Our operations remain committed to safety. There was an increase of 33% in the group LTIFR to 0.32 per 200 000 man-hours (1H F2024: 0.24). Similarly, the TRIFR* increased by 4% to 0.52 (1H F2024: 0.50). Continuous efforts are in place to strengthen safety measures and improve overall safety performance.
Regrettably, Mr Tshepo Tebele was fatally struck by a winch rope during a night shift cleaning operation at Modikwa on 29 November 2024. We extend our deepest condolences to his family, friends and colleagues. Support and counselling were provided to all affected employees and the deceased’s family through the employee assistance programme. The report from the independent investigation is currently under review.
Safety achievements in 1H F2025 included:
ARM continues implementing an integrated wellness management programme to prevent occupational health hazards from affecting employees. The programme actively identifies and manages health risks and chronic conditions that may affect wellness and quality of life.
During 1H F2025, there were six cases (1H F2024: 14 restated) of noise-induced hearing loss (NIHL) submitted for compensation. These employees were at Modikwa (four) and Two Rivers (two). The number of cases in 1H F2024 were restated to 14 (previously reported 12) post the ESG assurance audit which was concluded after reporting. The cases have been reported to the Department of Mineral and Petroleum Resources (DMPR) and submitted to Rand Mutual Assurance (RMA) for possible compensation. Hearing conservation continues to be a focus of occupational health surveillance and management programmes.
At the end of F2023, ARM published its short-term target (F2026) of reducing scope 1 and 2 emissions by 15% and its medium-term target (F2030) by 30%. Decarbonisation pathways identified included improving energy efficiencies, implementing renewable energy and the use of new energy vehicles. At the end of F2024, we achieved a 6% reduction in scope 1 and 2 emissions against the F2023 baseline. We are still on track to achieve a 15% reduction in scope 1 and 2 emissions by F2026 against the F2023 baseline.
Scope 1 and 2 emissions decreased slightly by 1%.
| Tonnes of carbon dioxide equivalents (tCO2e) | 1H F2025 | 1H F2024** | % change |
| Scope 1 | 182 622 | 182 249 | – |
|---|---|---|---|
| Scope 2 | 650 810 | 658 023 | (1) |
| Scope 1 and 2 | 833 432 | 840 272 | (1) |
** The 1H F2024 values are restated due to audit occurring post-reporting.
Scope 1: GHG emissions released directly by an organisation through its activities, eg diesel, petrol, etc.
Scope 2: indirect GHG emissions associated with the purchase of electricity, steam, heat or cooling.
* TRIFR includes the number of fatal injuries, lost-time injuries and medical treatment cases.
In December 2023, the International Council on Mining and Metals (ICMM) published the Scope 3 Emissions Target Setting Guidance which was developed to support mining and metals companies in setting targets to reduce scope 3 (or value chain) emissions. In F2024, we set qualitative scope 3 targets with a commitment to set quantitative targets by F2027.
The construction of the solar PV facility is progressing on schedule and was 86% complete at the end of December 2024. The 100MW of electricity is on target to be delivered to ARM Platinum’s operations by August 2025. At steady state, renewable power will account for approximately 30% of ARM Platinum’s electricity consumption. The commissioning of ARM Platinum’s 100MW solar PV facility in F2026 will significantly reduce scope 2 emissions at ARM Platinum operations.
At our ARM Ferrous operations, the renewable energy definitive feasibility study (DFS) was completed in December 2024. Various funding models are currently being explored. Internal processes and reviews are ongoing to determine the optimal energy mix to be deployed which includes a study for night-time supply.
The water supply deficit from VCWB remains a risk to Khumani Mine operations and overall saleable iron ore production. The risk remains as the phase 2 refurbishment of the Vaal Gamagara pipeline is yet to commence. As a result, Khumani relies on dewatering programmes from neighbouring mines, however, this is not a sustainable solution. The long-term solution is the urgent commencement of the phase 2 refurbishment of the Vaal Gamagara pipeline, which is being addressed as a key priority between the Department of Water and Sanitation and the Northern Cape mines.
ARM, as a member of the ICMM, remains committed to operating tailings storage facilities (TSF) in line with global best practices as set out by the Global Industry Standard on Tailings Management (GISTM) and company policies.
Bokoni published its conformance to GISTM and Public Disclosure in October 2024. The TSFs at Black Rock and Beeshoek are scheduled to conform to the GISTM by 5 August 2025 since their Consequence Classification of Structures (CCS) ranges from low to high. Independent tailings reviews are ongoing to assess the safety of all TSFs in terms of design, operation and performance against the design standards.
Extensive work was carried out during the period and is ongoing to ensure that Modikwa’s TSF complies with industry and internal standards. As part of this work, Modikwa commissioned a geotechnical investigation to evaluate the characteristics of both the foundation and tailings materials.
In addition, an independently-led detailed risk assessment has been commissioned to ensure that all potential stability risks are identified and that ongoing risks are managed within Modikwa’s risk appetite and tolerance. Pending the outcome of both the geotechnical and risk assessments, Modikwa will consider if additional safety measures are required to improve the stability of the TSF under normal and potentially extreme conditions.
Headline earnings for 1H F2025 decreased by 49% to R1 520 million or R7.75 per share (1H F2024: R2 955 million or R15.07 per share).
