for the six months ended 31 December 2024
The condensed group interim financial statements for the six months ended 31 December 2024 have been prepared in accordance with and containing the information required by IAS 34 Interim Financial Reporting, the Financial Pronouncements as issued by the Financial Reporting Standards Council and SAICA Financial Reporting Guides as issued by the Accounting Practices Committee (collectively 'JSE Listings Requirements') and the South African Companies Act.
Basis of preparation
The condensed group interim financial statements for the six months ended 31 December 2024 have been prepared on the historical cost basis, except for certain financial instruments, which include listed investments and unlisted investments that are fair valued. The accounting policies used are consistent with those in the most recent annual financial statements except for those listed below and comply with IFRS Accounting Standards. The group interim financial statements for the period have been prepared under the supervision of the finance director, Ms TTA Mhlanga CA(SA).
The presentation and functional currency is the South African rand and the condensed group interim financial statements are rounded to the nearest rand million.
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 International Accounting Standards Board (IASB) during the period under review. The date of initial application for the group is 1 July 2024.
| Standard | Subject | Effective date |
| IAS 1 | Presentation of financial statements – classification of liabilities as current or non-current – amendments | 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 – amendments | 1 January 2024 |
ARM continuously evaluates the impact of these standards and amendments, the adoption of which did not have a significant effect on the condensed group interim 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 7 | Classification and measurement of financial instruments | 1 January 2026 |
| IFRS 1 | First-time adoption of International Financial Reporting Standards – annual improvements – amendments | 1 January 2026 |
| 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 10 | Consolidated financial statements – annual improvements – amendments | 1 January 2026 |
| IAS 7 | Statement of cash flows – annual improvements – amendments | 1 January 2026 |
| IFRS 9 | Contracts referencing nature – dependent electricity – amendments | 1 January 2026 |
| IFRS 7 | 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 is not expected to have a significant effect on the group financial results.
Primary segmental information
For management purposes, the group is organised into operating divisions. The operating divisions are ARM Platinum (which includes platinum and nickel), ARM Ferrous, ARM Coal and ARM Corporate (which includes Corporate, Machadodorp Works, gold and other) in the table below.
|
There were no significant inter-company sales. Segment results take into account inter-company eliminations with the exception of inter-company re-measurements.
1Refer note 2.4 for more detail on the ARM Platinum segment. |
There were no significant inter-company sales. Segment results take into account inter-company eliminations with the exception of inter-company re-measurements. 1Refer note 2.5 for more detail on the ARM Platinum segment. |
There were no significant inter-company sales. Segment results take into account inter-company eliminations with the exception of inter-company re-measurements. 1Refer note 2.6 for more detail on the ARM Platinum segment. |
|
Additional information The ARM Platinum segment is analysed further into Two Rivers Platinum Proprietary Limited, Nkomati 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 |
|
| 2.5 | Six months ended 31 December 2023 (Unaudited) | |||||
| Sales | 3 047 | 1 492 | 89 | – | 4 628 | |
| Cost of sales | (2 595) | (1 501) | (221) | – | (4 317) | |
| Other operating income | 47 | 33 | 1 | – | 81 | |
| Other operating expenses | (109) | (72) | (204) | (40) | (425) | |
| Segment result | 390 | (48) | (335) | (40) | (33) | |
| Income from investments | 51 | 60 | 2 | 6 | 119 | |
| Finance costs | (15) | (54) | (8) | (40) | (117) | |
| Capital items before tax (refer note 13) | (2 712) | (620) | – | – | (3 332) | |
| Taxation | 610 | 171 | – | – | 781 | |
| Loss after tax | (1 676) | (491) | (341) | (74) | (2 582) | |
| Non-controlling interest | 770 | 84 | – | – | 854 | |
| Contribution to basic losses | (906) | (407) | (341) | (74) | (1 728) | |
| Contribution to headline earnings/(losses) | 164 | (31) | (341) | (74) | (282) | |
| Other information | ||||||
| Segment and consolidated assets | 10 686 | 4 808 | 5 261 | 161 | 20 916 | |
| Segment liabilities | 1 311 | 1 165 | 240 | 911 | 3 627 | |
| Cash inflow/(outflow) from operating activities | 799 | 364 | (686) | (37) | 440 | |
| Cash outflow from investing activities | (1 894) | (260) | (658) | – | (2 812) | |
| Cash outflow from financing activities | (2) | – | – | – | (2) | |
| Capital expenditure | 1 894 | 508 | 658 | – | 3 060 | |
| Impairment loss before tax | 2 712 | 620 | – | – | 3 332 | |
| Amortisation and depreciation | 296 | 79 | 85 | – | 460 | |
| Raw materials, consumables used and change in inventories | 909 | 391 | 166 | – | 1 466 | |
| Salaries and wages | 677 | 448 | 93 | – | 1 218 | |
| EBITDA | 686 | 31 | (250) | (40) | 427 |
| Attributable | Two Rivers Rm |
Modikwa Rm |
Bokoni Rm |
Nkomati Rm |
ARM Platinum total Rm |
|
| 2.6 | For the year ended 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 cost | (67) | (166) | (16) | (21) | (270) | |
| Capital items before tax (refer note 13) | (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 | 1 824 | 788 | 347 | – | 2 959 | |
| Salaries and wages | 1 435 | 903 | 132 | – | 2 470 | |
| Impairment loss before tax | 2 782 | 620 | – | – | 3 402 | |
| EBITDA | 1 040 | 105 | (362) | (380) | 403 |
|
Analysis of the ARM Ferrous segment |
|
1Includes consolidation and IFRS 11 Joint arrangements adjustments. |
|
Refer note 2.1 and note 6 for more detail on the ARM Ferrous segment. |
| 1Includes consolidation and IFRS 11 Joint arrangements adjustments. |
|
Refer note 2.2 and note 6 for more detail on the ARM Ferrous segment. |
| 1Includes consolidation and IFRS 11 Joint arrangements adjustments. |
|
Refer note 2.2 and note 6 for more detail on the ARM Ferrous segment. |
ARM Corporate, as presented in the table above, is analysed further into ARM Corporate and other, gold and Machadodorp.
