unaudited)
Balance at 30 June 2021 5 223 (2 405) 2 237 700 ( 22) 34 461 40 194 3 582 43 776
Total comprehensive income for the period -0 -0 802 -0 110 3 893 4 805 740 5 545
Profit for the period -0 -0 -0 -0 -0 3 893 3 893 740 4 633
Other comprehensive income -0 -0 802 -0 110 -0 912 -0 912
Share options exercised 1 -0 -0 -0 -0 -0 1 -0 1
Dividend paid -0 -0 -0 -0 -0 (3 917) (3 917) -0 (3 917)
Dividend declared to non-controlling interests -0 -0 -0 -0 -0 -0 -0 ( 503) ( 503)
Share based payment expense -0 -0 -0 65 -0 -0 65 -0 65
-0 -0 -0 -0 -0 -0 -0 -0 -0
Balance at 31 December 2021 5 224 (2 405) 3 039 765 88 34 437 41 148 3 819 44 967
Year ended 30 June 2021 (Audited)
Balance at 30 June 2021 5 223 (2 405) 2 237 700 ( 22) 34 461 40 194 3 582 43 776
Total comprehensive (loss) / income for the year -0 -0 ( 49) -0 97 12 426 12 474 1 938 14 412
Profit for the year 30 June 2022 -0 -0 -0 -0 -0 12 426 12 426 1 938 14 364
Other comprehensive (loss) / income -0 -0 ( 49) -0 97 -0 48 -0 48
Bonus and performance shares issued to employees 55 -0 -0 ( 470) -0 -0 ( 415) -0 ( 415)
Dividend paid -0 -0 -0 -0 -0 (6 270) (6 270) -0 (6 270)
Dividend declared to non-controlling interests -0 -0 -0 -0 -0 -0 -0 (1 315) (1 315)
Share based payment expense -0 -0 -0 175 -0 -0 175 -0 175
Balance at 30 June 2022 5 278 (2 405) 2 188 405 75 40 617 46 158 4 205 50 363
cash flow
Page 5
CONDENSED GROUP INTERIM STATEMENT OF CASH FLOWS
Unaudited Unaudited Audited
Six months ended Year ended
31 December 30 June
2022 2021 2022
Note Rm Rm Rm
CASH FLOW FROM OPERATING ACTIVITIES
Cash receipts from customers 10 809 9,413 18,128
Cash paid to suppliers and employees (5 515) (4,588) (9,620)
Cash generated from operations 19 5 294 4 825 8 508
Interest received 380 267 601
Interest paid ( 29) ( 24) ( 46)
Taxation paid (1 047) (643) (2,303)
4,598 4,425 6,760
Dividends received from joint venture 7 3 500 3 500 5 500
Dividend received from investments - Harmony 17 20 50
8,115 7,945 12,310
Dividends paid to non-controlling interests ( 614) ( 391) (1 247)
Dividends paid - equity holders of ARM (3,921) (3 917) (6,270)
Net cash inflow from operating activities 3,580 3,637 4,793
CASH FLOW FROM INVESTING ACTIVITIES
Acquisition of Bokoni net of cash acquired 24 (3 441) -0 -0
Additions to property, plant and equipment to maintain operations ( 943) ( 485) (1 739)
Additions to property, plant and equipment to expand operations ( 869) (368) (463)
Proceeds on disposal of property, plant and equipment 2 - 0 6
Investment in financial assets (544) (555) ( 819)
Proceeds from financial assets matured 743 241 523
Net cash outflow from investing activities (5,052) (1 167) (2 492)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from exercise of share options -0 1 7
Cash payments to owners to acquire the entity's shares ( 138) -0 ( 225)
Long-term borrowings raised -0 2 -0
Long-term borrowings repaid ( 49) ( 63) ( 95)
Short-term borrowings raised -0 -0 -0
Short-term borrowings repaid (162) ( 5) ( 14)
Net cash outflow from financing activities ( 349) ( 65) ( 327)
Net increase in cash and cash equivalents (1 821) 2 405 1 974
Cash and cash equivalents at beginning of period 11 643 9,655 9,655
Foreign currency translation on cash balances ( 1) 6 14
Cash and cash equivalents at end of period 12 9 821 12 066 11 643
Made up as follows:
- Available 9 161 11 164 11 053
- Cash set aside for specific use 660 902 590
9 821 12 066 11 643
Overdrafts 13 16 16 16
Cash and cash equivalents per the statement of financial position 9 837 12 082 11 659
Cash generated from operations per share (cents) 2 700 2 464 4 343
Note 1
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS Page 6
for the six months ended 31 December 2022
1. STATEMENT OF COMPLIANCE
The condensed Group interim financial statements for the six months ended 31 December 2022 have been prepared in
accordance with the framework concepts and the measurement and recognition requirements of International Financial Reporting
Standards (IFRS), the South African Institute of Chartered Accountants (SAICA) Financial Reporting Guides as issued by the Accounting
Practices Committee and Financial Pronouncements as issued by the Financial Reporting Standards Council and contains the information
required by IAS 34 - Interim Financial Reporting, requirements of the South African Companies Act and the Listings
Requirements of the Johannesburg Stock Exchange (JSE) Limited.
BASIS OF PREPERATION
The condensed Group interim financial statements for the six months ended 31 December 2022 have been prepared on the historical cost basis,
except for certain financial instruments, which include listed investments, and unlisted investments that are fair valued.
shown under comprehensive income. 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 condensed group interim financial statements for the period have been prepared under the
supervision of the Finance Director, Ms TTA Mhlanga CA(SA).
The presentation and functional currency is the South African Rand and the condensed Group interim financial statements are
rounded to the nearest R million.
ADOPTION OF NEW AND REVISED ACCOUNTING STANDARDS
The Group has adopted the following new and/or revised standards and interpretations issued by the International Financial Reporting
Interpretation Committee (IFRIC) of the IASB during the period under review. The date of initial application for the Group being 1 July 2022.
Standard Subject Effective date
IFRS 3 Business Combinations - Reference to the Conceptual Framework - Amendment 1 January 2022
IAS 16 Property, Plant and Equipment - Proceeds before Intended Use - Amendment 1 January 2022
IAS 37 Provisions, Contingent Liabilities and Contingent Assets - Costs of Fulfilling a Contract - Amendment 1 January 2022
IFRS 9 Financial instruments - Fees in the '10 per cent' test for derecognition of financial liabilities - Amendment 1 January 2022
The adoption of the above standards and interpretations had no significant effect on the Group interim condensed consolidated financial statements.
NEW STANDARDS ISSUED BUT NOT YET EFFFECTIVE
The following amendments, standards or interpretations have been issued but are not yet effective for the Group. The effective date
refers to periods beginning on or after, unless otherwise indicated.
Standard Subject Effective date
IFRS 17 Insurance Contracts 1 January 2023
IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors - Definition of Accounting Estimates - Amendment 1 January 2023
IAS 1 and Practice statement 2 Presentation of financial statements - Disclosure of Accounting Policies - Amendment 1 January 2023
IAS 12 Income Taxes - Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendment 1 January 2023
IFRS 16 Leases - Lease Liability in a Sale and Leaseback - Amendment 1 January 2024
IAS 1 Presentation of financial statements - Classification of Liabilities as Current or Non-current - Amendment 1 January 2024
IFRS 10 Consolidated Financial Statements - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture - Amendment 1 January 2024
IAS 28 Investments in Associates and Joint Ventures - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture - Amendment 1 January 2024
The Group does not intend early adopting any of the above amendments or standards.
ARM continuously evaluates the impact of these standards and amendments, the adoption of which are not expected to have a significant
effect on the Group financial results.
Seg 2023
ARMPlatinum Ferrousmetals Armcoal corpandother
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS Page 7
for the six months ended 31 December 2022
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 and ARM Corporate (which includes Corporate, Machadodorp Works, gold and other)
in the table below.
Attributable ARM Platinum¹ Rm ARM Ferrous² Rm ARM Coal Rm ARM Corporate Rm Total Rm IFRS adjust ment³ Rm Total per IFRS financial statements Rm
2.1 Six months ended 31 December 2022 (Unaudited)
Sales 7 147 9 320 1 545 52 18 064 (9 320) 8 744
Cost of sales (3 638) (5 565) ( 668) ( 25) (9 896) 5 528 (4 368)
Other operating income 104 214 29 661 1 008 ( 171) 837
Other operating expenses ( 506) ( 921) ( 109) ( 873) (2 409) 921 (1 488)
Segment result 3 107 3 048 797 ( 185) 6 767 (3 042) 3 725
Income from investments 106 183 7 306 602 ( 183) 419
Finance cost (50) ( 19) ( 59) ( 20) ( 148) 19 ( 129)
Profit from associate -0 -0 888 -0 888 -0 888
Profit from joint venture -0 178 -0 -0 178 1 504 1 682
Capital items before tax ⁴ 54 (1 093) -0 -0 (1 039) 1 093 54
Taxation ( 925) ( 611) ( 229) ( 187) (1 952) 609 (1 343)
Profit / (loss) after tax 2 292 1 686 1 404 ( 86) 5 296 -0 5 296
Non-controlling interest ( 908) -0 -0 ( 1) ( 909) -0 ( 909)
Consolidation adjustment ⁵ -0 ( 4) -0 4 -0 -0 -0
Contribution to basic earnings / (losses) 1 384 1 682 1 404 ( 83) 4 387 -0 4 387
Contribution to headline earnings / (losses) 1 330 2 520 1 404 ( 83) 5 171 -0 5 171
Other information
Segment assets including investment in
associate and joint venture 21 414 26 475 5,801 13 009 66 699 (6 094) 60 605
Investment in associate 2 936 2 936 -0 2 936
Investment in joint venture 20 381 20 381
Segment liabilities 2 615 2 401 655 2 011 7 682 (2 401) 5 281
Unallocated liabilities - Deferred taxation and taxation 7 447 (3,693) 3 754
Consolidated total liabilities 15 129 (6 094) 9 035 2,543
(121)
Cash generated from operations 3 670 2 823 1 640 ( 16) 8 117 (2 823) 5 294 400
Cash inflow / (outflow) from operating activities 2 448 2 482 1 483 ( 351) 6 062 (2 482) 3 580 239
Cash (outflow) / inflow from investing activities (5 067) (1 026) ( 155) 170 (6 078) 1 026 (5 052)
Cash outflow from financing activities ( 23) ( 2) ( 139) ( 185) ( 349) -0 ( 349)
Capital expenditure 1 715 1 039 232 5 2 991 (1 039) 1 952
Amortisation and depreciation 340 578 102 8 1 028 ( 578) 450
Impairment loss before tax - 1 090 - - 1 090 ( 1 090) -
Impairment loss / (reversal) - - - - - - -
EBITDA 3 447 3 626 899 (177) 7 795 (3 620) 4 175
There were no significant inter-company sales.
