for the year ended 30 June 2025
The condensed group financial statements for the year ended 30 June 2025 have been prepared in accordance with the framework concepts and the measurement and recognition requirements of IFRS® Accounting Standards, the Financial Pronouncements as issued by the Financial Reporting Standards Council and South African Institute of Chartered Accountants (SAICA) Financial Reporting Guides as issued by the Accounting Practices Committee, the Johannesburg Stock Exchange (JSE) Listings Requirements, IAS 34 Interim Financial Reporting and the South African Companies Act.
Basis of preparation
The condensed group financial statements for the financial year under review have been prepared under the supervision of the finance director, Ms TTA Mhlanga CA(SA). The condensed group financial statements for the financial year under review have been prepared on the historical cost basis, except for certain financial instruments that are fairly valued. The accounting policies used are in terms of IFRS® Accounting Standards and are consistent with those applied in the most recent annual financial statements, apart from the new standards adopted in the current year.
Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the group's financial position, performance and cash flow since the last annual financial statements.
Adoption of new and revised accounting standards
The group has adopted the following new and/or revised standards and interpretations issued by the International Financial Reporting Interpretation Committee (IFRIC) of the IASB during the period under review. The date of initial application for the group being 1 July 2024.
| Standard | Subject | Effective date |
| IAS 1 | Presentation of financial statements – Classification of liabilities as current or non-current – amendment | 1 January 2024 |
| IAS 7 | Statement of cash flows – Disclosures: supplier finance arrangements | 1 January 2024 |
| IFRS 7 | Financial instruments – Disclosures: supplier finance arrangements | 1 January 2024 |
| IFRS 16 | Leases – Lease liability in a sale and leaseback – amendment | 1 January 2024 |
The adoption of the above standards did not have a significant effect on the condensed group financial statements.
New standards issued but not yet effective
The following amendments, standards or interpretations have been issued but are not yet effective for the group. The effective date refers to periods beginning on or after, unless otherwise indicated.
| Standard | Subject | Effective date |
| IAS 21 | The effects of changes in foreign exchange rates – Lack of exchangeability – amendments | 1 January 2025 |
| IFRS 9 | Classification and measurement of financial instruments – amendments | 1 January 2026 |
| IFRS 7 | Financial instruments – annual improvements – amendments | 1 January 2026 |
| IFRS 9 | Financial instruments – annual improvements – amendments | 1 January 2026 |
| IFRS 7 | Classification and measurement of financial instruments – amendments | 1 January 2026 |
| IFRS 10 | Consolidated financial statements – annual improvements – amendments | 1 January 2026 |
| IAS 7 | Statement of cash flows – annual improvements – amendments | 1 January 2026 |
| IFRS 1 | First-time adoption of International Financial Reporting Standards – annual improvements – amendments | 1 January 2026 |
| IFRS 7 | Contracts referencing nature – dependent electricity – amendments | 1 January 2026 |
| IFRS 9 | Contracts referencing nature – dependent electricity – amendments | 1 January 2026 |
| IFRS 19 | Contracts referencing nature – dependent electricity – amendments | 1 January 2026 |
| IFRS 18 | Presentation and disclosure in financial statements | 1 January 2027 |
| IFRS 19 | Subsidiaries without public accountability – disclosures | 1 January 2027 |
The group does not intend early adopting any of the above amendments or standards.
ARM continuously evaluates the impact of these standards and amendments, the adoption of which are not expected to have a significant effect on the condensed group financial statements, with the exception of IFRS 18 Presentation and disclosure in financial statements.
ARM is assessing the impact of the change in IFRS 18 Presentation and disclosure in financial statements on the condensed group financial statements.
Business segments
For management purposes, the group is organised into the following operating divisions: ARM Platinum (which includes platinum and nickel), ARM Ferrous, ARM Coal and ARM Corporate (which includes Machadodorp Works, Corporate, Gold and other) in the table below.
| Attributable | ARM Platinum1 Rm |
ARM Ferrous2 Rm |
ARM Coal Rm |
ARM Corporate Rm |
Total Rm |
IFRS adjust- ment3 Rm |
Total per IFRS financial statements Rm |
|
| 2.1 | Year to 30 June 2025 (Reviewed) | |||||||
| Sales | 9 927 | 19 520 | 1 734 | – | 31 181 | (19 520) | 11 661 | |
| Cost of sales | (10 326) | (13 472) | (1 530) | 80 | (25 248) | 13 397 | (11 851) | |
| Other operating income | 140 | 122 | 10 | 1 390 | 1 662 | (43) | 1 619 | |
| Insurance revenue | – | – | – | 48 | 48 | – | 48 | |
| Other operating expenses | (579) | (1 737) | (57) | (1 386) | (3 759) | 1 737 | (2 022) | |
| Insurance service expense | – | – | – | (168) | (168) | – | (168) | |
| Net income from reinsurance contracts held | – | – | – | 146 | 146 | – | 146 | |
| Segment result | (838) | 4 433 | 157 | 110 | 3 862 | (4 429) | (567) | |
| Income from investments | 123 | 432 | 26 | 884 | 1 465 | (432) | 1 033 | |
| Finance costs | (262) | (89) | (41) | (54) | (446) | 89 | (357) | |
| Net finance expenses from insurance contracts issued | – | – | – | (9) | (9) | – | (9) | |
| Net finance expenses from reinsurance contracts held | – | – | – | (50) | (50) | – | (50) | |
| Loss from associate | – | – | (87) | – | (87) | – | (87) | |
| (Loss)/income from joint venture | – | (27) | – | – | (27) | 3 316 | 3 289 | |
| Capital items before tax (refer note 7) | (2 182) | (219) | (1) | 1 | (2 401) | 219 | (2 182) | |
| Taxation | (132) | (1 238) | (8) | (420) | (1 798) | 1 237 | (561) | |
| (Loss)/profit after tax | (3 291) | 3 292 | 46 | 462 | 509 | – | 509 | |
| Non-controlling interest | (179) | – | – | – | (179) | – | (179) | |
| Consolidation adjustments4 | – | (3) | – | 3 | – | – | – | |
| Contribution to basic (losses)/earnings | (3 470) | 3 289 | 46 | 465 | 330 | – | 330 | |
| Contribution to headline (losses)/earnings | (1 288) | 3 472 | 47 | 464 | 2 695 | – | 2 695 | |
| Other information | ||||||||
| Segment assets, including investment in associate | 21 212 | 27 113 | 4 060 | 28 847 | 81 232 | (6 907) | 74 325 | |
| Investment in associate | 1 188 | 1 188 | 1 188 | |||||
| Investment in joint venture | 20 206 | 20 206 | ||||||
| Segment liabilities | 5 560 | 3 441 | 418 | 1 918 | 11 337 | (3 441) | 7 896 | |
| Unallocated liabilities (tax and deferred tax) | 9 774 | (3 466) | 6 308 | |||||
| Consolidated total liabilities | 21 111 | (6 907) | 14 204 | |||||
| Cash (utilised in)/generated from operations | (353) | 6 036 | 708 | (310) | 6 081 | (6 036) | 45 | |
| Cash (outflow)/inflow from operating activities | (140) | 5 182 | 390 | (120) | 5 312 | (2 864) | 2 448 | |
| Cash (outflow)/inflow from investing activities | (2 392) | (1 563) | (276) | 235 | (3 996) | 1 563 | (2 433) | |
| Cash inflow/(outflow) from financing activities | 903 | (26) | (2) | (598) | 277 | 26 | 303 | |
| Capital expenditure | 1 978 | 1 767 | 275 | 30 | 4 050 | (1 767) | 2 283 | |
| Amortisation and depreciation | 703 | 1 541 | 264 | 11 | 2 519 | (1 541) | 978 | |
| Raw materials, consumables used and change in inventories (cost of sales) | 2 984 | 3 006 | 377 | – | 6 367 | (2 611) | 3 756 | |
| Salaries and wages (cost of sales) | 2 804 | 2 248 | 225 | – | 5 277 | (2 248) | 3 029 | |
| Fees received (refer note 17) | – | – | – | 1 366 | 1 366 | – | 1 366 | |
| Impairment loss before tax (refer note 7) | 2 209 | 227 | – | – | 2 436 | (227) | 2 209 | |
| EBITDA | (135) | 5 974 | 421 | 121 | 6 381 | (5 970) | 411 |
|
There were no significant inter-company sales. Segment results take into account inter-company eliminations with the exception of inter-company remeasurements.