| Attributable | Machadodorp Works Rm |
Corporate and other Rm |
Gold Rm |
Total ARM Corporate Rm |
|
| 2.10 | Six months ended 31 December 2024 (Unaudited) | ||||
| Cost of sales | – | 39 | 39 | ||
| Other operating income | 2 | 657 | 659 | ||
| Insurance revenue | – | 24 | 24 | ||
| Other operating expenses | (67) | (601) | (668) | ||
| Insurance service expenses | – | (141) | (141) | ||
| Net income from reinsurance contracts held | – | 98 | 98 | ||
| Segment result | (65) | 76 | 11 | ||
| Income from investments | – | 328 | 70 | 398 | |
| Finance cost | (1) | (20) | (21) | ||
| Net finance expenses from insurance contracts held | – | (8) | (8) | ||
| Net finance expenses from reinsurance contracts held | – | (23) | (23) | ||
| Capital items before tax (refer note 13) | 1 | – | 1 | ||
| Taxation | 22 | (232) | (210) | ||
| (Loss)/profit after tax | (43) | 121 | 70 | 148 | |
| Non-controlling interest | – | – | – | ||
| Consolidation adjustment1 | – | (1) | (1) | ||
| Contribution to basic (losses)/earnings | (43) | 120 | 70 | 147 | |
| Contribution to headline (losses)/earnings | (44) | 120 | 70 | 146 | |
| Other information | |||||
| Segment assets | 113 | 8 772 | 11 251 | 20 136 | |
| Segment liabilities | 195 | 1 853 | 2 048 | ||
| Cash (outflow)/inflow from operating activities | (98) | 1 086 | 70 | 1 058 | |
| Cash inflow from investing activities | – | 420 | 420 | ||
| Cash outflow from financing activities | – | (68) | (68) | ||
| Capital expenditure | – | 11 | 11 | ||
| Amortisation and depreciation | – | 3 | 3 | ||
| Fees received | 691 | 691 | |||
| EBITDA | (65) | 79 | 14 |
1Relates to fees capitalised in ARM Ferrous and reversed on consolidation. |
1Relates to fees capitalised in ARM Ferrous and reversed on consolidation. |
| Attributable | Machadodorp Works Rm |
Corporate and other Rm |
Gold Rm |
Total ARM Corporate Rm |
|
| 2.12 | 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 expenses | – | (6) | (6) | ||
| Net expenses from reinsurance contracts held | – | (25) | (25) | ||
| Segment result | (290) | 284 | (6) | ||
| Income from investments | – | 675 | 166 | 841 | |
| Finance cost | (25) | 121 | 96 | ||
| Net finance expenses from insurance contracts held | – | (6) | (6) | ||
| Net finance expenses from reinsurance contracts held | – | (57) | (57) | ||
| Capital items before tax (refer note 13) | 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 assets | 112 | 8 584 | 12 548 | 21 244 | |
| Segment liabilities | 228 | 1 418 | 1 646 | ||
| Cash (outflow)/inflow from operating activities | (348) | 5 419 | 166 | 5 237 | |
| Cash outflow from investing activities | – | (271) | (271) | ||
| Cash outflow from financing activities | – | (126) | (126) | ||
| Capital expenditure | 2 | 12 | 14 | ||
| Amortisation and depreciation | – | 8 | 8 | ||
| Fees received | – | 1 503 | 1 503 | ||
| EBITDA | (290) | 292 | 2 |
1Relates to fees capitalised in ARM Ferrous and reversed on consolidation. |
| Unaudited six months ended 31 December 2024 Rm |
Unaudited six months ended 31 December 2023 Rm |
Audited year ended 30 June 2024 Rm |
|
| Sales | 5 706 | 5 815 | 11 418 |
|---|---|---|---|
| Made up as follows: | |||
| Local sales | 4 986 | 4 770 | 9 627 |
| Export sales | 720 | 1 045 | 1 791 |
| Revenue | 6 381 | 6 604 | 12 921 |
| Fair value adjustments to revenue | (24) | (259) | (321) |
| Revenue from contracts with customers | 6 405 | 6 863 | 13 242 |
| Sales – mining and related products | 5 907 | 6 286 | 12 108 |
| Penalty and treatment charges | (177) | (212) | (369) |
| Bokoni | (33) | (7) | (41) |
| Two Rivers | (144) | (205) | (328) |
| Fees received | 675 | 789 | 1 503 |
| Sales by geographical area: | |||
| – South Africa | 4 985 | 4 770 | 9 627 |
| – Europe | 721 | 1 045 | 1 791 |
| 5 706 | 5 815 | 11 418 |
The movements in 1H F2025 property, plant and equipment includes capital expenditure at Two Rivers of R661 million and Bokoni of R389 million. |
|
4.1 |
ARM Ferrous Property, plant and equipment Impairment Beeshoek Mine At 31 December 2024, an impairment loss of R263 million before tax of R71 million was recognised on property, plant and equipment, representing the full impairment of all the property, plant and equipment at Beeshoek Mine. ARM’s attributable share of the impairment loss amounted to R132 million before tax of R36 million (refer note 13). Due to the absence of a long-term sales contract and the significant reduction in forecasted sales volumes, management concluded that a discounted cash flow model was not required to determine the recoverable amount. This impairment was mainly due to:
At 31 December 2023, an impairment loss of R788 million before tax of R213 million was recognised on property, plant and equipment at Beeshoek Mine. ARM’s attributable share of the impairment loss amounted to R394 million before tax of R106 million (refer note 13). A nominal pre-tax South African discount rate of 31.3% was used in the 31 December 2023 impairment model. At 30 June 2024, an impairment loss of R1 158 million before tax of R313 million was recognised on property, plant and equipment at Beeshoek Mine. ARM’s attributable share of the impairment loss amounted to R579 million before tax of R157 million (refer note 13). A nominal pre-tax South African discount rate of 30.5% was used in the 30 June 2024 impairment model. Details of the impairments were included in the financial results ended 31 December 2023 and 30 June 2024, which can be found on www.arm.co.za. Cato Ridge Works At 31 December 2024, an impairment loss of R11 million before tax of R3 million was recognised on the property, plant and equipment at the Cato Ridge Works operation. Consistent with the prior year, it was determined that a discounted cash flow model was not required for this impairment due to forecasted negative cash flows. ARM’s attributable share of the impairment loss amounted to R5 million before tax of R1 million (refer note 13). At 31 December 2023, an impairment loss of R14 million before tax of R4 million was recognised on the property, plant and equipment at the Cato Ridge Works operation. It was concluded that a discounted cash flow model was not required for this impairment due to forecasted negative cash flows. ARM’s attributable share of the impairment loss amounted to R7 million before tax of R2 million (refer note 13). At 30 June 2024, an impairment loss of R79 million before tax of R21 million was recognised on the property, plant and equipment at the Cato Ridge Works operation. It was concluded that a discounted cash flow model was not required for this impairment due to forecasted negative cash flows. ARM’s attributable share of the impairment loss amounted to R40 million before tax of R11 million (refer note 13). Details of the impairments were included in the financial results ended 31 December 2023 and 30 June 2024, which can be found on www.arm.co.za. Investments Impairment 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 amounts to R36 million with no tax effect (refer note 13). This impairment arises from 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 Property, plant and equipment Impairment Two Rivers Mine At 31 December 2023, an impairment loss of R2 712 million before tax of R732 million was recognised on property, plant and equipment at Two Rivers Platinum Mine. ARM’s attributable share of the impairment loss amounted to R1 466 million before tax of R396 million (refer note 13). A nominal pre-tax South African discount rate of 23.3% was used in the 31 December 2023 impairment model. At 30 June 2024, an impairment loss of R2 782 million before tax of 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 13). The impairment value had changed from 31 December 2023 due to a reallocation of mineral rights impairment. Details of the impairment were included in the financial results ended 31 December 2023 and 30 June 2024, which can be found on www.arm.co.za. Modikwa Mine At 31 December 2023, an impairment loss of R620 million before tax of R167 million was recognised on property, plant and equipment at Modikwa Platinum Mine. ARM’s attributable share of the impairment loss amounted to R515 million before tax of R139 million (refer note 13). A nominal pre-tax South African discount rate of 21.9% was used in the 31 December 2023 impairment model. Details of the impairment were included in the financial results ended 31 December 2023 and 30 June 2024, which can be found on www.arm.co.za. |
| Unaudited six months ended 31 December 2024 Rm |
Unaudited six months ended 31 December 2023 Rm |
Audited year ended 30 June 2024 Rm |
|
| Opening balance | 1 467 | 1 847 | 1 847 |
|---|---|---|---|
| Profit from associate per statement of profit or loss | 89 | 52 | 60 |
| Dividend received (refer statement of cash flows) | – | – | (440) |
| Closing balance | 1 556 | 1 899 | 1 467 |
| Unaudited six months ended 31 December 2024 Rm |
Unaudited six months ended 31 December 2023 Rm |
Audited year ended 30 June 2024 Rm |
|
| This investment relates to ARM Ferrous and comprises Assmang as a joint venture, which includes iron ore and manganese operations. | |||