Segment results take into account inter-company eliminations with the exception of inter-company re-measurements.
¹ Refer note 2.4 for more detail on the ARM Platinum segment. ARM Platinum includes Bokoni Platinum Mine from 1 September 2022 (refer note 24).
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 Refer note 14 for more detail.
⁵ Relates to capitalised fees in ARM Ferrous.
5,311 - - - - - - - - 8,828 3,399
- - - 64 - - 1 - - 14,918 2,122
ERROR:#REF!
Seg 2022
Armplatinum Ferrousmetals Armcoal corpandother Page 8
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS
for the six months ended 31 December 2022
2 SEGMENTAL INFORMATION continued
ARM Platinum¹ Rm ARM Ferrous² Rm ARM Coal Rm ARM Corporate Rm
Attributable Total Rm IFRS adjust ment³ Rm Total per IFRS financial statements Rm
2.2 Six months ended 31 December 2021 (Unaudited)
Sales 6 111 9 396 891 64 16 462 (9 396) 7 066
Cost of sales (2 992) (5 795) ( 605) ( 53) (9 445) 5 775 (3 670)
Other operating income 120 72 259 443 894 ( 24) 870
Other operating expenses ⁴ ( 480) ( 702) ( 58) ( 823) (2 063) 702 (1 361)
- - - - - - -
Segment result 2 759 2 971 487 ( 369) 5 848 (2 943) 2 905
Income from investments 62 143 5 240 450 ( 143) 307
Finance cost (32) ( 16) ( 84) ( 14) ( 146) 16 ( 130)
Loss from associate ⁵ -0 -0 -0 -0 -0 -0 -0
Profit from joint venture -0 215 -0 -0 215 2 172 2 387
Capital items before tax ⁶ -0 ( 57) 120 118 181 57 238
Taxation ( 805) ( 849) ( 57) ( 204) (1 915) 841 (1 074)
Profit / (loss) after tax 1 984 2 407 471 ( 229) 4 633 -0 4 633
Non-controlling interest ( 739) -0 -0 ( 1) ( 740) -0 ( 740)
Consolidation adjustment ⁷ -0 ( 20) -0 20 -0 -0 -0
Contribution to basic earnings / (losses) 1 245 2 387 471 ( 210) 3 893 -0 3 893
Contribution to headline earnings / (losses) 1 245 2 428 351 ( 328) 3 696 -0 3 696
Other information
Segment assets including investment in
associate and joint venture 15 196 26 295 3 061 16 024 60 576 (6 393) 54 183
Investment in associate 239 239 -0 239
Investment in joint venture 19 903 19 903
Segment liabilities 2 438 2 586 1 711 1 433 8 168 (2 586) 5 582
Unallocated liabilities - Deferred taxation and taxation 7 441 (3,807) 3 634
Consolidated total liabilities 15 609 (6 393) 9,216
Cash generated from operations 4 194 5 353 52 579 10 178 (5 353) 4 825
Cash inflow / (outflow) from operating activities 3 442 4 967 53 (3 358) 5 104 (1 467) 3 637
Cash outflow from investing activities ( 998) (1 128) ( 57) ( 112) (2 295) 1 128 (1 167)
Cash (outflow) / inflow from financing activities ( 23) ( 10) 2 ( 34) ( 65) -0 ( 65)
Capital expenditure 792 1 070 67 4 1 933 (1 070) 863
Amortisation and depreciation 318 566 109 5 998 ( 566) 432
Impairment loss / (reversal) before tax - 44 (121) (118) (195) (44) (239)
EBITDA 3 077 3 537 596 (364) 6 846 (3 509) 3 337
There were no significant inter-company sales.
Segment results take into account inter-company eliminations with the exception of inter-company re-measurements.
¹ Refer note 2.5 for more detail on the ARM Platinum segment.
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 Included in ARM Corporate is R365 million re-measurement loss, partially offset with a R259 million re-measurement gain in ARM Coal (refer note 16).
⁵ Includes re-measurement loss on ARM Coal loans of R241 million (refer note 16).
⁶ Refer note 14 for more detail.
⁷ Relates to capitalised fees in ARM Ferrous.
Seg June 2022
Page 9
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS
for the six months ended 31 December 2022
2 SEGMENTAL INFORMATION continued
Attributable ARM Platinum Rm ARM Ferrous¹ Rm ARM Coal Rm ARM Corporate Rm Total Rm IFRS adjust ment ² Rm Total per IFRS financial statements Rm
2.3 Year ended 30 June 2022 (Audited)
Sales 13 960 21 291 2 821 136 38 208 (21 291) 16 917
Cost of sales (6 246) (11 988) (1 303) ( 61) (19 598) 11 938 (7 660)
Other operating income ³ 217 240 84 1 577 2 118 ( 135) 1 983
Other operating expenses ³ (1 087) (1 692) (1 025) (1 127) (4 931) 1 692 (3 239)
Segment result 6 844 7 851 577 525 15 797 (7 796) 8 001
Income from investments 171 285 11 503 970 ( 285) 685
Finance cost ( 84) ( 34) ( 159) ( 47) ( 324) 34 ( 290)
Profit from associate ⁴ -0 -0 927 -0 927 -0 927
Profit from joint venture -0 728 -0 -0 728 5 921 6 649
Capital items before tax ⁵ -0 ( 45) 382 746 1 083 45 1 128
Taxation (1 929) (2 096) ( 435) ( 357) (4 817) 2 081 (2 736)
-0 -0 -0 -0 -0 -0 -0
Profit after tax 5 002 6 689 1 303 1 370 14 364 -0 14 364
Non-controlling interest (1 936) -0 -0 ( 2) (1 938) -0 (1 938)
Consolidation adjustment ⁶ -0 ( 40) -0 40 -0 -0 -0
Contribution to basic earnings 3 066 6 649 1 303 1 408 12 426 -0 12 426
Contribution to headline earnings 3 066 6 682 928 662 11 338 -0 11 338
Other information
Segment assets including investment in associate 16 063 28 252 5 448 15 516 65 279 (6 108) 59 171
Investment in associate 2 048 2 048 2 048
Investment in joint venture 22 145 22 145
Segment liabilities 2 671 2 488 676 1 980 7 815 (2 488) 5 327
Unallocated liabilities - Deferred taxation and taxation 7 101 (3 620) 3 481
Consolidated total liabilities 14 916 ( 6 108) 8 808
Cash generated from operations 8 333 10 836 ( 46) 221 19 344 (10 836) 8 508
Cash inflow / (outflow) from operating activities 5 524 9 172 ( 230) ( 501) 13 965 (9 172) 4 793
Cash outflow from investing activities (1 911) (2 415) ( 125) ( 456) (4 907) 2 415 (2 492)
Cash outflow from financing activities ( 34) ( 14) ( 1) ( 292) ( 341) 14 ( 327)
Capital expenditure 2 159 2 450 110 8 4 727 (2 450) 2 277
Amortisation and depreciation 651 1 189 190 12 2 042 (1 189) 853
Impairment loss / (reversal) before tax - 20 (378) (746) (1 104) ( 20) (1 124)
EBITDA 7 495 9 040 767 537 17 839 (8 985) 8 854
There were no significant inter-company sales.
Segment results take into account inter-company eliminations with the exception of inter-company re-measurements.
¹ Refer to ARM Ferrous segment note 2.9 and note 7 for more detail.
² Includes IFRS 11 - Joint Arrangements - adjustments related to ARM Ferrous and other consolidation adjustments.
³ The net re-measurement of the ARM Coal loans amounts to R323 million loss with no tax effect.
The re-measurement adjustment of the Harmony loan amounts to R5 million gain with no tax effect.
⁴ The re-measurement of the ARM Coal loans amounts to R490 million loss with no tax effect.
⁵ Refer note 14 for more detail.
⁶ Relates to fees capitalised in ARM Ferrous and reversed upon consolidation.
Plat 2023+22
Page 10
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS
for the six months ended 31 December 2022
2 SEGMENTAL INFORMATION continued
Additional information
The ARM Platinum segment is analysed further into Nkomati, Two Rivers Platinum Proprietary Limited and ARM
Platinum Proprietary Limited which includes 50% of the Modikwa Platinum Mine and 100% of the Bokoni Platinum Mine.