1Refer to note 2.3 for more detail on the ARM Platinum segment. |
| Attributable | ARM Platinum1 Rm |
ARM Ferrous2 Rm |
ARM Coal Rm |
ARM Corporate Rm |
Total Rm |
IFRS adjust- ment3 Rm |
Total per IFRS financial statements Rm |
|
| 2.2 | Year to 30 June 2024 (Audited) | |||||||
| Sales | 9 298 | 21 270 | 2 120 | – | 32 688 | (21 270) | 11 418 | |
| Cost of sales | (8 828) | (12 859) | (1 717) | 75 | (23 329) | 12 788 | (10 541) | |
| Other operating income | 154 | 34 | 154 | 1 510 | 1 852 | 62 | 1 914 | |
| Insurance revenue | – | – | – | 45 | 45 | – | 45 | |
| Other operating expenses | (987) | (1 949) | (137) | (1 605) | (4 678) | 1 949 | (2 729) | |
| Insurance service expense | – | – | – | (6) | (6) | – | (6) | |
| Net expenses from reinsurance contracts held | – | – | – | (25) | (25) | – | (25) | |
| Segment result | (363) | 6 496 | 420 | (6) | 6 547 | (6 471) | 76 | |
| Income from investments | 217 | 514 | 65 | 841 | 1 637 | (514) | 1 123 | |
| Finance costs | (270) | (69) | (18) | 96 | (261) | 69 | (192) | |
| Net finance expenses from insurance contracts issued | – | – | – | (6) | (6) | – | (6) | |
| Net finance expenses from reinsurance contracts held | – | – | – | (57) | (57) | – | (57) | |
| Income from associate | – | – | 60 | – | 60 | – | 60 | |
| Income from joint venture | – | 18 | – | – | 18 | 4 574 | 4 592 | |
| Capital items before tax (refer note 7) | (3 402) | (638) | 1 | 5 | (4 034) | 638 | (3 396) | |
| Taxation | 584 | (1 711) | (136) | (345) | (1 608) | 1 704 | 96 | |
| (Loss)/profit after tax | (3 234) | 4 610 | 392 | 528 | 2 296 | – | 2 296 | |
| Non-controlling interest | 851 | – | – | (1) | 850 | – | 850 | |
| Consolidation adjustments4 | – | (18) | – | 18 | – | – | – | |
| Contribution to basic (losses)/earnings | (2 383) | 4 592 | 392 | 545 | 3 146 | – | 3 146 | |
| Contribution to headline (losses)/earnings | (910) | 5 058 | 391 | 541 | 5 080 | – | 5 080 | |
| Other information | ||||||||
| Segment assets, including investment in associate | 23 590 | 28 449 | 4 517 | 21 244 | 77 800 | (7 108) | 70 692 | |
| Investment in associate | 1 467 | 1 467 | – | 1 467 | ||||
| Investment in joint venture | 21 341 | 21 341 | ||||||
| Segment liabilities | 5 575 | 3 611 | 404 | 1 646 | 11 236 | (3 611) | 7 625 | |
| Unallocated liabilities (tax and deferred tax) | 8 477 | (3 497) | 4 980 | |||||
| Consolidated total liabilities | 19 713 | (7 108) | 12 605 | |||||
| Cash generated from operations | 1 032 | 7 875 | 521 | 218 | 9 646 | (7 875) | 1 771 | |
| Cash inflow/(outflow) from operating activities | 1 083 | 6 687 | 458 | (183) | 8 045 | (3 977) | 4 068 | |
| Cash outflow from investing activities | (5 864) | (2 127) | (419) | (273) | (8 683) | 2 127 | (6 556) | |
| Cash inflow/(outflow) from financing activities | 935 | (22) | (14) | (126) | 773 | 22 | 795 | |
| Capital expenditure | 6 139 | 2 209 | 202 | 14 | 8 564 | (2 209) | 6 355 | |
| Amortisation and depreciation | 766 | 1 400 | 199 | 8 | 2 373 | (1 400) | 973 | |
| Raw materials, consumables used and change in inventories (cost of sales) | 2 959 | 2 611 | 494 | – | 6 064 | (2 611) | 3 453 | |
| Salaries and wages (cost of sales) | 2 470 | 1 526 | 213 | – | 4 209 | (1 526) | 2 683 | |
| Fees received (refer note 17) | – | – | – | 1 503 | 1 503 | – | 1 503 | |
| Impairment loss before tax (refer note 7) | 3 402 | 618 | – | (5) | 4 015 | (618) | 3 397 | |
| EBITDA | 403 | 7 896 | 619 | 2 | 8 920 | (7 871) | 1 049 |
|
There were no significant inter-company sales. Segment results take into account inter-company eliminations with the exception of inter-company remeasurements.
1Refer to note 2.4 for more detail on the ARM Platinum segment. |
|
The ARM Platinum segment is analysed further into Nkomati, Two Rivers Platinum Proprietary Limited and ARM Platinum Proprietary Limited which includes 50% of the Modikwa Platinum Mine and 100% of the Bokoni Platinum Mine. |
| Attributable | Two Rivers Rm |
Modikwa Rm |
Bokoni Rm |
Nkomati Rm |
ARM Platinum total Rm |
|
| 2.3 | Year to 30 June 2025 (Reviewed) | |||||
| Sales | 6 210 | 2 899 | 818 | – | 9 927 | |
| Cost of sales | (5 364) | (3 016) | (1 946) | – | (10 326) | |
| Other operating income | 68 | 48 | 1 | 23 | 140 | |
| Other operating expenses | (188) | (41) | (264) | (86) | (579) | |
| Segment result | 726 | (110) | (1 391) | (63) | (838) | |
| Income from investments | 6 | 91 | 14 | 12 | 123 | |
| Finance costs | (218) | (15) | (15) | (14) | (262) | |
| Capital items before tax (refer note 7) | – | – | (2 182) | – | (2 182) | |
| Taxation | (138) | (4) | – | 10 | (132) | |
| Profit/(loss) after tax | 376 | (38) | (3 574) | (55) | (3 291) | |
| Non-controlling interest | (174) | (5) | – | – | (179) | |
| Contribution to basic earnings/(losses) | 202 | (43) | (3 574) | (55) | (3 470) | |
| Contribution to headline earnings/(losses) | 202 | (43) | (1 392) | (55) | (1 288) | |
| Other information | ||||||
| Segment and consolidated assets | 13 097 | 4 284 | 3 660 | 171 | 21 212 | |
| Segment liabilities | 3 136 | 754 | 523 | 1 147 | 5 560 | |
| Unallocated liabilities (tax and deferred tax) | 2 134 | |||||
| Consolidated total liabilities | 7 694 | |||||
| Cash inflow/(outflow) from operating activities | 790 | 94 | (906) | (118) | (140) | |
| Cash outflow from investing activities | (1 599) | (220) | (568) | (5) | (2 392) | |
| Cash inflow from financing activities | 777 | – | 126 | – | 903 | |
| Capital expenditure | 1 193 | 222 | 563 | – | 1 978 | |
| Amortisation and depreciation | 313 | 134 | 256 | – | 703 | |
| Raw materials, consumables used and change in inventories (cost of sales) | 1 635 | 723 | 626 | – | 2 984 | |
| Salaries and wages (cost of sales) | 1 331 | 883 | 590 | – | 2 804 | |
| Impairment loss before tax (refer to note 7) | – | – | 2 209 | – | 2 209 | |
| EBITDA | 1 039 | 24 | (1 135) | (63) | (135) |
| Attributable | Two Rivers Rm |
Modikwa Rm |
Bokoni Rm |
Nkomati Rm |
ARM Platinum total Rm |
|
| 2.4 | Year to 30 June 2024 (Audited) | |||||
| Sales | 5 914 | 2 833 | 551 | – | 9 298 | |
| Cost of sales | (5 125) | (2 875) | (828) | – | (8 828) | |
| Other operating income | 78 | 72 | 3 | 1 | 154 | |
| Other operating expenses | (274) | (49) | (283) | (381) | (987) | |
