Overdrafts and short-term borrowings - interest bearing
23
14
40
57
- non interest bearing
23
14
139
307
3 298
3 357
Total equity and liabilities
59 171
53 089
Statement of profit or loss
CONDENSED GROUP STATEMENT OF PROFIT OR LOSS
Page 2
for the year ended 30 June
Group
F2022
F2021
Notes
Notes
Rm
Rm
Revenue
26
3
18 406
21 457
Sales
26
3
16 917
19 657
Cost of sales
27
(7 660)
(7 900)
Gross profit
9 257
11 757
Other operating income
28
16
1 983
2 378
Other operating expenses
29
17
(3 239)
(2 717)
Profit from operations before capital items
8 001
11 418
Income from investments
30
685
487
Finance costs
31
( 290)
(329)
Income / (loss) from associate
9
18
927
( 260)
Income from joint venture
10
7
6 649
7 498
Profit before taxation and capital items
15 972
18 814
Capital items before tax
32
8
1 128
( 9)
Profit before taxation
17 100
18 805
Taxation
33
19
(2 736)
(3 333)
Profit for the year
14 364
15 472
Attributable to :
Equity holders of ARM
Profit for the year
12 426
12 626
Basic earnings for the year
12 426
12 626
Non-controlling interest
Profit for the year
1 938
2 846
1 938
2 846
Profit for the year
14 364
15 472
Earnings per share
Basic earnings per share (cents)
34
9
6 343
6 464
Diluted basic earnings per share (cents)
34
9
6 338
6 399
Stat of comp inc
CONDENSED GROUP STATEMENT OF COMPREHENSIVE INCOME
Page 3
for the year ended 30 June
Notes
Financial instruments at fair value through other comprehensive income
Other
Retained earnings
Total Shareholders of ARM
Non-controlling interest
Total
Rm
Rm
Rm
Rm
Rm
Rm
For the year ended 30 June 2021
Profit for the year to 30 June 2021
- 0
- 0
12 626
12 626
2 846
15 472
Other comprehensive income that will not be reclassified to
the statement of profit or loss in subsequent periods
Net impact of revaluation of listed investment
(1,107)
- 0
- 0
(1,107)
- 0
(1,107)
Revaluation of listed investment ¹
11
(1 426)
- 0
- 0
(1 426)
- 0
(1 426)
Deferred tax on above
19
319
- 0
- 0
319
- 0
319
Other comprehensive income that may be reclassified to
the statement of profit or loss in subsequent periods
Foreign currency translation reserve movement
-0
( 161)
- 0
( 161)
- 0
( 161)
Total other comprehensive loss
(1 107)
( 161)
- 0
(1 268)
- 0
(1 268)
Total comprehensive (loss) / income for the year
(1 107)
( 161)
12 626
11 358
2 846
14 204
For the year ended 30 June 2022
Profit for the year to 30 June 2022
-0
-0
12 426
12 426
1 938
14 364
Other comprehensive income that will not be reclassified to
the statement of profit or loss in subsequent periods
Net impact of revaluation of listed investment
( 49)
-0
-0
( 49)
-0
( 49)
Revaluation of listed investment ¹
11
( 59)
-0
-0
( 59)
-0
( 59)
Deferred tax on above
19
10
-0
-0
10
-0
10
Other comprehensive income that may be reclassified to
the statement of profit or loss in subsequent periods
Foreign currency translation reserve movement
-0
97
-0
97
-0
97
Total other comprehensive (loss)/income
( 49)
97
-0
48
-0
48
Total comprehensive (loss)/income for the year
( 49)
97
12 426
12 474
1 938
14 412
¹The share price of Harmony decreased from R52.76 per share at 30 June 2021 to R51.97 at 30 June 2022 and decreased from R71.86 at 30 June 2020
to R52.76 per share at 30 June 2021. The valuation of the investment in Harmony is based on a level 1 fair value hierarchy level in terms of International
Financial Reporting Standards (IFRS).
Equity
CONDENSED GROUP STATEMENT OF CHANGES IN EQUITY
Page 4
for the year ended 30 June
Other reserves
Share capital and premium
Treasury shares
Financial instruments at fair value through other comprehensive income
Share-based payments
Other¹
Retained earnings
Total Shareholders of ARM
Non-controlling interest
Total
Notes
Rm
Rm
Rm
Rm
Rm
Rm
Rm
Rm
Rm
Balance at 30 June 2020
4 961
(2 405)
3 344
884
139
25 157
32 080
2 028
34 108
Total comprehensive (loss) / income for the year
-0
-0
(1 107)
-0
( 161)
12 626
11 358
2 846
14 204
Profit for the year to 30 June 2021
-0
-0
-0
-0
-0
12 626
12 626
2 846
15 472
Other comprehensive loss
-0
-0
(1 107)
-0
( 161)
-0
(1 268)
-0
(1 268)
Bonus and performance shares issued to employees
16
262
-0
-0
(332)
-0
-0
( 70)
-0
( 70)
Dividend paid ²
34
-0
-0
-0
-0
-0
(3 322)
(3 322)
-0
(3 322)
Dividend declared to non-controlling interests ³
-0
-0
-0
-0
-0
-0
-0
(1,292)
(1 292)
Share-based payments expense
-0
-0
-0
148
-0
-0
148
-0
148
Balance at 30 June 2021
5 223
(2 405)
2 237
700
( 22)
34 461
40 194
3 582
43 776
Total comprehensive (loss) / income for the year
-0
-0
( 49)
-0
97
12 426
12 474
1 938
14 412
Profit for the year to 30 June 2022
-0
-0
-0
-0
-0
12 426
12 426
1 938
14 364
Other comprehensive (loss) / income
-0
-0
( 49)
-0
97
-0
48
-0
48
Bonus and performance shares issued to employees
16
55
-0
-0
(470)
-0
-0
( 415)
-0
( 415)
Dividend paid ²
34
-0
-0
-0
-0
-0
(6 270)
(6 270)
-0
(6 270)
Dividend declared to non-controlling interests ³
-0
-0
-0
-0
-0
-0
- 0
(1,315)
(1,315)
Share-based payments expense
-0
-0
-0
175
-0
-0
175
-0
175
Balance at 30 June 2022
5 278
(2 405)
2 188
405
75
40 617
46 158
4 205
50 363
¹ Other reserves consist of the following:
F2022
F2021
F2020
Rm
Rm
Rm
Dilution in Two Rivers
(26)
(26)
(26)
Foreign currency translation reserve - Assmang
120
62
167
Foreign currency translation reserve - other entities
52
13
69
Capital redemption and prospecting loans written off
28
28
28
Tamboti assets sale to Two Rivers
(99)
(99)
(99)
Total
75
(22)
139
² Interim dividend paid of 1200 cents (F2021: 1000 cents) per share and final dividend paid of 2000 cents (F2021: 700 cents) per share.