Attributable Two Rivers Rm Modikwa Rm Bokoni ¹ Rm Nkomati Rm ARM Platinum Rm
2.4 Six months ended 31 December 2022 (Unaudited)
Sales 4 756 2 391 -0 -0 7 147
Cost of sales (2 279) (1 359) -0 -0 (3 638)
Other operating income 54 45 4 1 104
Other operating expenses ( 225) ( 96) ( 147) ( 38) ( 506)
Segment result 2 306 981 ( 143) ( 37) 3 107
Income from investments 58 42 2 4 106
Finance cost ( 13) ( 6) ( 9) ( 22) ( 50)
Capital items before tax ( 2) -0 56 -0 54
Taxation ( 649) ( 276) -0 -0 ( 925)
Profit / (loss) after tax 1 700 741 ( 94) ( 55) 2 292
Non-controlling interest ( 782) ( 126) -0 -0 ( 908)
Contribution to earnings / (losses) 918 615 ( 94) ( 55) 1 384
Contribution to headline earnings / (losses) 920 615 ( 150) ( 55) 1 330
Other information
Segment and consolidated assets 12 228 5 202 3 826 158 21 414
Segment liabilities 1 244 465 140 766 2 615
Cash inflow / (outflow) from operating activities 1 974 609 ( 89) ( 46) 2 448
Cash outflow from investing activities (1 304) ( 322) (3 441) -0 (5 067)
Cash outflow from financing activities ( 2) ( 21) -0 -0 ( 23)
Capital expenditure 1 332 321 62 -0 1 715
Amortisation and depreciation 265 75 -0 -0 340
EBITDA 2 571 1 056 ( 143) ( 37) 3 447
¹ ARM (through ARM Platinum) acquired Bokoni Platinum Mine on 1 September 2022 (refer note 24).
Page 11
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS
for the six months ended 31 December 2022
2 SEGMENTAL INFORMATION continued
Additional information
The ARM Platinum segment is analysed further into Nkomati, Two Rivers Platinum Proprietary Limited and ARM
Platinum Proprietary Limited which includes 50% of the Modikwa Platinum Mine.
Attributable Two Rivers Rm Modikwa Rm Nkomati Rm ARM Platinum Rm
2.5 Six months ended 31 December 2021 (Unaudited)
Sales 3 969 2 160 ( 18) 6 111
Cost of sales (1 885) (1 107) -0 (2 992)
Other operating income 45 73 2 120
Other operating expenses ( 287) ( 146) ( 47) ( 480)
Segment result 1 842 980 ( 63) 2 759
Income from investments 32 26 4 62
Finance cost (11) ( 7) ( 14) (32)
Taxation ( 521) ( 283) ( 1) ( 805)
Profit / (loss) after tax 1 342 716 ( 74) 1 984
Non-controlling interest ( 617) ( 122) -0 ( 739)
Contribution to basic earnings / (losses) 725 594 ( 74) 1 245
Contribution to headline earnings / (losses) 725 594 ( 74) 1 245
Other information
Segment and consolidated assets 10 192 4 792 212 15 196
Segment liabilities 1 066 681 691 2 438
Cash inflow from operating activities 2 307 1 135 -0 3 442
Cash outflow from investing activities ( 572) ( 398) ( 28) ( 998)
Cash outflow from financing activities ( 8) ( 15) -0 ( 23)
Capital expenditure 572 220 -0 792
Amortisation and depreciation 244 74 -0 318
EBITDA 2,086 1,054 (63) 3,077
Plat Jun 2022
Page 12
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS
for the six months ended 31 December 2022
2 SEGMENTAL INFORMATION continued
Attributable Two Rivers Rm Modikwa Rm Nkomati¹ Rm ARM Platinum Rm
2.6 For the year ended 30 June 2022 (Audited)
Sales 9 416 4 562 ( 18) 13 960
Cost of sales (3 927) (2 319) -0 (6 246)
Other operating income 91 122 4 217
Other operating expenses ( 651) ( 300) ( 136) (1 087)
Segment result 4 929 2 065 ( 150) 6 844
Income from investments 97 66 8 171
Finance cost ( 41) ( 15) ( 28) ( 84)
Capital items (refer note 14) ( 2) -0 2 - 0
Taxation (1 341) ( 586) ( 2) (1 929)
Profit / (loss) after tax 3 642 1 530 ( 170) 5 002
Non-controlling interest (1 676) ( 260) -0 (1 936)
Contribution to basic earnings / (losses) 1 966 1 270 ( 170) 3 066
Contribution to headline earnings / (losses) 1 968 1 270 ( 172) 3 066
Other information
Segment and consolidated assets 11 117 4 759 187 16 063
Segment liabilities 1 256 659 756 2 671
Cash generated from operations 5 862 2 509 ( 38) 8 333
Cash inflow / (outflow) from operating activities 3 805 1 749 ( 30) 5 524
Cash outflow from investing activities (1 711) ( 149) ( 51) (1 911)
Cash outflow from financing activities ( 4) ( 30) -0 ( 34)
Capital expenditure 1 806 353 -0 2 159
Amortisation and depreciation 500 151 -0 651
EBITDA 5 429 2 216 ( 150) 7 495
¹ Nkomati ceased mining operations on 14 March 2021. The mine is currently under care and maintenance.
Fer 2023
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS Page 13
for the six months ended 31 December 2022
2 SEGMENTAL INFORMATION continued at 100% basis
Analysis of the ARM Ferrous segment
Iron ore division Rm Manganese division Rm ARM Ferrous Total Rm ARM share Rm IFRS Adjustment ¹ Rm Total per IFRS financial statements Rm
2.7 Six months ended 31 December 2022 (Unaudited)
Sales 10 779 7 861 18 640 9 320 (9 320) -0
Cost of sales (5 682) (5 448) (11 130) (5 565) 5 565 -0
Other operating income 71 423 494 214 ( 214) -0
Other operating expenses ( 929) ( 979) (1 908) ( 921) 921 -0
Segment result 4,239 1,857 6,096 3,048 (3,048) -0
Income from investments 348 18 366 183 (183) -0
Finance cost ( 23) ( 16) (39) (19) 19 -0
Profit from joint venture -0 356 356 178 (178) -0
Capital items before tax ² (1 816) ( 370) (2,186) (1,093) 1,093 -0
Taxation (748) (474) (1,222) (611) 611 -0
Profit after tax 2,000 1,371 3,371 1,686 (1,686) -0
Consolidation adjustment ³ (4) 4 -0
Contribution to basic earnings and
total comprehensive income 2 000 1 371 3,371 1 682 -0 1 682
Contribution to headline earnings 3 326 1 722 5,048 2 520 -0 2 520
Other information
-0
Segment assets 32 692 21 968 54 660 26 475 (6 094) 20 381
Segment liabilities 6 671 5 995 12 666 2 401 (2 401) -0
Cash outflow from operating activities ⁴ (1 860) ( 177) (2 037) 2 482 (2 482) -0
Cash outflow from investing activities (1 422) ( 630) (2 052) (1 026) 1 026 -0
Cash outflow from financing activities ( 5) - ( 5) ( 2) 2 -0
Capital expenditure 1 503 665 2 168 1 039 ( 1 039) -0
Amortisation and depreciation 727 504 1 231 578 ( 578) -0
-0
EBITDA 4 966 2 361 7 327 3 626 ( 3 626) -0
Additional information for ARM Ferrous at 100%
Non-current assets
Property, plant and equipment 30 500 (30,500) -0
Investment in joint venture 2 345 (2,345) -0
Other non-current assets 1 367 (1,367) -0
Inventories 970 (970) -0
Current assets
Inventories 6 104 (6,104) -0
Trade and other receivables 6 436 (6,436) -0
Financial assets 347 (347) -0
Cash and cash equivalents 6 592 (6,592) -0
Non-current liabilities
Other non-current liabilities 8 826 (8 826) -0
Current liabilities
Trade and other payables 2 968 (2 968) -0
Short-term provisions 646 ( 646) -0
Other current liabilities 14 ( 14) -0
Taxation 211 ( 211) -0
Refer note 2.1 and note 7 for more detail on the ARM Ferrous segment
¹ Includes consolidation and IFRS 11 - Joint Arrangements adjustments.
² Refer note 14 for more detail.
³ Includes consolidation adjustment for capitalised fees.
⁴ Iron ore division includes dividend paid amounting to R3.5 billion included in cash flows from operating activities.
Fer2022
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS
for the six months ended 31 December 2022 Page 14
2 SEGMENTAL INFORMATION continued at 100% basis
Iron ore division Rm Manganese division Rm ARM Ferrous Total Rm ARM share Rm IFRS Adjustment¹ Rm Total per IFRS financial statements Rm
2.8 Six months ended 31 December 2021 (Unaudited)
Sales ² 12 606 6 187 18 793 9 396 (9 396) -0
Cost of sales (6 532) (5 058) (11 590) (5 795) 5 795 -0
Other operating income 1 101 274 1 375 72 ( 72) -0
Other operating expenses (2,210) (427) (2 637) ( 702) 702 -0
Segment result 4,965 976 5,941 2,971 (2,971) -0
Income from investments 282 3 285 143 (143) -0
Finance cost (21) (12) (33) (16) 16 -0
Profit from joint venture - 431 431 215 (215) -0
Capital items before tax (114) - (114) (57) 57 -0
Taxation (1,417) (280) (1,697) (849) 849 -0
Profit after tax 3,695 1,118 4,813 2,407 (2,407) -0
Consolidation adjustment ³ (20) 20 -0
Contribution to basic earnings and total comprehensive income 3,695 1,118 4,813 2,387 - 2,387
Contribution to headline earnings 3,777 1,118 4,895 2,428 - 2,428
Other information
Segment assets 34 563 19 670 54 233 26 295 (6 392) 19 903
Segment liabilities 8 156 5 089 13 245 2 586 (2 586) -0
Cash inflow from operating activities ⁴ 2 028 905 2 933 4 967 (4 967) -0
Cash outflow from investing activities (1 125) (1 131) (2 256) (1 128) 1 128 -0
Cash outflow from financing activities ( 20) ( 1) ( 21) ( 10) 10 -0
Capital expenditure 1 152 1 083 2 235 1 070 (1 070) -0
Amortisation and depreciation 793 379 1 172 566 ( 566) -0
ERROR:#REF!