The average realised rand exchange rate strengthened by 4% against the US dollar to R17.93/US$ compared to R18.68/US$ in 1H F2024. For reporting purposes, the closing exchange rate was R18.86/US$ (31 December 2023: R18.33/US$).
| 1H F2025 Rm |
1H F2024 Rm |
% change | |
| ARM Ferrous | 1 881 | 2 821 | (33) |
|---|---|---|---|
| Iron ore division | 1 514 | 2 782 | (46) |
| Manganese division | 366 | 45 | >200 |
| Consolidation adjustment | 1 | (6) | 117 |
| ARM Platinum | (689) | (282) | (144) |
| Two Rivers Mine | 77 | 164 | (53) |
| Modikwa Mine | (103) | (31) | (>200) |
| Bokoni Mine | (620) | (341) | (82) |
| Nkomati Mine | (43) | (74) | 42 |
| ARM Coal | 182 | 204 | (11) |
| Goedgevonden Mine (GGV) | 93 | 152 | (39) |
| PCB operations* | 89 | 52 | 71 |
| ARM Corporate and other | 146 | 212 | (31) |
| Corporate and other (including gold) | 190 | 324 | (41) |
| Machadodorp Works | (44) | (112) | 61 |
| Headline earnings | 1 520 | 2 955 | (49) |
* Participative Coal Business .
ARM Ferrous headline earnings decreased by 33% to R1 881 million (1H F2024: R2 821 million) driven by a decrease in headline earnings of the iron ore division, partially offset by an increase in headline earnings of the manganese division.
Iron ore headline earnings were lower due to lower average realised US dollar export prices, a stronger rand/US dollar exchange rate and lower sales volumes.
Manganese headline earnings were higher due to higher average realised US dollar manganese ore prices, partially offset by lower export sales volumes and a stronger rand/US dollar exchange rate.
ARM Platinum* reported a headline loss of R689 million (1H F2024: R282 million loss), largely due to higher operational losses at Bokoni.
Two Rivers headline earnings decreased by 53% to R77 million (1H F2024: R164 million). Headline earnings were negatively impacted by a ramp-up in mining development at North shaft to open ore reserves, together with increased finance costs.
* Refer to operational performance for further information on the mark-to-market adjustments in ARM Platinum.
Modikwa reported a headline loss of R103 million (1H F2024: R31 million loss) impacted by a lower rand per 6E kilogram basket price and lower production volumes.
Bokoni reported a headline loss of R620 million (1H F2024: R341 million loss), driven mainly by lower-than-guided PGM ounce production and increased mechanised development costs at Middelpunt in the ramp-up of production. Production in 1H F2025 was negatively impacted by the fall-of-ground fatality in June 2024, as previously reported, and challenging geotechnical conditions for which additional underground support was required.
Nkomati Nickel Mine (Nkomati) reported a headline loss of R43 million (1H F2024: R74 million loss). The mine has been on care and maintenance since 15 March 2021.
ARM Coal headline earnings decreased by 11% to R182 million (1H F2024: R204 million) driven mainly by lower export sales volumes and a stronger rand/US dollar exchange rate.
ARM Corporate and other (including gold) headline earnings decreased by 41% to R190 million (1H F2024: R324 million), driven by a decrease in management fees received.
Machadodorp Works reported a headline loss of R44 million (1H F2024: R112 million loss) related to research into developing energy-efficient smelting technology.
Basic earnings increased by 15% to R1 394 million (1H F2024: R1 216 million) and included attributable impairments as follows:
The increase in basic earnings is mostly attributable to the lower impairments in 1H F2025 when compared to the previous corresponding period (1H F2024: R1 739 million).
Refer note 4 of the condensed group interim financial statements for more information on these impairments.
At 31 December 2024, ARM had net cash of R6 073 million (30 June 2024: R7 197 million), a decrease of R1 124 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 604 million (30 June 2024: R4 476 million). There was no debt at ARM Ferrous in either of the reporting periods.
| 1H F2025 Rm |
1H F2024 Rm |
|
| Assmang | 2 500 | 3 000 |
|---|---|---|
| Harmony | 70 | 56 |
| Total dividends received | 2 570 | 3 056 |
Cash generated from operations decreased by R1 547 million to R1 098 million outflow (1H F2024: R449 million inflow), which includes an outflow in working capital of R1 598 million (1H F2024: R786 million outflow), mainly due to an outflow of trade payables.
In 1H F2025, ARM paid R1 765 million in dividends to its shareholders, representing a final dividend of R9.00 per share declared for F2024 (1H F2024: R2 353 million or R12.00 per share).
Net cash outflow from investing activities was R914 million (1H F2024: R3 036 million) and included expansionary capital of R640 million. The decrease in outflow was mainly due to reduced Merensky project expenditure at Two Rivers and lower expansionary capital at Bokoni.
Net borrowings increased by R998 million (1H F2024: R49 million repaid) during the period, resulting in gross debt of R2 134 million at 31 December 2024 (30 June 2024: R1 129 million) mainly as a result of a syndicated facility at Two Rivers.
Post 31 December 2024, high-cost mechanised development has been significantly scaled back, in response to the sustained weak PGM price environment and the lack of near-term recovery indicators. Production will shift focus from lower grade on-reef mechanised development to higher grade conventional stoping, increasing feed grade and PGM ounce production at the UG2 concentrator plant. The higher PGM production obtained from conventional mining will lower unit cash costs and reduce operational losses at Bokoni. The ramp-up of mechanised development will depend on a sustained PGM price recovery.