| Segment result | 593 | (19) | (557) | (380) | (363) | |
| Income from investments | 73 | 124 | 8 | 12 | 217 | |
| Finance costs | (67) | (166) | (16) | (21) | (270) | |
| Capital items before tax (refer note 7) | (2 782) | (620) | – | – | (3 402) | |
| Taxation | 462 | 125 | (1) | (2) | 584 | |
| Loss after tax | (1 721) | (556) | (566) | (391) | (3 234) | |
| Non-controlling interest | 792 | 59 | – | – | 851 | |
| Contribution to basic losses | (929) | (497) | (566) | (391) | (2 383) | |
| Contribution to headline earnings/(losses) | 168 | (121) | (566) | (391) | (910) | |
| Other information | ||||||
| Segment and consolidated assets | 12 173 | 4 701 | 6 567 | 149 | 23 590 | |
| Segment liabilities | 2 751 | 1 032 | 592 | 1 200 | 5 575 | |
| Unallocated liabilities (tax and deferred tax) | 2 016 | |||||
| Consolidated total liabilities | 7 591 | |||||
| Cash inflow/(outflow) from operating activities | 1 384 | 345 | (579) | (67) | 1 083 | |
| Cash outflow from investing activities | (3 739) | (404) | (1 721) | – | (5 864) | |
| Cash inflow from financing activities | 935 | – | – | – | 935 | |
| Capital expenditure | 3 968 | 417 | 1 754 | – | 6 139 | |
| Amortisation and depreciation | 447 | 124 | 195 | – | 766 | |
| Raw materials, consumables used and change in inventories (cost of sales) | 1 824 | 788 | 347 | – | 2 959 | |
| Salaries and wages (cost of sales) | 1 435 | 903 | 132 | – | 2 470 | |
| Impairment loss before tax (refer note 7) | 2 782 | 620 | – | – | 3 402 | |
| EBITDA | 1 040 | 105 | (362) | (380) | 403 |
Analysis of the ARM Ferrous segment on a 100% Assmang basis. |
| Attributable | Iron ore division Rm |
Manganese division Rm |
ARM Ferrous total Rm |
ARM share Rm |
IFRS adjustment1 Rm |
Total per IFRS financial statements Rm |
|
| 2.5 | Year to 30 June 2025 (Reviewed) | ||||||
| Sales | 24 217 | 14 822 | 39 039 | 19 520 | (19 520) | – | |
| Cost of sales | (14 281) | (12 663) | (26 944) | (13 472) | 13 472 | – | |
| Other operating income | 168 | 76 | 244 | 122 | (122) | – | |
| Other operating expenses | (2 213) | (1 261) | (3 474) | (1 737) | 1 737 | – | |
| Segment result | 7 891 | 974 | 8 865 | 4 433 | (4 433) | – | |
| Income from investments | 804 | 60 | 864 | 432 | (432) | – | |
| Finance costs | (84) | (94) | (178) | (89) | 89 | – | |
| Loss from joint venture | (54) | (54) | (27) | 27 | – | ||
| Capital items before tax (refer note 7) | (345) | (93) | (438) | (219) | 219 | – | |
| Taxation | (2 197) | (280) | (2 477) | (1 238) | 1 238 | – | |
| Profit after tax | 6 069 | 513 | 6 582 | 3 292 | (3 292) | – | |
| Consolidation adjustments | (3) | 3 | – | ||||
| Contribution to basic earnings | 6 069 | 513 | 6 582 | 3 289 | – | 3 289 | |
| Contribution to headline earnings | 6 321 | 629 | 6 950 | 3 472 | – | 3 472 | |
| Other information | |||||||
| Consolidated total assets | 33 479 | 22 513 | 55 992 | 27 113 | (6 907) | 20 206 | |
| Consolidated total liabilities | 8 082 | 6 232 | 14 314 | 3 441 | (3 441) | – | |
| Cash (outflow)/inflow from operating activities2 | (167) | 1 481 | 1 314 | 5 182 | (5 182) | – | |
| Cash outflow from investing activities | (2 209) | (685) | (2 894) | (1 563) | 1 563 | – | |
| Cash outflow from financing activities | (15) | (37) | (52) | (26) | 26 | – | |
| Capital expenditure | 2 681 | 1 011 | 3 692 | 1 767 | (1 767) | – | |
| Amortisation and depreciation | 2 075 | 1 158 | 3 233 | 1 541 | (1 541) | – | |
| Raw materials, consumables used and change in inventories (cost of sales) | 3 835 | 2 177 | 6 012 | 3 006 | (3 006) | – | |
| Salaries and wages (cost of sales) | 2 208 | 2 288 | 4 496 | 2 248 | (2 248) | – | |
| Impairment loss before tax (refer note 7) | 371 | 84 | 455 | 227 | (227) | – | |
| EBITDA | 9 966 | 2 132 | 12 098 | 5 974 | (5 974) | ||
| Additional information for ARM Ferrous at 100% Assmang basis | |||||||
| Non-current assets | |||||||
| Property, plant and equipment | 31 932 | (31 932) | – | ||||
| Investment in joint venture | 628 | (628) | – | ||||
| Other non-current assets | 3 041 | (3 041) | – | ||||
| Current assets | |||||||
| Inventories | 5 483 | (5 483) | – | ||||
| Trade and other receivables | 5 666 | (5 666) | – | ||||
| Financial assets | 270 | (270) | – | ||||
| Cash and cash equivalents | 7 136 | (7 136) | – | ||||
| Assets held for sale | 1 830 | (1 830) | – | ||||
| Non-current liabilities | |||||||
| Other non-current liabilities | 9 079 | (9 079) | – | ||||
| Current liabilities | |||||||
| Trade and other payables | 3 560 | (3 560) | – | ||||
| Short-term provisions | 1 388 | (1 388) | – | ||||
| Other current liabilities | 280 | (280) | – |
|
1Includes consolidation and IFRS 11 Joint Arrangements adjustments. |
|
Refer to note 2.1 and note 6 for more detail on the ARM Ferrous segment. Analysis of the ARM Ferrous segment on a 100% Assmang basis. |
| Attributable | Iron ore division Rm |
Manganese division Rm |
ARM Ferrous total Rm |
ARM share Rm |
IFRS adjustment1 Rm |
Total per IFRS financial statements Rm |
|
| 2.6 | Year to 30 June 2024 (Audited) | ||||||
| Sales | 29 068 | 13 472 | 42 540 | 21 270 | (21 270) | – | |
| Cost of sales | (13 828) | (11 890) | (25 718) | (12 859) | 12 859 | – | |
| Other operating income | 37 | 54 | 91 | 34 | (34) | – | |
| Other operating expenses | (2 652) | (1 269) | (3 921) | (1 949) | 1 949 | – | |
| Segment result | 12 625 | 367 | 12 992 | 6 496 | (6 496) | – | |
| Income from investments | 959 | 69 | 1 028 | 514 | (514) | – | |
| Finance costs | (67) | (71) | (138) | (69) | 69 | – | |
| Loss from joint venture | – | 37 | 37 | 18 | (18) | – | |
| Capital items before tax (refer note 7) | (1 196) | (81) | (1 277) | (638) | 638 | – | |
| Taxation | (3 328) | (94) | (3 422) | (1 711) | 1 711 | – | |
| Profit after tax | 8 993 | 227 | 9 220 | 4 610 | (4 610) | – | |
| Consolidation adjustments | – | (18) | 18 | – | |||
| Contribution to basic earnings | 8 993 | 227 | 9 220 | 4 592 | – | 4 592 | |
| Contribution to headline earnings | 9 867 | 287 | 10 154 | 5 058 | – | 5 058 | |
| Other information | |||||||
| Consolidated total assets | 36 084 | 22 570 | 58 654 | 28 449 | (7 108) | 21 341 | |
| Consolidated total liabilities | 8 453 | 6 257 | 14 710 | 3 611 | (3 611) | – | |