EBITDA 5 758 1 355 7 113 3 537 (3 537) -0
Additional information for ARM Ferrous at 100%
Non-current assets
Property, plant and equipment 29 971 (29,971) -0
Investment in joint venture 1 262 (1,262) -0
Other non-current assets 1 443 (1,443) -0
Inventories 763 (763) -0
Current assets
Inventories 5 054 (5,054) -0
Trade and other receivables 6 726 (6,726) -0
Financial assets 157 (157) -0
Cash and cash equivalents 8 855 (8,855) -0
Non-current liabilities
Other non-current liabilities 8 708 (8,708) -0
Current liabilities
Trade and other payables 3 463 (3,463) -0
Short-term provisions 617 (617) -0
Taxation 254 (254) -0
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 Refer note 14 for more detail.
³ Includes consolidation adjustment for capitalised fees.
⁴ Iron ore division includes dividend paid amounting to R3.5 billion included in cash flows from operating activities.
Fer Jun 2022
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS
for the six months ended 31 December 2022 Page 15
2 SEGMENTAL INFORMATION continued at 100% basis
Iron ore division Rm Manganese division Rm Total ARM Ferrous Total Rm ARM share Rm IFRS Adjustment ¹ Rm Total per IFRS financial statements Rm
2.9 For the year ended 30 June 2022 (Audited)
Sales 27 856 14 727 42 583 21 291 (21 291) -0
Cost of sales (13 006) (10 969) (23 975) (11 988) 11 988 -0
Other operating income 105 697 802 240 ( 240) -0
Other operating expenses (2 763) ( 945) (3 708) (1 692) 1 692 -0
Segment results 12 192 3 510 15 702 7 851 (7 851) -0
Income from investments 558 12 570 285 ( 285) -0
Finance cost ( 41) ( 26) ( 67) ( 34) 34 -0
Loss from joint venture -0 1 455 1 455 728 ( 728) -0
Capital items before tax ² ( 73) ( 15) ( 88) ( 45) 45 -0
Taxation (3 383) ( 811) (4 194) (2 096) 2 096 -0
Profit after tax 9 253 4 125 13 378 6 689 (6 689) -0
Consolidation adjustment (40) 40 -0
Contribution to basic earnings 9,253 4,125 13,378 6,649 - 6,649
Contribution to headline earnings 9 307 4 136 13 443 6 682 - 6 682
Other information
Consolidated total assets 34 775 23 427 58 202 28 252 (6 108) 22 145
Consolidated total liabilities 6 974 5 718 12 692 2 488 (2 488) -0
Cash inflow from operating activities ³ 4 393 2 950 7 343 9 172 (9 172) -0
Cash outflow from investing activities (2 630) (2 200) (4 830) (2 415) 2 415 -0
Cash outflow from financing activities ( 27) - ( 27) ( 14) 14 -0
Capital expenditure 2 890 2 220 5 110 2 450 (2 450) -0
Amortisation and depreciation 1 566 911 2 477 1 189 (1 189) -
EBITDA 13 758 4 421 18 179 9 040 (9 040) -
Additional information for ARM Ferrous at 100%
Non-current assets
Property, plant and equipment 31 548 (31,548) -
Investment in joint venture 2 130 (2,130) -
Other non-current assets 2 044 (2,044) -
Current assets
Inventories 5 070 (5,070) -
Trade and other receivables 6 348 (6,348) -
Financial assets 379 (379) -
Cash and cash equivalents 10 684 (10,684) -
Non-current liabilities 8 629 (8,629) -
Other non-current liabilities
Current liabilities
Trade and other payables 2 867 (2,867) -
Short-term provisions 994 (994) -
Taxation 201 (201) -
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 Refer note 14 for more detail.
³ Dividend paid amounting to R5.5 billion included in cash flows from operating activities.
Corp 2023
Ferrousmetals Armcoal
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS Page 16
for the six months ended 31 December 2022
2 SEGMENTAL INFORMATION continued
ARM Corporate as presented in the table on page 7 to 9 is analysed further into the ARM
Corporate and other, Gold and Machadodorp.
Machadodorp Works Rm 31 December 2022 Machadodorp Works Rm 31 December 2021 Machadodorp Works Rm 30 June 2022
Corporate and other¹ Rm Gold Rm Total ARM Corporate Rm Corporate and other¹ Rm Gold Rm Total ARM Corporate Rm Corporate and other¹ Rm Gold Rm Total ARM Corporate Rm
2.10 Unaudited Unaudited (Audited)
Sales 52 - 52 64 - 64 136 - 136
Cost of sales ( 69) 44 ( 25) ( 78) 25 ( 53) ( 125) 64 ( 61)
Other operating income 2 659 661 2 441 443 3 1 574 1 577
Other operating expenses ( 144) ( 729) ( 873) ( 86) ( 737) ( 823) ( 216) ( 911) (1 127)
-0
Segment result ( 159) ( 26) ( 185) ( 98) ( 271) ( 369) ( 202) 727 525
Income from investments -0 289 17 306 -0 220 20 240 -0 453 50 503
Finance cost ( 1) ( 19) ( 20) ( 1) ( 13) ( 14) ( 25) ( 22) ( 47)
Capital item -0 -0 -0 -0 118 118 3 743 746
Taxation 7 ( 194) ( 187) 8 ( 212) ( 204) 63 ( 420) ( 357)
(Loss) / profit after tax (153) 50 17 (86) (91) (158) 20 (229) (161) 1,481 50 1,370
Non-controlling interest -0 ( 1) ( 1) -0 ( 1) ( 1) -0 ( 2) ( 2)
Consolidation adjustment ¹ -0 4 4 -0 20 20 -0 40 40
Contribution to basic (losses) / earnings ( 153) 53 17 ( 83) ( 91) ( 139) 20 ( 210) ( 161) 1 519 50 1 408
Contribution to headline (losses) / earnings ( 153) 53 17 ( 83) ( 91) ( 257) 20 ( 328) ( 164) 776 50 662
Other information
Segment assets 96 8 522 4 391 13 009 72 10 979 4 973 16 024 62 11 573 3 881 15 516
Segment liabilities 288 1 723 2 011 290 1 143 1 433 305 1 675 1 980
Cash inflow / (outflow) from operating activities 18 ( 386) 17 ( 351) 12 (3 390) 20 (3 358) 4 ( 555) 50 ( 501)
Cash inflow / (outflow) from investing activities -0 170 170 ( 3) ( 109) ( 112) ( 4) ( 452) ( 456)
Cash (outflow) / inflow from financing activities -0 ( 185) ( 185) -0 ( 34) ( 34) -0 ( 292) ( 292)
Capital expenditure -0 5 5 3 1 4 4 4 8
Amortisation and depreciation 2 6 8 1 4 5 4 8 12
Impairment (reversal) gain / loss before tax -0 - - -0 ( 118) ( 118) ( 3) ( 743) ( 746)
EBITDA (157) (20) ( 177) (97) (267) ( 364) (198) 735 537
¹ Relates to fees capitalised in ARM Ferrous and reversed on consolidation.
Note 3 - 6
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS Page 17
for the six months ended 31 December 2022
Unaudited Unaudited Audited
Six months ended Year ended
31 December 30 June
2022 2021 2022
Rm Rm Rm
3 SALES AND REVENUE
Sales 8,744 7,066 16,917
Made up as follows:
Local sales 7 335 6 287 14 308
Export sales 1 409 779 2 609
Revenue 9 374 7 709 18 406
Fair value adjustments to revenue ( 505) ( 998) (1 257)
Revenue from contracts with customers 9 879 8 707 19 663
Sales - mining and related products 9 482 8 170 18 479
Penalty and treatment charges ( 233) ( 106) ( 305)
Modikwa - - -
Nkomati - - -
Two Rivers ( 233) ( 106) ( 305)
Fees received 630 643 1 489
Sales by geographical area ¹ :
- South Africa 7 335 6 269 14 308
- Europe 1 409 797 2 609
8 744 7 066 16 917
¹ Sales by geographical area has been included to provide additional information.
4. PROPERTY, PLANT AND EQUIPMENT
The increase in 1H F2023 property, plant and equipment is largely as a result of the acquisition of Bokoni property, plant and equipment of
R2 477 million and capital expenditure at Two Rivers of R1 332 million, which mainly relates to the Merensky project. (refer note 2.4 and 24).
4.1 ARM Ferrous
PROPERTY, PLANT AND EQUIPMENT
IMPAIRMENT AND IMPAIRMENT REVERSAL
Beeshoek Mine
At 31 December 2022 an impairment loss of R1 807 million before tax of R488 million was recognised on property, plant and equipment at
the Beeshoek Mine. ARM's attributable share of the impairment loss amounted to R903 million before tax of R244 million (refer note 14).