We continued to invest in our existing operations with segmental capital expenditure of R2 140 million for the period (1H F2024: R4 358 million). The decrease in capital expenditure was mainly due to the Merensky project at Two Rivers Mine included in 1H F2024. Capital expenditure for the divisions is shown below and discussed in each division’s operational performance section below.
| 1H F2025 Rm |
1H F2024 Rm |
% change | |
| ARM Ferrous | 793 | 1 017 | (22) |
|---|---|---|---|
| Iron ore division | 617 | 634 | (3) |
| Manganese division | 211 | 426 | (50) |
| Consolidation adjustment | (35) | (43) | 19 |
| ARM Platinum | 1 189 | 3 060 | (61) |
| Two Rivers Mine | 661 | 1 894 | (65) |
| Modikwa Mine | 139 | 508 | (73) |
| Bokoni Mine | 389 | 658 | (41) |
| ARM Coal (GGV Mine only) | 147 | 274 | (46) |
| ARM Corporate | 11 | 7 | 57 |
| Total | 2 140 | 4 358 | (51) |
Prices
Average realised US dollar export iron ore prices were 22% lower on a free-on-board (FOB) equivalent basis at US$87 per tonne (1H F2024: US$112 per tonne). The lump-to-fines ratio decreased from 58:42 in 1H F2024 to 57:43 in 1H F2025.
Movements in iron ore prices resulted in the following mark-to-market adjustments:
| 1H F2025 Rm |
1H F2024 Rm |
|
| Fair value adjustments at interim (realised) | (291) | 216 |
|---|---|---|
| Revenue – fair value adjustments current period | (212) | 148 |
| Revenue – fair value adjustments previous period sales | (79) | 68 |
| Fair value adjustments at interim (unrealised) | 30 | 271 |
| Based on confirmed prices | 78 | 209 |
| Based on forward prices | (48) | 62 |
| Total revenue – fair value adjustments | (261) | 487 |
Volumes
Iron ore production decreased by 1% to 7.0 million tonnes (1H F2024: 7.1 million tonnes), largely due to water supply challenges.
Total iron ore sales volumes decreased by 3% to 7.0 million tonnes (1H F2024: 7.2 million tonnes). Export sales volumes decreased by 2% to 5.9 million tonnes (1H F2024: 6.0 million tonnes) due to the timing of vessels. Local sales volumes decreased by 9% to 1.1 million tonnes (1H F2024: 1.2 million tonnes) due to a lower offtake from AMSA.
Unit costs
On-mine unit cash costs increased by 10% to R539 per tonne (1H F2024: R492 per tonne).
Khumani Mine’s on-mine unit cast costs increased by 8% to R507 per tonne (1H F2024: R470 per tonne), due to labour inflation, higher mining and plant maintenance expenses and a higher stripping ratio.
On-mine unit cash costs at Beeshoek Mine increased by 18%, mainly due to lower production volumes and higher repairs and maintenance costs as the mining fleet replacement was delayed due to the uncertainty around the offtake from AMSA.
Unit cost of sales increased by 12%, due to higher on-mine unit cash costs, freight rates and cost insurance and freight (CIF) tonnes at Khumani.
Capital expenditure
Capital expenditure decreased by 3% to R1 233 million on a 100% basis (1H F2024: R1 267 million), due to lower waste stripping capital expenditure of R509 million (1H F2024: R678 million).
| Unit | 1H F2025 | 1H F2024 | % change | ||
| Prices | |||||
| Average realised export price* | US$/t | 87 | 112 | (22) | |
| Volumes | |||||
| Export sales | 000t | 5 914 | 6 004 | (2) | |
| Local sales | 000t | 1 126 | 1 242 | (9) | |
| Total sales | 000t | 7 041 | 7 246 | (3) | |
| Production | 000t | 6 980 | 7 058 | (1) | |
| Export sales lump/fines split | 57:43 | 58:42 | |||
| Export sales CIF/FOB** split | 44:56 | 40:60 | |||
| Unit costs | |||||
| Change in unit cash costs | % | 10 | 3 | ||
| Change in unit cost of sales | % | 12 | 4 | ||
| Capital expenditure | R million | 1 233 | 1 267 | (3) |
* Average realised export iron ore prices on an FOB equivalent basis.
** CIF – cost, insurance and freight; FOB – free-on-board.
| 1H F2025 Rm |
1H F2024 Rm |
% change | |
| Sales | 7 097 | 6 306 | 13 |
|---|---|---|---|
| Operating profit | 1 125 | 357 | >200 |
| Headline earnings | 837 | 233 | >200 |
| Capital expenditure | 410 | 837 | (51) |
| Depreciation | 562 | 532 | 6 |
| EBITDA | 1 687 | 889 | 90 |
Prices
As previously reported, in F2024 index prices for high-grade manganese ore changed from a 44% index to a 43.5% index, while the low-grade index changed from 37% to 36.5%. The average US dollar index price for high-grade manganese ore (43.5%) and low-grade manganese ore (36.5%) increased by 29% and 13% year on year.
Volumes
Manganese ore sales volumes decreased by 4% to 2.3 million tonnes (1H F2024: 2.4 million tonnes). Export sales volumes decreased by 5% to 1.9 million tonnes (1H F2024: 2.0 million tonnes) and local sales volumes increased by 9% to 399 000 tonnes (1H F2024: 367 000 tonnes). Local sales were higher due to increased offtake from local customers.