³ Dividends to Impala Platinum and Modikwa non-controlling interests.
Cash Flow
CONDENSED GROUP STATEMENT OF CASH FLOWS
Page 5
for the year ended 30 June
Group
Notes
Notes
F2022
F2021
Rm
Rm
CASH FLOW FROM OPERATING ACTIVITIES
Cash receipts from customers
18 128
17 189
Cash paid to suppliers and employees
(9 620)
(9 387)
Cash generated from operations
36
20
8 508
7 802
Interest received
601
358
Interest paid
( 46)
(45)
Taxation paid
37
(2 303)
(2,291)
6 760
5 824
Dividends received from joint venture
10
7
5 500
4 000
Dividends received from investments - Harmony
50
82
Dividend paid to non-controlling interests
(1 247)
(1,219)
Dividend paid to shareholders
34
(6 270)
(3,322)
Net cash inflow from operating activities
4 793
5 365
0
CASH FLOW FROM INVESTING ACTIVITIES
0
Additions to property, plant and equipment to maintain operations
(1 739)
(1,224)
Additions to property, plant and equipment to expand operations
( 463)
(433)
Proceeds on disposal of property, plant and equipment
6
3
Investments in financial assets
8+14
( 819)
( 308)
Proceeds from financial assets matured
523
1,124
Net cash outflow from investing activities
(2 492)
( 838)
CASH FLOW FROM FINANCING ACTIVITIES
0
Proceeds from exercise of share options
7
44
Cash payments to owners to acquire the entity's shares
( 225)
- 0
Long-term borrowings raised
-0
264
Long-term borrowings repaid
( 95)
( 461)
Short-term borrowings repaid
( 14)
(187)
Net cash outflow from financing activities
( 327)
(340)
Net increase in cash and cash equivalents
1 974
4 187
Cash and cash equivalents at beginning of year
9 655
5 512
Net foreign exchange difference
14
( 44)
Cash and cash equivalents at end of year
15
11 643
9 655
Made up as follows:
-0
- Available
15
13
11 053
8 849
- Cash set aside for specific use
15
13
590
806
11 643
9 655
Overdrafts
14
16
16
Cash and cash equivalents per statement of financial position
11 659
9 671
Cash generated from operations per share (cents)
34
4 343
3 994
PR Notes
Notes to the condensed group financial statements
Page 6
for the year ended 30 June 2022 (Reviewed)
1
STATEMENT OF COMPLIANCE
The condensed group provisional results for the financial year under review have been prepared in accordance with the framework concepts and the
measurement and recognition requirements of International Financial Reporting Standards (IFRS), the South African Institute of Chartered Accountants
(SAICA) Financial Reporting Guides as issued by the Accounting Practices Committee and Financial Pronouncements as issued by the Financial
Reporting Standards Council and contains the information required by IAS 34 - Interim Financial Reporting, requirements of the South African
Companies Act and the Listings Requirements of the Johannesburg Stock Exchange (JSE) Limited.
BASIS OF PREPARATION
The condensed group provisional results for the financial year under review have been prepared under the supervision of the Finance Director
Ms TTA Mhlanga CA(SA). The condensed group provisional results 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 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 not adopted any new and/or revised standards and interpretations issued by the International Accounting Standards
Board (IASB).
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
IFRS 3
Business Combinations - Amendments
1 January 2022
IAS 16
Property, Plant and Equipment - Amendments
1 January 2022
IAS 37
Provisions, Contingent Liabilities and Contingent Assets - Amendments
1 January 2022
IFRS 9
Financial instruments - Amendments
1 January 2022
IFRS 17
Insurance Contracts
1 January 2023
IAS 1
Presentation of financial statements - Amendments
1 January 2023
IAS 8
Accounting Policies, Changes in Accounting Estimates and Errors - Amendments
1 January 2023
IAS 12
Income Taxes - Amendments
1 January 2023
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
Group financial statements.
Segmental 2022
Page 7
NOTES TO THE CONDENSED GROUP FINANCIAL STATEMENTS
for the year ended 30 June
2
PRIMARY SEGMENTAL INFORMATION
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.
Machadodorp Works, Corporate and other and Gold are included in ARM Corporate.
ARM has a strategic holding in Harmony (gold) of 14.6 % (F2015: 14.6%) .
Platinum comprises Two Rivers Platinum Mine as a 51 % (F2015 : 55% ) subsidiary and ARM Mining Consortium Limited through which ARM holds an effective
41.5 % interest in the Modikwa Platinum Mine.
Nickel comprises Nkomati Mine as a 50 % joint operation for both its nickel and chrome operations. In the corporate structure Nickel
is included under ARM Platinum.
ARM Ferrous comprises Assmang as a 50 % joint venture . Assmang comprises iron ore, manganese and chrome operations.
Sakura Ferroalloys and Cato Ridge Alloys are included in Assmang as joint ventures.
ARM Coal, a 51 % joint operation comprises a 10.2 % participating investment in the existing coal operations of GOSA
( the participating coal business or PCB ) and a 26 % joint operation interest in the Goedgevonden Mine (GGV) . In addition, ARM has a direct 10 %
participating investment in the PCB.
ARM Copper comprises an effective 40% share in the Lubambe Copper Mine through the Vale /ARM joint operation.
ARM Exploration is involved in identifying and assessing exploration and mineral business opportunities largely in sub-Saharan Africa.
The commodity groupings predominantly reflect the risks and rewards of trading and the operating divisions
are therefore identified as the reporting segments.