This impairment was largely due to a combination of:
• A consistent decline in the long-term manganese alloys prices; price increases are not commensurate with mining cost inflation,
• A consistent decline in the long-term manganese alloys prices; significant increase in input costs, including diesel and explosives,
• A consistent decline in the long-term manganese alloys prices; low gross margins forecasted,
• A consistent decline in the long-term manganese alloys prices; forecasted export revenue per tonne significantly lower compared to current levels,
• A consistent decline in the long-term manganese alloys prices; significant increase in the carrying value of stripping costs capitalised on the balance sheet in recent years, and
• A consistent decline in the long-term manganese alloys prices; increase in market interest rates together with higher cost of equity resulted in a higher discount rate (higher WACC).
The recoverable amount of Beeshoek was determined based on a Value-In-Use (VIU) calculation performed in terms of IFRS. A discounted
cash flow valuation model was used to determine the VIU of R665 million.
A nominal pre-tax South African discount rate of 17.56% was used in the 31 December 2022 impairment model. The valuation period was
based on 12 years.
The following assumptions were used in the valuation model:
F2024 F2025 F2026 F2027 F2028
Weighted average revenue price R / t 943 958 993 1,032 1,080
Exchange Rate
US$ / ZAR ZAR nominal 17.84 17.34 17.94 18.35 18.70
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS Page 18
for the six months ended 31 December 2022
4. PROPERTY, PLANT AND EQUIPMENT Continued
4.1 ARM Ferrous Continued
PROPERTY, PLANT AND EQUIPMENT Continued
IMPAIRMENT AND IMPAIRMENT REVERSAL Continued
Cato Ridge Works
At 31 December 2022 an impairment of R75 million before taxation of R20 million was recognised on the property, plant and equipment at the
Cato Ridge Works operation. It was concluded that a discounted cash flow model was not required for this impairment. The total value of
property, plant and equipment was fully impaired at 30 June 2021, the impairment at 31 December 2022 is to fully impair the additions
of property, plant and equipment subsequent to 30 June 2021. ARM's attributable share of the impairment loss amounted to R38 million
before tax of R10 million (refer note 14).
This impairment was due to a combination of:
• Short remaining life of the operation,
• a decline in recent and forecast high-carbon manganese alloys prices over the short-term.
INVESTMENTS
IMPAIRMENT AND IMPAIRMENT REVERSAL
Sakura
At 31 December 2022 an impairment loss of R299 million with no tax effect was recognised on Assmang's equity-accounted investment in
Sakura. ARM's attributable share of the impairment loss amounted to R149 million with no tax effect (refer note 14).
This impairment was due to a combination of:
• A consistent decline in the long-term manganese alloys prices; a decline in recent and forecast manganese high-carbon alloys prices over the short-term,
• A consistent decline in the long-term manganese alloys prices; net cash generated by operations expected to be lower than planned,
• Lower sale volumes compared to prior year forecast. increase in market interest rates.
A discounted cash flow valuation was performed to determine the fair value less cost of disposal of the investment. The valuation was performed in
Malaysian ringgit (MYR). This resulted in an impairment of R299 million to the carrying value of Assmang's investment at 31 December 2022.
The recoverable amount of the investment amounted to R1 620 million at 31 December 2022.
A nominal pre-tax Malaysian discount rate of 14.86% was used in the 31 December 2022 impairment model. The Malaysian Ringgit valuation
was converted to South African Rand using an exchange rate of ZAR3.83 at 31 December 2022 . The level 3 valuation model was calculated over a
20-year period.
The following assumptions were used in the valuation model:
F2024 F2025 F2026 F2027 F2028
Manganese Ore Price Assumptions - 44% Mn $/dmtu CIF 5.80 5.53 5.46 5.46 5.58
Manganese Ore Price Assumptions - 36%-38% Mn $/dmtu CIF 5.17 5.05 4.89 4.89 5.00
Manganese Alloy Price Assumptions - US import USD / mt DDP 1,534 1,393 1,363 1,392 1,423
Manganese Alloy Price Assumptions - Europe spot USD / mt DDP 1,270 1,218 1,220 1,242 1,267
Exchange Rates
US$ / MYR MYR nominal 4.29 4.14 4.04 3.98 3.91
US$ / EUR EUR nominal 0.85 0.82 0.81 0.80 0.80
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS Page 19
for the six months ended 31 December 2022
4. PROPERTY, PLANT AND EQUIPMENT Continued
4.1 ARM Ferrous Continued
PROPERTY, PLANT AND EQUIPMENT
IMPAIRMENT AND IMPAIRMENT REVERSAL
Khumani mine
An impairment loss was recognised on property, plant and equipment at Khumani for (F2022: R40 million before tax) (1H F2022: R88 million before
tax). This relates to a capital project to fill an underground cavity. The impairment loss was accounted for due to management's assessment of limited
future economic benefits associated with the capital spend. ARM's attributable share of the impairment amounted to (F2022: R20 million)
(1H F2022: R44 million) before tax of (F2022: R6 million) (1H F2022: R12 million) (refer note 14). This is accounted for in the income from joint
venture line in the statement of profit or loss.
4.2 ARM Coal
INVESTMENTS
IMPAIRMENT AND IMPAIRMENT REVERSAL
Participative Coal Business (PCB)
In F2022, previous impairment losses recognised against the investment in PCB were reversed by ARM, mainly due to an
earlier than anticipated settlement of PCB loans.
A discounted cash flow valuation model was prepared to determine the net present value of the investment in PCB. The recoverable
amount of ARM's net investment in PCB amounted to R4 450 million.
The level 3 valuation recoverable amount of the investment in the PCB cash-generating unit was determined based on the fair value
less cost of disposal calculation performed in terms of IFRS.
ARM's attributable share of the impairment reversal amounted to R1 121 million (nil tax impact) (refer notes 6 and 14).
Gross Tax After tax
Rm Rm Rm
PCB 20.2%: reversal of impairment (refer note 14) 1 121 - 1,121
Total attributable to ARM 1 121 - 1,121
A pre-tax discount rate of 20.5% was used for the discounted cash flow valuation model together with the following commodity prices
and exchange rates:
F2023 Real F2024 Real Long-term Real
R/US$ 15.66 15.28 15.15
US$/t 184 136 80
4.3 Machadodorp Works
PROPERTY, PLANT AND EQUIPMENT
IMPAIRMENT AND IMPAIRMENT REVERSAL
An impairment reversal was recognised in F2022 on property, plant and equipment for R3 million with no tax effect (refer note 14).
Details of the impairments and impairment reversals were included in the financial results ended 30 June 2022, which can be found on www.arm.co.za.
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS Page 20
for the six months ended 31 December 2022
Unaudited Unaudited Audited
Six months ended Year ended
31 December 30 June
2022 2021 2022
Rm Rm Rm
5 DEFERRED TAX
Deferred tax assets
Opening balance 215 274 274
Bokoni (refer note 24) 856 - -
Investment in Harmony recognised in other comprehensive income ( 74) ( 64) 10
Other ( 29) ( 36) ( 69)
Deferred tax assets on the statement of financial position 968 174 215
Deferred tax liabilities
Opening balance 3,226 2,968 2 968
Investment in Harmony recognised in other comprehensive income 36 167 -
Two Rivers 144 ( 82) 171
Modikwa 43 ( 9) ( 54)
ARM Coal 12 56 141
Deferred tax liabilities on the statement of financial position 3,461 3,100 3 226
6 INVESTMENT IN ASSOCIATE
Opening balance 2,048 534 534
Profit from associate per statement of profit or loss 888 - 0 927
Profit for the period 888 241 1,417
Re-measurement loss on loans - (241) (490)
Movement in loans - (534) (534)
Reversal of impairment on investment (refer note 4.2) - 239 1,121
Closing balance 2,936 239 2,048
Note 7 - 10
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS Page 21
for the six months ended 31 December 2022
Unaudited Unaudited Audited
Six months ended Year ended
31 December 30 June
2022 2021 2022
Rm Rm Rm
7 INVESTMENT IN JOINT VENTURE
This investment relates to ARM Ferrous and comprises Assmang
as a joint venture which includes iron ore and manganese operations.
Opening balance 22,145 20,938 20,938
Net income for the period 1,682 2,387 6,649
Income for the period 1,686 2,407 6,689
Consolidation adjustments (4) (20) (40)
Foreign currency translation reserve 54 78 58
Less dividends received for the period (3,500) (3,500) (5,500)
Closing balance 20,381 19,903 22,145
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 4,391 4,973 3,881
Opening balance 3,881 3,940 3,940
Fair value in other comprehensive income 510 1,033 (59)
Guardrisk ² 6 10 9
Preference shares ¹ 1 1 1
Richards Bay Coal Terminal (RBCT) ³ 208 220 213
Closing balance 4,606 5,204 4,104
¹ This is a level 1 valuation in terms of IFRS 13.
² This is a level 2 valuation in terms of IFRS 13.
Fair value based on the net asset value of the cell captive
³ This is a level 3 valuation in terms of IFRS 13.
Richards Bay Coal Terminal (RBCT)
The fair value of the RBCT 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 fair value is
most sensitive to wharfage cost. The current RBCT valuation is based on a wharfage cost differential of between
$45/tonne and $50/tonne (1H F2022: between $41/tonne and $47/tonne) (F2022:between $44/tonne and $49/tonne).
