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”)


CONDENSED REVIEWED RESULTS FOR THE FINANCIAL YEAR ENDED 30 JUNE
2023 (F2023) AND FINAL 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 condensed 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 financial year 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/FY2023.pdf

The full announcement is also available for inspection free of charge
during business hours (excluding weekends and public holidays) from
Monday, 04 September 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 ir.admin@arm.co.za

Salient features

Financial:
  - Headline earnings decreased by 21% to R8 981 million or R45.81
    per share (F2022: R11 338 million or R57.87 per share).
  - A final dividend of R12.00 per share is declared (F2022: R20.00
    per share).
  - We maintained a robust financial position, with net cash of
    R9 779 million at 30 June 2023 (30 June 2022: R11 175 million).




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Safety and Health:
  - 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
    0.27 per 200 000 man-hours (F2022: 0.31).
  - The group total recordable injury      frequency   rate   (TRIFR)
    improved to 0.62 (F2022: 0.69).


Operational:
  - Iron ore, manganese ore and thermal coal           volumes   were
    negatively impacted by logistics challenges.
  - Unit production costs remained under pressure due to lower
    production volumes and above-inflation increases in the costs
    of   explosives,   diesel,  electricity,   consumables,   and
    maintenance costs.

Environmental
  - Progress was made towards 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.
  - ARM, as a member of the International Council on Mining and
    Metals (ICMM), published its progress towards conformance with
    the Global Industry Standard on Tailings Management (GISTM) on
    5 August 2023.


Growth:
  - ARM continues to be confident about the long-term profitability
    of Bokoni. Good progress has been made in advancing the DFS.
    The project remains robust and is expected to be attractive in
    terms of industry cost competitiveness. The DFS will now
    advance to bankable feasibility and then be presented to the
    board for approval.
  - The Black Rock Project was completed in September 2022 and
    within the approved budget of R7.4 billion. The Black Rock
    Project was completed with 1.4 million fatality-free shifts
    and a lost-time injury frequency rate (LTIFR) of 0.219.
  - Gloria   Project’s   Raise   Section   achieved   construction
    completion in June 2023. Project close-out is underway, and
    the project is forecasted to be formally closed out within the
    approved budget of R3 billion.



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Safety performance

Our operations delivered improved safety performance. The group LTIFR
per 200 000 man-hours improved to 0.27 (F2022: 0.31), while the TRIFR
improved to 0.62 (F2022: 0.69).

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 sincere
condolences to his family, friends and colleagues.

Independent root cause investigations were done and action plans were
implemented and closed out. We continue to work towards ensuring zero
harm at our operations.

Financial performance

Headline earnings
Headline earnings for F2023 decreased by 21% to R8 981 million or
R45.81 per share (F2022: R11 338 million or R57.87 per share).

The F2022 headline earnings included re-measurement losses of
R808 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 weakened by 17% versus the US dollar to
R17.76/US$ compared to R15.21/US$ in F2022. For reporting purposes,
the closing exchange rate was R18.90/US$ (30 June 2022: R16.38/US$).

ARM Ferrous headline earnings were 17% lower at R5 528 million
(F2022: R6 682 million), driven by a 34% decrease in headline earnings
in the manganese division and an 11% decrease in the iron ore division.

Lower headline earnings in the iron ore division were driven by a
decrease in the average realised US dollar iron ore prices and lower
export sales volumes, partially offset by the weaker rand versus US
dollar exchange rate and lower freight costs.

Iron ore headline earnings include a R279 million (pre-tax) negative
fair value adjustment on iron ore sales (F2022: R618 million negative
adjustment), of which 66% is based on confirmed prices and 34% is
based on forward prices. Refer to page 8 for further information on
the mark-to-market adjustments in ARM Ferrous.

Lower headline earnings in the manganese division were driven by a
decrease in the average realised US dollar manganese ore and alloy
prices and higher production and railage costs, which were partially
offset by the weaker rand versus US dollar exchange rate and lower
freight costs.




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ARM Platinum headline earnings decreased by 52% to R1 465 million
(F2022: R3 066 million).

Two Rivers Mine headline earnings reduced to R1 262 million
(F2022: R1 968 million), mainly due to negative mark-to-market
adjustments of R1 065 million (F2022: R709 million negative
adjustment) and a 24% increase in unit cash costs (on a rand per 6E
PGM ounce basis) which is as result of above inflationary pressures
on costs.
Challenges with grade persisted at the mine, the head grade reduced
to 3.00g/t compared to 3.22g/t last year.

Modikwa Mine reported a 36% decline in headline earnings to R819
million (F2022: R1 270 million), which included negative mark-to-
market adjustments of R253 million (F2022: R231 million).

The mine’s production volumes decreased by 3% while unit cash costs
(on a rand per 6E PGM ounce basis) were up by 21% due to above
inflationary pressures on costs.

For more detail and a table showing the mark-to-market adjustments
at Two Rivers and Modikwa mines, refer to page 14 of the full
announcement.

Bokoni Mine, which is included for the first time in the ARM annual
results, reported a headline loss of R406 million for F2023. The
early ounce project, approved in March 2023, is on track and the
first PGM ounce production is expected in the second quarter of
F2024.

Nkomati Mine reported a headline loss of R210 million (F2022:
R172 million). The mine was placed on care and maintenance on 15
March 2021. ARM and its joint venture partner are considering various
options for the future of Nkomati Mine.

