Reviewed Interim Results for 6 months ended 31....

AFRICAN RAINBOW MINERALS LIMITED (Incorporated in the Republic of South Africa) (Reg. No. 1933/004580/06) (ISIN code: ZAE 000054045) REVIEWED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2005 HIGHLIGHTS * Headline earnings increased from R19 million to R131 million * Excellent progress on Two Rivers Platinum Project * Assmang shareholders' agreement and delisting approved * Release of the 8.4 million ton per annum export BKM iron ore mine * Exploration assets outside South Africa listed through TEAL on the Toronto Stock Exchange * Nkomati approved expansion from a 30 000 tpm to 100 000 tpm mine with a new concentrator COMMENTARY The board of ARM is pleased to announce its interim results for the six months ended 31 December 2005 which have been prepared in accordance with International Financial Reporting Standards. Headline earnings increased from R19 million for the six months to 31 December 2004 to R131 million for the current reporting period. Earnings were positively affected by improved results from Modikwa and not including our share of Harmony Gold Mining Company Limited's ('Harmony') results (now accounted for as an investment), but negatively affected both by the participation in only 50% of Nkomati's earnings following the disposal of 50% to LionOre and lower earnings from Assmang. ARM Platinum benefited from strong PGM prices with Modikwa Platinum Mine reporting a significant increase in cash operating profits to R70 million (at 50% ownership)(2004: R8 million). Nkomati Nickel Mine has continued with its consistent strong performance. Assmang Limited ('Assmang') reported a 22% decrease in headline earnings to R275 million, mainly driven by lower sales volumes and prices achieved at the manganese and chrome operations as explained below in more detail. Harmony improved its gold production by 6% to 20 316kg and reported an increase in operating profit to R389.4 million from R118.8 million for the quarter ended 31 December 2005. A significant increase in the Harmony share price resulted in a stronger ARM balance sheet with investments having increased by R1.7 billion since June 2005. Total consolidated short and long term borrowings increased from R1.6 billion on 30 June 2005 to R2.0 billion on 31 December 2005, mainly as a result of borrowings to fund the Two Rivers Platinum Project. ARM's net debt to equity ratio remains, however, at a comfortable 16%. We continued with our organic growth programme through the release, in conjunction with our partners, of two significant projects. The Two Rivers Platinum Project in the Mpumalanga Province was released in June 2005 and the 8.4 million ton per annum export iron ore mine on our Bruce, King and Mokaning properties ('the BKM Mine'), situated in the Northern Cape Province, was released during January 2006. Furthermore, we have successfully completed the Dwarsrivier underground chrome mine situated in Mpumalanga, ahead of schedule and below budget. In addition, the Nchwaning 3 manganese mine was completed and became fully operational during the period under review. The restructuring of the Assmang shareholders' agreement has been completed and the delisting of the company has received all the necessary approvals. We have also today announced that Nkomati Nickel will increase monthly production from 30 000 tons per month to 100 000 tons per month, maintaining current nickel production levels. OPERATIONAL REVIEW ARM Ferrous The ARM Ferrous operations which are held through its investment in Assmang consists of three divisions namely, iron ore, manganese and chrome. Assmang reported turnover for the six months to 31 December 2005 of R1,87 billion (2004: R1,89 billion). Earnings decreased by 24% to R275 million (2004: R362 million) and headline earnings decreased by 22% to R275 million (2004: R354 million). The decrease in earnings and headline earnings can be primarily attributed to decreases in sales volumes of manganese ore and charge chrome and a substantial price decrease for manganese alloys as a result of negative market conditions over the reporting period. Six months ended Six months ended 2005 2004 100% basis `000 '000 Percentage Assmang product volumes metric tons metric tons change sales Manganese ore* 573 766 (25) Iron ore 2 600 2 541 2 Manganese alloys 130 105 24 Charge chrome 89 104 (14) Chrome ore* 56 23 144 *Excluding intra-group sales Major