Total per
IFRS
IFRS
ARM
ARM
ARM
ARM
Adjust
financial
Platinum
Ferrous¹
Coal
Corporate
Total
ment²
statements
Attributable
Rm
Rm
Rm
Rm
Rm
Rm
Rm
2.1
Year to 30 June 2022 (Reviewed)
Sales
13 960
21 291
2 821
136
38 208
(21 291)
16 917
Cost of sales
(6 246)
(11 988)
(1 303)
( 61)
(19 598)
11 938
(7 660)
Other operating income³
217
240
84
1 577
2 118
( 135)
1 983
Other operating expenses³
(1 087)
(1 692)
(1 025)
(1 127)
(4 931)
1 692
(3 239)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Segment result
6 844
7 851
577
525
15 797
(7 796)
8 001
Income from investments
171
285
11
503
970
( 285)
685
Finance cost
( 84)
( 34)
( 159)
( 47)
( 324)
34
( 290)
Income from associate⁴
-0
-0
927
-0
927
-
927
Income from joint venture
-0
728
-0
-0
728
5 921
6 649
Capital items before tax (refer note 8)
-0
( 45)
382
746
1 083
45
1 128
Taxation
(1 929)
(2 096)
( 435)
( 357)
(4 817)
2 081
(2 736)
Profit after tax
5 002
6 689
1 303
1 370
14 364
-
14 364
Non-controlling interest
(1 936)
-0
-0
( 2)
(1 938)
-
(1 938)
Consolidation adjustment⁵
-0
( 40)
-0
40
-
-
-
Contribution to basic earnings
3 066
6 649
1 303
1,408
12 426
-
12 426
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Contribution to headline earnings
3 066
6 682
928
662
11 338
-
11 338
Other information
Segment assets, including investment in associate
16 063
28 252
5 448
15 516
65 279
(6 108)
59 171
Investment in associate
2 048
2 048
2 048
Investment in joint venture
22 145
22 145
Segment liabilities
2 671
2 488
676
1 980
7 815
(2 488)
5 327
Unallocated liabilities (tax and deferred tax)
7 101
(3 620)
3 481
Consolidated total liabilities
14 916
(6 108)
8 808
Cash generated from operations
8 333
10 836
( 46)
221
19 344
(10 836)
8 508
Cash inflow / (outflow) from operating activities
5 524
9 172
( 230)
( 501)
13 965
(9 172)
4 793
Cash outflow from investing activities
(1 911)
(2 415)
( 125)
( 456)
(4 907)
2 415
(2 492)
Cash outflow from financing activities
( 34)
( 14)
( 1)
( 292)
( 341)
14
( 327)
-
-
-
-
-
-
-
Capital expenditure
2 159
2 450
110
8
4 727
(2 450)
2 277
Amortisation and depreciation
651
1 189
190
12
2 042
(1 189)
853
-
-
-
-
-
-
-
Impairment / (impairment reversal) before tax
-0
20
( 378)
( 746)
(1 104)
( 20)
(1 124)
-
-
-
-
-
-
-
EBITDA
7 495
9 040
767
537
17 839
(8 985)
8 854
There were no significant inter-company sales.
Segment results take into account inter-company eliminations with the exception of inter-company re-measurements.
¹ Refer to ARM Ferrous segment note 2.4 and note 7 for more detail.
² Includes IFRS 11 - Joint Arrangements - adjustments related to ARM Ferrous and other consolidation adjustments.
³ The net re-measurement of the ARM Coal loans amounts to R323 million loss with no tax effect.
The re-measurement adjustment of the Harmony loan amounts to R5 million gain with no tax effect.
⁴ The re-measurement of the ARM Coal loans amounts to R490 million loss with no tax effect.
⁵ Relates to fees capitalised in ARM Ferrous and reversed upon consolidation.
Segmental 2021
NOTES TO THE CONDENSED GROUP FINANCIAL STATEMENTS
Page 8
for the year ended 30 June
Total per
IFRS
IFRS
ARM
ARM
ARM
ARM
Adjust
financial
Platinum
Ferrous¹
Coal
Corporate
Total
ment²
statements
Attributable
Rm
Rm
Rm
Rm
Rm
Rm
Rm
2.2
Year to 30 June 2021 (Audited)
Sales
18 463
24 907
1 058
136
44 564
(24 907)
19 657
-
Cost of sales
(6 687)
(11 046)
(1 078)
( 93)
(18 904)
11 004
(7 900)
Other operating income³
293
81
236
1 747
2 357
21
2 378
Other operating expenses ³
(1,611)
(2 914)
( 50)
(1 056)
(5 631)
2 914
(2 717)
Segment result
10 458
11 028
166
734
22 386
(10 968)
11 418
Income from investments
72
245
11
404
732
( 245)
487
Finance cost
(95)
(37)
(175)
(59)
( 366)
37
( 329)
Loss from associate⁴
-
-
( 260)
-
( 260)
-
( 260)
Loss from joint venture
-
( 3)
-
-
( 3)
7,501
7 498
Capital items before tax (refer note 8)
-
(502)
-
(9)
( 511)
502
( 9)
Taxation
(2,925)
(3,190)
8
(399)
(6 506)
3 173
(3 333)
Profit / (loss) after tax
7,510
7 541
( 250)
671
15 472
-
15 472
Non-controlling interest
(2,844)
-
-
( 2)
(2 846)
-
(2 846)
Consolidation adjustment⁵
-
( 43)
-
43
-
-
-
Contribution to basic earnings / (losses)
4 666
7 498
( 250)
712
12 626
-
12 626
Contribution to headline earnings / (losses)
4 666
7 927
( 250)
721
13 064
-
13 064
Other information
Segment assets, including investment in associate
14 403
27 441
3 085
14 663
59 592
(6 503)
53 089
Investment in associate
534
534
- 0
534
Investment in joint venture
20 938
20 938
Segment liabilities
2 644
2 997
1 847
1 699
9 187
(2 997)
6 190
Unallocated liabilities (tax and deferred tax)
6 629
(3 506)
3 123
Consolidated total liabilities
15 816
(6 503)
9 313
Cash generated from operations
7 758
9 836
197
( 153)
17 638
(9 836)
7 802
Cash inflow / (outflow) from operating activities
4 742
7 255
199
(3 576)
8 620
(3 255)
5 365
Cash (outflow) / inflow from investing activities
(1,562)
(2 345)
(193)
917
(3 183)
2 345
( 838)
Cash outflow from financing activities
(313)
(19)
(10)
( 17)
( 359)
19
( 340)
Capital expenditure
1 611
2 221
263
10
4 105
(2 221)
1 884
Amortisation and depreciation
619
1 126
182
8
1 935
(1 126)
809
Impairment before tax
-
500
-
9
509
( 500)
9
EBITDA
11 077
12 154
348
742
24 321
(12 094)
12 227
There were no significant inter-company sales.
