African Rainbow Minerals Limited · JSE:ARI

African Rainbow Minerals — H1 FY2007 Earnings Presentation

38 slides from African Rainbow Minerals's earnings presentation, Feb 20, 2007

1. Slide 1: Interim results for the six months ended 31 December 2006

   Interim results for the six months ended 31 December 2006 Tuesday, 20 February 2007

2. Slide 2: Headline earnings increased by 318% to R548 million

   “Headline earnings increased by 318% to R548 million for the six months under review. We continue to make good progress in building a globally competitive diversified mining company.” Patrice Motsepe, Executive Chairman

3. Slide 3: Disclaimer

   3 Disclaimer This presentation contains "forward­looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the safe harbour created by such sections. All statements o

4. Slide 4: Overview and strategy

   4 Overview and strategy Patrice Motsepe Executive Chairman

5. Slide 5: Highlights

   5 Highlights • Headline earnings increased by 318% to R548 million from R131 million • Headline earnings by operation significantly up period­on­period 300 261 250 198 200 200 138 R’million 150 100 52 50 24 0 ­50 ­17 Platinum Nickel Ferrous metals Coal 2005 2006

6. Slide 6: Headline earnings per share over years

   6 Headline earnings per share over 3 years 300 264 250 225 cents per share 200 166 150 100 64 37 50 ­1 9 0 2004 2005 2006 2007 ­50 Interim results (6 months) Annual results (12 months)

7. Slide 7: More balanced and diversified

   7 More balanced and diversified Growth in headline earnings on a six monthly basis 250 200 150 R’million 100 50 0 ­50 Platinum Nickel Iron ore Manganese Chrome Coal Jul 2005 ­ Dec 2005 Jan 2006 ­ Jun 2006 Jul 2006 ­ Dec 2006

8. Slide 8: Highlights

   8 Highlights • Two Rivers Platinum Mine commissioned and contributed R97 million to headline earnings for the period – capex R197 million below budget and ahead of schedule • ARM Coal transaction with Xstrata successfully completed • Xstrata acquired Total SA’s 50% stake in ATC and ATCOM mines • Khu

9. Slide 9: Highlights

   9 Highlights • Significant increases in product sales: § PGMs 46% to 213 thousand ounces § Iron ore 7% to 2.8 million tonnes § Manganese ore 82% to 1 million tonnes § Ferromanganese 2% to 133 thousand tonnes § Chrome ore 23% to 69 thousand tonnes § Chrome alloys 20% to 107 thousand tonnes

10. Slide 10: Growth strategy

    10 Growth strategy • We will continue investing capital in our organic growth programme to double production in key commodities in South Africa by 2010 : Goedgevonden Ø coal TEAL Ø copper / gold Khumani Ø iron ore Modikwa Ø platinum Nkomati Ø nickel Manganese smelters • Significant exploration inves

11. Slide 11: We do it better

    1 FaxtM We do it better + Nchwaning III Two Rivers + + Two Rivers Nkomati expansion + + Khumani Mine Modikwa + + Nkomati Chrome Mine ' ‘onal Creat : Dwarsrivier « - ti . « Upgrading and increasing operational reating organic > KRuinaAl © sa efficiency to maintain growth in key commodities . modernis

12. Slide 12: Business review

    12 Business review André Wilkens Chief Executive Officer

13. Slide 13: 2 x 2010 growth strategy – ARM Platinum at a glance

    13 2 x 2010 growth strategy – 100% basis ARM Platinum at a glance Steady­state, At steady state ramp­up or Operation Financial exploration / Production in Production project FY 2006 year Life of mine (years) 30 years on the UG2 Modikwa Ramp­up 293 313 oz PGMs 350 000 oz PGMs 2007 orebody 20 years on

14. Slide 14: 2 x 2010 growth strategy – ARM Ferrous at a glance

    14 2 x 2010 growth strategy – 100% basis ARM Ferrous at a glance Production in Capacity at steady­state Life­of­ FY 2006 Tonnes mine Financial year Operation Metal / product Tonnes (000) 000 p/a (years) Volumes dependent on Nchwaning II Manganese 2 424 3 000 market demand and logistical 30 & III con

