2025 Integrated annual report

Headline earnings for F2025 were 47% lower at R2.7 billion (F2024: R5.1 billion) mainly due to decreased commodity prices and a challenging operational environment.

Backed by a strong net cash position of R6.6 billion, our strategy remains focused on delivering competitive returns to our shareholders and creating sustainable value for all stakeholders by:

  • maintaining a safe and healthy work environment
  • managing and reducing costs while improving productivity and efficiencies through appropriate mechanisation, technology and other measures
  • optimising our diversified portfolio of assets
  • delivering value-enhancing growth
  • complying with our environmental, social and governance (ESG) policies and our International Council on Mining and Metals (ICMM) commitments to responsible mining practices
  • investing in our employees
  • contributing to improving the living conditions and standards of living of people residing in communities neighbouring our operations
  • cooperating and partnering with all stakeholders.

We declared total dividends of R10.50 per share for F2025, down from R15.00 per share in the prior year. This represents a 6% dividend yield as at 30 June 2025 and a payout ratio of 42% of dividends received from our underlying operations.

Maintaining a safe and healthy work environment

Key safety metrics deteriorated for the year. We are committed to maintaining a safe and healthy workplace for all our employees despite the deterioration in key safety metrics during the year under review. The group lost-time injury-frequency rate (LTIFR) regressed to 0.31 per 200 000 man-hours in F2025 (F2024: 0.22), and the total recordable injury-frequency rate (TRIFR) was 0.51 (F2024: 0.50).

Tragically, we recorded three fatalities in F2025 (F2024: one), one each at Modikwa, Bokoni and Black Rock mines. Independent root-cause investigations were undertaken, and continuous initiatives are in place to strengthen safety measures and improve overall safety performance.

Managing costs and improving productivity

We continue to face challenges with logistics and water supply, compounded by above-inflation escalations in input costs. Pleasingly, power supply from the national utility, Eskom was more consistent in F2025.

Our management teams are focused on factors within their control, including managing and reducing costs, improving productivity and efficiencies through mechanisation and appropriate new technologies.

Unit cash costs for PGMs and iron ore rose in line with inflation. We are proactively managing costs through decisive actions at loss-making operations in our portfolio, discussed by the chief executive officer.

Optimising our diversified portfolio of assets

In F2025, we invested R4.0 billion in attributable capital expenditure across our operations, R831 million of which was expansionary capital.

As part of our short to medium-term plans to optimise and grow our assets:

  • the Merensky project at Two Rivers Mine was placed on care and maintenance from July 2024, due to the downward cycle in the PGM market. Construction of the Merensky concentrator plant and first two mining levels are substantially complete. Total capital expenditure for the project was adjusted down to R6.8 billion. Long-term prospects for the Merensky project remain robust and we are evaluating the timing of recommissioning this project
  • we decided to suspend early ounces mining operations at Bokoni at the end of F2025 to limit expenditure. We are now advancing capital development of the larger mine in a way that ensures its long-term sustainability and profitability. We remain confident in our approach to unlock value from Bokoni's exceptional resource base while exercising strict capital discipline amid ongoing PGM price volatility and uncertainty. The acquisition of Bokoni was driven by its superior Mineral Resources, both in grade and size, offering long-term value accretion. ARM's strategy is to establish a large-scale mechanised mining operation to achieve economies of scale and competitive rand-per-tonne costs
  • we acquired Norilsk Nickel Africa's 50% interest in Nkomati Mine. Nkomati is South Africa's only proven primary nickel resource, with a reserve base and established infrastructure that provide several relatively low capital value-enhancing options for ARM
  • in consultation with our joint-venture partner Assore, Cato Ridge Works was closed from 31 August 2025. Additionally, Assmang will dispose of its stake in Sakura Ferroalloys, resulting in a cash distribution of R900 million to ARM (see page 11).

    • Our disciplined approach, including value-accretive corporate actions such as the Harmony hedge, share buyback and additional Surge Copper investment (summarised on page 11), is part of our commitment to create sustainable value for our shareholders and all stakeholders.

Strategic investment in Harmony Gold

Harmony is currently in a strong financial position, with a favourable net cash balance to pursue its growth ambitions.

ARM's investment in Harmony was positively revalued by R5 731 million in F2025 (F2024: R6 630 million) as the Harmony share price increased by 46% from R168.05 at 30 June 2024 to R244.81 at 30 June 2025. The Harmony investment is reflected on the ARM statement of financial position at R18 279 million (F2024: R12 548 million) based on its share price.

We remain fully committed to Harmony as a strategic investment and confident in its management's ability to drive growth and value for its shareholders. This investment also aligns with ARM's medium to long-term copper objectives. Please refer to page 11 for a summary of the hedging collar transaction implemented during the year.

Harmony's results for the year ended 30 June 2025 appear on its website: www.harmony.co.za.

Committed to the goals of the Paris Agreement

We continue to support the goals of the Paris Agreement to limit the global average temperature increase to 2°C, and to reduce it to 1.5°C. We are incrementally translating our commitment into concrete plans and measurable targets.

