African Rainbow Minerals Limited · JSE:ARI
African Rainbow Minerals — African Rainbow Mnrls — 1H F2025 Earnings Presentation
39 slides from African Rainbow Minerals's earnings presentation, Mar 7, 2025
Slide 1: Interim results for the six months ended 31 December 2024
Interim results for the six months ended 31 December 7 March 2025 2024 We do it better
Slide 2: Executive chairman's results statement
“ Headline earnings for 1H F2025 decreased by 49% to R1.5 billion (1H F2024: R3.0 billion). We declared an interim dividend of R4.50 per share. Our financial position remains robust with net cash of R6.1 billion at 31 December 2024 (F2024: R7.2 billion). Dr Patrice Motsepe, Executive chairman “
Slide 3: Disclaimer
Disclaimer Throughout this presentation a range of financial and non-financial measures are used to assess the company’s performance, including, but not limited to financial measures that are not defined under International Financial Reporting Standards (IFRS) Accounting Standards. These adjusted fi
Slide 4: Overview of results
Overview of results Dr Patrice Motsepe Executive chairman Beeshoek Mine We do it better
Slide 5: Headline earnings
Headline earnings ARM Ferrous ARM Group (R million) 33% to 4 000 R1.9 billion Increase 49% (1H F2024: R2.8 billion) 3 500 Decrease 2 955 3 000 ARM Platinum 2 500 ( 407) 144% to 2 000 R689 million loss 1 520 (1H F2024: R282 million loss) 1 500 ( 940) ( 22) ( 66) 1 000 ARM Coal 500 11% to 0 1H F2024 h
Slide 6: Six-monthly headline earnings (R million)
Six-monthly headline earnings (R million) First half (1H) 8 025 8 000 7 642 Second half (2H) 6 000 5 039 5 172 4 000 3 696 3 811 3 379 2 955 2 155 2 125 2 000 1 520 0 F2020 F2021 F2022 F2023 F2024 F2025 Total annual: 5 534 13 064 11 338 8 983 5 080 For a reconciliation between basic earnings and hea
Slide 7: Dividends per share (cents)
Dividends per share (cents) 2 500 Interim dividend per share Final dividend per share 2 000 2 000 2 000 1 500 1 400 1 200 1 200 1 000 1 000 900 700 600 500 450 500 0 F2020 F2021 F2022 F2023 F2024 F2025 Total annual: 1 200 3 000 3 200 2 600 1 500 We are committed to balancing growth and dividends whi
Slide 8: Dividends received
Dividends received Dividends received from Assmang Distributions received from ARM Coal 17% to R2.5 billion 100% to nil (1H F2024: R3 billion) (1H F2024: R153 million) Post 31 December 2024, Assmang declared a dividend of R4 billion (100% Post 31 December 2024, ARM received dividends of R462 million
Slide 9: Segmental EBITDA split by commodity (%)
Segmental EBITDA split by commodity (%) (R million) 11 009 24 321 17 839 13 994 8 920 3 201 110% 1% 3% Other* 3% 8% 1% 9% 7% 4% 4% Coal (GGV) 90% 19% 12% 14% 8% 24% Manganese Iron Ore 70% 46% PGMs 46% 39% 44% 50% 80% 74% 30% 46% 42% 37% 36% 10% 5% (6%) (3%) (3%) (10%) F2020 F2021 F2022 F2023 F2024 1
Slide 10: Safety and health
Safety and health Lost Time Injury Frequency Rate (LTIFR)* Total Recordable Injury Frequency Rate (TRIFR)** 33% to 0.32 4% to 0.52 (1H F2024: 0.24) (1H F2024: 0.50) * LTIFR per 200 000-man hours ** TRIFR includes the number of fatal injuries, number of lost time injuries and number of medical cases
Slide 11: Deliver competitive returns and create sustainable value
STRATEGY Owner-operator DELIVER COMPETITIVE RETURNS AND CREATE Entrepreneurial SUSTAINABLE VALUE management FOR ALL STAKEHOLDERS Operate Investing in Focus on our portfolio our employees value-enhancing of assets safely, and integrated responsibly and efficiently growth Partnering with Allocate capi
Slide 12: Operational review
Operational review Phillip Tobias Chief executive officer Two Rivers Mine We do it better
Slide 13: Production by commodity (100% basis)