| Opening balance | 21 341 | 21 814 | 21 814 |
| Net income for the period | 1 754 | 2 527 | 4 592 |
| Income for the period1 | 1 753 | 2 533 | 4 610 |
| Consolidation adjustments | 1 | (6) | (18) |
| Foreign currency translation reserve | 76 | (20) | (65) |
| Less: dividends received for the period | (2 500) | (3 000) | (5 000) |
| Closing balance | 20 671 | 21 321 | 21 341 |
| 1 | Includes a provision for onerous contracts of R88 million (1H F2024: R117 million). |
Refer notes 2.1, 2.2, 2.3, 2.7, 2.8 and 2.9 for further detail relating to the ARM Ferrous segment. |
| Unaudited six months ended 31 December 2024 Rm |
Unaudited six months ended 31 December 2023 Rm |
Audited year ended 30 June 2024 Rm |
|
| Harmony1 | 11 251 | 8 930 | 12 548 |
|---|---|---|---|
| Opening balance | 12 548 | 5 918 | 5 918 |
| Fair value in other comprehensive income | (1 297) | 3 012 | 6 630 |
| Guardrisk2 | 8 | 47 | 46 |
| Preference shares1 | 1 | 1 | 1 |
| Richards Bay Coal Terminal3 | 172 | 189 | 185 |
| Surge Copper1 | 65 | – | 77 |
| Closing balance | 11 497 | 9 167 | 12 857 |
| 1 | This is a level 1 valuation in terms of IFRS 13. The share price of Harmony Limited at 31 December 2024 was R150.68, R119.59 at 31 December 2023 and R168.05 at 30 June 2024 per share. ARM shareholding in Harmony Limited at 31 December 2024 was 11.76% (31 December 2023: 12.04%, 30 June 2024: 11.80%). The share price of Surge Copper Corp was CAD0.12 per share translated to R13.12 at 31 December 2024 and CAD0.14 translated to R13.33 at 30 June 2024. |
| 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. |
|
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 of between R41/tonne and R47/tonne (1H F2024: between R49/tonne and R55/tonne) (F2024: between R40/tonne and R47/tonne). If increased by 10%, this would result in a R17 million (1H F2024: R19 million) (F2024: R23 million) increase in profit arising from the increase in the valuation of the RBCT investment. If decreased by 10%, this would result in a R17 million (1H F2024: R19 million) (F2024: R23 million) in loss arising from the decrease in the valuation of 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 15.1% (1H F2024: 21.6%) (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. |
| Unaudited six months ended 31 December 2024 Rm |
Unaudited six months ended 31 December 2023 Rm |
Audited year ended 30 June 2024 Rm |
|
| Opening balance | 185 | 204 | 204 |
|---|---|---|---|
| Fair value loss | (13) | (15) | (19) |
| Closing balance | 172 | 189 | 185 |
Non-current inventories related to the Two Rivers Merensky project. Stockpile quantities were determined using assumptions such as densities and grades which are based on studies, historical data and industry norms. Milling is not expected within 12 months following 31 December 2024 due to the Merensky project being placed on care and maintenance.
Certain 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. The fair value of trade and other receivables that contain provisional pricing is R3 052 million (1H F2024: R3 032 million) (F2024: R3 089 million). This is a level 2 valuation in terms of IFRS Accounting Standards.
Trade and other receivables include a contract asset from Assmang of R703 million (1H F2024: R972 million) (F2024: R690 million). The contract asset results from 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.
| Unaudited six months ended 31 December 2024 Rm |
Unaudited six months ended 31 December 2023 Rm |
Audited year ended 30 June 2024 Rm |
|
| Investments in fixed deposits | |||
| Current financial assets1 | |||
| – ARM Finance Company SA | 37 | 36 | – |
| – ARM Platinum Proprietary Limited | 2 | – | 2 |
| – Two Rivers | 34 | 31 | 32 |
| – Modikwa | – | 22 | – |
| – Nkomati | 127 | 119 | 122 |
| – Artex (previously Mannequin) Captive Cell (Cell AVL 18) (refer note 20) | 189 | 422 | 644 |
| – Other | 9 | 7 | 17 |
| 398 | 637 | 817 | |
| Non-current financial assets1 | |||
| – ARM Coal | 127 | 27 | 118 |
| – Modikwa | – | 3 | – |
| – Artex (previously Mannequin) Captive Cell (Cell AVL 18) (refer note 20) | 46 | 70 | 68 |
| – Venture Building Trust | 1 | – | 1 |
| 174 | 100 | 187 | |
| Total | 572 | 737 | 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 reinvested 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 deposits linked to the following guarantees are included in financial assets:
Other financial assets include trust funds of R9 million (1H F2024: R7 million) (F2024: R17 million).
