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


INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2022
(1H F2023) AND CASH DIVIDEND DECLARATION

This short form announcement is the responsibility of the board of
directors of ARM (the "Board") who acknowledge their responsibility
to ensure the integrity of the interim results.

The details contained in this announcement are only a summary of
the information in the full announcement and do not contain full
details of the Company’s financial performance and position or
other relevant information about the business for the six months
under review. Any investment decisions by investors and/or
shareholders should therefore be based on the full announcement
published on the Company’s website at www.arm.co.za and which is
available on the following link:

https://senspdf.jse.co.za/documents/2023/jse/isse/ARIM/HY2023.pdf


The full announcement is also available for inspection free of
charge during business hours (excluding weekends and public
holidays) from Monday, 06 March 2023 at the registered office of
ARM at ARM House, 29 Impala Road, Chislehurston, Johannesburg. In
addition, copies of the full announcement may be requested by
emailing   the  Company’s   investor   relations  department   on
jongisa.magagula@arm.co.za

Salient features


     Financial:
        • Headline earnings increased by 40% to R5 171 million or
          R26.38 per share (1H F2022: R3 696 million or R18.87 per
          share).
        • An interim dividend of R14.00 per share is declared (1H
          F2022: R12.00 per share).
        • We maintained a robust financial position, with net cash
          of R9 548 million at 31 December 2022 (30 June 2022: R11
          175 million).


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        •   The purchase consideration for Bokoni Platinum Mine of
            R3 500 million was fully settled in cash on 1 September
            2022. The definitive feasibility study for the project
            is progressing on schedule and post the period end, the
            Board approved bringing forward capital of R1 004
            million to enable the project to deliver early ounces.

     Health and Safety
        • Regrettably, Two Rivers Mine had a fatality when a
          contractor employee was injured and later succumbed to
          his injuries. We extend our deepest condolences to his
          family, friends and colleagues.
        • The group lost-time injury frequency rate (LTIFR)
          improved to 0.28 per 200 000 man-hours (1H F2022: 0.36)
        • The group total recordable injury frequency rate
          improved to 0.62 (1H F2022: 0.67).
        • 75% of the workforce was fully vaccinated against Covid-
          19 at the end of the review period (31 December 2021:
          68%).

     Operational
        • Iron ore, manganese ore and thermal coal volumes were
          negatively impacted by logistics challenges.
        • Unit production costs remained under pressure mainly due
          to   lower  production   volumes   and   above-inflation
          increases for diesel and explosives costs.

     Environmental and Social
        • Progress was made developing decarbonisation pathways to
          meet the long-term target to achieve net-zero greenhouse
          gas (GHG) emissions (scope 1 and 2) from mining by 2050.
        • All operations are on track to meet the requirements of
          the Global Industry Standard on Tailings Management
          (GISTM) by the deadlines.

Safety performance

We are committed to maintaining a safe and healthy work environment
for all employees and contractors.

The operations delivered improved safety performances, with a group
LTIFR of 0.28 per 200 000 man-hours in the period under review
compared to 0.36 per 200 000 man-hours in 1H F2022. The total
recordable injury frequency rate, which includes the number of
fatal injuries, lost-time injuries and medical cases improved to
0.62 from 0.67.


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Regrettably, there was a fatality at Two Rivers Mine when a
contractor employee, Mr Seutlwadi Esron Ramathesela, an engineering
assistant, was injured and later succumbed to his injuries. We
extend our deepest condolences to his family, friends and
colleagues.

Independent root cause investigations are underway following the
accident. In addition, initiatives continue at Two Rivers Mine and
all operations to ensure that safety standards are strictly upheld
as we work towards zero harm at our operations.

Financial performance

Headline earnings
Headline earnings for 1H F2023 increased by 40% to R5 171 million
or R26.38 per share (1H F2022: R3 696 million or R18.87 per share).
Headline earnings for the previous period included re-measurement
losses of R346 million mainly related to the ARM Coal loans owing
to Glencore Operations South Africa. These loans have since been
fully settled.

The   average realised rand exchange change weakened by 15% versus
the   US dollar to R17.33/US$ compared to R15.02/US$ in 1H F2022.
For   reporting purposes, the closing exchange rate was R16.93/US$
(31   December 2021: R15.98/US$).