Segment results take into account inter-company eliminations with the exception of inter-company re-measurements.
¹ Refer to ARM Ferrous segment note 2.4 and note 7 for more detail.
² Includes IFRS 11 - Joint Arrangements - adjustments related to ARM Ferrous .
³ The re-measurement of the ARM Coal loans amounts to R53 million gain with no tax effect.
The re-measurement of the Modikwa loans amounts to R6 million loss with no tax effect.
The fair value adjustment of the Harmony loan amounts to R47 million gain with no tax effect.
⁴ The re-measurement of the ARM Coal loans amounts to a gain of R36 million with no tax effect.
⁵ Relates to fees capitalised in ARM Ferrous and reversed upon consolidation.
Platinum
NOTES TO THE CONDENSED GROUP FINANCIAL STATEMENTS
Page 9
for the year ended 30 June
The ARM Platinum segment is analysed further into Two Rivers Platinum Mine, ARM Mining Consortium (which includes
Modikwa Platinum Mine) and Nkomati Nickel Mine.
ARM
Platinum
Nkomati ¹
Two Rivers
Modikwa
Total
Attributable
Rm
Rm
Rm
Rm
2.3
Year to 30 June 2022 (Reviewed)
External sales
( 18)
9 416
4 562
13 960
-
Cost of sales
-0
(3 927)
(2 319)
(6 246)
Other operating income
4
91
122
217
Other operating expenses
( 136)
( 651)
( 300)
(1 087)
-
-
-
-
-
-
-
-
Segment result
( 150)
4 929
2 065
6 844
-
-
-
-
Income from investments
8
97
66
171
Finance cost
( 28)
( 41)
( 15)
( 84)
Capital items (refer note 8)
2
( 2)
-0
-
Taxation
( 2)
(1 341)
( 586)
(1 929)
(Loss) / profit after tax
( 170)
3 642
1 530
5 002
Non-controlling interest
-
(1 676)
( 260)
(1 936)
-
-
-
-
Contribution to basic (losses) / earnings
( 170)
1,966
1,270
3,066
-
-
-
-
Contribution to headline (losses) / earnings
(172)
1 968
1 270
3 066
Other information
Segment and consolidated assets
187
11 117
4 759
16 063
Segment liabilities
756
1 256
659
2 671
Unallocated liabilities (tax and deferred tax)
2 514
Consolidated total liabilities
5 185
Cash generated from operations
( 38)
5 862
2 509
8 333
Cash (outflow) / inflow from operating activities
( 30)
3 805
1 749
5 524
Cash outflow from investing activities
( 51)
(1 711)
( 149)
(1 911)
Cash outflow from financing activities
-0
( 4)
( 30)
( 34)
Capital expenditure
-
1 806
353
2 159
Amortisation and depreciation
-
500
151
651
EBITDA
( 150)
5 429
2 216
7 495
¹ Nkomati ceased mining operations on 14 March 2021. The mine is currently under care and maintenance.
Year to 30 June 2021 (Audited)
External sales
1,547
11 992
4 924
18 463
Cost of sales
(1 230)
(3 533)
(1 924)
(6 687)
Other operating income
3
180
110
293
Other operating expenses
( 134)
( 952)
( 525)
(1 611)
Segment result
186
7 687
2 585
10 458
Income from investments
6
32
34
72
Finance cost
( 26)
( 60)
( 9)
( 95)
Taxation
( 1)
(2 156)
( 768)
(2 925)
Profit after tax
165
5 503
1 842
7 510
Non-controlling interest
-
(2 531)
( 313)
(2 844)
-
-
-
-
Contribution to basic earnings
165
2,972
1,529
4,666
-
-
-
-
Contribution to headline earnings
165
2,972
1,529
4,666
Other information
Segment and consolidated assets
284
9 709
4 410
14 403
Segment liabilities
690
1 402
552
2 644
Unallocated liabilities (tax and deferred tax)
2 388
Consolidated total liabilities
-
-
-
5 032
-
-
-
-
Cash generated from operations
115
5 878
1 765
7 758
Cash inflow from operating activities
119
3 289
1 334
4 742
Cash outflow from investing activities
( 6)
(1 182)
( 374)
(1 562)
Cash outflow from financing activities
-
( 221)
( 92)
( 313)
-
-
-
-
Capital expenditure
-
1 281
330
1 611
-
-
-
-
Amortisation and depreciation
-
488
131
619
-0
-0
-0
-
-
-
-
-
EBITDA
186
8,175
2,716
11,077
¹ Nkomati ceased mining operations on 14 March 2021. The mine is currently under care and maintenance.
Ferrous 2022
NOTES TO THE CONDENSED GROUP FINANCIAL STATEMENTS
Page 10
for the year ended 30 June
SEGMENTAL INFORMATION (Continued)
2.4
Analysis of the ARM Ferrous segment on a 100% basis
Total per
IFRS
ARM
IFRS
financial
Iron ore
Manganese
Ferrous
ARM
Adjust
state-
Division
Division
Total
share
ment ¹
ments
Year to 30 June 2022 (Reviewed)
Rm
Rm
Rm
Rm
Rm
Rm
Sales
27 856
14 727
42 583
21 291
(21,291)
-
Cost of sales
(13 006)
(10 969)
(23 975)
(11 988)
11,988
-
Other operating income
105
697
802
240
( 240)
-
Other operating expense
(2 763)
( 945)
(3 708)
(1 692)
1 692
-
Segment result
12 192
3 510
15 702
7 851
( 7 851)
-
Income from investments
558
12
570
285
( 285)
-
Finance cost
( 41)
( 26)
( 67)
( 34)
34
-
Profit from joint venture
-0
1 455
1 455
728
( 728)
-
Capital items before tax (refer note 8)
( 73)
( 15)
( 88)
( 45)
45
-
Taxation
(3 383)
( 811)
(4 194)
(2 096)
2 096
-
Profit after tax
9 253
4 125
13 378
6 689
( 6 689)
-
Consolidation adjustment
( 40)
40
-
Contribution to basic earnings
9 253
4 125
13 378
6 649
-
6 649
Contribution to headline earnings
9 307
4 136
13 443
6 682
-
6 682
Other information
Consolidated total assets
34 775
23 427
58 202
28 252
(6,108)
22 145
Consolidated total liabilities
6 974
5 718
12 692
2 488
(2,488)
-
Capital expenditure
2 890
2 220
5 110
2 450
(2,450)
-
Amortisation and depreciation
1 566
911
2 477
1 189
(1,189)
-
Cash inflow from operating activities ²
4 393
2 950
7 343
9 172
(9,172)
-
Cash outflow from investing activities
(2 630)
(2 200)
(4 830)
(2 415)
2,415
-
Cash outflow from financing activities
( 27)
-0
( 27)
( 14)
14
-
EBITDA
13 758
4 421
18 179
9 040
(9 040)
Additional information for ARM Ferrous at 100%
Non-current assets
Property, plant and equipment
31 548
(31 548)
-
Investment in joint venture
2 130
(2 130)
-
Other non-current assets
2,044
(2 044)
-
Current assets
Inventories
5 070
(5 070)
-
Trade and other receivables
6 348
(6 348)
-
Financial assets
379
( 379)
-
Cash and cash equivalents
10 684
(10 684)
-
Non-current liabilities
Other non-current liabilities
8 629
(8 629)
-
Current liabilities
Trade and other payables
2 867
(2 867)
-
Short-term provisions
994
( 994)
-
Taxation
201
( 201)
-
Taxation
201
( 201)
¹ Includes consolidation and IFRS 11 - Joint Arrangements - adjustments.