ARM Coal reported headline earnings of R1 535 million (F2022:
R928 million) driven mainly by a reduction in re-measurement losses
of R1 252 million which resulted from accelerated repayment of the
loans owing to shareholders.

GGV Mine’s headline earnings were R540 million (F2022: R5 million
loss). PCB headline earnings were R995 million (F2022: R933
million).

Refer to pages 18 and 19 of the full announcement for a detailed
analysis of the GGV and PCB operational profit performance. No re-
measurement losses were included in PCB headline earnings.


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ARM Corporate and other (including Gold) reported headline earnings
of R649 million (F2022: R826 million). Included in ARM Corporate
and other are re-measurement gains of R12 million (F2022: R448
million).

Machadodorp Works headline loss of R196 million (F2022: R164
million) related to research into developing energy-efficient
smelting technology.

Basic earnings and impairments
Basic earnings of R8 078 million (F2022: R12 426 million) included
attributable impairments as follows:

  - An impairment of property, plant and equipment at Beeshoek Mine
    of R773 million after tax
  - An impairment of property, plant and equipment at Cato Ridge
    Works of R38 million after tax
  - An impairment of the Assmang investment in Sakura of R150
    million after tax.

Refer to note 4 of the condensed group financial statements in the
full announcement for further details.

Financial position and cash flow
At 30 June 2023, ARM had net cash of R9 779 million (30 June 2022:
R11 175 million), a decrease of R1 396 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 R4 939 million (30 June 2022:
R5 342 million).

Cash generated from operations decreased by R418 million to R8 090
million (F2022: R8 508 million) after an inflow in working capital
of R1 212 million (F2022: R1 640 million outflow), which was mainly
due to an inflow in trade receivables.

In F2023, ARM paid R6 666 million in dividends to its shareholders,
representing the interim dividend of R14.00 and the final dividend
of R20.00 per share declared for F2022 (F2022: R6 270 million
representing the interim dividend of R12.00 and the F2021 final
dividend of R20.00 per share).

Net cash outflow from investing activities was R7 511 million
(F2022: R2 492 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).

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Borrowings of R251 million (F2022: R109 million) were repaid during
the period, resulting in gross debt of R242 million at 30 June 2023
(30 June 2022: R484 million).

The group net asset value per share increased by 7% to R219.04 per
share (30 June 2022: R205.45 per share).

Investing in growth and the existing business
ARM continues to be confident about the long-term profitability of
Bokoni. Good progress has been made in advancing the DFS, which has
been based on a phased development approach to reduce peak funding
requirements, optimise production ramp-up and minimise project
execution risk. The DFS also preserves the optionality to increase
production to an optimal production rate in the future.

The DFS indicates higher capital costs relative to the 2021
investment case due to inflationary cost increases and an enhanced
scope definition. The project remains robust and is expected to be
attractive in terms of industry cost competitiveness. The DFS will
now advance to bankable feasibility and then be presented to the
board for approval.

The early ounce project that was approved in March 2023 is
progressing well, with the first saleable PGM concentrate expected
by December 2023. The early ounce project focuses on a combination
of mining high-grade UG2 stopes in the 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 early ounces will enable the mine to commence with early
development of the underground infrastructure required for the new
planned UG2 mine.

We continued to invest in our existing operations with segmental
capital expenditure of R7 201 million for the period (F2022:
R4 727 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 7 of the full
announcement   and  discussed   in   each   division’s   operational
performance section from page 8 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 and other relevant factors such as financial
performance, commodities outlook, investment opportunities, gearing
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levels as well   as   solvency   and   liquidity   requirements   of   the
Companies Act.

For F2023, the board approved and declared a final dividend of
1 200 cents per share (gross) (F2022: 2 000 cents per share). The
amount to be paid is approximately R2 696 million.

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 1 200 cents per ordinary share for
    shareholders exempt from dividends tax
  - The net local dividend is 960.00000 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
  - ARM’s income tax reference number is 9030/018/60/1.

A gross dividend of 1 200 cents per ordinary share, being the
dividend for the year ended 30 June 2023, has been declared payable
on Monday, 9 October 2023 to those shareholders recorded in the
books of the company at the close of business on Friday, 6 October
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
no later than Friday, 6 October 2023. The last day to trade ordinary
shares cum dividend is Tuesday, 3 October 2023. Ordinary shares
trade ex-dividend from Wednesday, 4 October 2023. The record date
is Friday, 6 October 2023 while the payment date is Monday, 9 October
2023.

No dematerialisation or rematerialisation of share certificates may
occur between Wednesday, 4 October 2023 and Friday, 6 October 2023
both dates inclusive, nor may any transfers between registers take
place during this period.

Review by independent auditor
The condensed group financial statements set out on pages 28 to 63
of the full announcement for the financial year ended 30 June 2023
have been reviewed by the company’s registered auditor, Ernst &
Young Inc. (the partner in charge is PD Grobbelaar CA(SA)) who
expressed an unmodified conclusion on these results. The full review
report can be found on page 25 of the full announcement and on
www.arm.co.za.
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ENDS

For all investor relations queries please contact:

Thabang Thlaku
Executive: Investor Relations and New Business Development
Tel:      +27 11 779 1507
E-mail:   thabang.thlaku@arm.co.za

Johannesburg
4 September 2023
Sponsor: Investec Bank Limited




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