| Unaudited six months ended 31 December 2024 Rm |
Unaudited six months ended 31 December 2023 Rm |
Audited year ended 30 June 2024 Rm |
|
| Total cash at bank and on deposit | 6 967 | 7 174 | 7 642 |
|---|---|---|---|
| – African Rainbow Minerals Limited2 | 5 964 | 5 526 | 6 110 |
| – ARM BBEE Trust | 12 | 10 | 25 |
| – ARM Coal | 58 | 39 | 51 |
| – ARM Finance Company South Africa | 1 | 2 | 38 |
| – ARM Platinum Proprietary Limited | 773 | 1 083 | 1 073 |
| – Bokoni | 41 | 63 | 221 |
| – ARM Treasury Investments Proprietary Limited | 49 | 46 | 48 |
| – Machadodorp | – | – | 2 |
| – Nkomati | 24 | 12 | 3 |
| – Two Rivers Platinum Proprietary Limited | 10 | 363 | 40 |
| – Other cash at bank and on deposit | 35 | 30 | 31 |
| Total cash set aside for specific use | 1 240 | 954 | 684 |
| – Artex (previously Mannequin) Captive Cell1 | 866 | 521 | 321 |
| – Rehabilitation trust funds1 | 63 | 57 | 82 |
| – Other cash set aside for specific use1 | 311 | 376 | 281 |
| Cash and cash equivalents per statement of financial position | 8 207 | 8 128 | 8 326 |
| Less: Overdrafts (refer note 14) | (18) | (17) | (17) |
| Cash and cash equivalents as per statement of cash flows | 8 189 | 8 111 | 8 309 |
| 1 | Cash set aside for specific use in respect of the group includes: – Artex (previously Mannequin) 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 – The trust funds of R10 million (1H F2024: R10 million) (F2024: Rnil) – African Rainbow Minerals Limited of R37 million (1H F2024: R37 million) (F2024: R37 million) – Guarantees issued by ARM Coal to DMPR amounting to Rnil (1H F2024: R85 million) (F2024: Rnil) – Guarantees issued by Bokoni to DMPR and Eskom amounting to R72 million (F2023: R68 million) – Guarantees issued by Two Rivers to DMPR, Eskom and BP Oil amounting to R4 million (1H F2024: R4 million) (F2024: R4 million) – Guarantees issued by Nkomati to DMPR and Eskom amounting to R12 million (1H F2024: R12 million) (F2024: R12 million) – Guarantees issued by Bokoni to DMPR amounting to R75 million (1H F2024: R70 million) (F2024: R72 million) – Guarantees issued by Modikwa to DMPR and Eskom amounting to R239 million (1H F2024: R215 million) (F2024: R238 million) |
| 2 | Guarantees issued by African Rainbow Minerals Limited on behalf of Nkomati to DMPR and Eskom amounting to R79 million (1H F2024: R79 million) (F2024: R79 million). |
Cash at bank and on deposit earns interest at floating rates based on daily bank deposit rates.
| Unaudited six months ended 31 December 2024 Rm |
Unaudited six months ended 31 December 2023 Rm |
Audited year ended 30 June 2024 Rm |
|
| Long-term borrowings are held as follows: | |||
| ARM BBEE Trust | 53 | 77 | 68 |
| ARM Coal Proprietary Limited | – | – | 1 |
| ARM Mining Consortium (lease liability) | 8 | 8 | 7 |
| Two Rivers Platinum Proprietary Limited (lease liability) | 74 | 72 | 76 |
| Two Rivers Platinum Proprietary Limited (long-term borrowing)1 | 1 577 | – | 479 |
| 1 712 | 157 | 631 | |
| Short-term borrowings | |||
| ARM Mining Consortium (lease liability) | 1 | – | 1 |
| ARM Coal Proprietary Limited (lease liability) | 10 | 15 | 16 |
| Two Rivers Platinum Proprietary Limited (short-term borrowing)1 | 389 | – | 460 |
| Two Rivers Platinum Proprietary Limited (lease liability) | 4 | 4 | 4 |
| 404 | 19 | 481 | |
| Overdrafts are held as follows: | |||
| – Other | 18 | 17 | 17 |
| 18 | 17 | 17 | |
| Total borrowings | 2 134 | 193 | 1 129 |
| Overdrafts and short-term borrowings | 422 | 36 | 498 |
| 1 | Two Rivers entered into a syndicated facility of R2 500 million on 29 August 2024 financed by Absa and Nedbank, consisting of a revolving credit facility of R1 250 million and a term loan of R1 250 million. |
The carrying amounts of the financial liabilities shown above approximate their fair value.