If increased by 10% this would result in a R21 million (1H F2022: R22 million) (F2022: R22 million) increase in the
valuation on the RBCT investment. If decreased by 10% this would result in a R21 million (1H F2022: R22 million)
(F2022: R22 million) decrease in the valuation on the RBCT investment. The valuation is calculated based on the
duration of the RBCT lease agreement with Transnet SOC Limited to 31 December 2038, using a pre-tax
discount rate of 21.2% (1H F2022: 19.4%) (F2022: 20.8%).
Level 2 and level 3 fair value losses or gains are included in other operating expenses or other operating income
respectively in the statement of profit or loss.
Opening balance 213 233 233
Fair value loss ( 5) ( 13) ( 20)
Closing balance 208 220 213
9 NON-CURRENT INVENTORIES
Non-current inventories relate to the Two Rivers Merensky project. Stockpile quantities are determined using assumptions
such as densities and grades which are based on studies, historical data and industry norms.
10 TRADE AND OTHER RECEIVABLES
Certain trade and other receivables contain provisional pricing features linked to commodity prices and exchange rates,
which have been designated to be measured at fair value through profit or loss because of the embedded derivative.
The fair value of trade and other receivables that contain provisional pricing is R4 697 million (1H F2022: R4 763 million)
(F2022: R5 172 million). This is a level 2 valuation in terms of IFRS.
Trade and other receivables include a contract asset from Assmang of R610 million (1H F2022: R603 million)
(F2022: R985 million). The contract asset results from fee arrangements whereby fees
received from Assmang only become payable following receipt by Assmang from the relevant customer.
The carrying value of trade and other receivables approximate their fair value.
Note 11
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS Page 22
for the six months ended 31 December 2022
Unaudited Unaudited Audited
Six months ended Year ended
31 December 30 June
2022 2021 2022
Rm Rm Rm
11 FINANCIAL ASSETS
Investments in fixed deposits
Current financial assets ¹
- ARM Finance Company SA - 268 185
- Two Rivers 4 31 31
- Modikwa - 382 -
- Nkomati 114 87 114
- Mannequin Captive Cell (Cell AVL 18) (refer note 21) 531 55 500
- Other 7 - 0 -
656 823 830
Non-current financial assets ¹
- ARM Coal 55 48 50
- Modikwa 3 1 2
- Mannequin Captive Cell (Cell AVL 18) (refer note 21) 147 184 162
205 233 214
Total 861 1,056 1 044
¹ Cash and cash equivalents were invested in fixed deposits with maturities longer than three months to achieve
better returns. When these investments mature, to the extent that amounts are not re-invested
in new investments with maturities of longer than 3 months, they will again form part of cash and
cash equivalents. The carrying amounts of the financial assets shown above approximate their fair value.
The following guarantees issued are included in financial assets:
- Guarantees issued by Two Rivers to DMRE, Eskom and BP Oil amounting to R4 million (1H F2022 : R31 million)
(F2022: R31 million).
- Guarantees issued by Modikwa to DMRE and Eskom amounting to Rnil (1H F2022 : R146 million)
(F2022: Rnil).
- Guarantees issued by Nkomati to DMRE and Eskom amounting to R114 million (1H F2022: R87 million) (F2022: R114 million).
Other financial assets include trust funds of R7 million (1H F2022: Rnil) (F2022: Rnil).
Note 12+13
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS Page 23
for the six months ended 31 December 2022
Unaudited Unaudited Audited
Six months ended Year ended
31 December 30 June
2022 2021 2022
Rm Rm Rm
12 CASH AND CASH EQUIVALENTS
Total cash at bank and on deposit 9 177 11 180 11 069
- African Rainbow Minerals Limited 6 134 8 603 8 770
- ARM BBEE Trust 6 6 38
- ARM Coal 48 1 4
- ARM Finance Company SA 288 2 92
- ARM Platinum Proprietary Limited 1 140 827 874
- Bokoni 94 -0 -0
- ARM Treasury Investments Proprietary Limited 44 42 43
- Nkomati 16 79 52
- Two Rivers Platinum Proprietary Limited 1 381 1 597 1 174
- Other cash at bank and deposit 26 23 22
Total cash set aside for specific use 660 902 590
- Mannequin Cell Captive ¹ 237 750 245
- Rehabilitation trust funds ¹ 103 64 65
- Other cash set aside for specific use ¹ 320 88 280
Total as per statement of financial position 9 837 12 082 11 659
Less - Overdrafts (refer note 13) ( 16) ( 16) ( 16)
Total as per statement of cash flows 9 821 12 066 11 643
Cash at bank and on deposit earns interest at floating rates based on daily bank deposit rates.
¹ Cash set aside for specific use in respect of the group includes:
- Mannequin captive cell is used as part of the group insurance program. The cash held in the cell is invested in highly liquid
investments and is used to settle claims as and when they arise as part of the risk finance retention strategy.
- The trust funds of R10 million (1H F2022: R15 million) (F2022: R16 million)
- African Rainbow Minerals Limited of R37 million (1H F2022: R35 million) (F2022: R37 million)
- Guarantees issued by ARM Coal to DMRE amounting to R46 million (1H F2022: R45 million) (F2022: R46 million).
- Guarantees issued by Two Rivers to DMRE, Eskom and BP oil amounting to R29 million (1H F2022: Rnil) (F2022: Rnil).
- Guarantees issued by Nkomati to DMRE and Eskom amounting to R12 million (1H F2022: R38 million) (F2022: R12 million).
- Guarantees issued by Bokoni to DMRE amounting to R55 million (1H F2022: Rnil) (F2022: Rnil).
- Guarantees issued by Modikwa to DMRE and Eskom amounting to R234 million (1H F2022: R19 million) (F2022: R234 million).
13 BORROWINGS
Long-term borrowings are held as follows:
- ARM BBEE Trust 121 185 166
- ARM Coal Proprietary Limited -0 437 -0
- African Rainbow Minerals Limited (lease liability) 1 -0 -0
- Anglo Platinum Limited (lease liability) 8 13 9
- Two Rivers Platinum Proprietary Limited (lease liability) 132 160 130
262 795 305
Short-term borrowings are held as follows:
- Anglo Platinum Limited (partner loan) - 0 -0 -0
- Anglo Platinum Limited (lease liability) - 0 31 20
- ARM Coal Proprietary Limited (partner loans) - 0 181 139
- ARM Coal Proprietary Limited (lease liability) 6 -0 -0
- African Rainbow Minerals Limited (lease liability) 1 3 -0
- Nkomati - 0 -0 -0
- Two Rivers Platinum Proprietary Limited - 0 -0 -0
- Two Rivers Platinum Proprietary Limited (lease liability) 4 -0 4
11 215 163
Overdrafts are held as follows:
- African Rainbow Minerals Limited -0 -0 -0
- Nkomati -0 -0 -0
- Two Rivers Platinum Proprietary Limited -0 - -0
- Other 16 16 16
16 16 16
Total borrowings 289 1 026 484
Overdrafts and short-term borrowings
- interest bearing 27 50 40
- non-interest bearing -0 181 139
The carrying amounts of the financial liabilities shown above approximate their fair value.
Note 14-15
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS Page 24
for the six months ended 31 December 2022
Unaudited Unaudited Audited
Six months ended Year ended
31 December 30 June
2022 2021 2022
Rm Rm Rm
14 CAPITAL ITEMS
Loss on sale of property, plant and equipment and intangible assets - ARM Coal -0 ( 1) -0
Reversal of impairment on investment in PCB - ARM Coal (refer note 4.2) -0 239 1 121
Reversal of impairment on property, plant and equipment - Machadodorp Works (refer note 4.3) -0 -0 3
Profit on sale of property, plant and equipment - Nkomati -0 -0 2
Loss on sale of property, plant and equipment - Two Rivers ( 2) -0 ( 2)
Profit on sale of property, plant and equipment - ARM Coal -0 -0 4
Gain on bargain purchase - Bokoni acquisition 56 -0 -0
Capital items per statement of profit or loss before taxation effect 54 238 1 128
Loss on property, plant and equipment accounted for directly
in associate - ARM Coal -0 -0 ( 9)
Impairment loss on investment in Sakura accounted for directly
in joint venture - Assmang (refer note 4.1) ( 149) -0 -0
Impairment loss on property, plant and equipment accounted for directly
in joint venture - Assmang (refer note 4.1) ( 941) ( 44) ( 20)
Loss on sale of property, plant and equipment accounted for directly
in joint venture - Assmang ( 3) ( 13) ( 25)
Capital items before taxation effect (1 039) 181 1 074
Taxation accounted for in joint venture - impairment loss of property, plant and
equipment and intangible assets - Assmang (refer note 4.1) 254 12 6
Taxation accounted for in joint venture - loss on sale of property,
plant and equipment - Assmang 1 4 6
Taxation accounted for in associate - loss on sale of property, plant and
equipment - ARM Coal -0 -0 3
Taxation on profit on sale of property, plant and equipment - ARM Coal -0 -0 ( 1)
Total amount adjusted for headline earnings ( 784) 197 1 088
15 EARNINGS PER SHARE
Headline earnings (R million) 5 171 3 696 11 338
Headline earnings from continuing operations (R million) 5 171 3 696 11 338
Headline loss from discontinued operation (R million) -0 -0 0
Headline earnings per share (cents) 2 638 1,887 5,787
Headline earnings per share (cents) 2 638 1 887 5,787
Headline earnings per share (cents) -0 -0 -0
Basic earnings per share (cents) 2 238 1 988 6,343
Headline earnings per share (cents) 2 238 1 988 6,343
Headline earnings per share (cents) ERROR:#REF! - ERROR:#REF!