Production by commodity (100% basis) Unit 1H F2025 1H F2024 % change ARM Ferrous Iron ore 000 tonnes 6 980 7 058 (1) Manganese ore 000 tonnes 2 020 1 788 13 Manganese alloys 000 tonnes 200 190 5 ARM Platinum Two Rivers Mine 6E PGM ounces 152 893 150 956 1 Modikwa Mine 6E PGM ounces 146 130 151 754 (
Slide 14: Headline earnings/(loss) by division / operation
Headline earnings/(loss) by division / operation (R million) 1H F2025 1H F2024 % change ARM Ferrous 1 881 2 821 (33) Iron ore division 1 514 2 782 (46) Manganese division 366 45 >200 Consolidation adjustment and other 1 (6) 117 ARM Platinum (689) (282) (144) Two Rivers Mine 77 164 (53) Modikwa Mine
Slide 15: EBITDA margins by commodity (%)
EBITDA margins by commodity (%) 31% Coal (GGV) 28% 16% PGMs* (3%) 53% Iron ore 41% (34%) Manganese alloys (14%) 14% Manganese ore 24% 1H F2024 1H F2025 * Excluding Nkomati 15
Slide 16: ARM Ferrous
ARM Ferrous Khumani Mine Khumani Mine We do it better
Slide 17: ARM Ferrous
ARM Ferrous Profit variance analysis – segment result (R million) Changes in average US Dollar Index prices (%) 29% 3 642 13% 14% (337) (414) 578 2 371 (580) (518) (22%) Export iron ore* Export 36.5% High carbon Export 43.5% manganese ferromanganese** manganese ore** 1H F2024 ZAR:US$ US$ Prices Volu
Slide 18: Iron ore (100% basis)
Iron ore (100% basis) Export sales volumes were lower due to timing of Operational performance vessels. % Local sales volumes were lower due to reduced unit 1H F2025 1H F2024 change ArcelorMittal South Africa (AMSA) offtake. Export sales volumes 000 tonnes 5 914 6 004 (2) Local sales volumes 000 ton
Slide 19: Manganese ore (100% basis)
Manganese ore (100% basis) Operational performance Production output was up 13%, after management % successfully addressed the ore quality issues of last unit 1H F2025 1H F2024 change year. Export sales volumes 000 tonnes 1 879 2 000 (6) Local sales volumes 000 tonnes 399 367 9 Change in on-mine uni
Slide 20: Manganese alloys (100% basis)
Manganese alloys (100% basis) Operational performance High-carbon ferromanganese export sales at Cato Ridge Works and Sakura increased by 14% and 9% % respectively, due to improved market conditions. unit 1H F2025 1H F2024 change Sales volumes: South African operations 000 tonnes 40 39 3 High-carbon
Slide 21: ARM Platinum
ARM Platinum Modikwa Mine We do it better
Slide 22: ARM Platinum
ARM Platinum Profit variance analysis segment result* (R million) Changes in unit cash costs*** (%) (46%) Bokoni Modikwa 4% Two Rivers 9% ** (30%) (20%) (10%) 0% 10% Increase Decrease Increase Decrease Changes in average realised US Dollar prices (%) Revenue contribution per commodity (%) 17% Platin
Slide 23: PGMs (100% basis)
PGMs (100% basis) Operational performance (100% basis) PGM production volumes increased by 1% at Two % Rivers Mine, owing to a marginal improvement in unit 1H F2025 1H F2024 change head grade. 6E PGM Modikwa production volumes 146 130 151 754 (4) ounces 6E PGM Two Rivers production volumes 152 893 1
Slide 24: Bokoni Mine (continued)
Bokoni Mine (continued) In the context of our strategy of preserving cash in the current PGM price environment the following actions have been implemented: • Major expansion capital projects have been deferred. • Mining is focused on the open pit and stoping of available panels. • Mechanised develop
Slide 25: Nkomati Mine update
Nkomati Mine update During 1H F2025, unconditional approval was obtained from both the Competition Commission, as well as the Department of Mineral and Petroleum Resources (Section 11). ARM and Norilsk Nickel Africa (NNAf) are currently in the process of closing out the outstanding Conditions Preced
Slide 26: ARM Coal
ARM Coal Goedgevonden Mine We do it better
Slide 27: ARM Coal
ARM Coal Profit variance analysis – segment result* (R million) Changes in on-mine unit production costs (%) Coal: PCB 4% Coal: GGV 14% (4%) 1% 6% 11% 16% Increase Decrease Increase Decrease Changes in sales volumes (%) Stockpile volumes (thousand tonnes) (100% basis) 10% 2 000 5% 1 427 1 500 0% 1 0