capital projects The ARM Ferrous division through Assmang continued its capital expenditure programme, spending R313 million (2004: R286 million) during the period under review. Of this, R43 million was spent on the completion of the Dwarsrivier underground chrome mine, which commenced production well ahead of schedule and under budget, at a total capital cost of R187 million. The Nchwaning 3 manganese mine has been completed and is fully operational. During the period under review the Board of Assmang approved the first phase construction of a new export iron ore mine on its Bruce, King and Mokaning properties, ('the BKM Mine'), adjacent to Kumba's Sishen mine, near Kathu in the Northern Cape Province. Construction of the BKM Mine will commence during the early part of calendar year 2006 with the first phase resulting in a new 8.4 million ton per annum export iron ore mine at an estimated total capital cost of R3.2 billion, excluding capitalised interest. First production is expected during the first half of calendar year 2008. A second phase expansion of the BKM Mine to increase production volumes from the initial 8.4 million tons per annum to 16.0 million tons per annum export capacity forms part of the current design and incorporates some of the capital required for the first phase. The second phase expansion, which would need further Board approval, will require a further estimated R1.8 billion to increase the capacity to 16.0 million tons per annum export capacity. This second phase expansion is, however, dependant on further increases in the capacity of Transnet's Sishen/ Saldanha export channel. The capital expenditure for the BKM Mine referred to above will be funded by Assmang from internally generated cash and funding facilities available to Assmang. Delisting of Assmang On 30 January 2006 minority shareholders of Assmang approved a scheme of arrangement, in terms of Section 311 of the Companies Act No. 61 of 1973, as amended, in terms of which Assore Limited ('Assore') will acquire all the shares in the issued ordinary share capital of Assmang, other than those already held by ARM and Assore. The High Court of South Africa ( Witwatersrand Local Division) sanctioned the abovementioned scheme on 7 February 2006. The effect of this transaction will be that ARM and Assore will each hold a 50% interest in Assmang and will control the company jointly. Assmang's listing on the JSE Limited is expected to be terminated on or about 28 February 2006. ARM Platinum The ARM Platinum division consists of an effective interest of 41.5% in Modikwa Platinum Mine, 50% in the Nkomati Nickel Mine, 55% in the Two Rivers Platinum Project, 50% in the Nkomati Nickel Expansion Project and 90% in Kalplats Exploration. Modikwa Platinum Mine Modikwa, which remains in a build-up phase, has made significant progress in changing the mining method from down dip mining with reef drives to breast (strike) mining with footwall drives . Production capacity has been increased through the improved development rate and the mine is expected to reach design capacity during the next reporting period. The improved metals basket price has resulted in a cash operating profit of R70 Million (at 50% ownership) (2004: R8 million) for the six months under review. Six months ended Six months ended Modikwa ­ 100% basis 31 December 31 December Percentage 2005 2004 change Tons milled million tons 1.29 1.14 13 Head grade (4E) g/t 4.15 4.35 (5) Platinum in concentrate 65 445 60 000 9 ounces Cash cost R/ton 373 373 ­ Cash cost R/Pt oz 7 349 7 067 (4) Capex R million 60 54 11 Nkomati Nickel Mine The Nkomati Nickel Mine again reported consistent, high earnings. Nkomati continues to mine from various ore bodies and during the past period 23% of the run of mine tons comprised of MMZ, the ore body targeted for the Expansion Project. Following the sale of 50% of Nkomati Nickel Mine ('Nkomati') to LionOre, effective 31 May 2005, results for this reporting period will reflect 50% of the profits from this operation whereas in the comparative six month period the Nkomati profits were accounted for on a 100% basis. The mine has again had an excellent performance over the last six months, with contribution to earnings of R52 million at 50% ownership (R103 million at 100% ownership). Six months ended Six months ended Nkomati ­ 100% basis 31 December 31 December 2005 2004 Cash operating profit R million 195 178 Tons milled (`000) 182 184 Nickel head grade (% nickel) 1.97 1.94 On-mine cash cost per tons treated (R/ 508 426 ton) Cash cost (net of by-products) US$/lb. 0.87 1.32 Market sales Nickel tons 2 534 2 585 Copper tons 1 485 1 693 Cobalt tons 42 49 PGMs ounces 16 431 21 502 Nkomati Nickel Expansion Project The current MSB orebody will be depleted during 2008. The Joint Venture partners have approved the construction of a new 100 000 tons per month (increasing from the current 30 000 tons per month) concentrator plant and relevant infrastructure to mine the MMZ ore body and maintain the current metal production of 5 000 tons nickel per annum in concentrate. Mining will take place from the current underground infrastructure as well as from two open pits over a 10-year period. The estimated capital cost is R384 million and construction will span 18 months to full production. The above forms part of the expansion project currently under review. Two Rivers Platinum Project The 220 000 oz PGMs per annum Two Rivers Platinum Project was officially released for construction on 1 June 2005. Of the R1,3 billion estimated capital expenditure, project finance of R700 million has been secured with the balance of the funding being contributed by the two partners (ARM 55% and Implats 45%). The overall project progress to completion remains on plan at 60% complete and capital expenditure is forecasted to be within budget. The mining stockpile now exceeds 600 000 tons as mining ramp up progresses. The concentrator plant will be commissioned during the second half of this calendar year. Kalplats PGM Exploration Project ARM and joint venture partner, Platinum Australia Limited, are progressing with exploration and feasibility work to determine the viability of Kalplats, the results of which are expected during the next six months. TEAL Exploration & Mining Incorporated ('TEAL') TEAL is a mineral development and exploration company that is currently focused on development projects with properties located in Zambia, Namibia and the Democratic Republic of Congo. TEAL completed its listing on the Toronto Stock Exchange on 15 November 2005, raising US$33,3 million in order to further progress its projects and properties. At listing, ARM diluted its holding to 65% resulting in an exceptional profit of R133 million. The progress being made at the Mwambashi Copper Project remains encouraging. It is expected that by the end of the 2006 calendar year, TEAL will have completed the necessary permitting requirements , finalised marketing and off-take arrangements; mine site establishment will be concluded and open-pit mining will have commenced. This is expected to enable the build-up to full production during the first-half of the 2007 calendar year. As disclosed at the time of the Initial Public Offering a secondary listing of TEAL's Common Shares on the JSE Limited is expected to be completed within the next two months. SAFETY AND HEALTH Safety Our continued focus on safety at all levels within the company is yielding positive results. Our quarter-on-quarter safety performance also showed significant improvement, with the LDIFR dropping from 7.5 in the first quarter to 6.1 in the second quarter. During December 2005, our Beeshoek and Dwarsrivier mines completed 3 000 and 1 308 fatality free production shifts, respectively. Environment We are pleased to announce that, during January 2006, the Cato Ridge Works operation received ISO 14001 certification. Presently, most operations are accredited for either ISO 14001, 9001 and/or 18001. Outlook The results as reported further demonstrate the continued benefit to ARM through its diversified commodity portfolio. Most commodity prices are expected to remain at similar, or slightly lower, levels in US$ terms for the remainder of the year. We do not expect the United States Dollar : South African Rand exchange rate to be materially different from current levels. As a result our operations continue to strive for increased efficiencies and lower costs in order to retain competitiveness. Having made good progress in the release and development of our projects, ARM is well- positioned to meet its growth strategy of doubling production in key commodities by year 2010. Dividends The company is currently involved in a high expansion phase with a significant and exciting project pipeline as well as a number of other growth opportunities. As a result the Board of Directors has decided