PROVISIONAL RESULTS for the financial year ended 30 June 2022

PROVISIONAL RESULTS for the financial year ended 30 June 2022

Financial Performance

CONDENSED GROUP STATEMENT OF FINANCIAL POSITION

at

  Notes   30 June 2022
Rm
30 June 2021
Rm
ASSETS        
Non-current assets        
Property, plant and equipment     9 621 8 244
Investment properties     24 24
Intangible assets     63 76
Deferred tax assets     215 274
Loans and long-term receivables 5   40
Other financial assets 12   214 193
Investment in associate                        6   2 048 534
Investment in joint venture                       7   22 145 20 938
Other investments                          10   4 104 4 210
Non-current inventories     52
      38 486 34 533
Current assets        
Inventories     343 467
Trade and other receivables                      11   7 737 7 825
Taxation     116 70
Financial assets                           12   830 523
Cash and cash equivalents                      13   11 659 9 671
      20 685 18 556
Total assets     59 171 53 089
EQUITY AND LIABILITIES        
Capital and reserves        
Ordinary share capital     11 11
Share premium     5 267 5 212
Treasury shares     (2 405) (2 405)
Other reserves     2 668 2 915
Retained earnings     40 617 34 461
Equity attributable to equity holders of ARM     46 158 40 194
Non-controlling interest     4 205 3 582
Total equity     50 363 43 776
Non-current liabilities        
Long-term borrowings                        14   305 1 105
Deferred tax liabilities     3 226 2 968
Long-term provisions                         22   1 979 1 883
      5 510 5 956
Current liabilities        
Trade and other payables     2 148 1 940
Short-term provisions     716 898
Taxation     255 155
Overdrafts and short-term borrowings – interest bearing          14   40 57
  – non-interest bearing   
14   139 307
      3 298 3 357
Total equity and liabilities     59 171 53 089

CONDENSED GROUP STATEMENT OF PROFIT OR LOSS

for the year ended 30 June

  Notes   F2022
Rm
F2021
Rm
Revenue                                3   18 406 21 457
Sales                                3   16 917 19 657
Cost of sales     (7 660) (7 900)
Gross profit                     9 257 11 757
Other operating income      16   1 983 2 378
Other operating expenses        17   (3 239) (2 717)
Profit from operations before capital items     8 001 11 418
Income from investments     685 487
Finance costs     (290) (329)
Income/(loss) from associate                     18   927 (260)
Income from joint venture                       7   6 649 7 498
Profit before taxation and capital items     15 972 18 814
Capital items before tax                        8   1 128 (9)
Profit before taxation     17 100 18 805
Taxation                              19   (2 736) (3 333)
Profit for the year     14 364 15 472
Attributable to:        
Equity holders of ARM        
Profit for the year     12 426 12 626
Basic earnings for the year     12 426 12 626
Non-controlling interest        
Profit for the year     1 938 2 846
      1 938 2 846
Profit for the year     14 364 15 472
Earnings per share        
Basic earnings per share (cents)                    9   6 343 6 464
Diluted basic earnings per share (cents)                 9   6 338 6 399

CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME

for the year ended 30 June

    Financial
instruments
at fair value
through
other
compre-
hensive
income
Rm
Other
Rm
Retained
earnings
Rm
Total
share-
holders
of ARM
Rm
Non-
controlling
interest
Rm
Total
Rm
For the year ended 30 June 2021              
Profit for the year to 30 June 2021   12 626 12 626 2 846 15 472
Other comprehensive income that will not be reclassified to the statement of profit or loss in subsequent periods              
Net impact of revaluation of listed investment   (1 107) (1 107) (1 107)
Revaluation of listed investment1   (1 426) (1 426) (1 426)
Deferred tax on above   319 319 319
Other comprehensive income that may be reclassified to the statement of profit or loss in subsequent periods              
Foreign currency translation reserve movement   (161) (161) (161)
Total other comprehensive loss   (1 107) (161) (1 268) (1 268)
Total comprehensive (loss)/income for the year   (1 107) (161) 12 626 11 358 2 846 14 204
For the year ended 30 June 2022              
Profit for the year to 30 June 2022   12 426 12 426 1 938 14 364
Other comprehensive income that will not be reclassified to the statement of profit or loss in subsequent periods              
Net impact of revaluation of listed investment   (49) (49) (49)
Revaluation of listed investment1   (59) (59) (59)
Deferred tax on above   10 10 10
Other comprehensive income that may be reclassified to the statement of profit or loss in subsequent periods              
Foreign currency translation reserve movement   97 97 97
Total other comprehensive (loss)/income   (49) 97 48 48
Total comprehensive (loss)/income for the year   (49) 97 12 426 12 474 1 938 14 412
1 The share price of Harmony decreased from R52.76 per share at 30 June 2021 to R51.97 at 30 June 2022 and decreased from R71.86 at 30 June 2020 to R52.76 per share at 30 June 2021. The valuation of the investment in Harmony is based on a level 1 fair value hierarchy in terms of International Financial Reporting Standards (IFRS).

CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY

for the year ended 30 June

      Other reserves        
  Share
capital
and
premium
Rm
Treasury
shares
Rm
Financial
instruments
at fair value
through
other
compre-
hensive
income
Rm
Share-
based
payments
Rm
Other1
Rm 
Retained
earnings
Rm
Total
share-
holders
of ARM
Rm
Non-
controlling
interest
Rm
Total
Rm
Balance at 30 June 2020      4 961 (2 405) 3 344 884 139 25 157 32 080 2 028 34 108
Total comprehensive (loss)/income for the year (1 107) (161) 12 626 11 358 2 846 14 204
Profit for the year to 30 June 2021 12 626 12 626 2 846 15 472
Other comprehensive loss (1 107) (161) (1 268) (1 268)
Bonus and performance shares issued to employees 262 (332) (70) (70)
Dividend paid2 (3 322) (3 322) (3 322)
Dividend declared to non-controlling interests3 (1 292) (1 292)
Share-based payments expense 148 148 148
Balance at 30 June 2021 5 223 (2 405) 2 237 700 (22) 34 461 40 194 3 582 43 776
Total comprehensive (loss)/income for the year (49) 97 12 426 12 474 1 938 14 412
Profit for the year to 30 June 2022 12 426 12 426 1 938 14 364
Other comprehensive (loss)/income (49) 97 48 48
Bonus and performance shares issued to employees 55 (470) (415) (415)
Dividend paid2 (6 270) (6 270) (6 270)
Dividend declared to non-controlling interests3 (1 315) (1 315)
Share-based payments expense 175 175 175
Balance at 30 June 2022 5 278 (2 405) 2 188 405 75 40 617 46 158 4 205 50 363
1 Other reserves consist of the following:
  F2022
Rm
F2021
Rm
F2020
Rm
Dilution in Two Rivers (26) (26) (26)
Foreign currency translation reserve – Assmang 120 62 167
Foreign currency translation reserve – other entities 52 13 69
Capital redemption and prospecting loans written off 28 28 28
Tamboti assets sale to Two Rivers (99) (99) (99)
Total 75 (22) 139
2 Interim dividend paid of 1 200 cents (F2021: 1 000 cents) per share and final dividend paid of 2 000 cents (F2021: 700 cents) per share.
3 Dividends to Impala Platinum and Modikwa non-controlling interests.

CONDENSED GROUP STATEMENT OF CASH FLOWS

for the year ended 30 June

  Notes   F2022
Rm
F2021
Rm
CASH FLOW FROM OPERATING ACTIVITIES
   

Cash receipts from customers     18 128 17 189
Cash paid to suppliers and employees     (9 620) (9 387)
Cash generated from operations                    20   8 508 7 802
Interest received     601 358
Interest paid     (46) (45)
Taxation paid     (2 303) (2 291)
      6 760 5 824
Dividends received from joint venture                  7   5 500 4 000
Dividends received from investments – Harmony     50 82
Dividend paid to non-controlling interests     (1 247) (1 219)
Dividend paid to shareholders     (6 270) (3 322)
Net cash inflow from operating activities     4 793 5 365
CASH FLOW FROM INVESTING ACTIVITIES        
Additions to property, plant and equipment to maintain operations     (1 739) (1 224)
Additions to property, plant and equipment to expand operations     (463) (433)
Proceeds on disposal of property, plant and equipment     6 3
Investments in financial assets     (819) (308)
Proceeds from financial assets matured     523 1 124
Net cash outflow from investing activities     (2 492) (838)
CASH FLOW FROM FINANCING ACTIVITIES        
Proceeds from exercise of share options     7 44
Cash payments to owners to acquire the entity’s shares     (225)
Long-term borrowings raised     264
Long-term borrowings repaid     (95) (461)
Short-term borrowings repaid     (14) (187)
Net cash outflow from financing activities     (327) (340)
Net increase in cash and cash equivalents     1 974 4 187
Cash and cash equivalents at beginning of year     9 655 5 512
Net foreign exchange difference     14 (44)
Cash and cash equivalents at end of year     11 643 9 655
Made up as follows:        
– Available                             13   11 053 8 849
– Cash set aside for specific use                    13   590 806
      11 643 9 655
Overdrafts                               14   16 16
Cash and cash equivalents per statement of financial position     11 659 9 671
Cash generated from operations per share (cents)     4 343 3 994