Production volumes at Black Rock increased by 13% to 2.0 million tonnes (1H F2024: 1.8 million tonnes), after successfully addressing the critical skills shortage and ore quality issues.
Unit costs
Unit cash costs increased by 1% to R865 per tonne (1H F2024: R857 per tonne), driven by inflation and partially offset by higher production volumes.
Unit cost of sales increased by 7% mainly due to higher marketing costs, lower sales volumes and significant net realisable value adjustments on stock.
Capital expenditure and projects
Capital expenditure decreased by 51% to R410 million (1H F2024: R837 million). Various non-critical projects were postponed due to low market prices to preserve cash. 1H F2024 included the procurement of four battery electric vehicles at Black Rock.
| Unit | 1H F2025 | 1H F2024 | % change | ||
| Volumes | |||||
| Export sales | 000t | 1 879 | 2 000 | (6) | |
| Domestic sales* | 000t | 399 | 367 | 9 | |
| Total sales* | 000t | 2 278 | 2 367 | (4) | |
| Production | 000t | 2 020 | 1 788 | 13 | |
| Unit costs | |||||
| Change in unit cash costs | % | 1 | 20 | ||
| Change in unit cost of sales | % | 7 | 8 | ||
| Capital expenditure | R million | 410 | 837 | (51) |
* Excluding intra-group sales of 40 000 tonnes sold to Cato Ridge Works (1H F2024: 90 000 tonnes).
| 1H F2025 Rm |
1H F2024 Rm |
% change | |
| Sales | 956 | 838 | 14 |
|---|---|---|---|
| Operating profit | (134) | (287) | 53 |
| Contribution to headline earnings | (102) | (142) | 28 |
| Capital expenditure | 13 | 16 | (19) |
| EBITDA | (134) | (286) | 53 |
Prices
Average high-carbon ferromanganese (HCFeMn) index prices increased by 14% and medium-carbon ferromanganese (MCFeMn) prices increased by 18% year on year.
Volumes
Cato Ridge Works’ production increased by 8% to 52 000 tonnes (1H F2024: 48 000 tonnes), mainly due to improved furnace efficiencies. Cato Ridge Alloys’ production increased by 2% to 26 000 tonnes (1H F2024: 25 000 tonnes) and Sakura’s production (100% basis) increased by 4% to 122 000 tonnes (1H F2024: 117 000 tonnes).
Cato Ridge Works’ export sales increased by 14% to 17 000 tonnes (1H F2024: 15 000 tonnes). Cato Ridge Alloys’ sales decreased by 2% to 23 000 tonnes (1H F2024: 24 000 tonnes). Sakura’s sales increased by 9% to 123 000 tonnes (1H F2024: 113 000 tonnes). The improvement in sales at Cato Ridge Works and Sakura was due to improved manganese alloy market conditions.
Unit costs
Unit cash costs at Cato Ridge Works increased by 6% due to higher electricity costs and a more expensive ore recipe to achieve higher HCFeMn grades, partially offset by better furnace efficiencies. Cato Ridge Alloys unit cash costs increased by 1%. Unit cash costs at Sakura increased by 19% mainly due to higher manganese ore prices.
| Unit | 1H F2025 | 1H F2024 | % change | ||
| Volumes | |||||
| Cato Ridge Works sales* | 000t | 17 | 15 | 13 | |
| Cato Ridge Alloys sales | 000t | 23 | 24 | (4) | |
| Sakura sales | 000t | 123 | 113 | 9 | |
| Cato Ridge Works production | 000t | 52 | 48 | 8 | |
| Cato Ridge Alloys production | 000t | 26 | 25 | 4 | |
| Sakura production | 000t | 122 | 117 | 4 | |
| Unit costs – Cato Ridge Works | |||||
| Change in unit cash costs | % | 6 | 9 | ||
| Change in unit cost of sales | % | 19 | (1) | ||
| Unit costs – Cato Ridge Alloys | |||||
| Change in unit cash costs | % | 1 | (13) | ||
| Change in unit cost of sales | % | 29 | (19) | ||
| Unit costs – Sakura | |||||
| Change in unit cash costs | % | 19 | (20) | ||
| Change in unit cost of sales | % | 9 | (20) |
* Excluding intra-group sales of 32 000 tonnes sold to Cato Ridge Alloys (1H F2024: 30 000 tonnes).
The ARM Ferrous operations, held through its 50% investment in Assmang Proprietary Limited (Assmang), comprise the iron ore and manganese divisions. Assore South Africa Proprietary Limited, ARM’s partner in Assmang, owns the remaining 50%.
The average rand per 6E kilogram basket price declined as follows:
| Unit | 1H F2025 | 1H F2024 | % change | ||
| Platinum | US$/oz | 965 | 923 | 5 | |
|---|---|---|---|---|---|
| Palladium | US$/oz | 991 | 1 169 | (15) | |
| Rhodium | US$/oz | 4 565 | 3 912 | 17 | |
| Nickel | US$/t | 16 126 | 18 767 | (14) | |
| Copper | US$/t | 9 190 | 8 262 | 11 | |
| Cobalt | US$/lb | 10 | 15 | (33) | |
| UG2 chrome concentrate – weighted (CIF*) | US$/t | 274 | 279 | (2) |
* CIF – cost, insurance and freight.
| Unit | 1H F2025 | 1H F2024 | % change | ||
| Average exchange rate | ZAR/US$ | 17.93 | 18.68 | (4) | |
|---|---|---|---|---|---|
| Platinum | ZAR/oz | 17 299 | 17 234 | – | |
| Palladium | ZAR/oz | 17 764 | 21 841 | (19) | |
| Rhodium | ZAR/oz | 81 858 | 73 073 | 12 | |
| Nickel | ZAR/t | 289 187 | 350 575 | (18) | |
| Copper | ZAR/t | 164 816 | 154 341 | 7 | |
| Cobalt | ZAR/lb | 185 | 277 | (33) | |
| UG2 chrome concentrate – weighted (CIF*) | ZAR/t | 4 913 | 5 212 | (6) |
* CIF – cost, insurance and freight.