to conserve resources and not to declare a dividend for the six months ended 31 December 2005. Review by independent auditors The financial information has been reviewed by Ernst & Young whose unqualified review opinion is available for inspection at the company's registered office. Signed on behalf of the board: P T Motsepe A J Wilkens Executive Chairman Chief Executive Officer Johannesburg 17 February 2006 GROUP BALANCE SHEETS at 31 December 2005 Reviewed Unaudited Audited at 31 December at 30 June 2005 2004 2005 Restated Restated Notes Rm Rm Rm ASSETS Non-current assets Property, plant and equipment 5 529 4 903 5 025 Intangible assets 4 6 5 Deferred tax assets 69 7 68 Environmental rehabilitation 29 29 29 trust funds Loans and long-term receivables 8 ­ ­ Investments 4 5 404 3 261 3 708 11 043 8 206 8 835 Current assets Inventories 1 317 1 210 1 144 Trade and other receivables 1 166 1 073 1 528 Cash and cash equivalents 494 225 259 2 977 2 508 2 931 Total assets 14 020 10 714 11 766 EQUITY AND LIABILITIES Capital and reserves Ordinary share capital 10 10 10 Share premium 3 511 3 496 3 497 Other reserves 686 (1 168) (772) Retained earnings 4 020 3 552 3 776 Shareholders' interest in 8 227 5 890 6 511 capital and reserves Minority interest 1 604 1 494 1 461 Total shareholders' interest 9 831 7 384 7 972 Non-current liabilities Long-term borrowings 5 1 342 787 962 Deferred tax liabilities 1 106 758 814 Long-term provisions 208 159 190 2 656 1 704 1 966 Current liabilities Trade and other payables 637 583 861 Provisions 35 36 51 Taxation 170 174 304 Overdrafts and short-term 5 691 833 612 borrowings 1 533 1 626 1 828 Total equity and liabilities 14 020 10 714 11 766 GROUP INCOME STATEMENTS for the six months ended 31 December 2005 Reviewed Unaudited Audited Six months Six months Year ended ended ended 31 December 31 December 30 June 2005 2004 2005 Restated Restated Note Rm Rm Rm Revenue 2 348 2 391 5 485 Cost of sales (1 702) (1 618) (3 743) Gross profit 646 773 1 742 Other operating income 115 27 273 Other operating expenses (263) (168) (419) Retrenchment cost ­ (7) (8) Profit from operations before 498 625 1 588 exceptional items Income from investments 10 12 22 Finance costs (81) (98) (172) Loss from associate ­ (138) (150) Profit before taxation and 427 401 1 288 exceptional items Exceptional items 6 116 284 155 Profit before taxation 543 685 1 443 Taxation (166) (285) (530) Profit for period 377 400 913 Attributable to: Minority interest 130 161 451 Equity holders of the parent 247 239 462 377 400 913 Additional information Headline earnings (R million) 131 19 339 Headline earnings per share 64 9 166 (cents) Basic attributable earnings per 121 117 226 share (cents) Fully diluted attributable 120 117 226 earnings per share (cents) Fully diluted headline earnings 64 9 166 per share (cents) Number of shares in issue at end 204 864 204 391 204 437 of period (thousands) Weighted average number of 204 724 204 313 204 370 shares in issue (thousands) Weighted average number of shares used in calculating fully 205 810 204 619 204 794 diluted earnings per share (thousands) Net asset value per share 4 016 2 882 3 185 (cents) STATEMENTS OF CHANGES IN EQUITY for the six months ended 31 December 2005 Share Revaluation capital and Minority of listed premium interest investments Rm Rm Rm Six months ended 31 December 2005 (Reviewed) Balance at 30 June 2005 as previously reported 3 507 1 461 (821) Basic earnings ­ ­ ­ Share options exercised 14 ­ ­ Revaluation of listed investments ­ ­ 1 696 Deferred tax on revaluation of ­ ­ (247) listed investments Translation reserve on translation ­ ­ ­ of subsidiary Share-based payments (IFRS 2 ­ ­ ­ adjustment) Teal Limited minorities ­ 73 ­ Minority interest in earnings ­ 130 ­ Dividend paid to minorities ­ (60) ­ Other ­ ­ ­ Balance at 31 December 2005 3 521 1 604 628 Six months ended 31 December 2004 (Unaudited) Restated Balance at 30 June 2004 as previously reported 3 505 1 326 ­ Basic earnings ­ ­ ­ Revaluation of listed investments ­ ­ (1 423) Deferred tax of revaluation of ­ ­ 216 listed investments Share of associate other reserves ­ ­ ­ Share-based payments (IFRS 2 ­ ­ ­ adjustment) Share options exercised 1 ­ ­ Minority interest in earnings ­ 161 ­ Dividend paid to minorities ­ (13) ­ Re-allocation risk funding: Two Rivers ­ 20 ­ Other ­ ­ ­ Balance at 31 December 2004 3 506 1 494 (1 207) Year ended 30 June 2005 (Audited) Restated