² Dividend paid amounting to R5.5 billion included in cash flows from operating activities.
Refer note 2.1 and note 7 for more detail on the ARM Ferrous segment.
Ferrous 2021
Page 11
NOTES TO THE CONDENSED GROUP FINANCIAL STATEMENTS
for the year ended 30 June
Analysis of the ARM Ferrous segment on a 100% basis (continued)
Total per
IFRS
ARM
IFRS
financial
Iron ore
Manganese
Ferrous
ARM
Adjust
state-
Division
Division
Total
share
ment ¹
ments
Year to 30 June 2021 (Audited)
Rm
Rm
Rm
Rm
Rm
Rm
Sales
37 621
12 192
49 813
24 907
(24,907)
-
Cost of sales
(12 286)
(9 807)
(22 093)
(11 046)
11,046
-
Other operating income
1 329
168
1 497
81
(81)
-
Other operating expense
(5 970)
(1 190)
(7 160)
(2 914)
2,914
-
Segment result
20 694
1 363
22 057
11 028
(11,028)
-
Income from investments
478
13
491
245
(245)
-
Finance cost
(62)
(12)
(74)
(37)
37
-
Loss from joint venture
-
(7)
(7)
(3)
3
-
Capital items before tax (refer note 8)
(49)
(956)
(1,005)
(502)
502
-
Taxation
(6,065)
(314)
(6,379)
(3,190)
3,190
-
Profit after tax
14 996
87
15 083
7 541
(7,541)
-
Consolidation adjustment
-
( 43)
43
-
Contribution to basic earnings
14 996
87
15 083
7 498
-
7 498
Contribution to headline earnings
15 046
897
15 943
7 927
-
7 927
Other information
Consolidated total assets
35 662
20 806
56 468
27 441
(6,503)
20 938
Consolidated total liabilities
6 846
6 606
13 452
2 997
(2,997)
-
Capital expenditure
2 397
2 248
4 645
2 221
(2,221)
-
Amortisation and depreciation
1 561
775
2 336
1 126
(1,126)
-
Cash inflow / (outflow) from operating activities
10 477
(3 968)
6 509
7 255
(7,255)
-
Cash outflow from investing activities
(2 464)
(2 225)
(4 689)
(2 345)
2,345
-
Cash outflow from financing activities
( 39)
-0
( 39)
( 19)
19
-
-
EBITDA
22 255
2 138
24 393
12 154
(12 154)
-
Additional information for ARM Ferrous at 100%
Non-current assets
Property, plant and equipment
29 029
(29,029)
-
Investment in joint venture
778
(778)
-
Other non-current assets
1,851
(1,851)
-
Current assets
Inventories
5 131
(5,131)
-
Trade and other receivables
11 378
(11,378)
-
Financial assets
102
(102)
-
Cash and cash equivalents
8 198
(8,198)
-
Non-current liabilities
Other non-current liabilities
8 199
(8,199)
-
Current liabilities
Trade and other payables
3 511
(3,511)
-
Short-term provisions
1 423
(1,423)
-
Taxation
161
(161)
-
¹ Includes consolidation and IFRS 11 - Joint Arrangements - adjustments.
² Dividend paid amounting to R4 billion included in cash flows from operating activities.
Refer note 2.1 and note 7 for more detail on the ARM Ferrous segment.
2
Corporate
NOTES TO THE CONDENSED GROUP FINANCIAL STATEMENTS
for the year ended 30 June
Page 12
2.5
Additional information
ARM Corporate as presented in the table on pages 7 and 8 is analysed further into Machadodorp, Corporate and other,
and Gold segments.
Machadodorp Works
Corporate and other
Gold
Total ARM Corporate
Rm
Rm
Rm
Rm
Year to 30 June 2022 (Reviewed)
Sales
136
- 0
136
Cost of sales
(125)
64
( 61)
Other operating income ¹
3
1,574
1 577
Other operating expenses ¹
(216)
(911)
(1 127)
- 0
- 0
-
Segment result
(202)
727
525
Income from investments
- 0
453
50
503
Finance costs
(25)
(22)
( 47)
Capital item (refer note 8)
3
743
746
Taxation
63
(420)
( 357)
(Loss) / profit after tax
(161)
1,481
50
1 370
Non-controlling interest
- 0
(2)
( 2)
Consolidation adjustments ²
- 0
40
40
- 0
- 0
-
Contribution to basic (losses) / earnings
(161)
1,519
50
1 408
- 0
- 0
-
- 0
- 0
-
Contribution to headline (losses) / earnings
(164)
776
50
662
Other information
Segment and consolidated assets
62
11,573
3 881
15 516
Segment liabilities
305
1,675
1 980
-
-
-
-
Cash inflow / (outflow) from operating activities
4
( 555)
50
( 501)
Cash outflow from investing activities
( 4)
( 452)
( 456)
Cash outflow from financing activities
-
( 292)
( 292)
-
-
Capital expenditure
4
4
8
-
-
-
-
Amortisation and depreciation
4
8
12
Impairment reversal before tax
( 3)
( 743)
( 746)
EBITDA
(198)
735
537
¹ Corporate and other includes a re-measurement gain on the loans to ARM Coal of R443 million
and a re-measurement gain on the loan from Harmony of R5 million.