Diluted headline earnings per share (cents) 2 634 1 868 5 783
Diluted headline earnings per share from continuing operations (cents) 2,634 1,868 5,783
Diluted headline loss per share from discontinued operation (cents) - - -
Diluted basic earnings per share (cents) 2 234 1 968 6,338
Diluted basic earnings from continuing operations per share (cents) 2 234 1 968 6,338
Diluted basic loss from discontinued operation per share (cents) ERROR:#REF! ERROR:#REF! ERROR:#REF!
Number of shares in issue at end of the period (thousands) 224 668 224 459 224,668
Weighted average number of shares (thousands) 196 053 195 840 195,899
Weighted average number of shares used in calculating
diluted earnings per share (thousands) 196 333 197 815 196,033
Net asset value per share (cents) 20,887 18,332 20,545
EBITDA (R million) 4 175 3 337 8,854
EBITDA from continuing operations (R million) 4 175 3 337 8,854
Interim dividend declared (cents per share) 1 400 1 200 1,200
Final dividend declared (cents per share) - - 2,000
Reconciliation to headline earnings
Basic earnings attributable to equity holders of ARM 4 387 3 893 12 426
Loss on sale of property, plant and equipment and intangible assets - ARM Coal -0 1 -0
Reversal of impairment on investment in PCB - ARM Coal (refer note 4.2) -0 ( 239) (1 121)
Reversal of impairment on property, plant and equipment - Machadodorp Works (refer note 4.3) -0 -0 ( 3)
Profit on sale of property, plant and equipment - Nkomati -0 -0 ( 2)
Loss on property, plant and equipment accounted for directly in associate - ARM Coal -0 -0 9
Loss on sale of property, plant and equipment - Two Rivers 2 -0 2
Profit on sale of property, plant and equipment - ARM Coal -0 -0 ( 4)
Impairment loss of property, plant and equipment in joint venture - Assmang (refer note 4.1) 941 44 20
Loss on sale of property, plant and equipment accounted for directly in joint venture - Assmang 3 13 25
Impairment loss on investment in Sakura accounted for directly in -0 -0 -0
joint venture - Assmang (refer note 4.1) 149 -0 -0
Gain on bargain purchase - Bokoni acquisition ( 56) -0 -0
5 426 3 712 11 352
Taxation accounted for in joint venture - impairment loss at Assmang ( 254) ( 12) ( 6)
Taxation accounted for in joint venture - loss on disposal of fixed assets at Assmang ( 1) ( 4) ( 6)
Taxation accounted for in associate - loss on sale of property, plant and equipment - ARM Coal -0 - ( 3)
Taxation on profit on sale of property, plant and equipment - ARM Coal -0 - 1
Headline earnings 5 171 3 696 11 338
note 16 to 19
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS Page 25
for the six months ended 31 December 2022
Unaudited Unaudited Audited
Six months ended Year ended
31 December 30 June
2022 2021 2022
Rm Rm Rm
16 RE-MEASUREMENT AND FAIR VALUE GAINS AND LOSSES
ARM Coal
Included in other operating income / (expenses) and profit from associate are re-measurements with no tax effect
relating to the GGV and PCB loans. The gain and loss is as a result of a re-measurement of debt between ARM and
Glencore Operations South Africa Proprietary Limited (GOSA) and ARM Coal Proprietary Limited.
The re-measurement adjustments are as follows:
Re-measurement gain in operating income - ARM Coal segment - 259 49
Re-measurement loss in operating expenses - ARM Coal segment ( 4) - (815)
Net re-measurement (loss)/gain - ARM Coal segment ( 4) 259 (766)
Re-measurement gain in operating income/(loss in operating expenses) - ARM Corporate segment 4 (365) 443
Net re-measurement loss on group profit from operations before capital items - (106) (323)
Income from associate re-measurement loss - (refer note 6) - (241) (490)
Net ARM Coal re-measurement loss - (347) (813)
The re-measurements are as a result of changes in the future repayment cash flows applied to the net present
value calculations. The discount rate used in the calculation of the re-measurement is 10%.
ARM BBEE Trust (loan from Harmony)
The re-measurements are as a result of changes in the future repayment cash flows and changes to the discount
rate applied to the net present value calculations. The discount rate used for 1H F2023 is 12.93%.
(1H F2022: 9.68%) (F2022: 11.69%).
Other operating income increase (re-measurement gain on loan) - ARM Corporate segment 8 1 5
Net ARM BBEE Trust re-measurement gain 8 1 5
The fair value gains are as follows:
Other operating income increase (fair value gain on loan) - ARM Corporate segment - - 5
Net ARM BBEE Trust fair value gain - - 5
The carrying amounts of the financial liabilities approximate their fair value.
17 PROFIT FROM ASSOCIATE
Profit (before re-measurement/fair value on loans) 888 241 1 417
Re-measurement loss (refer note 16) - ( 241) ( 490)
Total 888 - 927
18 TAXATION
South African normal tax - current year 1,116 1,073 2,384
- mining 928 883 2 003
- non-mining 188 190 381
- prior year -0 -0 25
Total deferred taxation 227 1 327
Deferred tax 227 1 413
Deferred tax - rate change ¹ - 0 - 0 (86)
0 0 -
Total taxation 1 343 1 074 2 736
¹ During the 2022 budget speech held on 23 February 2022, it was announced that the corporate income tax rate will
be reduced from 28% to 27% for companies with years of assessment ending on or after 31 March 2023. This change
has affected recorded deferred tax assets and liabilities from 30 June 2022 and the effective tax rate.
19 CASH GENERATED FROM OPERATIONS
Cash generated from operations before working capital movement 4 653 3 789 10 148
Working capital inflow / (outflow) 641 1 036 (1 640)
Movement in inventories (outflow) / inflow ( 346) 47 70
Movement in payables and provisions outflow ( 210) ( 479) ( 973)
Movement in receivables inflow / (outflow) 1 197 1 468 ( 737)
Cash generated from operations (per statement of cash flows) 5 294 4 825 8 508
17 OTHER OPERATING INCOME
Management fees 630 643 1,489
Cost recoveries 32 26 51
Insurance income 41 55 115
Foreign exchange gains 29 1 35
Royalties received 39 69 114
Loan fair value gain (refer note 14) - - -
Re-measurement gains (refer note 15) 8 1 54
Other 58 75 125
Total 837 870 1,983
17 OTHER OPERATING EXPENSES
Provisions 77 59 231
Mineral royalty tax 361 391 911
Staff cost 232 166 337
Re-measurement loss (refer note 15) - 365 372
Consulting fees 63 38 130
Share-based payments expense 178 81 263
Insurance 39 69 129
Research and development 126 69 166
Other 412 123 700
Total 1,488 1,361 3,239
note 20 -21
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS Page 26
for the six months ended 31 December 2022
Unaudited Unaudited Audited
Six months ended Year ended
31 December 30 June
2022 2021 2022
Rm Rm Rm
20 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 related to fees, insurances, dividends, rentals and interest are regarded as
intra-group transactions and eliminated on consolidation.
Amounts accounted in the statement of profit or loss relating to transactions with related parties
Subsidiaries
Impala Platinum - Sales 4,756 3 969 9 416
Rustenburg Platinum Mines - Sales ¹ 2,391 2 160 4 522
Modikwa-related non-controlling interest - dividend declared ¹ 102 111 255
Joint operations
Glencore International AG - Sales 1,409 797 2 627
Norilsk Nickel - Sales - - -
Norilsk Nickel - management fees - - -
Glencore Operations SA - management fees 50 72 78
Joint venture
Assmang Proprietary Limited
- Management fees 630 638 1 478
- Dividends received 3 500 3,500 5 500
Amounts outstanding at year-end (owing to) / receivable by ARM on current account
Joint venture
Assmang - Trade and other receivables 610 603 985
Joint operations
Rustenburg Platinum Mines - Trade and other receivables ¹ 1 462 1,505 1 526
Norilsk Nickel - Trade and other payables - (2) 2
Norilsk Nickel - Trade and other receivables - - -
Rustenburg Platinum Mines - Short-term borrowings ¹ - - -
Glencore Operations SA - Long-term borrowings - (437) -
Glencore Operations SA - Short-term borrowings - (181) (139)
Glencore Operations SA - Trade and other receivables 357 532 887
Glencore International AG - Trade and other receivables 249 142 376
Subsidiary
Impala Platinum - Trade and other receivables 3 235 3,258 3 646
Impala Platinum - dividend paid 368 391 1 060
Modikwa-related non-controlling interest - dividend payable ¹ - 77 143
¹ These transactions and balances for joint operations do not meet the definition of a related party as per
IAS 24 but have been included to provide additional information.
21 PROVISIONS
21.1 Total long-term provisions
Opening balance 1,979 1,883 1,883
The provision movement is as follows:
Modikwa 15 6 -0
Bokoni 96 -0 -0
Nkomati 1 ( 4) 78
Other 7 49 18
Closing balance 2 098 1 934 1 979
21.2 Silicosis and tuberculosis class action provision
Long-term provision
The provision movement is as follows:
Opening balance 159 146 146
Interest unwinding 4 6 12
Demographic assumptions changes ( 31) -0 ( 13)
Administration costs -0 -0 -0
Additional special purpose vehicle trust -0 -0 -0
Transfer from short-term provisions 14 30 14
Closing balance 146 182 159
Short-term provision
The provision movement is as follows:
Opening balance 16 60 60
Settlement payments ( 1) ( 28) ( 30)
Transfer to long-term provisions ( 14) ( 30) ( 14)
Closing balance 1 2 16
Total silicosis and tuberculosis class action provision 147 184 175
ARM has a contingency policy in this regard which covers environmental site liability and silicosis liability with Guardrisk Insurance Company Limited
('Guardrisk'). In turn, Guardrisk has reinsured the specified risks with Mannequin Insurance PCC Limited - Cell AVL 18, Guernsey which cell captive is
held by ARM.