| Cash inflow from operating activities2 | 1 605 | 1 754 | 3 359 | 6 687 | (6 687) | – | |
| Cash outflow from investing activities | (3 052) | (1 203) | (4 255) | (2 127) | 2 127 | – | |
| Cash outflow from financing activities | (13) | (31) | (44) | (22) | 22 | – | |
| Capital expenditure | 3 215 | 1 394 | 4 609 | 2 209 | (2 209) | – | |
| Amortisation and depreciation | 1 836 | 1 105 | 2 941 | 1 400 | (1 400) | – | |
| Raw materials, consumables used and change in inventories (cost of sales) | 3 282 | 1 940 | 5 222 | 2 611 | (2 611) | – | |
| Salaries and wages (cost of sales) | 1 517 | 1 535 | 3 052 | 1 526 | (1 526) | – | |
| Impairment loss before tax (refer note 7) | 1 158 | 78 | 1 236 | 618 | (618) | – | |
| EBITDA | 14 461 | 1 472 | 15 933 | 7 896 | (7 896) | – | |
| Additional information for ARM Ferrous at 100% Assmang basis | |||||||
| Non-current assets | |||||||
| Property, plant and equipment | 31 965 | (31 965) | – | ||||
| Investment in joint venture | 2 513 | (2 513) | – | ||||
| Other non-current assets | 2 909 | (2 909) | – | ||||
| Current assets | |||||||
| Inventories | 5 599 | (5 599) | – | ||||
| Trade and other receivables | 6 429 | (6 429) | – | ||||
| Financial assets | 284 | (284) | – | ||||
| Cash and cash equivalents | 8 952 | (8 952) | – | ||||
| Non-current liabilities | |||||||
| Other non-current liabilities | 9 352 | (9 352) | – | ||||
| Current liabilities | |||||||
| Trade and other payables | 4 038 | (4 038) | – | ||||
| Short-term provisions | 1 235 | (1 235) | – |
|
1Includes consolidation and IFRS 11 Joint Arrangements adjustments. |
|
|
Additional information ARM Corporate as presented in the tables above (2.1 and 2.2) are analysed further into Machadodorp, Corporate and other, and Gold segments. |
| Attributable | Machadodorp Works Rm |
Corporate and other Rm |
Gold Rm |
Total ARM Corporate Rm |
|
| 2.7 | Year to 30 June 2025 (Reviewed) | ||||
| Cost of sales | – | 80 | 80 | ||
| Other operating income | 5 | 1 385 | 1 390 | ||
| Insurance revenue | – | 48 | 48 | ||
| Other operating expenses | (123) | (1 263) | (1 386) | ||
| Insurance service expense | – | (168) | (168) | ||
| Net income from reinsurance contracts held | – | 146 | 146 | ||
| Segment result | (118) | 228 | 110 | ||
| Income from investments | – | 644 | 240 | 884 | |
| Finance costs | (21) | (33) | (54) | ||
| Net finance expenses from insurance contracts issued | – | (9) | (9) | ||
| Net finance expenses from reinsurance contracts held | – | (50) | (50) | ||
| Capital items before tax (refer note 7) | 1 | – | 1 | ||
| Taxation | 45 | (465) | (420) | ||
| (Loss)/profit after tax | (93) | 315 | 240 | 462 | |
| Consolidation adjustments1 | – | 3 | 3 | ||
| Contribution to basic (losses)/earnings | (93) | 318 | 240 | 465 | |
| Contribution to headline (losses)/earnings | (94) | 318 | 240 | 464 | |
| Other information | |||||
| Segment and consolidated assets | 46 | 10 522 | 18 279 | 28 847 | |
| Segment liabilities | 211 | 1 707 | 1 918 | ||
| Cash (outflow)/inflow from operating activities | (156) | (204) | 240 | (120) | |
| Cash inflow from investing activities | – | 235 | 235 | ||
| Cash outflow from financing activities | – | (598) | (598) | ||
| Capital expenditure | 1 | 29 | 30 | ||
| Amortisation and depreciation | – | 11 | 11 | ||
| Fees received (refer note 17) | – | 1 366 | 1 366 | ||
| EBITDA | (118) | 239 | 121 |
|
1Relates to fees capitalised in ARM Ferrous and reversed on consolidation. |
|
|
ARM Corporate as presented in the tables above (2.1 and 2.2) are analysed further into Machadodorp, Corporate and other, and Gold segments. |
| Attributable | Machadodorp Works Rm |
Corporate and other Rm |
Gold Rm |
Total ARM Corporate Rm |
|
| 2.8 | Year to 30 June 2024 (Audited) | ||||
| Cost of sales | – | 75 | 75 | ||
| Other operating income | 3 | 1 507 | 1 510 | ||
| Insurance revenue | – | 45 | 45 | ||
| Other operating expenses | (293) | (1 312) | (1 605) | ||
| Insurance service expense | – | (6) | (6) | ||
| Net expenses from reinsurance contracts held | – | (25) | (25) | ||
| Segment result | (290) | 284 | (6) | ||
| Income from investments | – | 675 | 166 | 841 | |
| Finance costs | (25) | 121 | 96 | ||
| Net finance expenses from insurance contracts issued | – | (6) | (6) | ||
| Net finance expenses from reinsurance contracts held | – | (57) | (57) | ||
| Capital items before tax (refer note 7) | 1 | 4 | 5 | ||
| Taxation | 94 | (439) | (345) | ||
| (Loss)/profit after tax | (220) | 582 | 166 | 528 | |
| Non-controlling interest | – | (1) | (1) | ||
| Consolidation adjustment1 | – | 18 | 18 | ||
| Contribution to basic (losses)/earnings | (220) | 599 | 166 | 545 | |
| Contribution to headline (losses)/earnings | (221) | 596 | 166 | 541 | |
| Other information | |||||
| Segment and consolidated assets | 112 | 8 507 | 12 625 | 21 244 | |
| Segment liabilities | 228 | 1 418 | 1 646 | ||
| Cash (outflow)/inflow from operating activities | (348) | (1) | 166 | (183) | |
| Cash inflow from investing activities | (2) | (271) | (273) | ||
| Cash outflow from financing activities | – | (126) | (126) | ||
| Capital expenditure | 2 | 12 | 14 | ||
| Amortisation and depreciation | – | 8 | 8 | ||
| Fees received (refer note 17) | – | 1 503 | 1 503 | ||
| Impairment reversal before tax (refer note 7) | (1) | (4) | (5) | ||
| EBITDA | (290) | 292 | 2 |
|
1Relates to fees capitalised in ARM Ferrous and reversed on consolidation. |
| Reviewed F2025 Rm |
Audited F2024 Rm |
|
| Sales | 11 661 | 11 418 |
|---|---|---|
| Local sales | 10 264 | 9 627 |
| Export sales | 1 397 | 1 791 |
| Revenue | 13 027 | 12 921 |
| Fair value adjustments to revenue1 | 257 | (321) |
| Revenue from contracts with customers | 12 770 | 13 242 |
| Sales – mining and related products | 11 852 | 12 108 |
| Penalty and treatment charges | (448) | (369) |
| Modikwa | (3) | – |
| Bokoni | (150) | (41) |
| Two Rivers | (295) | (328) |
| Fees received | 1 366 | 1 503 |
| Sales by geographical area:2 | ||
| – South Africa | 10 264 | 9 627 |
| – Europe | 1 397 | 1 791 |
| 11 661 | 11 418 |
|
1Increase in fair value adjustments due to the increase in basket prices from Modikwa and Two Rivers. |
|