Modikwa, Two Rivers and Bokoni recognise revenue using provisional pricing. The sales price of the concentrate is determined on a provisional basis at the date of the sale, with adjustments made to the sales price based on movements in the discounted forward commodity prices up to the date of final pricing. Post-refining and delivery, adjustments are made to reflect final pricing. Any differences between the provisional and final commodity prices after the reporting period, result in the next reporting period’s earnings being impacted by mark-to-market adjustments.
| 1H F2025 Rm |
1H F2024 Rm |
|
| Total mark-to-market adjustments | 114 | (139) |
|---|---|---|
| Assay adjustment | 140 | 105 |
| Fair value adjustment | (26) | (244) |
| 1H F2025 Rm |
1H F2024 Rm |
|
| Total mark-to-market adjustments | (3) | (27) |
|---|---|---|
| Assay adjustment | (10) | (19) |
| Fair value adjustment | 7 | (8) |
Bokoni total mark-to-market adjustments for 1H F2025 was R3 million (1H F2024: R1 million).
Tonnes milled of 1.79 million tonnes were flat relative to 1H F2024. PGM production volumes increased by 1% to 152 893 6E PGM ounces (1H F2024: 150 956 6E PGM ounces), owing to a marginal improvement in head grade.
Unit cash costs increased by 10% to R1 340 per tonne milled (1H F2024: R1 220 per tonne) and 9% to R15 666 per 6E PGM ounce (1H F2024: R14 433 per 6E PGM ounce). The cost increase was mainly due to increased repairs and maintenance as well as a 12.74% increase in electricity rates.
Capital expenditure decreased by 65% to R661 million (1H F2024: R1 894 million). Of the total capital expenditure, 44% related to the deepening of the declines at Main and North shafts, along with electrical and mechanical installations. A further 38% related to expenditure on the Merensky project prior to being placed on care and maintenance.
The Merensky project capital expenditure was closed out at R6 578 million which was R259 million lower than previously communicated. The reduction was because of cost curtailment and capital deferment initiatives in anticipation of the Merensky project being placed on care and maintenance.
| Unit | 1H F2025 | 1H F2024 | % change | ||
| Cash operating profit | R million | 485 | 715 | (32) | |
|---|---|---|---|---|---|
| – PGMs | R million | 302 | 520 | (42) | |
| – Chrome | R million | 183 | 195 | (6) | |
| Tonnes milled | Mt | 1.79 | 1.79 | – | |
| Head grade | g/t, 6E | 3.09 | 3.07 | 1 | |
| PGMs in concentrate | 6E oz | 152 893 | 150 956 | 1 | |
| Chrome in concentrate sold | Tonnes | 69 988 | 82 973 | (16) | |
| Average basket price | ZAR/kg, 6E | 759 758 | 761 803 | 0 | |
| Average basket price | US$/oz, 6E | 1 318 | 1 268 | 4 | |
| Cash operating margin | % | 15 | 22 | ||
| Cash cost | ZAR/kg, 6E | 503 670 | 464 031 | 9 | |
| Cash cost | ZAR/tonne | 1 340 | 1 220 | 10 | |
| Cash cost | ZAR/Pt oz | 34 223 | 30 909 | 11 | |
| Cash cost | ZAR/oz, 6E | 15 666 | 14 433 | 9 | |
| Cash cost | US$/oz, 6E | 874 | 773 | 13 |
Tonnes milled declined by 3% to 1.25 million tonnes (1H F2024: 1.29 million tonnes). PGM production decreased by 4% to 146 130 6E PGM ounces (1H F2024: 151 754 6E PGM ounces). Production was negatively impacted by safety stoppages related to a fatality that occurred in November 2024, as well as heavy rains in December 2024 which slowed the open-pit operation.
During 1H F2025 high-cost underground mining levels were stopped resulting in labour reductions. Open-pit mining was introduced to supplement the reduced underground mining volumes.
Unit cash costs increased by 4% to R2 233 per tonne (1H F2024: R2 155 per tonne) and 4% to R19 178 per 6E PGM ounce (1H F2024: R18 355 per 6E PGM ounce), owing to lower production volumes.
To preserve cash, capital expenditure at Modikwa (100% basis) was reduced by 73% to R278 million (1H F2024: R1 016 million). Of the total capital expenditure, 27% related to fleet replacement, 10% to the South 2 shaft deepening project, 9% to the ventilation shaft and 13% on the underground-to-surface conveyor belt project (BA belt).
The downcast ventilation project was initiated to provide additional ventilation for mining levels below 10 level. The projected completion date has moved out to Q2 F2026 due to unstable ground conditions encountered in the piloting process. The delay will not impact the shaft production schedule.