| Unaudited six months ended 31 December 2024 Rm |
Unaudited six months ended 31 December 2023 Rm |
Audited year ended 30 June 2024 Rm |
|
| Impairment loss on property, plant and equipment – Two Rivers (refer note 4.2) | – | (2 712) | (2 782) |
|---|---|---|---|
| Impairment loss on property, plant and equipment – Modikwa (refer note 4.2) | – | (620) | (620) |
| Impairment reversal on property, plant and equipment – Venture Building Trust | – | – | 4 |
| Impairment reversal on property, plant and equipment – Machadodorp | – | – | 1 |
| Profit on sale of property, plant and equipment – Machadodorp | 1 | – | – |
| Profit on sale of property, plant and equipment – ARM Coal | – | 1 | 1 |
| Capital items per statement of profit or loss before taxation effect | 1 | (3 331) | (3 396) |
| Impairment loss on investment in Sakura accounted for 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) | (137) | (401) | (618) |
| Profit/(loss) on sale of property, plant and equipment accounted for directly in joint venture – Assmang | 12 | (2) | (20) |
| Capital items before taxation effect | (160) | (3 734) | (4 034) |
| Taxation accounted for in joint venture – impairment loss of property, plant and equipment – Assmang (refer note 4.1) | 37 | 108 | 167 |
| Taxation accounted for in joint venture – (profit)/loss on sale of property, plant and equipment – Assmang | (3) | 1 | 5 |
| Taxation on impairment reversal on property, plant and equipment – Venture Building Trust | – | – | (1) |
| Taxation on impairment loss of property, plant and equipment – Two Rivers (refer note 4.2) | – | 732 | 751 |
| Taxation on impairment loss of property, plant and equipment – Modikwa (refer note 4.2) | – | 167 | 167 |
| Capital items after taxation effect before non-controlling interest | (126) | (2 726) | (2 945) |
| Attributable impairment loss for non-controlling interest on property, plant and equipment – Two Rivers | – | 910 | 934 |
| Attributable impairment loss for non-controlling interest on property, plant and equipment – Modikwa | – | 77 | 77 |
| Total amount adjusted for headline earnings | (126) | (1 739) | (1 934) |
| Unaudited six months ended 31 December 2024 Rm |
Unaudited six months ended 31 December 2023 Rm |
Audited year ended 30 June 2024 Rm |
|
| Headline earnings (R million) | 1 520 | 2 955 | 5 080 |
|---|---|---|---|
| Headline earnings per share (cents) | 775 | 1 507 | 2 591 |
| Basic earnings per share (cents) | 711 | 620 | 1 604 |
| Diluted headline earnings per share (cents) | 774 | 1 506 | 2 589 |
| Diluted basic earnings per share (cents) | 709 | 620 | 1 603 |
| Number of shares in issue at end of the period (thousands) | 224 668 | 224 668 | 224 668 |
| Weighted average number of shares (thousands) | 196 053 | 196 053 | 196 053 |
| Potential ordinary shares due to long-term share incentives granted (thousands) | – | – | 145 |
| Weighted average number of shares used in calculating diluted earnings per share (thousands) | 196 480 | 196 194 | 196 198 |
| Net asset value per share (cents) | 23 436 | 22 418 | 24 038 |
| EBITDA (R million) | 70 | 781 | 1 049 |
| Interim dividend declared (cents per share) | 450 | 600 | 600 |
| Final dividend declared (cents per share) | – | – | 900 |
| Reconciliation to headline earnings | |||
| Basic earnings attributable to equity holders of ARM | 1 394 | 1 216 | 3 146 |
| – Impairment loss on property, plant and equipment – Two Rivers (refer note 4.2) | – | 2 712 | 2 782 |
| – Impairment loss on property, plant and equipment – Modikwa (refer note 4.2) | – | 620 | 620 |
| – Impairment reversal on property, plant and equipment – Venture Building Trust | – | – | (4) |
| – Impairment reversal on property, plant and equipment – Machadodorp | – | – | (1) |
| – Profit on sale of property, plant and equipment – Machadodorp | (1) | – | – |
| – Profit on sale of property, plant and equipment – ARM Coal | – | (1) | (1) |
| – Impairment loss of property, plant and equipment in joint venture – Assmang (refer note 4.1) | 137 | 401 | 618 |
| – (Profit)/loss on sale of property, plant and equipment accounted for directly in joint venture – Assmang | (12) | 2 | 20 |
| – Impairment loss on investment in Sakura in joint venture – Assmang (refer note 4.1) | 36 | – | – |
| 1 554 | 4 950 | 7 180 | |
| – Taxation accounted for in joint venture – impairment loss at Assmang | (37) | (108) | (167) |
| – Taxation accounted for in joint venture – profit/(loss) on disposal of fixed assets at Assmang | 3 | (1) | (5) |
| – Taxation on impairment reversal on property, plant and equipment – Venture Building Trust | – | – | 1 |
| – Taxation on impairment loss of property, plant and equipment – Two Rivers (refer note 4.2) | – | (732) | (751) |
| – Taxation on impairment loss of property, plant and equipment – Modikwa (refer note 4.2) | – | (167) | (167) |
| – Attributable impairment loss for non-controlling interest on property, plant and equipment – Two Rivers | – | (910) | (934) |