The movements in F2025 property, plant and equipment include an impairment of property, plant and equipment at Bokoni of R2 209 million. Capital expenditure at Two Rivers of R1 193 million largely relates to the Merensky project, mining development and surface and underground fleet. |
|||||||||||||||||||
4.1 |
ARM Ferrous Property, plant and equipment Impairment Beeshoek Mine At 30 June 2025, an impairment loss of R371 million before tax of R100 million was recognised on property, plant and equipment at the Beeshoek Mine. ARM's attributable share of the impairment loss amounted to R186 million before tax of R50 million (refer note 7). This consists of the gross impairment loss of R263 million before tax of R71 million recognised at 31 December 2024 (ARM's attributable share of the impairment loss at 31 December 2024 amounted to R132 million before tax of R36 million) and an additional impairment loss of R108 million before tax of R29 million recognised at 30 June 2025 (ARM's attributable share of the impairment loss amounted to R54 million before tax of R15 million) (refer note 7). Due to the absence of a long-term sales contract and the expected short remaining life of a mine, it was concluded that a discounted cash flow model was not required to determine the recoverable amount. At 30 June 2024, an impairment loss of R1 158 million before tax of R313 million was recognised on property, plant and equipment at the Beeshoek Mine. ARM's attributable share of the impairment loss amounted to R579 million before tax of R157 million (refer note 7). Details of the impairments were included in the financial results ended 30 June 2024, which can be found on www.arm.co.za. Cato Ridge Works At 30 June 2025, an impairment loss of R11 million before taxation of R3 million was recognised on the property, plant and equipment at the Cato Ridge Works operation. Consistent with the prior years, it was concluded that a discounted cash flow model was not required for this impairment due to forecast negative cash flows. The total value of property, plant and equipment was fully impaired at 30 June 2021. The impairment at 30 June 2025 is to fully impair the additions of property, plant and equipment subsequent to 30 June 2021. ARM's attributable share of the impairment loss amounted to R5 million before tax of R2 million (refer note 7). At 30 June 2024, an impairment loss of R79 million before taxation of R21 million was recognised on the property, plant and equipment at the Cato Ridge Works operation. ARM's attributable share of the impairment loss amounted to R40 million before tax of R11 million (refer note 7). Details of the impairments were included in the financial results ended 30 June 2024, which can be found on www.arm.co.za. Sakura At 31 December 2024, an impairment loss of R72 million with no tax effect was recognised on Assmang's equity-accounted investment in Sakura. ARM's attributable share of the impairment loss amounted to R36 million with no tax effect (refer note 7). There have been no further impairments at 30 June 2025. This impairment was due to the reclassification of the investment as an asset held for sale in accordance with IFRS 5 Non-current assets held for sale and discontinued operations. |
||||||||||||||||||
4.2 |
ARM Platinum Bokoni Mine At 30 June 2025 an impairment loss of R2 209 million was recognised on property, plant and equipment at Bokoni Platinum Mine. (refer note 7). This impairment was due to a delay in ramp up of the mining operation and change in mining method. The recoverable amount of Bokoni was determined based on a fair value less cost to sell calculation performed in terms of IFRS® Accounting Standards. A discounted cash flow valuation model was used to determine the recoverable amount of R3 077 million. At 30 June 2024, an impairment loss of R2 782 million before tax R751 million was recognised on property, plant and equipment at Two Rivers Platinum Mine. ARM's attributable share of the impairment loss amounted to R1 502 million before tax of R406 million (refer note 7). The following assumptions were used in the valuation model:
Two Rivers Mine There was no impairment at 30 June 2025. At 30 June 2024, an impairment loss of R2 782 million before tax R751 million was recognised on property, plant and equipment at Two Rivers Platinum Mine. ARM's attributable share of the impairment loss amounted to R1 502 million before tax of R406 million (refer note 7). Details of the impairments were included in the financial results ended 30 June 2024, which can be found on www.arm.co.za. Modikwa Mine There was no impairment at 30 June 2025. At 30 June 2024, an impairment loss of R620 million before tax of R167 million was recognised on property, plant and equipment at the Modikwa Mine. ARM's attributable share of the impairment loss amounted to R515 million before tax of R139 million (refer note 7). Details of the impairments were included in the financial results ended 30 June 2024, which can be found on www.arm.co.za. |
| Reviewed F2025 Rm |
Audited F2024 Rm |
|
| Through ARM’s 51% investment in ARM Coal and ARM’s 10% direct investment, the group holds a 20.2% investment in the Participative Coal Business (PCB) of Glencore Operations South Africa Proprietary Limited (GOSA). | ||
| Opening balance | 1 467 | 1 847 |
| Share of (loss)/profit from associate | (87) | 60 |
| Dividend received (refer statement of cash flows) | (192) | (440) |
| Closing balance | 1 188 | 1 467 |
| Reviewed F2025 Rm |
Audited F2024 Rm |
|
| The investment relates to ARM Ferrous and consists of Assmang as a joint venture which includes iron ore and manganese operations. | ||
| Opening balance | 21 341 | 21 814 |
| Share of profit from joint venture | 3 289 | 4 592 |
| Income for the period¹ | 3 292 | 4 610 |
| Consolidation adjustment | (3) | (18) |
| Foreign currency translation reserve | 76 | (65) |
| Less: Cash dividend received for the period | (4 500) | (5 000) |
| Closing balance | 20 206 | 21 341 |
1 Includes expected credit losses of R33 million less tax of R6 million (F2024: R50 million reversal of expected credit losses less tax of R8 million).
Refer note 2.1, 2.5 and 2.6 for more detail on the ARM Ferrous segment.