² Relates to fees capitalised in ARM Ferrous and reversed on consolidation.
Year to 30 June 2021 (Audited)
Sales
136
-
136
Cost of sales
(149)
56
( 93)
Other operating income ¹
7
1,740
1 747
Other operating expenses ¹
(130)
(926)
(1 056)
Segment result
(136)
870
734
Income from investments
-
322
82
404
Finance costs
(22)
(37)
( 59)
Capital items (refer note 8)
- 0
(9)
( 9)
Taxation
51
(450)
( 399)
(Loss) / Profit after tax
(107)
696
82
671
Non-controlling interest
-
(2)
( 2)
Consolidation adjustment ²
-
43
43
Contribution to basic (losses)/earnings
(107)
737
82
712
Contribution to headline (losses)/earnings
(107)
746
82
721
Other information
Segment and consolidated assets
151
10 572
3 940
14 663
Segment liabilities
298
1 401
1 699
Cash inflow / (outflow) from operating activities
( 4)
(3 654)
82
(3 576)
Cash outflow from investing activities
( 1)
918
917
Cash outflow from financing activities
-
( 17)
( 17)
Capital expenditure
1
9
10
Amortisation and depreciation
-
8
8
Impairment before tax
-
9
9
EBITDA
(136)
878
742
¹ Corporate and other includes a re-measurement loss on the loans to Modikwa and ARM Coal of R16 million
and a fair value gain on the loan from Harmony of R47 million.
² Relates to fees capitalised in ARM Ferrous and reversed on consolidation.
Pr note 3-4
NOTES TO THE CONDENSED GROUP FINANCIAL STATEMENTS
Page 13
for the year ended 30 June
3
REVENUE AND SALES
Reviewed
Audited
F2022
F2021
Rm
Rm
Sales
16,917
19,657
Local sales
14,308
17,266
Export sales
2,609
2,391
Revenue
18 406
21 457
Fair value adjustments to revenue
(1 257)
792
Revenue from contracts with customers
19 663
20 665
Sales - mining and related products
18 479
19 273
Penalty and treatment charges
( 305)
( 408)
Modikwa
-
( 2)
Nkomati
-
( 58)
Two Rivers
( 305)
( 348)
Fees received
1 489
1 800
4
IMPAIRMENT AND IMPAIRMENT REVERSAL
4.1 ARM Ferrous
Property, plant and equipment
Khumani mine
An impairment loss was recognised in F2022 on property, plant and equipment at Khumani for R40 million before tax.
This relates to a capital project to fill an underground cavity. The impairment loss was accounted for due to management's assessment of
limited future economic benefits associated with the capital spend. ARM's attributable share of the impairment amounted to R20 million
before tax of R6 million (refer note 8). This is accounted for in the income from joint venture line in the statement of profit or loss.
Tshenolo Iron Ore Mine
An impairment loss was recognised in F2021 on property, plant and equipment for R52 million with no tax effect.
ARM's attributable share of the impairment loss amounted to R26 million with no tax effect (refer note 8).
Cato Ridge Works
An impairment loss of R514 million before tax of R144 million was recognised in F2021 on property, plant and equipment.
ARM's attributable share of the impairment amounted to R257 million before tax of R72 million (refer note 8).
Investments
Cato Ridge Alloys
An impairment loss of R97 million with no tax effect was recognised in F2021 on Assmang's equity-accounted investment in
Cato Ridge Alloys. ARM's attributable share of the impairment loss amounted to R48 million with no tax effect (refer note 8).
Sakura
An impairment loss of R337 million with no tax effect was recognised in F2021 on Assmang's equity-accounted investment,
Sakura Ferroalloys Sdh Bhd. ARM's attributable share of the impairment loss amounted to R169 million with no tax effect (refer note 8).
4.2 ARM Coal
Investments
Participative Coal Business (PCB)
At 30 June 2022 previous impairment losses recognised against the investment in PCB was reversed by ARM, mainly due to an earlier
than anticipated settlement of PCB loans.
A discounted cash flow valuation model was prepared to determine the net present value of the investment in PCB.
The recoverable amount of ARM's net investment in PCB amounted to R4 450 million.
The level 3 valuation recoverable amount of the investment in the PCB cash generating unit was determined based on the
fair value less cost of disposal calculation performed in terms of IFRS.
ARM's attributable share of the impairment reversal amounted to R1 121 million (nil tax impact) (refer note 6 and 8).
Gross
Tax
After tax
Rm
Rm
Rm
PCB 20.2%: reversal of impairment (refer note 6 and 8)
1,121
-
1,121
Total attributable to ARM
1,121
-
1,121
A pre-tax discount rate of 20.5% was used for the discounted cash flow valuation model together with the following commodity prices
and exchange rates:
F2023 Real
F2024 Real
Long-term Real
R/US$
15.66
15.28
15.15
US$/t
184
136
80
4.3 Machadodorp Works
An impairment reversal was recognised in F2022 on property, plant and equipment for R3 million with no tax effect (refer note 8).
4.4 Venture Building Trust
An impairment loss was recognised in F2021 on property, plant and equipment for R9 million with no tax effect (refer note 8).
Details of the F2021 impairments were included in the financial results ended 30 June 2021, which can be found on www.arm.co.za.
PR note 5 - 8
NOTES TO THE CONDENSED GROUP FINANCIAL STATEMENTS
Page 14
for the year ended 30 June
Reviewed
Audited
F2022
F2021
Rm
Rm
5
LOANS AND LONG-TERM RECEIVABLES
ARM Coal ¹
-
40
Total
-
40
¹ F2022 includes an amount of R93 million in Trade and other receivables as it is
expected to be repaid within the next 12 months (refer note 11).
6
INVESTMENT IN ASSOCIATE
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
534
795
Income / (loss) for the current year
927
( 260)
Income / (loss) for the current year before the re-measurement of loans
1 417
( 296)
Re-measurement of loans (refer note 15)
( 490)
36
Movement in loans (non-cash flow) ¹
( 534)
( 1)
Reversal of impairment on investment (refer note 4.2 and 8)
1 121
-
Closing balance
2 048
534
¹ Settled together with the partner loans during F2022.
7
INVESTMENT IN JOINT VENTURE
The investment relates to ARM Ferrous and consists of Assmang
as a joint venture which includes iron ore and manganese segments.