15. Slide 15: Attributable capital expenditure by division

    15 Attributable capital expenditure by division Actual Estimate R million June 2006 June 2007 June 2008 June 2009 ARM Platinum 1 114 820 355 257 • Modikwa 107 184 171 161 • Nkomati 50 213 54 ­ • Two Rivers** 957 423 130 96 ARM Ferrous 554 907 920 583 ARM Coal n/a 177 428 262 TEAL 2 73 1 1 ARM compan

16. Slide 16: We do it better

    16 We do it better % decline for Unit cost improvements the period ARM Ferrous Iron ore (6) (Assmang) (real terms) Manganese ore 11 Manganese alloys 6 Chrome (3) ARM Platinum Modikwa (6) Two Rivers In build­up phase Nickel Nkomati (C1 cost) 87

17. Slide 17: Khumani Iron Ore Project

    17 Khumani Iron Ore Project • Construction of Phase 1 (8,4 mtpa) commenced on site in 2006 • R2 billion committed to date • Application for mining license approved in December 2006 • On schedule for first export railings in April 2008 • Completion July 2008 • Saleable tonnage at Beeshoek continues a

18. Slide 18: ARM Ferrous

    18 ARM Ferrous Earnings for Assmang – 100% basis Six months ended 31 December R’million 2006 2005 Iron ore division 260 169 Manganese division 244 152 Chrome division 21 (46) Total 525 275

19. Slide 19: ARM Ferrous

    19 ARM Ferrous Assmang product sales volumes – 100% basis Six months ended 31 December 2006 2005 ‘000 ‘000 % change metric tonnes metric tonnes Iron ore 2 783 2 600 7% Manganese ore * 1 046 573 82% Manganese alloys 133 130 2% Charge chrome 107 89 20% Chrome ore * 69 56 23% * Excluding intra­group sa

20. Slide 20: ARM Ferrous – production growth

    20 ARM Ferrous – production growth 4 Manganese ore production capacity (mtpa) Iron ore: Projected export volumes (tpa) 3.5 3 18,000 2.5 16,000 2 14,000 1.5 12,000 1 10,000 0.5 8,000 0 6,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 4,000 2,000 Ferromanganese production capacity (mtpa) 0 2004

21. Slide 21: ARM Platinum

    21 ARM Platinum • Modikwa Platinum Mine § Modikwa reported attributable earnings of R101 million, up from a loss of R17 million for the prior period § PGM in concentrate up by 8% § Cost per PGM ounce increased by 6% to R3 528 (US$487 per PGM ounce) § Ramp­up substantially complete and change in mini

22. Slide 22: ARM Platinum

    22 ARM Platinum Modikwa – 100% basis Six months ended 31 December 2006 2005 % change Tonnes milled Million tonnes 1.31 1.29 2 Head grade (4E) g/t 4.43 4.15 7 PGMs­in­concentrate ounces 158 247 145 932 8 Cash cost: • R/tonne 426 373 (14) • R/Pt oz 7 808 7 349 (6) • R/4E oz 3 528 3 311 (7) Capex R mil

23. Slide 23: ARM Platinum

    23 ARM Platinum • Two Rivers Platinum Mine • Plant started ahead of schedule with ore throughput in August 2006 • Cost capitalised to September 2006 • Design milling capability of 225 000 tonnes per month achieved in January 2007 on a weekly basis • Mine to be at full capacity during Q4 of 2007 cale

24. Slide 24: Two Rivers Platinum Mine

    24 Two Rivers Platinum Mine Current status Project capex R1.104 billion Projected capital saving R197 million Mining production • initial ore stockpile 1 220 000 tonnes • footwall decline down to 7 level • + North decline 40 000 tonnes per month Concentrator • concentrator design throughput 225 000

25. Slide 25: ARM Platinum

    25 ARM Platinum Two Rivers – 100% basis Six months ended 31 December 2006 2005 % change Tonnes milled Million tonnes 0.75 n/a n/a Head grade (4E) g/t 3.34 n/a n/a PGMs­in­concentrate ounces 54 882 n/a n/a Cash cost: • R/tonne 284 n/a n/a • R/Pt oz 4 508 n/a n/a • R/4E oz 2 580 n/a n/a Capex R millio

26. Slide 26: Industry cost curve

    ZAR/ton 0 100 200 300 400 500 600 700 WLTR (AMS) Source: CTRP(AQP) Merrill Ly nch, September 2006 Everest(AQP) KPM (AMS) Mimosa (AQP) Aquarius Total (AQP) Mimosa (IMP)* ZAR/ton KPM (AQP) Marikana (LON) Impala Lease (IMP) Implats Total (IMP) Two Rivers Platinum Lonmin (LON) Zimplats (IMP)* PPRust (AM