| Reviewed F2025 Rm |
Audited F2024 Rm |
|
| Impairment loss on property, plant and equipment – Bokoni | (2 209) | – |
|---|---|---|
| Impairment loss on property, plant and equipment – Two Rivers | – | (2 782) |
| Impairment loss on property, plant and equipment – Modikwa | – | (620) |
| Impairment reversal on property, plant and equipment – Venture Building Trust | – | 4 |
| (Loss)/profit on sale of property, plant and equipment – ARM Coal | (1) | 1 |
| Profit on sale of property, plant and equipment – Machadodorp | 1 | – |
| Profit on sale of property, plant and equipment – Bokoni | 27 | – |
| Impairment reversal of property, plant and equipment – Machadodorp | – | 1 |
| Capital items per statement of profit or loss before taxation effect | (2 182) | (3 396) |
| Impairment loss on investment in Sakura accounted directly in joint venture – Assmang (refer note 4.1) | (36) | – |
| Impairment loss on property, plant and equipment accounted for directly in joint venture – Assmang (refer note 4.1) | (191) | (618) |
| Profit/(loss) on sale of property, plant and equipment accounted for directly in joint venture – Assmang | 9 | (20) |
| Capital items before taxation effect | (2 400) | (4 034) |
| Taxation accounted for in joint venture – impairment loss on property, plant and equipment – Assmang | 52 | 167 |
| Taxation accounted for in joint venture – (profit)/loss on disposal of property, plant and equipment – Assmang | (17) | 5 |
| Taxation on impairment reversal on property, plant and equipment – Venture Building Trust | – | (1) |
| Taxation on impairment loss on property, plant and equipment – Two Rivers | – | 751 |
| Taxation on impairment loss on property, plant and equipment – Modikwa | – | 167 |
| Capital items after taxation effect before non-controlling interest | (2 365) | (2 945) |
| Attributable impairment loss for non-controlling interest on property, plant and equipment – Two Rivers | – | 934 |
| Attributable impairment loss for non-controlling interest on property, plant and equipment – Modikwa | – | 77 |
| Total | (2 365) | (1 934) |
| Reviewed F2025 Rm |
Audited F2024 Rm |
|
| Headline earnings (R million) | 2 695 | 5 080 |
|---|---|---|
| Headline earnings per share (cents) | 1 379 | 2 591 |
| Basic earnings per share (cents) | 169 | 1 604 |
| Diluted headline earnings per share (cents) | 1 374 | 2 589 |
| Diluted basic earnings per share (cents) | 168 | 1 603 |
| Number of shares in issue at end of year (thousands) | 208 711 | 224 668 |
| Weighted average number of shares (thousands) | 195 481 | 196 053 |
| Potential ordinary shares due to long-term share incentives granted (thousands) | 698 | 145 |
| Weighted average number of shares used in calculating diluted earnings per share (thousands) | 196 179 | 196 198 |
| EBITDA (R million) | 411 | 1 049 |
| Interim dividend declared (cents per share) | 450 | 600 |
| Dividend declared after year end (cents per share) | 600 | 900 |
| Reconciliation to headline earnings (R million) | ||
| Basic earnings attributable to equity holders of ARM | 330 | 3 146 |
| – Impairment of property, plant and equipment – Bokoni | 2 209 | – |
| – Impairment of property, plant and equipment – Two Rivers | – | 2 782 |
| – Impairment of property, plant and equipment – Modikwa | – | 620 |
| – Impairment reversal of property, plant and equipment – Venture Building Trust | – | (4) |
| – Loss/(profit) on sale of property, plant and equipment – ARM Coal | 1 | (1) |
| – Impairment reversal of property, plant and equipment – Machadodorp | – | (1) |
| – Impairment loss on property, plant and equipment in joint venture – Assmang | 191 | 618 |
| – Impairment loss on investment Sakura in joint venture – Assmang | 36 | – |
| – Profit on sale of property, plant and equipment in joint venture – Machadodorp | (1) | – |
| – Profit on sale of property, plant and equipment in joint venture – Bokoni | (27) | – |
| – (Profit)/loss on sale of property, plant and equipment in joint venture – Assmang | (9) | 20 |
| 2 730 | 7 180 | |
| – Taxation accounted for in joint venture – impairment loss at Assmang | (52) | (167) |
| – Taxation accounted for in joint venture – (profit)/loss sale of property, plant and equipment at Assmang | 17 | (5) |
| – Taxation on impairment reversal of property, plant and equipment – Venture Building Trust | – | 1 |
| – Taxation on impairment of property, plant and equipment – Two Rivers | – | (751) |
| – Taxation on impairment of property, plant and equipment – Modikwa | – | (167) |
| – Attributable impairment for non-controlling interest of property, plant and equipment – Two Rivers | – | (934) |
| – Attributable impairment for non-controlling interest of property, plant and equipment – Modikwa | – | (77) |
| Headline earnings | 2 695 | 5 080 |
| Reviewed F2025 Rm |
Audited F2024 Rm |
|
| Harmony1, 4 | 18 279 | 12 548 |
|---|---|---|
| Opening balance | 12 548 | 5 918 |
| Fair value gain in other comprehensive income | 5 731 | 6 630 |
| Guardrisk2 | 93 | 46 |
| Preference shares1 | 1 | 1 |
| Richards Bay Coal Terminal3 | 168 | 185 |
| Surge Copper1 | 92 | 77 |
| Closing balance | 18 633 | 12 857 |
| 1 This is a level 1 valuation in terms of IFRS 13. 2 This is a level 2 valuation in terms of IFRS 13. Fair value based on the net asset value of the cell captive. 3 This is a level 3 valuation in terms of IFRS 13. 4 During F2025, ARM has entered into a hedge collar transaction over 18 million of ordinary shares of ARM’s equity in Harmony. Risks and rewards are retained by ARM. |
||
| Richards Bay Coal Terminal (RBCT) The fair value of the investment in RBCT was determined by calculating the present value of the future wharfage cost savings by being a shareholder in RBCT as opposed to the wharfage payable by non-shareholders. The fair value is most sensitive to wharfage cost. The current RBCT valuation is based on a wharfage cost differential ranging between R39/tonne and R47/tonne (F2024: R40/tonne and R47/tonne). If increased by 10% this would result in a R28 million (F2024: R23 million) increase in the valuation on the RBCT investment. If decreased by 10% this would result in a R28 million (F2024: R23 million) decrease in the valuation on the RBCT investment. The valuation is calculated based on the duration of the RBCT lease agreement with Transnet SOC Limited to 31 December 2038, using a pre-tax discount rate of 11% (F2024: 12.6%). |
||
| Level 2 and level 3 fair value losses or gains are included in other operating expenses or other operating income respectively in the statement of profit or loss. | ||
| Opening balance | 185 | 204 |
| Fair value loss | (17) | (19) |
| Closing balance | 168 | 185 |
Non-current inventories in F2024 related to the Two Rivers Merensky project. Stockpile quantities are determined using assumptions such as densities and grades which are based on studies, historical data and industry norms. Milling is expected within the 12 months following 30 June 2025 and has resulted in these being transferred to current inventories.
Trade and other receivables contain provisional pricing features linked to commodity prices and exchange rates, which have been designated to be measured at fair value through profit or loss because of the embedded derivative.
Trade and other receivables include a contract asset from Assmang of R700 million (F2024: R690 million).
The contract asset results from revised fee arrangements, whereby fees received from Assmang only become payable following receipt by Assmang from the relevant customer.
The carrying value of trade and other receivables approximate their fair value.