Balance at 30 June 2004 as previously reported 3 505 1 326 ­ Basic earnings as previously stated ­ ­ ­ Revaluation of listed investments ­ ­ (962) Deferred tax on revaluation of ­ ­ 141 listed investments Reversal of associate's other ­ ­ ­ reserves Share options exercised 2 ­ ­ Share-based payments (IFRS 2 ­ ­ ­ adjustment) Realisation of land and buildings ­ ­ ­ Minority interest in earnings ­ 451 ­ Dividend paid to minorities ­ (45) ­ Re-allocation risk funding: Two ­ (271) ­ Rivers Other ­ ­ ­ Balance at 30 June 2005 3 507 1 461 (821) Retained Other earnings Total Rm Rm Rm Six months ended 31 December 2005 (Reviewed) Balance at 30 June 2005 as previously reported 49 3 776 7 972 Basic earnings ­ 247 247 Share options exercised ­ ­ 14 Revaluation of listed investments ­ ­ 1 696 Deferred tax on revaluation of ­ ­ (247) listed investments Translation reserve on translation (6) ­ (6) of subsidiary Share-based payments (IFRS 2 14 ­ 14 adjustment) Teal Limited minorities ­ ­ 73 Minority interest in earnings ­ ­ 130 Dividend paid to minorities ­ ­ (60) Other 1 (3) (2) Balance at 31 December 2005 58 4 020 9 831 Six months ended 31 December 2004 (Unaudited) Restated Balance at 30 June 2004 as previously reported (193) 3 316 7 954 Basic earnings ­ 239 239 Revaluation of listed investments ­ ­ (1 423) Deferred tax of revaluation of ­ ­ 216 listed investments Share of associate other reserves 235 ­ 235 Share-based payments (IFRS 2 1 ­ 1 adjustment) Share options exercised ­ ­ 1 Minority interest in earnings ­ ­ 161 Dividend paid to minorities ­ ­ (13) Re-allocation risk funding: Two ­ ­ 20 Rivers Other (4) (3) (7) Balance at 31 December 2004 39 3 552 7 384 Year ended 30 June 2005 (Audited) Restated Balance at 30 June 2004 as previously reported (193) 3 316 7 954 Basic earnings as previously stated ­ 462 462 Revaluation of listed investments ­ ­ (962) Deferred tax on revaluation of ­ ­ 141 listed investments Reversal of associate's other 235 ­ 235 reserves Share options exercised ­ ­ 2 Share-based payments (IFRS 2 11 ­ 11 adjustment) Realisation of land and buildings (6) ­ (6) Minority interest in earnings ­ ­ 451 Dividend paid to minorities ­ ­ (45) Re-allocation risk funding: Two ­ ­ (271) Rivers Other 2 (2) ­ Balance at 30 June 2005 49 3 776 7 972 GROUP CASH FLOW STATEMENTS for the six months ended 31 December 2005 Reviewed Unaudited Audited Six months Six months Year ended ended ended 31 December 31 December 30 June 2005 2004 2005 Rm Rm Rm CASH FLOW FROM OPERATING ACTIVITIES Cash receipts from customers 2 799 2 574 5 297 Cash paid to suppliers and (2 133) (1 966) (3 636) employees Cash generated from operations 666 608 1 661 Interest received 10 12 22 Interest paid (81) (105) (183) ­ Dividends received 19 19 Dividends paid to minorities (60) (13) (45) Taxation paid (256) (55) (168) Net cash inflow from operating 279 466 1 306 activities CASH FLOW FROM INVESTING ACTIVITIES Additions to fixed assets to (391) (349) (705) maintain operations Additions to fixed assets to expand (303) (92) (297) operations Proceeds on disposal of property 2 50 39 plant and equipment Proceeds on disposal of investments ­ 9 Increase in loans and long-term (8) ­ ­ receivable Net cash effect on disposal of 50% ­ 136 ­ of Nkomati mine Investments acquired ­ (8) Net cash outflow from investing (700) (391) (826) activities CASH FLOW FROM FINANCING ACTIVITIES Proceeds on exercise of share 14 1 2 options Funding received from minority 47 21 ­ shareholders Investment by minority shareholders 215 ­ ­ Long-term borrowings raised 391 30 110 Long-term borrowings repaid (135) (94) (215) Increase/(Decrease) in short-term 129 (136) (446) borrowings Net cash inflow/(outflow) from 661 (178) (549) financing activities Net increase/(decrease) in cash and 240 (103) (69) cash equivalents Effects of exchange rate changes (5) ­ ­ Cash and cash equivalents at 259 328 328 beginning of period Cash and cash equivalents at end of 494 225 259 period Cash generated from operations per 325 298 813 share (cents) NOTES TO THE FINANCIAL STATEMENTS for the six months ended 31 December 2005 1. BASIS OF PREPARATION The reviewed results for the half-year have been prepared in accordance with International Financial Reporting Standards ('IFRS') on a historical cost basis except for certain derivative financial instruments that have been measured at fair value. The financial information for the half-year ended 31 December 2005 has been prepared adopting the same accounting policies used in the most recent annual financial statements, except for the adoption of the new statement IFRS 2 ­ share- based payments. As a result the previously reported results for the half-year ended 31 December 2004 and the year ended 30 June 2005 have been restated as is more fully explained below. These consolidated financial statements are prepared in accordance with IAS 34 ­ interim financial reporting. 