ARM Ferrous headline earnings were 4% higher at R2 520 million (1H
F2022: R2 428 million) as a 54% increase in headline earnings for
the manganese division was largely offset by a 12% decline in
headline earnings for the iron ore division. Key factors
contributing to lower headline earnings in the iron ore division
included:
   • Lower average realised US dollar prices for iron ore, in line
      with the decline in iron ore index prices; and
   • A 15% decrease in export iron ore sales volumes, coupled with
      a 33% decline in local iron ore sales volumes.
These were partially offset by the weaker rand/US dollar exchange
rate.

Higher average US dollar prices realised for export manganese ore,
coupled with improved manganese ore sales volumes and a weaker
rand/US dollar exchange rate contributed positively to the
manganese division’s headline earnings.

ARM Platinum headline earnings were 7% higher at R1 330 million
(1H F2022: R1 245 million). Two Rivers Mine delivered a 27% increase
in headline earnings to R920 million (1H F2022: R725 million) while
Modikwa Mine headline earnings increased by 4% to R615 million (1H

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F2022: R594 million) as both operations benefitted from the weaker
rand/US dollar exchange rate and comparatively lower negative mark-
to-market adjustments. These benefits were partly offset by above-
inflation unit cost increases at both mines.

Refer to page 12 of the full announcement for further information
on the mark-to-market adjustments in ARM Platinum.

Bokoni Mine, which is included for the first time in the ARM interim
results, reported a headline loss of R150 million for 1H F2023.
The mine remains on care and maintenance while the definitive
feasibility study progresses.

Refer to page 5 of the full announcement for more details on the
latest developments at Bokoni Platinum Mine.

Nkomati Mine reported a headline loss of R55 million (1H F2022:
R74 million) with the mine having been placed on care and
maintenance on 15 March 2021. ARM continues to engage its joint
venture partner on the various options available for the future of
Nkomati Mine.

ARM Coal headline earnings were R1 053 million higher at R1 404
million (1H F2022: R351 million) driven mainly by increased export
thermal coal prices. Thermal coal sales volumes were under pressure
in the review period owing to inland logistics challenges.

ARM Coal headline earnings included a re-measurement and fair value
loss of R9 million (1H F2022 gain: R5 million). The majority of
this related to the fair value loss on the Richards Bay Coal
Terminal (RBCT) entitlement.

ARM Corporate and other (including Gold) reported headline earnings
of R70 million (1H F2022: R237 million loss). Included in ARM
Corporate and other are re-measurement gains of R12 million (1H
F2022: R364 million loss).


Machadodorp Works headline loss of R153 million (1H F2022: R91
million) related to research into developing energy-efficient
smelting technology.

Basic earnings and impairments
Basic earnings of R4 387 million (1H F2022: R3 893 million) included
attributable impairments as follows:
   • An impairment of property, plant and equipment at Beeshoek
     Mine of R659 million after tax;


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  •   An impairment of property, plant and equipment at Cato Ridge
      Works of R28 million after tax; and
  •   An impairment of the investment in Sakura of R149 million
      after tax.

Refer to note 4 to the interim annual financial statements for more
information on these impairments.


Financial position and cash flow
At 31 December 2022, ARM had net cash of R9 548 million (30 June
2022: R11 175 million), a decrease of R1 627 million compared to
the end of the 2022 financial year. This amount excludes
attributable cash and cash equivalents held at ARM Ferrous (50% of
Assmang) of R3 296 million (30 June 2022: R5 342 million). There
was no debt at ARM Ferrous in either of the reporting periods.

Refer to page 4 of the full announcement for a summary of dividends
received from operations.

Cash generated from operations increased by R469 million to R5 294
million (1H F2022: R4 825 million) after an inflow in working
capital of R641 million (1H F2022: R1 036 million) which was mainly
due to an inflow in trade receivables.

In 1H F2023, ARM paid R3 921 million in dividends to its
shareholders, representing the final dividend of R20.00 per share
declared for F2022 (1H F2022: R3 917 million representing the F2021
final dividend of R20.00 per share).

Net cash outflow from investing activities was R5 052 million (1H
F2022: R1 167 million) and included the net cash payment for the
acquisition of Bokoni Mine of R3 441 million (which represents the
gross cash payment of R3 500 million, net of R59 million cash
acquired in the transaction).

Borrowings of R211 million (1H F2022: R68 million) were repaid
during the period, resulting in gross debt of R289 million at 31
December 2022 (30 June 2022: R484 million).