| Reviewed F2025 Rm |
Audited F2024 Rm |
|
| Investments in fixed deposits | ||
| Current financial assets1 | ||
| – Two Rivers | 35 | 32 |
| – Bokoni | 32 | – |
| – Nkomati | 127 | 122 |
| – Artex Axcell (Guernsey) PCC Limited (“Artex”) Captive Cell (Cell AVL 18) | 406 | 644 |
| – Other2 | 8 | 19 |
| 608 | 817 | |
| Non-current financial assets1 | ||
| – ARM Coal | 135 | 118 |
| – ARM Corporate3 | 80 | – |
| – Artex Captive Cell (Cell AVL 18) | 61 | 68 |
| – Venture Building Trust | 1 | 1 |
| 277 | 187 | |
| Total | 885 | 1 004 |
| 1 | Cash and cash equivalents were invested in fixed deposits with maturities longer than three months to achieve better returns. When these investments mature, to the extent that amounts are not re-invested in new investments with maturities of longer than three months, they will again form part of cash and cash equivalents. The carrying amounts of the financial assets shown above approximate their fair value. |
| The following guarantees issued are included in financial assets: • Two Rivers to DMPR amounting to R35 million (F2024: R32 million) • Nkomati to DMPR and Eskom amounting to R106 million (F2024: R122 million) • Bokoni to DMPR amounting to R32 million (F2024: Rnil) • ARM Coal to DMPR amounting to R135 million (F2024: R119 million) • ARM Corporate to DMPR on Nkomati’s behalf amounting to R12 million (F2024: Rnil). |
|
| 2 | Other financial assets include trust funds of R8 million (F2024: R17 million). |
| 3 | Harmony collar hedge instrument at ARM Corporate for R68 million (F2024: Rnil). |
| Reviewed F2025 Rm |
Audited F2024 Rm |
|
| Total cash at bank and on deposit | 7 609 | 7 642 |
|---|---|---|
| – African Rainbow Minerals Limited1 | 6 731 | 6 110 |
| – ARM BBEE Trust | 19 | 25 |
| – ARM Coal | 163 | 51 |
| – ARM Finance Company SA | 36 | 38 |
| – ARM Platinum Proprietary Limited | 526 | 1 073 |
| – Bokoni | 19 | 221 |
| – ARM Treasury Investments Proprietary Limited | 50 | 48 |
| – Machadodorp | 2 | 2 |
| – Nkomati | 15 | 3 |
| – Two Rivers Platinum Proprietary Limited | 9 | 40 |
| – Other cash at bank and on deposit | 39 | 31 |
| Total cash set aside for specific use | 1 035 | 684 |
| – Artex Captive Cell (Cell AVL 18)2 | 639 | 321 |
| – Rehabilitation trust funds2 | 65 | 82 |
| – Other cash set aside for specific use2 | 331 | 281 |
| Total as per statement of financial position | 8 644 | 8 326 |
| Less: Overdrafts (refer note 14) | (18) | (17) |
| Total as per statement of cash flows | 8 626 | 8 309 |
| 1 | Guarantees issued by African Rainbow Minerals Limited on behalf of Nkomati to DMPR and Eskom amounting to Rnil (F2024: R79 million). |
| 2 | Cash set aside for specific use in respect of the group includes: – Artex Captive Cell is used as part of the group insurance programme. The cash held in the cell is invested in highly liquid investments and is used to settle claims as and when they arise as part of the risk finance retention strategy. – African Rainbow Minerals Limited of R37 million (F2024: R37 million). – Guarantees issued by Modikwa to DMPR and Eskom amounting to R255 million (F2024: R238 million). – Guarantees issued by Bokoni to DMPR and Eskom amounting to R77 million (F2024: R72 million). – Guarantees issued by Two Rivers to Eskom amounting to R4 million (F2024: R4 million). – Guarantees issued by Nkomati to DMPR and Eskom amounting to R16 million (F2024: R12 million). |
Cash at bank and on deposit earns interest at floating rates based on daily bank deposit rates.
| Reviewed F2025 Rm |
Audited F2024 Rm |
|
| Long-term borrowings are held as follows: | ||
| African Rainbow Minerals Limited (lease liability) | 6 | – |
| ARM Coal Proprietary Limited (lease liability) | 1 | 1 |
| ARM BBEE Trust (loan from Harmony)1 | 46 | 68 |
| ARM Mining Consortium (lease liability) | 8 | 7 |
| Two Rivers Platinum Proprietary Limited (lease liability) | 88 | 76 |
| Two Rivers Platinum Proprietary Limited (long-term borrowing)2 | 1 250 | 479 |
| 1 399 | 631 | |
| Short-term borrowings | ||
| African Rainbow Minerals Limited (lease liability) | 3 | – |
| ARM Mining Consortium (lease liability) | – | 1 |
| ARM Coal (lease liability) | 14 | 16 |
| Bokoni (short-term borrowing)3 | 126 | – |
| Two Rivers Platinum Proprietary Limited (short-term borrowing)2 | 470 | 460 |
| Two Rivers Platinum Proprietary Limited (lease liability) | 5 | 4 |
| 618 | 481 | |
| Overdrafts (refer note 13) | ||
| ARM treasury operations | 18 | 17 |
| 18 | 17 | |
| Overdrafts and short-term borrowings – interest bearing | 636 | 498 |
| Total borrowings | 2 035 | 1 129 |
| 1 | Includes repayments of R28 million (F2024: R42 million), remeasurements of R1 million (F2024: R1 million) and interest of R7 million (F2024: R11 million). |
| 2 | Two Rivers 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. |
| 3 | Bokoni entered into a revolving credit facility agreement with RMB, whereby Bokoni will have access to a facility with a total limit of R300 million (F2024: Rnil) offered by RMB. |
Trade and other payables movements includes Two Rivers capital payables paid relating to Merensky contracts closed out after construction of the Merensky Processing Plant was completed in May 2024.
The carrying value of trade and other payables approximate their fair value.
| Reviewed F2025 Rm |
Audited F2024 Rm |
||
| 16.1 | Disclosure of reconciliation of changes in insurance contracts | ||
| Net opening balance | (28) | (73) | |
| Insurance revenue | 48 | 45 | |
| Insurance service expenses | (168) | (6) | |
| Net finance expenses from insurance contracts | (9) | (6) | |
| Total cash flows | (27) | 12 | |
| Net closing balance | (184) | (28) | |
| Current asset: insurance contract asset (per statement of financial position) | – | 21 | |
| Non-current liabilities: insurance contract liabilities (per statement of financial position) | (119) | (33) | |
| Current liabilities: insurance contract liabilities (per statement of financial position) | (65) | (16) | |
| Net closing balance | (184) | (28) | |
| 16.2 | Disclosure of reconciliation of changes in reinsurance contracts | ||
| Net opening balance | (826) | (713) | |
| Net income/(expenses) from reinsurance contracts held | 146 | (25) | |
| Net finance expenses from reinsurance contracts | (50) | (57) | |
| Total cash flows | 24 | (31) | |
| Net closing balance | (706) | (826) | |
| Non-current asset: reinsurance contract asset (per statement of financial position) | 118 | 16 | |
| Current asset: reinsurance contract asset (per statement of financial position) | 62 | 8 | |
| Current liabilities: reinsurance contract liabilities (per statement of financial position) | (886) | (850) | |
| Net closing balance | (706) | (826) |
| Reviewed F2025 Rm |
Audited F2024 Rm |
|
| Management fees | 1 366 | 1 503 |
|---|---|---|
| Cost recoveries | 48 | 64 |
| Royalties received | 43 | 44 |
| Loan remeasurement gains | 1 | 1 |
| Other | 161 | 302 |
| Total | 1 619 | 1 914 |
| Reviewed F2025 Rm |
Audited F2024 Rm |
|
| Provisions | 184 | 480 |
|---|---|---|
| Mineral royalty tax | 88 | 87 |
| Staff costs | 416 | 380 |
| Consulting fees | 184 | 208 |
| Share-based payment expense | 137 | 151 |
| Research and development | 67 | 232 |
| Audit fees | 40 | 40 |
| Insurance | 77 | 91 |
| Directors emoluments | 23 | 20 |
| Other | 806 | 1 040 |
| Total | 2 022 | 2 729 |
| Reviewed F2025 Rm |
Audited F2024 Rm |
|
| South African normal taxation – current year | 465 | 497 |
|---|---|---|
| – mining | 62 | 71 |
| – non-mining | 403 | 426 |
| – prior year | (15) | (18) |
| Deferred taxation | 111 | (575) |
| Total tax | 561 | (96) |
| Reviewed F2025 Rm |
Audited F2024 Rm |
|
| Cash generated from operations before working capital changes | 1 259 | 1 901 |
|---|---|---|
| Working capital outflow | (1 214) | (130) |
| Movement in inventories – inflow/(outflow) | 225 | (237) |
| Movement in receivables – (outflow)/inflow | (532) | 378 |
| Movement in payables and provisions – outflow | (1 361) | (223) |
| Movement in insurance contract assets/liabilities and reinsurance contract assets/liabilities – inflow/(outflow) | 454 | (48) |
| Cash generated from operations | 45 | 1 771 |
| Reviewed F2025 Rm |
Audited F2024 Rm |
|
| Commitments in respect of future capital expenditure, which will be funded from operating cash flows and by utilising available cash and/or borrowing resources, are summarised below: | ||