27. Slide 27: ARM Platinum

    27 ARM Platinum • Nkomati Nickel Mine Mineralized Zones • Mine fully exploited current high nickel prices • Resources and reserves for PCR large scale expansion significantly increased • Transformation from low volume MMZ / high grade (MSB) to high volume / lower grade (MMZ) to take place this year

28. Slide 28: Nkomati Expansion Phases

    28 Nkomati Expansion Phases Year 1 Year 2 Year 3 Year 4 Year 5 MSB Capex (30 tpm) Revenue MMZ Phase 1 Capex R 400 m (100 ktpm) Revenue MMZ Phase 2 a Capex (+ 375 ktpm) Revenue 475 ktpm MMZ Phase 2b Capex (Increase Phase 1 to 300 ktpm) Revenue 675 ktpm Phase 3 Capex Nickel refining Revenue 21 500t Ni

29. Slide 29: ARM Platinum

    29 ARM Platinum Nkomati – 100% basis Six months ended 31 December 2006 2005 % change Cash operating profit R million 602 195 209 Tonnes milled Million tonnes 170 182 (7) Head grade % nickel 1.98 1.97 1 On­mine cash cost per tonnes R/tonne 446 508 12 treated Cash cost (net of by­products) US$/lb 0.11

30. Slide 30: ARM Platinum – PGM production growth

    30 ARM Platinum – PGM production growth Growth in attributable PGM ounces (000oz) 350 300 250 200 150 100 50 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Modikwa Two Rivers Nkomati

31. Slide 31: ARM Coal

    31 ARM Coal • Formation of ARM Coal now fully implemented • Effective economic stake in Xstrata Coal South Africa at 20.2% (post option exercised by ARM) • 51% shareholding in the 6.6 mtpa Goedgevonden project • Xstrata Coal SA bought the 50% held by Total SA in the ATCOM and ATC mines thereby secur

32. Slide 32: ARM Coal

    32 ARM Coal Structure Transaction Steps Œ ARM Coal is established and ARM and Xstrata ARM Xstrata subscribe for their interests through respective contributions of R400 million and R384 million 51% 100% 49% • ARM Coal subscribes for a 20% interest in Xstrata Coal SA in the form of ARM participating

33. Slide 33: ARM Coal – production growth

    33 ARM Coal – production growth Attributable saleable tonnes 8,000 7,000 • 76% growth over 5 years 6,000 • Total synergy with ATC 5,000 • Applied for 3,2 mtpa Phase V 4,000 Richards Bay Coal Terminal • 18 new prospecting licenses 3,000 2006 2007 2008 2009 2010

34. Slide 34: TEAL

    34 TEAL • Significant upside achieved on Otjikoto gold orebody • 873 000 oz defined in IPO prospectus in late 2005 • Upgraded by 46% to 1 300 000 ounces by 2006 • Further drill results being analysed • Mwambashi feasibility study completed • 12 000 tonnes per annum of copper • Konkola North feasibil

35. Slide 35: Summarised income statement

    35 Summarised income statement Six months ended 31 December Unaudited** Reviewed R’million 2006 2005 Revenue 2 641 2 362 Profit from operations 1 039 498 Income from investments 24 10 Finance costs (151) (81) Income from associate 34 ­ Exceptional items 14 116 Taxation (329) (166) Minority interest

36. Slide 36: Summarised balance sheet

    36 Summarised balance sheet Unaudited Audited R’million December 2006 June 2006 ASSETS Non­current assets 14 009 12 305 Current assets 3 018 2 306 17 027 14 611 EQUITY AND LIABILITIES Capital and reserves 10 745 10 250 Minority interest 217 143 Total shareholders’ interest 10 962 10 393 Non­current

37. Slide 37: Breakdown of total debt

    37 Breakdown of total debt Long and short term debt at 31 December 2006 R million Assmang – 50% 143 ARM Company 1 283 • EBITDA for the period Modikwa 454 strong at R1.2 billion • Net gearing for ARM ARM Coal 445 relatively low at 21% Two Rivers (ARM share) 455 • Sufficient capacity to ARM attributab

38. Slide 38: Questions?

    FaxtM African Rainbow Minerals Questions?

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