Refer to page 10 of the climate change and water report for detailed disclosure.

Additionally, in line with our commitment under the International Council on Mining and Metals (ICMM) sustainable development framework and climate-change principles, our operations apply global good practices in managing scarce natural resources and protecting our environment.

We are committed to being part of the urgent global response to the threat of climate change, which is unfolding as weather extremes worldwide. While we produce metals that are critical to creating a low-carbon future, our broader environmental initiatives focus on mitigating the impacts of climate change by reducing carbon emissions while using water and energy responsibly and efficiently.

Our goal is to achieve net-zero greenhouse gas emissions from mining by 2050. In line with this, we are making good progress in adopting appropriate new technologies and processes to enhance energy efficiency and reduce our carbon footprint.

In F2025, we continued to improve decarbonisation pathways detailing short and medium-term steps to achieve our long-term target. Our focus is to identify appropriate carbon-reduction initiatives for each operation that are both sustainable and financially responsible.

In June 2025, we completed construction of the 100MW solar plant for our platinum operations. Electricity from this plant will be supplied to the mining operations through a power-purchase agreement by the second quarter of F2026.

In our ARM Ferrous division, a definitive feasibility study was completed in December 2024 on the best options for an appropriate energy mix of solar and Eskom-generated electricity at our Northern Cape mines. Given the uncertainty around future Eskom tariff structures, which could affect the viability of a standalone solar plant, ARM Ferrous is exploring the viability of contracting with an independent power producer. This approach, like that adopted by the ARM Platinum division, will be pursued on a medium-term basis, while the new multi-market model for energy supply and procurement is finalised.

Investing in our employees

In F2025, the ARM workforce consisted of over 21 000 employees and contractors.

We invested R446 million or 9.3% of payroll during the year on skills training across our operations (F2024: R399 million or 8.8% of payroll).

We are committed to diversity, equity and inclusivity, ensuring that our workforce and management represent all South Africans, as an inclusive and diverse workforce enriches our company and our country. In F2025, 73% of management at all levels was represented by historically disadvantaged South Africans.

Partnering with communities neighbouring our operations

We consider our commitment to improving the living conditions and standards of living of people residing in communities around our operations as a business and moral imperative.

In F2025, our operations invested R116 million (F2024: R189 million) in community development projects, particularly those supporting women, youth, historically disadvantaged groups and people living with disabilities. The development projects focused on:

  • providing water and sanitation
  • key community infrastructure
  • health
  • education.

Importantly, we also contribute to increasing the pool of entrepreneurial and business-specific skills in our neighbouring communities and supporting the development of local small and medium businesses.

ARM maintains good relations with local community forums, municipalities, government departments and other stakeholders, to advance job creation and poverty-alleviation projects.

In addition to creating value for our shareholders, we create sustainable benefits for a range of stakeholders, including local communities, employees, women and youth-owned businesses and black industrialists, in line with the government's inclusivity and diversity policies.

The South African mining industry1

In South Africa, mining is still a trillion-rand industry, despite a particularly challenging environment, and its economic contribution is a key source of revenue for the government. Some positive developments are laying a foundation for the industry to realise its true potential in the years ahead. Key building blocks include a reduction of electricity load curtailment since March 2024 and sustained improvements with Transnet Freight Rail.

Latest data shows the mining industry employed over 473 000 people (down 1.2%), contributed R443 billion or 6.0% directly to gross domestic product (GDP) and exported R773 billion in primary minerals.

The industry paid R195 billion in wages, salaries and benefits to employees who, in turn, support between 2.4 million to 4.8 million dependants. Taxes paid by the South African mining industry included corporate income tax of R44 billion, value added taxes of R21 billion, and mineral royalties of R16 billion.

As we have often stated, the success of the mining industry relies heavily on the efficient provision of electricity, water and logistics infrastructure. ARM and other mining companies operating in South Africa continue to work with the government and relevant stakeholders to find sustainable solutions that benefit the industry, the fiscus and all stakeholders.

Recognition

ARM has a world-class management team and board. Our skilled and experienced directors are committed to good governance and ethical practices. Equally, their contribution is invaluable to ARM achieving its strategic objectives for the sustainable benefit of our shareholders and stakeholders. I thank them for their ongoing advice, guidance and commitment to doing what is in the best interests of the company.

In February 2025, we appointed Tshifhiwa Ramuthaga and Peter Steenkamp as independent non-executive directors. They will be presented for election by shareholders at the annual general meeting on 5 December 2025.

At year end, Alex Maditsi resigned as a non-executive director and we thank him for his contributions over the years.

I am grateful to ARM's CEO, Phillip Tobias, as well as our outstanding management team and all our employees. You are responsible for the success and profitability of our operations.

We deeply appreciate the ongoing support and cooperation of our shareholders, worker representative organisations, our host communities and all other stakeholders.

Conclusion

I believe strongly in the potential of the mining industry, the rest of the South African economy and its exceptional people.

We are committed to working with the national and provincial governments, local communities and our employees to create sustainable benefits for our shareholders and all stakeholders.

Dr Patrice Motsepe
Executive chairman

17 October 2025