Opening balance
20 938
17 545
Net income for the period
6 649
7 498
Income for the period¹
6 689
7 541
Consolidation adjustment
(40)
(43)
Foreign currency translation reserve
58
( 105)
Less: Cash dividend received for the period
(5 500)
(4 000)
Closing balance
22 145
20 938
Refer note 2.1 and 2.4 for more detail on the ARM Ferrous segment
¹ Includes reversal of expected credit losses recorded of R126 million less tax of R6 million
(F2021: R81 million expected credit losses less tax of R1 million).
8
CAPITAL ITEMS
Reversal of impairment on property, plant and equipment - Machadodorp Works (refer note 4.3)
3
-0
Profit on sale of property, plant and equipment - Nkomati
2
-0
Loss on sale of property, plant and equipment - Two Rivers
( 2)
-0
Profit on sale of property, plant and equipment - ARM Coal
4
-0
Reversal of impairment on investment in PCB - ARM Coal (refer note 4.2 and 6)
1 121
-0
Impairment loss on property, plant and equipment - Venture Building Trust (refer note 4.4)
-
( 9)
0
-0
Capital items per statement of profit or loss before taxation effect
1 128
( 9)
Loss on sale of property, plant and equipment accounted for directly
- 0
-0
in associate - ARM Coal
( 9)
-0
Impairment loss on property, plant and equipment accounted for directly
- 0
-0
in joint venture - Assmang (refer note 4.1)
(20)
(283)
Impairment loss on investment in Sakura accounted for directly
0
-0
in joint venture - Assmang (refer note 4.1)
- 0
(169)
Impairment loss on investment in Cato Ridge accounted for directly
- 0
-0
in joint venture - Assmang (refer note 4.1)
- 0
(48)
Loss on sale of property, plant and equipment accounted for directly
- 0
-0
in joint venture - Assmang
(25)
(2)
0
-0
Capital items before taxation effect
1,074
( 511)
0
-0
Taxation accounted for in joint venture - impairment loss on property, plant and equipment - Assmang
6
72
Taxation accounted for in joint venture - loss on disposal of property, plant and equipment - Assmang
6
1
Taxation accounted for in associate - loss on sale of property, plant and equipment - ARM Coal
3
-0
Taxation on profit on sale of property, plant and equipment - ARM Coal
( 1)
-0
Total
1,088
( 438)
Pr Note 9-10
NOTES TO THE CONDENSED GROUP FINANCIAL STATEMENTS
Page 15
for the year ended 30 June
Reviewed
Audited
F2022
F2021
Rm
Rm
9
EARNINGS PER SHARE
Headline earnings (R million)
11 338
13 064
Headline earnings per share (cents)
5 787
6 688
Basic earnings per share (cents)
6 343
6 464
Diluted headline earnings per share (cents)
5 783
6 621
Diluted basic earnings per share (cents)
6 338
6 399
Number of shares in issue at end of year (thousands)
224 668
224 453
Weighted average number of shares (thousands)
195 899
195 333
Weighted average number of shares used in calculating
diluted earnings per share (thousands)
196 033
197 314
Net asset value per share (cents)
20 545
17 908
EBITDA (R million)
8 854
12 227
Interim dividend declared (cents per share)
1 200
1 000
Dividend declared after year-end (cents per share)
2 000
2 000
Reconciliation to headline earnings (R million)
Basic earnings attributable to equity holders of ARM
12 426
12 626
-Profit on sale of property, plant and equipment - ARM coal
( 4)
-
-Profit on sale of property, plant and equipment - Nkomati
( 2)
-
- Loss on sale of property, plant and equipment in associate - ARM Coal
9
-
-Loss on sale of property, plant and equipment - Two Rivers
2
-
- Impairment loss on property, plant and equipment in joint venture - Assmang
20
283
- Loss on sale of property, plant and equipment in joint venture - Assmang
25
2
- Impairment loss on investment in Sakura accounted for directly in joint venture - Assmang
-
169
- Impairment loss on investment in Cato Ridge accounted for directly in joint venture - Assmang
-
48
- Impairment loss on property, plant and equipment - Venture Building Trust
-
9
-Impairment reversal on property, plant and equipment - Machadodorp Works
( 3)
-
- Impairment reversal on investment in 20.2% PCB - ARM
(1 121)
-
11 352
13 137
- Taxation accounted for in joint venture - impairment loss at Assmang
( 6)
( 72)
- Taxation accounted for in joint venture - loss sale of property, plant and equipment at Assmang
(6)
( 1)
- Taxation accounted for in associate - loss on sale of property, plant and equipment - ARM Coal
(3)
-
- Taxation accounted for profit on sale of property, plant and equipment - ARM Coal
1
-
Headline earnings
11 338
13 064
10
OTHER INVESTMENTS
Harmony ¹
3 881
3 940
Opening balance
3 940
5 366
Fair value loss in other comprehensive income
( 59)
(1 426)
Guardrisk ²
9
36
Preference shares
1
1
Richards Bay Coal Terminal ³
213
233
-
-
Closing balance
4 104
4 210
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.
Richards Bay Coal Terminal (RBCT)
The fair value of the RBCT investment 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 R44/tonne and R49/tonne (F2021:R42/tonne and R48/tonne).
If increased by 10% this would result in a R22 million (F2021: R23 million) increase in the valuation on the RBCT investment.
If decreased by 10% this would result in a R22 million (F2021: 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 20.8% (F2021: 19.1%).
Opening balance
233
238
Fair value loss
( 20)
( 5)
Closing balance
213
233
Pr note 11-15
NOTES TO THE CONDENSED GROUP FINANCIAL STATEMENTS
Page 16
for the year ended 30 June
Reviewed
Audited
actual
actual
F2022
F2021
Rm
Rm
11
TRADE AND OTHER RECEIVABLES
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.
This is a level 2 valuation in terms of IFRS.
Trade and other receivables include a contract asset from Assmang of R985 million (F2021: R1 156 million).
The contract asset resulted from revised fee arrangements in the prior year, whereby fees received from Assmang
only become payable following receipt by Assmang from the relevant customer.