The underground-to-surface conveyor belt that connects South 2 infrastructure to South 1 shaft (BA belt project) is 70% complete. The forecast completion date is Q1 F2026.
The Merensky mining project is progressing well with volumes at 40 000 tonnes per month.
| Unit | 1H F2025 | 1H F2024 | % change | ||
| Cash operating profit | R million | (152) | 129 | (>200) | |
|---|---|---|---|---|---|
| – PGMs | R million | (228) | 59 | (>200) | |
| – Chrome | R million | 76 | 70 | 9 | |
| Tonnes milled | Mt | 1.25 | 1.29 | (3) | |
| Head grade | g/t 6E | 4.43 | 4.36 | 2 | |
| PGMs in concentrate | 6E oz | 146 130 | 151 754 | (4) | |
| Chrome in concentrate sold | Tonnes | 49 332 | 40 407 | 22 | |
| Average basket price | ZAR/kg, 6E | 740 419 | 779 791 | (5) | |
| Average basket price | US$/oz, 6E | 1 284 | 1 298 | (1) | |
| Cash operating margin | % | (5) | 4 | ||
| Cash cost | ZAR/kg, 6E | 616 602 | 590 132 | 4 | |
| Cash cost | ZAR/tonne | 2 233 | 2 155 | 4 | |
| Cash cost | ZAR/Pt oz | 44 985 | 44 483 | 1 | |
| Cash cost | ZAR/oz, 6E | 19 178 | 18 355 | 4 | |
| Cash cost | US$/oz, 6E | 1 069 | 983 | 9 |
Tonnes milled and PGM production were ramped up to 230 000 tonnes (1H F2024: 60 000 tonnes) and 19 661 6E PGM ounces (1H F2024: 4 606 6E PGM ounces), respectively.
Unit cash costs decreased by 37% to R3 289 per tonne (1H F2024: R5 250 per tonne) and 46% to R38 245 per 6E PGM ounce (1H F2024: R71 254 per 6E PGM ounce), owing to the Bokoni ramp-up. Unit cash costs were negatively impacted by production challenges.
Bokoni introduced open-pit UG2 mining towards the end of 1H F2025 to supplement the lower than planned underground mining volumes.
The chrome recovery plant is expected to be commissioned in June 2025 which will provide an additional revenue stream for the mine.
During 1H F2025, Bokoni continued with mechanised development of Middelpunt underground infrastructure to increase the mining footprint. Development of the Klipgat portal which will improve efficient access to the Middelpunt underground infrastructure, will be connected with the underground workings in Q3 F2025. Total development in 1H F2025 amounted to 6 076 metres for the future ramp-up of Bokoni.
As a result of sustained low PGM prices, a decision was made in Q3 F2025 to significantly reduce the mechanised development for expansion, in order to minimise cash losses. This led to the commencement of a section 189 process to restructure the mine’s labour complement in alignment with the revised mine plan. The immediate priority is to conserve cash by focusing on conventional stoping within the existing underground and concentrator infrastructure.
| Unit | 1H F2025 | 1H F2024 | % change | ||
| Cash operating loss | R million | (382) | (131) | (192) | |
|---|---|---|---|---|---|
| Tonnes milled | Kt | 230 | 60 | >200 | |
| Head grade | g/t 6E | 3.68 | 3.84 | (4) | |
| PGMs in concentrate | 6E oz | 19 661 | 4 606 | >200 | |
| Average basket price | ZAR/kg, 6E | 747 885 | 799 463 | (6) | |
| Average basket price | US$/oz, 6E | 1 297 | 1 342 | (3) | |
| Cash operating margin | % | (108) | (147) | ||
| Cash cost | ZAR/kg, 6E | 1 229 601 | 2 290 871 | (46) | |
| Cash cost | ZAR/tonne | 3 289 | 5 250 | (37) | |
| Cash cost | ZAR/Pt oz | 101 254 | 184 535 | (45) | |
| Cash cost | ZAR/oz, 6E | 38 245 | 71 254 | (46) | |
| Cash cost | US$/oz, 6E | 2 133 | 3 814 | (44) |
During 1H F2025, unconditional approval was obtained from both the Competition Commission as well as the DMPR (section 11), for ARM to acquire Norilsk Nickel Africa’s (NNAf) 50% participation interest in Nkomati. ARM and NNAf are currently in the process of closing out the outstanding Conditions Precedent.
At 31 December 2024, the estimated undiscounted rehabilitation liability attributable to ARM was R1 141 million (30 June 2024: R1 191 million), excluding VAT.
The discounted rehabilitation liability, attributable to ARM was determined to be R1 112 million (30 June 2024: R1 119 million).
At 31 December 2024, R215 million (attributable to ARM) in cash and financial assets was available to fund rehabilitation obligations for Nkomati. The resulting attributable shortfall of R897 million is expected to be funded by ARM. Nkomati’s estimated rehabilitation and long-term water treatment costs continue to be reassessed as engineering designs evolve and new information becomes available.
GGV’s average received export price remained steady at US$91 per tonne in 1H F2025 (1H F2024: US$91 per tonne). PCB’s average received export price decreased by 5% to US$85 per tonne in 1H F2025 (1H F2024: US$89 per tonne).
Thermal coal demand continued to decline in European markets due to an increase in nuclear and renewable energy generation. This was offset by increased Chinese demand supported by strong power demand and lower hydroelectric generation. Russian coal exports were negatively impacted by railway constraints and port restrictions.