| Approved by directors | ||
| – contracted for | 519 | 1 080 |
| – not contracted for | 966 | 284 |
| Total commitments | 1 485 | 1 364 |
| Reviewed F2025 Rm |
Audited F2024 Rm |
||
| 22.1 | Nkomati restoration and decommissioning provision1 | ||
| Long-term provisions | |||
| Opening balance | 720 | 777 | |
| Provision for the period1 | (15) | 302 | |
| Transfer from/(to) short-term provisions | 274 | (375) | |
| Unwinding of discount rate | 10 | 16 | |
| Closing balance | 989 | 720 | |
| Short-term provision | |||
| Opening balance | 399 | 25 | |
| Transfer (to)/from long-term provisions | (274) | 375 | |
| Settlement payments | (53) | (1) | |
| Closing balance | 72 | 399 | |
| Total Nkomati restoration and decommissioning provision | 1 061 | 1 119 | |
| 1 The prior year provision mainly relates to Nkomati providing for the short to medium-term water management costs. | |||
| 22.2 | Silicosis and tuberculosis class action provision | ||
| Long-term provision | |||
| Opening balance | 64 | 67 | |
| Interest unwinding | 7 | 6 | |
| Changes in assumptions | 31 | 3 | |
| Transfer to short-term provisions | (45) | (12) | |
| Closing balance | 57 | 64 | |
| Short-term provision | |||
| Opening balance | 14 | 6 | |
| Settlement payments | (28) | (4) | |
| Transfer from long-term provisions | 45 | 12 | |
| Closing balance | 31 | 14 | |
| Total silicosis and tuberculosis class action provision | 88 | 78 |
|
ARM has a contingency policy in this regard which covers environmental site liability and silicosis liability with Guardrisk Insurance Company Limited (Guardrisk). In turn, Guardrisk has reinsured the specified risks with Artex (previously Mannequin) Insurance PCC Limited – Cell AVL 18, Guernsey which cell captive is held by ARM. Following the High Court judgment previously reported, the Tshiamiso Trust was registered in November 2019. As part of the settlement a guarantee of R304 million was issued by Guardrisk on behalf of ARM in favour of the Tshiamiso Trust on 13 December 2019. Details of the provision were discussed in the 30 June 2024 financial results, which can be found on www.arm.co.za. |
The company in the ordinary course of business enters into various sale, purchase, service and lease transactions with subsidiaries, associated companies, joint ventures and joint operations.
Transactions between the company, its subsidiaries and joint operations related to fees, insurances, dividends, rentals and interest are regarded as intra-group transactions and eliminated on consolidation.
| Reviewed F2025 Rm |
Audited F2024 Rm |
|
| Amounts accounted in the statement of profit or loss relating to transactions with related parties | ||
| Subsidiaries | ||
| Impala Platinum – sales1 | 6 210 | 5 914 |
| Joint operations | ||
| Rustenburg Platinum Mines – sales2 | 3 717 | 2 833 |
| Glencore International AG – sales | 1 397 | 1 791 |
| Glencore Operations SA – management fees | 116 | 102 |
| Joint venture | ||
| Assmang | ||
| – Management fees | 1 366 | 1 502 |
| – Dividends received | 4 500 | 5 000 |
| Associate | ||
| PCB – dividend received | 192 | 440 |
| Amounts outstanding at year end receivable by ARM on current account | ||
| Joint venture | ||
| Assmang – trade and other receivables | 350 | 345 |
| Joint operations | ||
| Rustenburg Platinum Mines – trade and other receivables2 | 1 343 | 1 180 |
| Glencore Operations SA – trade and other receivables | 319 | 612 |
| Glencore International AG – trade and other receivables | 94 | 94 |
| Subsidiary | ||
| Impala Platinum – trade and other receivables1 | 2 271 | 1 909 |
| 1 | Two Rivers Platinum is a subsidiary of ARM. Impala Platinum owns 46% of Two Rivers Platinum. The transactions between Impala Platinum and Two Rivers Platinum are considered related-party transactions. |
| 2 | These transactions and balances for joint operations do not meet the definition of a related party as per IAS 24 but have been included to provide additional information. |
Contingent liabilities
Modikwa
In August 2020, the International Council on Mining and Metals (ICMM) published a Global Industry Standard for Tailings Management (GISTM) that sets a new global benchmark to achieve strong social, environmental and technical outcomes in tailings management, with an emphasis on accountability and disclosure.
ICMM members have committed that all tailings storage facilities (TSFs) with 'extreme' or 'very high' potential consequences will be in conformance with the GISTM by August 2023, and all other facilities by August 2025.
ARM, as a member of ICMM, has committed to comply with GISTM by the agreed deadlines.
Modikwa Platinum Mine is proactively investigating gaps between its TSFs and the GISTM requirements. Modikwa Platinum Mine commenced with sampling and laboratory testing work during F2022.
As at 30 June 2025, a reliable estimate of the impact cannot be made as the sampling and laboratory testing work is still underway. The results thereof are expected to be available in the first half of F2026.
Disputes
Modikwa
In June 2021, Nkwe Platinum Mine Limited (Nkwe) and Genorah Resources (Pty) Ltd (Genorah) invaded the Modikwa Mine mining area, by constructing mining-related infrastructure on the surface of Mandaagshoek Farm. Pursuant to the invasion, the joint venture (JV) brought an urgent court application for a restoration of the JV in undisturbed possession of the invaded area, alternatively an order that Nkwe and Genorah be ordered to remove the constructed infrastructure from the invaded area, alternatively that Nkwe and Genorah be ordered to vacate the invaded area.
The Limpopo High Court dismissed the JV's application. Pursuant to the dismissal of the application, the JV applied for leave to appeal the judgment to the Supreme Court of Appeal (SCA), which application was granted. On 18 January 2023, the SCA dismissed the JV's application. The JV applied for leave to appeal the judgment to the Constitutional Court which application has since been granted. The parties are waiting for a trial date from the Constitutional Court. A reliable estimate cannot be determined at this stage.
ARM
Following the court's dismissal of the plaintiffs action on 9 May 2023, Pula Group LLC and Pula Graphite Partners Tanzania Limited (Pula Group) has again delivered claims against ARM and other defendants (defendants) in terms of which Pula Group is claiming damages in the amount of US$195 000 000 against the defendants, allegedly arising out of a breach of a confidentiality agreement. The claim was delivered to ARM on 4 December 2023. ARM has taken the necessary legal steps to protect its rights.
ARM and ARM Coal
ARM and ARM Coal have been served with applications for a certification by court of a class action in respect of the coal mines' employees. The premise of the class action is to institute an action for damages against the coal mines pursuant to the diseases that the employees allegedly contracted while working in the coal mines.
In all, four separate actions have been launched, each with its own list of respondents. The four applications are respectively referred to as the Glencore, Anglo American, Exxaro and BHP Billiton applications.
ARM and ARM Coal have filed notices to oppose the application. ARM and ARM Coal have filed their answering affidavits. A reliable estimate cannot be determined at this stage.
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.
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 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 (PPA) 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 (MOU) which set out the terms and conditions of sales agreement. The status quo for Nkomati Mine continues to be challenging due to uncertain commodities and nickel sector outlook and ongoing care and maintenance costs.
There were several 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 but are not limited to:
Acquiring additional shares in Surge Copper Corp
ARM has signed a subscription agreement agreeing to purchase 25 781 715 common shares of Surge Copper Corp (Surge Copper) at a price of C$0.175 per share for total consideration of approximately C$4.5 million.
No other significant events have occurred subsequent to the reporting date that could materially affect the reported results.