2. IMPLICATIONS OF ADOPTING IFRS 2 ­ SHARE-BASED PAYMENTS The group grants share options to employees under employee share incentive schemes. In accordance with the requirements of IFRS 2, the group now recognises an expense in the income statement with a corresponding credit to equity. The fair value at the date of granting the options is charged to income on a straight-line basis over the relevant option vesting periods, adjusted to reflect actual and expected levels of vesting. This new statement has been applied retrospectively by the group and results in a restatement of prior year financial information. This statement becomes effective for the ARM group for the financial year ending 30 June 2006. The prior and current reporting period adjustments are: ­ Half-year ended 31 December 2005: R14 million ­ charge to income statement. ­ Financial year ended 30 June 2005: R11 million ­ charge to income statement and restatement of comparatives. - Half-year ended 31 December 2004: R1 million ­ charge to income statement and restatement of comparatives. NOTES TO THE FINANCIAL STATEMENTS for the six months ended 31 December 2005 Reviewed Unaudited Audited Six months ended Six months Year ended ended 31 December 31 December 30 June 2005 2004 2005 Restated Restated Rm Rm Rm 3. INVESTMENT IN ASSOCIATE Opening balance - 4 338 4 338 Movement for period - (138) 329 Transfer to investments - (4 200) (4 667) Closing balance ­ ­ ­ The investment in Harmony has been accounted for as an associate from the date of acquisition to 30 November 2004 which was the date when the ARM interest diluted to 16.19% following the new share issue by Harmony to certain Gold Fields shareholders. 4. INVESTMENTS Listed Opening balance 3 708 3 3 Transfer from associates - 4 200 4 667 Unrealised fair value adjustment 1 696 (1 207) (962) Realisation of unrealised profit on sale of Avgold - 265 ­ Total carrying amount of 5 404 3 261 3 708 investments 5. BORROWINGS Long-term borrowings are held as follows: ­ African Rainbow Minerals Limited 225 212 130 ­ Assmang Limited 13 14 13 ­ ARM Platinum (Proprietary) 459 561 465 Limited ­ Two Rivers Platinum 645 ­ 354 (Proprietary) Limited 1 342 787 962 Overdrafts and short-term borrowings are held as follows: ­ African Rainbow Minerals Limited 309 109 249 ­ Assmang Limited 225 567 161 ­ ARM Platinum (Proprietary) 148 157 202 Limited ­ Two Rivers Platinum 9 ­ ­ (Proprietary) Limited 691 833 612 Total borrowings 2 033 1 620 1 574 Interest of R14 million was capitalised for the half-year ended 31 December 2005 (31 December 2004: R1 million, 30 June 2005: R7 million). NOTES TO THE FINANCIAL STATEMENTS for the six months ended 31 December 2005 Reviewed Unaudited Audited Six months ended Six months Year ended ended 31 December 31 December 30 June 2005 2004 2005 Restated Restated Rm Rm Rm 6. EXCEPTIONAL ITEMS Profit on disposal of Avgold - 265 265 (associate) Profit on sale of property plant 13 ­ and equipment Impairment of property, plant and (12) ­ (35) equipment Loss on disposal of 50 per cent of ­ ­ (82) Nkomati mine Profit on dilution in subsidiary 133 ­ ­ Other (5) 6 7 Exceptional items per income 116 284 155 statement Taxation ­ (66) (41) Minority interest ­ (4) 5 Profit on sale of property, plant ­ and equipment in associates 6 4 Net exceptional items 116 220 123 7. HEADLINE EARNINGS Basic earnings per income 247 239 462 statement Loss on sale of Chambishi ­ ­ (7) (subsidiary) Impairment of property, plant and 12 ­ 35 equipment (Profit)/Loss on sale of property - (13) 6 plant and equipment Profit on sale of property, plant (6) (4) and equipment in associate Loss on disposal of 50 per cent of ­ ­ 82 Nkomati mine Profit on disposal of Avgold (265) (265) (associate) Profit on dilution in subsidiary (133) ­ ­ Loss on dilution of associate - ­ 2 Other 5 (6) (8) 131 (51) 303 Taxation ­ 66 41 Minority interest ­ 4 (5) Headline earnings 131 19 339 8. COMMITMENTS AND CONTINGENT LIABILITIES Commitments in respect of future