Approximately 76% and 70% of export volumes at GGV and PCB comprised high-quality coal (5 700 to 6 000Kcal/kg).
| 1H F2025 Rm |
1H F2024 Rm |
% change | |
| Cash operating profit | 256 | 345 | (26) |
|---|---|---|---|
| Amortisation and depreciation | (145) | (106) | (37) |
| Net finance income | 3 | 4 | (25) |
| Loan re-measurement and fair value losses | (13) | (15) | 13 |
| Profit before tax | 101 | 228 | (56) |
| Less tax | (8) | (76) | 89 |
| Headline earnings attributable to ARM | 93 | 152 | (39) |
ARM’s attributable saleable production decreased by 8% to 0.86 million tonnes (1H F2024: 0.92 million tonnes). Total sales volumes decreased by 10% to 0.86 million tonnes (1H F2024: 0.96 million tonnes), largely due to a decrease in the trucking of export coal.
On-mine unit production costs per saleable tonne increased by 14% to R666 per tonne (1H F2024: R583 per tonne), mainly due to a 10% decrease in sales volumes.
| Unit | 1H F2025 | 1H F2024 | % change | ||
| Total production and sales (100% basis) | |||||
| Saleable production | Mt | 3.30 | 3.55 | (7) | |
| Export thermal coal sales | Mt | 1.70 | 2.36 | (28) | |
| Domestic thermal coal sales | Mt | 1.60 | 1.33 | 20 | |
| ARM attributable production and sales | |||||
| Saleable production | Mt | 0.86 | 0.92 | (7) | |
| Export thermal coal sales | Mt | 0.44 | 0.61 | (28) | |
| Domestic thermal coal sales | Mt | 0.42 | 0.35 | 20 | |
| Average received coal price | |||||
| Export (FOB)* | US$/t | 91 | 91 | – | |
| Domestic (FOT)** | ZAR/t | 414 | 411 | 1 | |
| Unit costs | |||||
| On-mine saleable cost | ZAR/t | 666 | 583 | 14 | |
| Capital expenditure | R million | 565 | 1 052 | (46) |
* FOB – free-on-board.
** FOT – free-on-truck.
| 1H F2025 Rm |
1H F2024 Rm |
% change | |
| Cash operating profit | 461 | 480 | (4) |
|---|---|---|---|
| Net finance cost | (73) | (70) | (4) |
| Amortisation and depreciation | (267) | (338) | 21 |
| Profit before tax | 121 | 65 | 86 |
| Tax | (32) | (19) | (68) |
| Headline earnings attributable to ARM | 89 | 52 | 71 |
ARM’s attributable saleable production decreased by 13% to 0.97Mt (1H F2024: 1.12Mt), largely due to lower export sales volumes.
Attributable export sales volumes decreased by 7% to 0.83Mt (1H F2024: 0.90Mt), due to reduced trucking of coal. Domestic sales volumes decreased by 20% to 0.14Mt (1H F2024: 0.17Mt).
On-mine unit costs per saleable tonne increased by 4% to R798 per tonne (1H F2024: R766 per tonne).
Capital expenditure in 1H F2025 decreased by 7% to R1 245 million (1H F2024: R1 335 million).
| Unit | 1H F2025 | 1H F2024 | % change | ||
| Total production sales (100% basis) | |||||
| Saleable production | Mt | 4.80 | 5.53 | (13) | |
| Export thermal coal sales | Mt | 4.11 | 4.44 | (7) | |
| Domestic thermal coal sales | Mt | 0.68 | 0.85 | (20) | |
| ARM attributable production and sales | |||||
| Saleable production | Mt | 0.97 | 1.12 | (13) | |
| Export thermal coal sales | Mt | 0.83 | 0.90 | (8) | |
| Domestic thermal coal sales | Mt | 0.14 | 0.17 | (18) | |
| Average received coal price | |||||
| Export (FOB)* | US$/t | 85 | 89 | (4) | |
| Domestic (FOT)** | ZAR/t | 740 | 685 | 8 | |
| Unit costs | |||||
| On-mine saleable cost | ZAR/t | 798 | 766 | 4 | |
| Capital expenditure | R million | 1 245 | 1 335 | (7) |
* FOB – free-on-board.
** FOT – free-on-truck.
ARM’s economic interest in PCB is 20.2%. PCB consists of two large mining complexes in Mpumalanga.
ARM has a 26% effective interest in the GGV near Ogies in Mpumalanga.
ARM’s investment in Harmony was negatively revalued by R1 297 million in 1H F2025 (1H F2024: R3 012 million positive) as the Harmony share price decreased by 10% from R168.05 per share at 30 June 2024 to R150.68 per share at 31 December 2024.
The Harmony investment is therefore reflected on the ARM statement of financial position at R11 251 million based on its share price at 31 December 2024.
Gains and losses are accounted for, net of deferred capital gains tax, through the statement of comprehensive income.
Dividends from Harmony are recognised in the ARM statement of profit or loss on the last day of registration following dividend declaration.
Harmony headline earnings increased by 33% to 1 270 cents per share (1H F2024: 956 per share).
Basic earnings increased by 32% to 1 265 cents per share (1H F2024: 956 cents per share).
Harmony’s results for the six months ended 31 December 2024 can be found on Harmony’s website: www.harmony.co.za.