The group net asset value per share increased by 2% to R208.87 per
share (30 June 2022: R205.45 per share).

Investing in growth and our existing business
We are pleased to have concluded the acquisition of Bokoni Mine
from Anglo American Platinum and Atlatsa Resources Corporation.
The acquisition represents a significant milestone and gives ARM
access to Bokoni Mine’s large, high-grade resource and existing

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infrastructure. Bokoni Mine will enable ARM to scale its PGM
portfolio, improve global competitiveness and pursue further value-
accretive organic growth.

The definitive feasibility study for the mine is progressing well
and is focused predominantly on mining the UG2 resource, using
appropriate mechanised mining methods and targeting on-reef
development.

In March 2023 (post the period end), the ARM board approved bringing
forward R1 004 million of capital for the project to enable the
mine to deliver early ounces by mining the UG2 reef. The early
ounce project will be focused on a combination of mining high-grade
UG2 stopes in Middelpunt Hill Shaft and early on-reef development
of the new UG2 mine.

Critical orders for long lead items, to de-risk the project
schedule, have been placed. The ore will be processed through the
existing 60 000 tonnes per month UG2 concentrator plant which will
be refurbished as part of the early-ounce project. The early ounces
will enable the mine to capitalise on the current strong PGM basket
prices and commence with early development of the underground
infrastructure required for the new planned UG2 mine. The first
saleable PGM concentrate from the early ounces project is planned
for the first half of F2024.

We continued to invest in our existing operations with segmental
capital expenditure of R2 991 million for the period (1H F2022: R1
933 million). The increase in capital expenditure was mainly due
to the Merensky Project at Two Rivers Mine. Capital expenditure
for the divisions is shown on page 6 of the full announcement and
discussed in each division’s operational performance section from
page 6 of the full announcement.

Dividend declaration
ARM aims to pay ordinary dividends to shareholders in line with our
dividend guiding principles. Dividends are at the discretion of the
board of directors which considers the Company’s capital allocation
guiding principles as well as other relevant factors such as
financial    performance,     commodities    outlook,    investment
opportunities, gearing levels as well as solvency and liquidity
requirements of the Companies Act.

For 1H F2023, the Board approved and declared an interim dividend
of 1 400 cents per share (gross) (1H F2022: 1 200 cents per share).
The amount to be paid is approximately R3 145 million.



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The dividend declared will be subject to dividend withholding tax.
In line with paragraphs 11.17(a) (i) to (x) and 11.17(c) of the JSE
Listings Requirements, the following additional information is
disclosed:
   - The dividend has been declared out of income reserves
   - The South African dividends tax rate is 20%
   - The gross local dividend is 1 400.00000 cents per ordinary
     share for shareholders exempt from dividends tax
   - The net local dividend is 1 120.00000 cents per share for
     shareholders liable to pay dividends tax
   - At the date of this declaration, ARM has 224 667 778 ordinary
     shares in issue, and
   - ARM’s income tax reference number is 9030/018/60/1.

A gross dividend of 1 400 cents per ordinary share, being the
dividend for the six months ended 31 December 2022, has been declared
payable on Monday, 3 April 2023 to those shareholders recorded in
the books of the Company at the close of business on Friday, 31
March 2023. The dividend is declared in the currency of South Africa.
Any change in address or dividend instruction applying to this
dividend must be received by the Company’s transfer secretaries or
registrar not later than Friday, 31 March 2023. The last day to
trade ordinary shares cum dividend is Tuesday, 28 March 2023.
Ordinary shares trade ex-dividend from Wednesday, 29 March 2023. The
record date is Friday, 31 March 2023 while the payment date is
Monday, 3 April 2023.

No dematerialisation or rematerialisation of share certificates may
occur between Wednesday, 29 March 2023 and Friday, 31 March 2023
both dates inclusive, nor may any transfers between registers take
place during this period.

Scope of independent auditor
The financial results for the six months ended 31 December 2022 have
not been reviewed nor audited by the Company’s registered auditor,
Ernst & Young Inc. (the partner in charge is PD Grobbelaar CA(SA)).

ENDS

For all investor relations queries please contact:

Jongisa Magagula
Executive Director: Investor Relations     and   New   Business
Development
Tel:      +27 11 779 1507
E-mail:   jongisa.magagula@arm.co.za

Johannesburg

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6 March 2023
Sponsor: Investec Bank Limited




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