capital expenditure which will be funded from cash generated and available borrowing resources are summarised below: Approved by directors ­ contracted for 689 160 251 ­ not contracted for 801 326 272 Total commitments 1 490 486 523 Contingent liabilities Shareholders are advised that there have been no significant changes to the contingent liabilities of the group as disclosed in the June 2005 annual report. NOTES TO THE FINANCIAL STATEMENTS for the six months ended 31 December 2005 ARM Platinum Division Ferrous Gold Platinum Nickel metals Rm Rm Rm Rm 9. SEGMENTAL INFORMATION Primary segmental information Six months ended 31 December 2005 (Reviewed) Revenue External revenue ­ 309 169 1 870 Cost of sales ­ (292) (95) (1 315) Other operating income per income ­ ­ 21 16 statement Insurance premiums written ­ ­ ­ ­ non-Group companies Other operating income ­ ­ 21 16 Reinsurance premiums non-Group ­ ­ ­ ­ companies Other operating expenses ­ (1) (22) (126) Segment result ­ 16 73 445 Income from investments ­ 1 1 1 Finance cost ­ (45) ­ (16) Exceptional items ­ ­ ­ ­ Taxation ­ 8 (22) (155) Minority interest ­ 3 ­ (137) Contribution to earnings ­ (17) 52 138 Contribution to headline earnings ­ (17) 52 138 Other information Segment assets 5 401 2 707 272 5 089 Taxation ­ ­ ­ ­ Consolidated total assets ­ ­ ­ ­ Segment liabilities ­ 1 390 17 738 Taxation ­ ­ ­ ­ Consolidated total liabilities ­ ­ ­ ­ Cash in /(out) flow from ­ (10) 22 214 operating activities Cash in/(out) flow from investing ­ (368) (12) (318) activities Cash inflow from financing ­ 213 ­ 65 activities Capital expenditure ­ 395 14 313 Amortisation and depreciation ­ 50 22 148 Corpo- Explo- rate and ration other Total Rm Rm Rm 9. SEGMENTAL INFORMATION Primary segmental information Six months ended 31 December 2005 (Reviewed) Revenue External revenue ­ ­ 2 348 Cost of sales ­ ­ (1 702) Other operating income per income ­ 78 115 statement Insurance premiums written ­ 59 59 non-Group companies Other operating income ­ 19 56 Reinsurance premiums non-Group ­ (57) (57) companies Other operating expenses (10) (47) (206) Segment result (10) (26) 498 Income from investments 1 6 10 Finance cost ­ (20) (81) Exceptional items ­ 116 116 Taxation ­ 3 (166) Minority interest 4 ­ (130) Contribution to earnings (5) 79 247 Contribution to headline earnings (5) (37) 131 Other information Segment assets 214 268 13 951 Taxation ­ ­ 69 Consolidated total assets ­ ­ 14 020 Segment liabilities 10 758 2 913 Taxation ­ ­ 1 276 Consolidated total liabilities ­ ­ 4 189 Cash in /(out) flow from operating 2 51 279 activities Cash in/(out) flow from investing (3) 1 (700) activities Cash inflow from financing 216 167 661 activities Capital expenditure ­ ­ 722 Amortisation and depreciation ­ ­ 220 NOTES TO THE FINANCIAL STATEMENTS for the six months ended 31 December 2005 ARM Platinum Division Ferrous Gold Platinum Nickel metals Rm Rm Rm Rm 9. SEGMENTAL INFORMATION (continued) Six months ended 31 December 2004 (Unaudited) Restated* Revenue External revenue ­ 195 309 1 887 Cost of sales ­ (246) (145) (1 227) Other operating income ­ ­ 9 8 Other operating expenses ­ (2) (32) (100) Segment result ­ (53) 141 568 Income from investments ­ 1 1 1 Finance cost ­ (52) ­ (33) Loss from associate (138) ­ ­ ­ Exceptional items ­ ­ ­ 8 Taxation ­ 25 (39) (182) Minority interest ­ 18 ­ (179) Contribution to earnings (138) (61) 103 183 Contribution to headline earnings (144) (61) 103 179 Other information Consolidated total assets 3 258 2 085 535 4 520 Consolidated total liabilities ­ 862 173 1 705 Cash in/(out) flow from operating ­ (106) 140 485 activities Cash outflow from investing ­ (107) (12) (267) activities Cash in/(out) flow from financing ­ (43) ­ (170) activities Capital expenditure ­ 107 12 286 Amortisation and depreciation ­ 31 13 121 Corpo- Explo- rate and ration other Total Rm Rm Rm 9. SEGMENTAL INFORMATION (continued) Six months ended 31 December 2004 (Unaudited) Restated* Revenue External revenue ­ ­ 2 391 Cost of sales ­ ­ (1 618) Other operating income ­ 10 27 Other operating expenses ­ (41) (175) Segment result ­ (31) 625 Income from investments ­ 9 12 Finance cost ­ (13) (98) Loss from associate ­ ­ (138) Exceptional items ­ 276 284 Taxation ­ (89) (285) Minority interest ­ ­ (161) Contribution to earnings ­ 152 239 Contribution to headline earnings ­ (58) 19 Other information Consolidated total assets ­ 316 10 714 Consolidated total