| – Attributable impairment loss for non-controlling interest on property, plant and equipment – Modikwa | – | (77) | (77) |
| Headline earnings | 1 520 | 2 955 | 5 080 |
| Unaudited six months ended 31 December 2024 Rm |
Unaudited six months ended 31 December 2023 Rm |
Audited year ended 30 June 2024 Rm |
||
| 15.1 | Disclosure of reconciliation of changes in insurance contracts | |||
| Net opening balance | (28) | (73) | (73) | |
| Insurance revenue | 24 | 22 | 45 | |
| Insurance service (expenses)/income | (141) | 38 | (6) | |
| Net finance expenses from insurance contracts | (8) | (6) | (6) | |
| Total cash flows | 3 | (9) | 12 | |
| Net closing balance | (150) | (28) | (28) | |
| Current asset: insurance contract asset (per statement of financial position) | 27 | – | 21 | |
| Non-current liabilities: insurance contract liabilities (per statement of financial position) | (119) | – | (33) | |
| Current liabilities: insurance contract liabilities (per statement of financial position) | (58) | (28) | (16) | |
| Net closing balance | (150) | (28) | (28) | |
| 15.2 | Disclosure of reconciliation of changes in reinsurance contracts | |||
| Net opening balance | (826) | (713) | (713) | |
| Net income/(expenses) from reinsurance contracts held | 98 | (58) | (25) | |
| Net finance expenses from reinsurance contracts | (23) | (28) | (57) | |
| Total cash flows | 34 | 9 | (31) | |
| Net closing balance | (717) | (790) | (826) | |
| Non-current asset: reinsurance contract asset (per statement of financial position) | 119 | – | 16 | |
| Current asset: reinsurance contract asset (per statement of financial position) | 58 | – | 8 | |
| Current liabilities: reinsurance contract liabilities (per statement of financial position) | (894) | (790) | (850) | |
| Net closing balance | (717) | (790) | (826) |
| Unaudited six months ended 31 December 2024 Rm |
Unaudited six months ended 31 December 2023 Rm |
Audited year ended 30 June 2024 Rm |
|
| South African normal taxation – current year | 233 | 188 | 497 |
|---|---|---|---|
– mining |
25 | 63 | 71 |
– non-mining |
208 | 125 | 426 |
– prior year |
– | – | (18) |
| Deferred taxation | 24 | (713) | (575) |
| Total taxation charge per statement of profit or loss | 257 | (525) | (96) |
| Unaudited six months ended 31 December 2024 Rm |
Unaudited six months ended 31 December 2023 Rm |
Audited year ended 30 June 2024 Rm |
|
| Cash generated from operations before working capital movement | 500 | 1 235 | 1 901 |
|---|---|---|---|
| Working capital outflow | (1 598) | (786) | (130) |
| Movement in inventories inflow/(outflow) | 41 | (242) | (237) |
| Movement in payables and provisions outflow | (1 206) | (407) | (223) |
| Movement in receivables (outflow)/inflow | (420) | (161) | 378 |
| Movement in insurance contract assets/liabilities and reinsurance contract assets/liabilities – (outflow)/inflow | (13) | 24 | (48) |
| Cash (utilised)/generated from operations (per statement of cash flows) | (1 098) | 449 | 1 771 |
| Unaudited six months ended 31 December 2024 Rm |
Unaudited six months ended 31 December 2023 Rm |
Audited year ended 30 June 2024 Rm |
|
| Commitments in respect of future capital expenditure, which will be funded from operating cash flows and by utilising debt facilities at entity and corporate levels, are summarised below: | |||
| Approved by directors | |||
| – contracted for | 600 | 2 056 | 1 080 |
| – not contracted for | 20 | 13 | 284 |
| Total commitments | 620 | 2 069 | 1 364 |
Nkomati rehabilitation included in (contracted for) R101 million (1H F2024: Rnil), (F2024: R172 million (not contracted for)).
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.
| Unaudited six months ended 31 December 2024 Rm |
Unaudited six months ended 31 December 2023 Rm |
Audited year ended 30 June 2024 Rm |
|
| Amounts accounted in the statement of profit or loss relating to transactions with related parties | |||
| Subsidiaries | |||
| Impala Platinum – sales1 | 3 062 | 3 047 | 5 914 |
| Rustenburg Platinum Mines – sales2 | 1 395 | 1 492 | 2 833 |
| Joint operations | |||
| Glencore International AG – sales | 721 | 1 045 | 1 791 |
| Glencore Operations SA – management fees | 58 | 45 | 102 |
| Joint venture | |||
| Assmang Proprietary Limited | |||
| – Management fees | 674 | 789 | 1 502 |
| – Dividends received | 2 500 | 3 000 | 5 000 |
| Amounts outstanding at year end receivable by ARM on current account | |||
| Joint venture | |||
| Assmang – trade and other receivables | 703 | 971 | 345 |
| Joint operations | |||
| Rustenburg Platinum Mines – trade and other receivables2 | 847 | 795 | 1 180 |
| Glencore Operations SA – trade and other receivables | 648 | 636 | 612 |
| Glencore International AG – trade and other receivables | 111 | 152 | 94 |
| Subsidiary | |||
| Impala Platinum – trade and other receivables | 1 905 | 1 979 | 1 909 |
1Two Rivers Platinum is a subsidiary of ARM. Impala Platinum owns 46% of Two Rivers Platinum. The transactions between Impala and Two Rivers are considered related-party transactions.