The IMF projects global growth to be 3.3% in 2025 and 2026. Disinflation is likely to encourage central banks in developed and some emerging markets to lower interest rates, which could stimulate economic growth. A key risk to this outlook is the volatile trade policies being considered by the new US administration, which is likely to exacerbate global policy uncertainty, fragment global trade and worsen geopolitical tensions. The US’s withdrawal from the Paris Agreement could undermine efforts to combat global warming, increasing the risk of climate-related disasters. Rolling-back of the US’s environmental commitments and “green” incentives is expected to be modestly net positive for PGM demand.
We are cautiously optimistic on South Africa’s medium to long-term growth prospects, particularly with the formation of the Government of National Unity, which could be a catalyst for a more business-friendly environment. Expectations for improved consumer and business confidence are mainly driven by lower inflation expectations, with the key to achieving this being reforms in the electricity and logistics sectors. Positive signs from Eskom’s recent performance are helping restore confidence in both business and society. However, urgent reforms in energy transition, including expansion of transmission, distribution and generation capacity, remain critical. Similarly, progress is being made with Transnet’s recovery plan and the Freight Logistics Roadmap, though additional measures are needed to enhance performance and unlock long-term value for the country’s supply chain, supporting sustainable economic growth.
Iron ore prices are expected to fall over the next year due to supply growth and a softening Chinese demand outlook. Chinese GDP growth is expected to slow to 4.5% in 2025, the weakest pace in over 30 years, excluding the Covid-19 pandemic years. Economic activity has weakened due to declines in real estate investment and slower consumption growth.
Short-term weakness in PGM prices persist despite seemingly supportive fundamentals. Near-term increases in refined PGM exports from South Africa have exceeded market expectations, while Chinese imports remain subdued. In Western markets, automotive demand remains weak, with European sales under pressure and the US market experiencing high inventory levels, leading to short-term production cuts.
However, the medium to long-term outlook for platinum, palladium, and rhodium remains positive. Demand for internal combustion engine (ICE) vehicles, including hybrids, alongside increasingly stringent emissions regulations, is expected to support consumption. Additionally, emerging applications in hydrogen technology and advanced industrial processes could provide significant long-term demand growth.
While the market remains volatile due to the disconnect between strong underlying fundamentals and negative near-term sentiment, many industry participants remain cautiously optimistic about the PGM sector’s future trajectory.
Global coal consumption is anticipated to decline in 2025 and 2026, driven by the global energy transition and increasing focus on decarbonisation. ARM is not making any new coal investments, and we will continue running existing assets to the end of their current economic lives. We are continually looking for opportunities to be more responsible and efficient in our coal-related activities.
The extensive damage to the Groote Eylandt Mining Company (GEMCO) port caused a short-lived spike in manganese ore prices in the second quarter of 2024, resulting in an oversupply of ore in a soft demand environment. High-cost supply is likely to exit the market due to the currently suppressed prices and GEMCO is expected to resume supply in the second quarter of 2025. As a result, we believe the supply-demand rebalance, combined with low stock levels, is likely to result in a modest increase in manganese prices in 2025.
ARM will continue to build resilience by enhancing productivity, implementing cost-saving measures and optimising capital allocation. The challenging market conditions, including the depressed PGM market, declining iron ore price outlook, and lower manganese and thermal coal prices necessitate a focus on preserving cash while ensuring the responsible completion of ongoing capital projects. Additionally, management will evaluate opportunities to defer capital expenditure where feasible.
The year ahead will be challenging for the mining industry, despite this, we remain confident in the long-term prospects of our operations and optimistic about the future of the industry. ARM has quality, long-life assets and orebodies. We aim to focus on factors within our control and ensure active collaboration with our partners and external stakeholders, benefiting the industry, communities neighbouring our mines as well as the country. ARM remains committed to creating sustainable value for its shareholders and all stakeholders.
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 (the board) which considers the company’s capital allocation guiding principles as well as other relevant factors such as financial performance, commodities outlook, investment opportunities, gearing levels as well as solvency and liquidity requirements of the Companies Act.
For 1H F2025, the board approved and declared an interim dividend of 450 cents per share (gross) (1H F2024: 600 cents per share). The amount to be paid is approximately R1 011 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:
A gross dividend of 450 cents per ordinary share, being the dividend for the six months ended 31 December 2024, has been declared payable on Monday, 7 April 2025 to those shareholders recorded in the books of the company at the close of business on Friday, 4 April 2025. 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 not later than Friday, 4 April 2025. The last day to trade ordinary shares cum dividend is Tuesday, 1 April 2025. Ordinary shares trade ex-dividend from Wednesday, 2 April 2025.
No dematerialisation or rematerialisation of share certificates may occur between Wednesday, 2 April 2025 and Friday, 4 April 2025 both dates inclusive, nor may any transfers between registers take place during this period.
There is no material change to ARM’s Mineral Resources and Mineral Reserves as disclosed in the integrated annual report for the financial year ended 30 June 2024, other than depletions due to continued mining activities at the operations.
An updated Mineral Resources and Mineral Reserves statement will be issued in our F2025 integrated annual report.
Subsequent to period end, the following changes to the board took place:
The financial results for the six months ended 31 December 2024 have not been reviewed nor audited by the company’s registered auditor, KPMG Inc. (the partner in charge is S Loonat CA(SA)).
Signed on behalf of the board:
Dr PT Motsepe
Executive chairman
VP Tobias
Chief executive officer
Johannesburg
7 March 2025