Trade and other receivables includes an amount of R93 million relating to ARM Coal which was included in Loans and long-term
Amounts outstanding at year-end (owing to) / receivable by
ARM on current account
Joint venture
Assmang - Trade and other receivables
985
1 156
Joint operations
Rustenburg Platinum Mines - Trade and other receivables ¹
1 526
1 755
Norilsk Nickel - Trade and other payables
2
- 0
Norilsk Nickel - Trade and other receivables
-
67
Glencore Operations SA - Long-term borrowings
-
( 707)
Glencore Operations SA - Short-term borrowings
( 139)
( 307)
Glencore Operations SA - Trade and other receivables
887
218
Glencore International AG - Trade and other receivables
376
120
Subsidiary
Impala Platinum - Trade and other receivables
3 646
4 324
Impala Platinum - dividend paid
1 060
1 219
¹ 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.
24
CONTINGENT LIABILITIES
Nkomati
The Nkomati mine closure may have a potential exposure regarding rehabilitation and management of water post closure.
There are uncertainties regarding the on-going assessment of long-term water management measures, and anticipated
amendments to the existing Water Use License (WUL). Technical studies towards providing an integrated Water Management
Plan are underway. The results of the studies will be used as input towards a risk assessment that is required to apply for an
amended WUL, such as applying for authorised water discharges. The WUL conditions are not yet known and the subsequent
potential water resource impact liability as part of the mine rehabilitation and closure process is uncertain. The obligation will be
recognised when it is probable and can be reliably estimated.
The environmental rehabilitation provision at 30 June 2022 is the best independent estimate and is based on the most reliable
information currently available. It will be re-assessed on an ongoing basis as engineering designs evolve and new information
becomes available, as well as when approvals of a revised Environmental Management Plan and Water Use Licence are secured.
There have been no other significant changes in the contingent liabilities of the Group as disclosed since 30 June 2021
annual financial statements.
For a detailed disclosure on contingent liabilities, refer to ARM's annual financial statements for the year ended 30 June 2021
available on the group's website (www.arm.co.za).
25
EVENTS AFTER REPORTING DATE
Subsequent to year-end ARM received a dividend from Assmang of R3 500 million.
Acquisition of Bokoni Platinum Mine Proprietary Limited ("BPM")
On 20 December 2021 ARM entered into a sale and purchase agreement which provides for ARM Platinum a wholly owned
subsidiary of ARM, to acquire all of the shares (100%) of BPM from Bokoni Platinum Holdings Proprietary Limited ("BPH"), in
turn owned by Rustenburg Platinum Mines Limited ("RPM"), a wholly owned subsidiary of Anglo American Platinum Limited
("AAPL"), and Plateau Resources Proprietary Limited ("Plateau"), a wholly owned subsidiary of Atlatsa Resources Corporation
("Atlatsa"), through a newly formed entity ARM Bokoni Mining Consortium Limited ("ARM BMC"), for a consideration of
R3 500 million payable in cash.
The sale and purchase agreement included various conditions to the purchase becoming effective, most notably approval for
the transfer of the controlling interest in BPM to ARM BMC in terms of Section 11 of the Mineral and Petroleum Resources
Development Act 28 of 2002, as well as the approval of the acquisition by the Competition Commission.
As at the date of authorising these financial statements, the significant conditions precedent in the sale and purchase
agreement had been fulfilled and the expected closing date is 1st of September 2022.
As part of fulfilling of the closing deliverables, ARM BMC will transfer the consideration of R3 500 million payable in cash.
This consideration will be funded through the subscription by ARM of an additional 99 000 shares in ARM Platinum.
ARM Platinum thereafter will subscribe for 255 000 ordinary shares and 200 000 preference shares in ARM BMC.
The following are the primary objectives of the transaction:
- Long-life orebody favourably impacting medium term production. Adding a long-life operation greater than 24 years with
significant opportunity for further value accretive growth;
- Provides exposure to a high-grade UG2 resource that has an attractive prill split with high concentration of palladium
and rhodium, and favourable iridium and ruthenium contributions;
- Improves ARM's portfolio mix and competitiveness, with the addition of a mechanised underground operation
(in new mining areas) that is expected to lower ARM's overall PGM cost curve position; and
- Provides for potential scale benefits and opportunities for operational optimisation, given its proximity to ARM's other
Eastern limb PGM operations.
On the 11th of June 2022, approval was granted to transfer a controlling interest in BPM (the mining right holder) to
ARM BMC for which consent was obtained in terms of Section 11 of the Mineral and Petroleum Resources Development Act
28 of 2002 from the Department of Minerals Resources and Energy.
On the 2nd of August 2022, the Competition Commission approved the proposed acquisition of BPM, pending Competition
Tribunal clearance. Competition Tribunal clearance was granted on the 11th of August 2022.
In terms of IFRS 3 Business Combinations, ARM has concluded that the acquisition of BPM is considered to be a
"business combination" as defined in IFRS 3, with an acquisition date of 1 September 2022, in line with transfer of control,
being the effective date as per the sale and purchase agreement.
As a result of the timing of the Competition Tribunal clearance and the uncertainties associated with potential directives which may
have been issued by the Competition Commission in their consideration of the proposed structure of the sale and purchase
agreement, as well as the different mining approaches (conventional vs mechanised) to be determined after the various feasibility
studies are completed, the fair value for each major class of assets acquired and liabilities assumed, cannot yet be accurately determined.
The option analysis (conventional vs mechanised) to restart the mine has an impact on the mine plan. The final mine plan and resultant
valuation of assets can therefore only be accurately determined once all the feasibility studies have been completed. This is a complex
process as it involves different sites, and an assessment of which option will yield the best outcome.
ARM Platinum 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.
Since BPM is currently on care maintenance and not generating income from sale goods, the amounts of revenue and profit or loss
have not been disclosed. Included in operating expenditure (refer note 17), is an amount of R28 million relating to the acquisition
costs of ARM BMC. These acquisition costs do not include depreciation or amortization of the Bokoni Platinum Mine or any of the
assets which are being acquired.
No other significant events have occurred subsequent to the reporting date that could materially affect the reported results.
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ARM - African Rainbow Minerals Ltd. published this content on 01 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 September 2022 07:40:04 UTC.
African Rainbow Minerals Limited is one of the South African largest mining groups. Net sales break down by family of products as follows:
- ferrous metals (55.7%): iron ore (16.1 Mt sold in 2021/22), manganese ore (4 Mt sold), etc.;
- platinum (36.5%);
- coal (7.4%);
- other (0.4%).
The group also develops gold exploration and production activities.
AFRICAN RAINBOW MINERALS LIMITED 