2These 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.
| Unaudited six months ended 31 December 2024 Rm |
Unaudited six months ended 31 December 2023 Rm |
Audited year ended 30 June 2024 Rm |
||
| 20.1 | Nkomati restoration and decommissioning provision | |||
| Long-term provisions | ||||
| Opening balance | 720 | 777 | 777 | |
| Provision for the period | – | – | 302 | |
| Transfer to short-term provisions | 67 | (35) | (375) | |
| Unwinding of discount rate | 33 | 37 | 16 | |
| Closing balance | 820 | 779 | 720 | |
| Short-term provision | ||||
| Opening balance | 399 | 25 | 25 | |
| Transfer to short-term provisions | (67) | 35 | 375 | |
| Settlement payments | (11) | (3) | (1) | |
| Closing balance | 321 | 57 | 399 | |
| Total Nkomati restoration and decommissioning provision | 1 141 | 836 | 1 119 | |
| 20.2 | Silicosis and tuberculosis class action provision | |||
| Long-term provision | ||||
| The provision movement is as follows: | ||||
| Opening balance | 64 | 67 | 67 | |
| Interest unwinding | 4 | 3 | 6 | |
| Demographic assumption changes | 9 | – | 3 | |
| Transfer from short-term provisions | (29) | (2) | (12) | |
| Closing balance | 48 | 68 | 64 | |
| Short-term provision | ||||
| The provision movement is as follows: | ||||
| Opening balance | 14 | 6 | 6 | |
| Settlement payments | (4) | – | (4) | |
| Transfer to long-term provisions | 29 | 2 | 12 | |
| Closing balance | 39 | 8 | 14 | |
| Total silicosis and tuberculosis class action provision | 87 | 76 | 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 captive cell 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. |
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 a strong emphasis on accountability and disclosure.
ICMM members have committed that all tailings storage facilities (TSF) 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 TSF and the GISTM requirements. The mine commenced with sampling and laboratory testing work during F2022.
As at 31 December 2024, 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 second half of F2025.
Disputes
Modikwa
In June 2021, Nkwe Platinum Mine Limited (Nkwe) and Genorah Resources (Pty) Ltd (Genorah) invaded the Modikwa Platinum Mine mining area by constructing mining-related infrastructure on the surface of Maandagshoek Farm. Pursuant to the invasion, the 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.
ARM
Following the court's dismissal of the plaintiff's action on 9 May 2023, Pula Group LLC and Pula Graphite Partners Tanzania Limited (Pula Group) have again served ARM and other defendants (defendants) with summons in terms of which Pula Group is claiming damages in the amount of US$195 000 000 against the defendants, who includes African Rainbow Minerals Limited (ARM), arising out of a breach of an alleged confidentiality agreement. The summons was served on 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 opposing affidavits. The applicants must file their replying affidavits by 21 July 2025.
There have been no other significant changes in the contingent liabilities and disputes of the group as disclosed since the 30 June 2024 annual financial statements.
For a detailed disclosure on contingent liabilities and disputes, refer to ARM's annual financial statements for the year ended 30 June 2024, available on the group's website: www.arm.co.za.
Since the period end, Assmang declared an attributable dividend of R2 000 million to ARM.
Since the period end, ARM received a dividend of R462 million from ARM Coal.
Harmony declared an interim dividend of 227 cents per share. At 31 December 2024 and at the date of this report, ARM owned 74 665 545 Harmony shares.
The Competition Tribunal and DMPR (section 11) unconditionally approved the transaction between ARM and Norilsk Nickel Africa Proprietary Limited (Norilsk) in terms of which ARM is acquiring Norilsk's participation interest in the Nkomati Joint Venture. Other outstanding conditions precedent relating to the transaction are still to be fulfilled.
Due to continued low commodity prices, a decision was made to reduce the high-cost mechanised development in order to minimise cash flow losses of Bokoni. Bokoni is contemplating reducing its headcount in line with the reduction of the mechanised development.
On 4 February 2025, Bokoni issued a notice in terms of section 189(3) of the Labour Relations Act 66 of 1995, as amended (LRA), inviting the employees' representative unions to consult with Bokoni on the contemplated restructuring. The consultation is still in progress, as such a reasonable estimate of the cost of restructuring cannot yet be determined.
The fair value of Bokoni is not expected to be materially impacted by the pending reduction of the mechanised development and headcount.
No other significant events have occurred subsequent to the reporting date that could materially affect the reported results.