Headline earnings/(loss) by operation/division

* PCB refers to Participative Coal Business.

Group statement of profit or loss

for the year ended 30 June 2025

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Financial position

At 30 June 2025, ARM had net cash of R6 609 million (30 June 2024: R7 197 million), a decrease of R588 million compared to the end of the 2024 financial year. This amount excludes attributable cash and cash equivalents held at ARM Ferrous (50% of Assmang) of R3 568 million (30 June 2024: R4 476 million). There was no debt at ARM Ferrous in either of the reporting periods.

Group statement of financial position

at 30 June 2025

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Cash position

Cash generated from operations decreased by R1 726 million to R45 million (F2024: R1 771 million) after an outflow in working capital of R1 214 million (F2024: R130 million outflow). This was mainly due to an outflow in trade payables and reduction in receivables inflow.

ARM Corporate received dividends from its underlying operations and investments per the table below:

Dividends received by ARM Corporate

In F2025, ARM paid R2 644 million in dividends to its shareholders, representing the interim dividend of R4.50 and final dividend of R9.00 per share declared for F2024 (F2024: R3 529 million representing the interim dividend of R6.00 and F2023 final dividend of R12.00 per share).

Net cash outflow from investing activities was R2 433 million (F2024: R6 556 million) and included R2 658 million additions to property, plant and equipment.

Borrowings of R62 million (F2024: R62 million) were repaid and borrowings of R925 million (F2024: R935 million) were raised during the period, resulting in gross debt of R2 035 million at 30 June 2025 (30 June 2024: R1 129 million).

Group statement of cash flows

at 30 June 2025

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Capital allocation guiding principles

¹ Allocation of capital on a segmental basis, including ARM Ferrous.
² Includes only dividends paid to ARM shareholders.

Capital expenditure by operation/division (attributable basis)

Funds allocated to investing in existing business

Segmental capital expenditure was R4 050 million (F2024: R8 564 million) and included R424 million of capitalised waste-stripping at the iron ore operations (F2024: R668 million).

The decrease in capital expenditure was mainly due to F2024 including capital expenditure from the Merensky project at Two Rivers Mine. Capital expenditure for the divisions is shown below and discussed in each division's operational performance section from page 62.

Funds allocated to debt repayment

Borrowings of R62 million (F2024: R62 million) were repaid and borrowings of R925 million (F2024: R935 million) raised during the period, resulting in gross debt of R2 035 million at 30 June 2025 (30 June 2024: R1 129 million). Two Rivers Mine has a syndicated revolving credit facility of R1.75 billion (F2024: R1 billion) and a term loan facility of R1.25 billion (F2024: Rnil). These facilities are financed by Absa and Nedbank.

There was no debt at ARM Ferrous in either of the reporting periods.

Funds allocated to dividend payments

In line with the board-approved dividend guiding principle, ARM aims to pay ordinary dividends to shareholders equal to between 40% and 70% of annual dividends received from its group companies.

For F2025, the board has approved and declared a final dividend of R6.00 per share (F2024: R9.00). In addition to the interim dividend of R4.50 per share (F2024: R6.00) paid on 7 April 2025, this brings the total dividend for F2025 to R10.50 per share (F2024: R15.00).

Dividends declared as a percentage of dividends received from underlying operations were 42% (F2024: 58%).

Events after reporting date

Harmony declared a final dividend of 155 cents per share. At 30 June 2025 and at the date of this report, ARM owned 74 665 545 Harmony shares.

ARM declared a dividend of 600 cents per share on 5 September 2025.

Acquisition of Nkomati Mine

On 24 November 2023, ARM and Norilsk Nickel Africa Proprietary Limited (NNAf) signed a sale agreement, which provides for the acquisition by ARM of NNAf's 50% participation interest in its partnership with ARM that operates the Nkomati Mine, for a cash consideration of R1 million.

ARM will take over the environmental liabilities of Nkomati Mine, together with NNAf's proportionate share of the obligations and liabilities relating to the Nkomati Mine's assets, with a R325 million contribution from NNAf.

In F2025, the Competition Tribunal and DMPR (section 11) unconditionally approved the transaction between ARM and NNAf in terms of acquiring NNAf's participation interest in Nkomati.

The final condition precedent in the sale agreement had been fulfilled on 4 July 2025.

ARM transferred the consideration of R1 million in cash on 31 July 2025.

The partnership agreement between ARM and NNAf in relation to the Nkomati Mine terminated immediately, following the successful closing of the transaction on 31 July 2025.

In terms of IFRS 3 Business Combinations, ARM has concluded that the acquisition of Nkomati Mine is considered to be a "business combination" as defined in IFRS 3, with an acquisition date of 4 July 2025, in line with transfer of control, being the effective date as per the sale and purchase agreement.

ARM has appointed a valuator in order to conduct a fair value valuation of at-acquisition identifiable assets and liabilities through a purchase price allocation mechanism, at which point an amount of either goodwill or gain on bargain purchase will be determined.

On or about 31 March 2021, mining ceased at Nkomati Mine, and the operation was placed on care and maintenance. On 16 June 2021, ARM and NNAf concluded a memorandum of understanding, which set out the terms and conditions of the sale agreement. The status quo for Nkomati Mine remains challenging due to the uncertainty of nickel prices, sector outlook, and ongoing care and maintenance costs.

There were, however, positive considerations that informed ARM's decision to acquire NNAf's 50% participation interest in its partnership with ARM that operates the Nkomati Mine. These include:

• Nkomati Mine is a known and predictable nickel sulphide orebody, with established infrastructure, relatively lower carbon emission footprint, low capital intensity, and short lead times to resuming steady-state production of class 1-compatible nickel sulphide concentrate, the preferred feed-to-nickel sulphate production sought after by battery manufacturers
• It has attractive bi-metal product credits, including copper, cobalt, platinum, palladium and chrome
• ARM is committed to the short, medium and long-term success of the South African mining industry.

Acquiring additional shares in Surge Copper Corp

ARM under a strategic placement, has purchased 25 781 715 common shares of Surge Copper Corp (Surge Copper) at a price of C$0.175 per share, for a total consideration of approximately C$4.5 million. ARM's ownership in Surge has increased to 19.9%.

No other significant events have occurred subsequent to the reporting date that could materially affect the reported results or require further disclosure.

Tsundzukani Mhlanga
Finance director

17 October 2025