Slide 28: GGV and PCB (100% basis)
GGV and PCB (100% basis) Operational performance (100% basis) GGV Mine’s average received export price remained % steady at US$91 per tonne. PCB’s average received unit 1H F2025 1H F2024 change export price decreased by 4% to US$85 per tonne. Export sales volumes Mt 5.81 6.80 (15) Domestic sales vol
Slide 29: Investment in Harmony
Investment in Harmony Copper is an important commodity, and ARM is seeking to grow and to acquire copper assets. ARM’s strategic investment in Harmony aligns with ARM’s copper objectives. Harmony is currently in a strong financial position, with a net cash balance that places them in a favourable po
Slide 30: Investment in Surge Copper Corp
Investment in Surge Copper Corp ARM successfully acquired 15% of Surge Copper Corp (“Surge Copper”) on 31 May 2024. Surge Copper is a Canadian company that owns a large, contiguous mineral claim package that hosts multiple advanced porphyry deposits with pit-constrained NI 43-101 compliant resources
Slide 31: ARM's key focus areas
ARM’s key focus areas Disciplined capital allocation. Maintain a robust balance sheet. Ensuring globally competitive and profitable operations. Decisive action on under performing assets. Collaborate with key stakeholders to optimise logistics and infrastructure constraints. Explore value-enhancing
Slide 32: Capital allocation
Capital allocation Tsundzukani Mhlanga Finance director Khumani Mine We do it better
Slide 33: Capital allocation guiding principles
Capital allocation guiding principles* Invest in growth of existing businesses Dividend payments Mergers and acquisitions Debt repayment Healthy gearing levels create a flexible platform for sustainable growth Share repurchases Underpinned by metrics that measure the sustainability of value creation
Slide 34: Cash flow analysis (R million)
Cash flow analysis* (R million) 15 000 Interest Investing in and debt Shareholder Increase Decrease Sources of funds existing business repayments returns 13 000 11 000 2 570 274 998 9 000 ( 125) 8 309 434 8 189 (1 348) ( 60) (1 765) 7 000 (1 098) 5 000 3 000 1 000 -1 000 Balance 1 July Cash generate
Slide 35: Net cash and debt (R million)
Net cash and debt (R million) 31 December 2024 30 June 2024 31 December 2023 Cash and cash equivalents per statement of financial 8 207 8 326 8 128 position* Cash and cash equivalents per statement of cash 8 189 8 309 8 111 flows Overdrafts 18 17 17 Total borrowings (2 134) (1 129) (193) Long-term b
Slide 36: Segmental capital expenditure (R million)
Segmental capital expenditure (R million) 1H F2025 1H F2024 % change ARM Ferrous 793 1 017 (22) Iron ore division 617 634 (3) Manganese division 211 426 (50) Consolidation adjustment (35) ( 43) 19 ARM Platinum 1 189 3 060 (61) Two Rivers Mine 661 1 894 (65) Modikwa Mine 139 508 (73) Bokoni Mine 389
Slide 37: Segmental capital expenditure (R million)
Segmental capital expenditure* (R million) 9 000 8 550 8 000 7 191 7 000 6 000 5 000 4 376 4 085 3 872 4 000 3 000 2 000 1 000 0 F2023 F2024 F2025e F2026e F2027e ARM Platinum ARM Ferrous ARM Coal * Capital expenditure includes; (i) deferred stripping, (ii) financed fleet replacement, and (iii) susta
Slide 38: Reconciliation to headline earnings (R million)
Reconciliation to headline earnings (R million) 1H F2025 1H F2024 F2024 Basic earnings attributable to equity holders of ARM 1 394 1 216 3 146 Attributable after-tax impairment on property, plant and equipment - Two Rivers - 1 070 1 097 Attributable after-tax impairment on property, plant and equipm
Slide 39: Thank you
Thank you www.arm.co.za We do it better
African Rainbow Mnrls — 1H F2025 Earnings Presentation on 6ix