liabilities ­ 590 3 330 Cash in/(out) flow from operating ­ (53) 466 activities Cash outflow from investing ­ (5) (391) activities Cash in/(out) flow from financing ­ 35 (178) activities Capital expenditure ­ 36 441 Amortisation and depreciation ­ 1 166 NOTES TO THE FINANCIAL STATEMENTS for the six months ended 31 December 2005 ARM Platinum Division Ferrous Gold Platinum Nickel metals Rm Rm Rm Rm 9. SEGMENTAL INFORMATION (continued) Year ended 30 June 2005 (Audited) Restated* Revenue External revenue ­ 456 623 4 406 Cost of sales ­ (532) (295) (2 916) Other operating income per income ­ ­ 46 166 statement Insurance premiums written ­ ­ ­ ­ non-Group companies Other operating income ­ ­ 46 166 Reinsurance premiums non-Group ­ ­ ­ ­ companies Exploration ­ ­ ­ ­ Other operating expenses ­ (7) (63) (193) Segment result ­ (83) 311 1 463 Income from investments ­ 2 2 2 Finance cost ­ (104) ­ (41) Loss from associate (150) ­ ­ ­ Exceptional items (2) ­ ­ (10) Taxation ­ 66 (94) (465) Minority interest ­ 20 ­ (471) Contribution to earnings (152) (99) 219 478 Contribution to headline earnings (155) (99) 219 480 Other information Segment assets 3 706 2 295 269 5 069 Taxation ­ ­ ­ ­ Consolidated total assets 3 706 2 295 269 5 069 Segment liabilities ­ 1 138 17 790 Taxation ­ ­ ­ ­ Consolidated total liabilities ­ ­ ­ ­ Cash in/(out) flow from operating ­ (179) 304 1 307 activities Cash in/(out) flow from investing ­ (265) (20) (655) activities Cash in/(out) flow from financing ­ (30) ­ (577) activities Capital expenditure ­ 280 20 699 Amortisation and depreciation ­ 85 54 285 Corpo- Explo- rate and ration other Total Rm Rm Rm 9. SEGMENTAL INFORMATION (continued) Year ended 30 June 2005 (Audited) Restated* Revenue External revenue ­ ­ 5 485 Cost of sales ­ ­ (3 743) Other operating income per income ­ 61 273 statement Insurance premiums written non-Group ­ 55 55 companies Other operating income ­ 6 218 Reinsurance premiums non-Group ­ (59) (59) companies Exploration ­ (25) (25) Other operating expenses ­ (80) (343) Segment result ­ (103) 1 588 Income from investments ­ 16 22 Finance cost ­ (27) (172) Loss from associate ­ ­ (150) Exceptional items ­ 167 155 Taxation ­ (37) (530) Minority interest ­ ­ (451) Contribution to earnings ­ 16 462 Contribution to headline earnings ­ (106) 339 Other information Segment assets ­ 359 11 698 Taxation ­ 68 68 Consolidated total assets ­ 427 11 766 Segment liabilities ­ 731 2 676 Taxation ­ ­ 1 118 Consolidated total liabilities ­ ­ 3 794 Cash in/(out) flow from operating ­ (126) 1 306 activities Cash in/(out) flow from investing ­ 114 (826) activities Cash in/(out) flow from financing ­ 58 (549) activities Capital expenditure ­ 38 1 037 Amortisation and depreciation ­ 2 426 CONTACT DETAILS AND ADMINISTRATION Registered office ARM House 29 Impala Road Chislehurston Sandton 2146 PO Box 786136 Sandton, 2146 Telephone: +27 11 779 1300 Telefax: +27 11 779 1312 E-mail: ir.admin@arm.co.za Website: http://www.arm.co.za Investor relations Pieter Rorich Executive: Corporate Development Telephone: +27 11 779 1476 pieter.rorich@arm.co.za Corne Bobbert Corporate Development Telephone: +27 11 779 1478 corne.bobbert@arm.co.za Portia Sebulela Investor Relations Officer Telephone: +27 11 779 1300 portia.sebulela@arm.co.za Company secretary Annamarie van der Merwe Telephone: +27 11 779 1480 annamarie.vdmerwe@arm.co.za United Kingdom Secretaries St James's Corporate Services Limited 6 St James's Place London SW1A 1NP Telephone: +44 20 7499 3916 Telefax: +44 20 7491 1989 Transfer secretaries South Africa Computershare Investor Services Ground Floor, 70 Marshall Street Johannesburg 2001 PO Box 61051 Marshalltown, 2107 Telephone: +27 11 370 5000 Telefax: +27 11 688 5222 United Kingdom Capita Registrars The Registry 34 Beckenham Road Beckenham Kent BR34TU Telephone: +44 870 162 3100 Telefax: +44 20 8658 3430 African Rainbow Minerals Limited (Incorporated in the Republic of South Africa) (Reg. No. 1933/004580/06) (ISIN code: ZAE 000054045) Directors P T Motsepe (Executive Chairman) R P Menell (Deputy Chairman) A J Wilkens (Chief Executive Officer) F Abbott Dr M M M Bakane-Tuoane** J A Chissano (Mozambican)** W M Gule M W King** A K Maditsi** J R McAlpine** Dr P S Sibisi** Dr R V Simelane** M V Sisulu** J C Steenkamp Z B Swanepoel* (*Non-executive **Independent non-executive)

Companies

Argo Blockchain (ARB)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today