Following the High Court judgement previously reported, the Tshiamiso Trust was registered in November 2019. As part of the settlement a guarantee of
R304 million was issued by Guardrisk on behalf of ARM in favour of the Tshiamiso Trust on 13 December 2019.
Details of the provision were discussed in the 30 June 2022 financial results, which can be found on www.arm.co.za.
Note 22 to 25
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS Page 27
for the six months ended 31 December 2022
Unaudited Unaudited Audited
Six months ended Year ended
31 December 30 June
2022 2021 2022
Rm Rm Rm
22 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 2 203 998 1 685
- not contracted for 960 203 1 848
Total commitments 3 163 1 201 3 533
23 CONTINGENT LIABILITIES AND DISPUTES
CONTINGENT LIABILITIES
Nkomati
The Nkomati mine closure may have a potential exposure regarding rehabilitation and management of water post closure.
There are uncertainties regarding the on-going assessment of long-term water management measures, and anticipated
amendments to the existing Water Use License (WUL). Technical studies towards providing an integrated Water Management
Plan are underway. The results of the studies will be used as input towards a risk assessment that is required to apply for an
amended WUL, such as applying for authorised water discharges. The WUL conditions are not yet known and the subsequent
potential water resource impact liability as part of the mine rehabilitation and closure process is uncertain. The obligation will be
recognised when it is probable and can be reliably estimated.
The environmental rehabilitation provision at 31 December 2022 is the best independent estimate and is based on the most reliable
information currently available. It will be re-assessed on an ongoing basis as engineering designs evolve and new information
becomes available, as well as when approvals of a revised Environmental Management Plan and Water Use Licence are secured.
Modikwa
In August 2020, the International Council on Mining and Metals (ICMM) published a Global Industry Standard for Tailings Management (GISTM)
that sets a new global benchmark to achieve strong social, environmental and technical outcomes in tailings management, with a strong
emphasis on accountability and disclosure.
ICMM members have committed that all tailings storage facilities with 'extreme' or 'very high' potential consequences will be in
conformance with the GISTM by August 2023, and all other facilities by August 2025.
ARM, as a member of ICMM, has committed to comply with GISTM by the agreed deadlines.
Modikwa Platinum Mine is proactively investigating gaps between its Tailings Storage Facility (TSF) and the GISTM requirements.
The mine commenced with sampling and laboratory testing work during F2022.
As at 31 December 2022, a reliable estimate of the impact cannot be made as the sampling and laboratory testing work is still underway.
The results thereof are expected to be available in the first half of F2024.
DISPUTES
Modikwa
ARM Mining Consortium made an application against the Department of Mineral Resources and Energy (DMRE) and third-party respondents
requesting the court to order the DMRE to reassess applications for certain prospecting rights brought by Rustenburg Platinum Mines, ARM
Mining Consortium's joint venture partner, that had been earlier rejected. Judgment on the matter was granted on 10 July 2020. The court found
against ARM Mining Consortium. ARM Mining Consortium applied for leave to appeal the court judgement in the Supreme Court of
Appeal (SCA), which was granted. The SCA delivered judgment on the matter on 28 November 2022. It found against ARM Mining
Consortium. ARM Mining Consortium has applied for leave to appeal the SCA judgment to the Constitutional Court.
ARM
Pula Group LLC and Pula Graphite Partners Tanzania Limited is claiming damages in the amount of US$195 000 000 against
ARM and other defendants, allegedly arising out of a breach of a confidentiality agreement. The summons was
served on ARM on 13 January 2023. The matter is before the High Court of the United Republic of Tanzania
(Commercial Division). ARM is defending the litigation and has filed its statement of defence, refuting any liability.
There have been no other significant changes in the contingent liabilities and disputes of the Group as disclosed since 30 June 2022
annual financial statements.
For a detailed disclosure on contingent liabilities and disputes, refer to ARM's annual financial statements for the year ended 30 June 2022.
available on the group's website (www.arm.co.za).
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS Page 28
for the six months ended 31 December 2022
24 ACQUISITION OF BOKONI PLATINUM MINES PROPRIETARY LIMITED ("BPM")
On 20 December 2021 ARM entered into a sale and purchase agreement which provides for ARM Platinum a wholly owned
subsidiary of ARM, to acquire all of the shares (100%) of BPM from Bokoni Platinum Holdings Proprietary Limited ("BPH"), in
turn owned by Rustenburg Platinum Mines Limited ("RPM"), a wholly owned subsidiary of Anglo American Platinum Limited
("AAPL"), and Plateau Resources Proprietary Limited ("Plateau"), a wholly owned subsidiary of Atlatsa Resources Corporation
("Atlatsa"), through a newly formed entity ARM Bokoni Mining Consortium Proprietary Limited ("ARM BMC"), for a consideration of
R3 500 million payable in cash.
The sale and purchase agreement included various conditions to the purchase becoming effective, most notably approval for
the transfer of the controlling interest in BPM to ARM BMC in terms of Section 11 of the Mineral and Petroleum Resources
Development Act 28 of 2002, as well as the approval of the acquisition by the Competition Commission.
The significant conditions precedent in the sale and purchase agreement had been fulfilled on
1 September 2022.
ARM BMC transferred the consideration of R3 500 million in cash, on 1 September 2022. This was funded by ARM through
the subscription of an additional 99 000 shares in ARM Platinum. ARM Platinum thereafter subscribed for 254 900 ordinary
shares and 175 000 preference shares in ARM BMC.
BPM is a platinum group metals ("PGM") mining operation located in the Limpopo province of South Africa and forms part of the
North-Eastern Limb of the Bushveld Complex.
The following are the primary objectives of the transaction:
- Long-life orebody favourably impacting medium term production. Adding a long-life operation greater than 24 years with
significant opportunity for further value accretive growth;
- Provides exposure to a high-grade UG2 resource that has an attractive prill split with high concentration of palladium
and rhodium, and favourable iridium and ruthenium contributions;
- Improves ARM's portfolio mix and competitiveness, with the addition of a mechanised underground operation
(in new mining areas) that is expected to lower ARM's overall PGM cost curve position; and
- Provides for potential scale benefits and opportunities for operational optimisation, given its proximity to ARM's other
Eastern limb PGM operations.
On the 11th of June 2022, approval was granted to transfer a controlling interest in BPM (the mining right holder) to
ARM BMC for which consent was obtained in terms of Section 11 of the Mineral and Petroleum Resources Development Act
28 of 2002 from the Department of Minerals Resources and Energy.
On the 2nd of August 2022, the Competition Commission approved the proposed acquisition of BPM, pending Competition
Tribunal clearance. Competition Tribunal clearance was granted on the 11th of August 2022.
In terms of IFRS 3 Business Combinations, ARM has concluded that the acquisition of BPM is considered to be a
"business combination" as defined in IFRS 3, with an acquisition date of 1 September 2022, in line with transfer of control,
being the effective date as per the sale and purchase agreement.
ARM measured the identifiable assets and liabilities of BPM at acquisition-date fair values.
The values are presented below:
NOTES TO THE CONDENSED GROUP INTERIM FINANCIAL STATEMENTS Page 29
for the six months ended 31 December 2022
24 ACQUISITION OF BOKONI PLATINUM MINES PROPRIETARY LIMITED ("BPM") Continued
Assets acquired and liabilities assumed
F2023
Rm
ASSETS 3,672
Non-current assets 3,599
Property plant and equipment 2,743
Deferred tax asset ¹ 856
Current assets 73
Cash and cash equivalents 59
Trade and other receivables 14
LIABILITIES 116
Non-current liabilities 86
Provision for rehabilitation 86
Current liabilities 30
Trade and other payables 30
Total identifiable net assets at fair value 3,556
Gain on bargain purchase (56)
Purchase price 3,500
Cash and cash equivalents acquired (59)
Cash outflow on acquisition net of cash acquired 3,441
¹ A deferred tax asset for unredeemed capital expenditure of R855 million was not recognised. There is no expiry date for unredeemed
capital expenditure.
The purchase price allocation was based on 100% ownership. A 15% shareholding in ARM BMC will be allocated to
qualifying employees, local communities and black industrialists who will each hold 5%. ARM BMC is busy with the necessary processes to
implement the allocation of this 15% shareholding. At the reporting date no agreements in this regard had been finalised.
Since the acquisition date, no revenue and a net loss of R150 million was included in the consolidated statement of profit or loss for the
reporting period. If the acquisition had been at the beginning of the reporting period, no revenue and a net loss of R197 million would have
been included in the consolidated statement of profit or loss for the reporting period.
The gain on bargain purchase is as a result of the fair value of net assets acquired differing from the initial estimates.
The gain on bargain purchase is included in capital items on the statement of profit or loss.
Trade and other receivables at acquisition is current and receivable within 30 days.
The carrying amount of trade and other receivables approximates their fair value due to the short term nature of the receivables.
25 EVENTS AFTER REPORTING DATE
Since the period end ARM received a dividend of R598 million the Participative Coal Business.
Since the period end Assmang declared an attributable dividend of R1 500 million to ARM.
No other significant events have occurred subsequent to the reporting date that could materially affect the reported results.

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ARM - African Rainbow Minerals Ltd. published this content on 06 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 March 2023 08:39:05 UTC.