1
“ARM’s headline earnings increased by 66% as a
result of increased contributions from the iron ore,
manganese ore, Two R...
2
Two Rivers Mine Plant
Patrice Motsepe, Executive Chairman
Overview and strategy
3
Certain statements in this report constitute forward looking statements that are neither reported financial results nor
...
4
Group structure
ARM’s effective interest in Modikwa Mine is 41.5%, local communities hold 8.5% of Modikwa Mine.1
ARM’s s...
5
Salient features
Headline earnings increased by 66% to R2.34 billion (1H F2013: R1.41 billion).
Headline earnings per sh...
6
Salient features
ARM Ferrous’ contribution to headline earnings increased by 108% from
R1.04 billion (restated) to R2.15...
7
Salient features
Increased sales volumes were achieved in:
- iron ore
- PGMs
- nickel
- manganese alloys
- export coal f...
8
Lubambe Copper Mine:
- the concentrate specification issues have been resolved.
- challenges with the late commissioning...
9
Safety
ARM managed operations completed 23 months without a fatality.
The Lost Time Injury Frequency Rate (LTIFR) remain...
10
Headline earnings (R million)
Headline earnings
454
1 562
1 997
1 406
2 341
1 260
1 812
1 454
2 331
0
500
1 000
1 500
2...
11
Headline earnings per share (Rands)
Headline earnings per share
2.14
7.34
9.37
6.54
10.84
5.93
8.51
6.78
10.81
0.00
2.0...
12
Iron Ore
35%
Manganese
19%
Chrome
6%
Coal
5%
Platinum
23%
Nickel
12%
Copper
0%
Iron Ore
40%
Manganese
17%
Chrome
3%
Coa...
13
EBITDA margins have improved.
The copper mine is not reflected as it is in early stage ramp-up.
EBITDA margins by commo...
14
ARM strategy
Operational
efficiencies
Quality growth
continues in
ARM’s portfolio
of commodities
Acquisitions and
partn...
15
Copper produced (thousand tonnes)
Lubambe Mine ramp-up
Steady state production is expected in F2016.
26.0
38.0
45.0 45....
16
Quality growth opportunities
• Manganese ore expansion beyond 3 mtpa
• Iron ore expansion
• Expansion of Modikwa Platin...
17
Operational efficiencies
ARM’s objective is to have its operations below the 50th percentile on the global cost curve.
...
18
ARM Exploration
ARM Exploration continues with base metal exploration in Northern
Mozambique.
ARM Exploration is invest...
19
Mergers and Acquisitions
ARM continues to evaluate value adding acquisitive growth opportunities.
ARM’s strong financia...
20
Outlook
Global commodity prices and currencies remain volatile.
The Chinese economy remains supportive of demand for th...
21
Outlook
The South African mining industry is being challenged by rising costs for
labour, fuel and electricity.
ARM is ...
22
Aerial view of Lubambe Copper Mine
Mike Schmidt, Chief Executive Officer
Operational review
23
Contribution to headline earnings (R million)
Commodity
Six months ended
31 December
2013 2012 % change
Platinum Group ...
24
No fatalities on ARM managed mines in 1H F2014
Lost Time Injury Frequency Rate (LTIFR) per 200 000 man hours worked
Imp...
25
2 061
3 619
1 697
359
701 (982)
(209)
(8)
0
1 000
2 000
3 000
4 000
5 000
6 000
1H F2013 Exchange rate Commodity
dollar...
26
Copper sold for 1H F2014 was 14 325 tonnes.
1H F2014 vs. 1H F2013 sales volumes % change
Changes in sales volumes
55%
2...
27
1H F2014 vs. 1H F2013 realised prices % change
Changes in US Dollar realised prices
-22%
-15% -14% -14% -13%
-8% -7% -6...
28
Spot prices on 26 February 2014 vs. 1H F2014 realised prices % change
Spot price comparison to 1H F2014
-4%
-
1%
2% 3%
...
29
Unit cost changes by commodity
1H F2014 vs. 1H F2013 on-mine production unit cost % change
Nkomati C1 cash cost net of ...
30
COSTS ANALYSIS
ARM Ferrous
Manganese ore operationsIron ore operations
Electricity
4%
Labour
30%
Consumables
63%
Other
...
31
COSTS ANALYSIS
ARM Platinum
Modikwa Platinum MineTwo Rivers Platinum Mine
Nkomati Nickel Mine
Electricity
6%
Labour
54%...
32
COSTS ANALYSIS
ARM Coal
PCB operationsGoedgevonden Mine
Labour
39%
Consumables
28%
Electricity
3%
Other
30%
Labour
15%
...
33
Iron ore and manganese ore sales volumes on a 100% basis (million tonnes)
ARM Ferrous
*Manganese ore sales exclude intr...
34
PGM and nickel production on a 100% basis
353
361
384
409
427
3 785
4 886
6 014
11 258
11 859
1 000
3 000
5 000
7 000
9...
35
Cash operating cost
1H
F2012
1H
F2013
1H
F2014
On-mine operating costs US$/lb 10.65 6.08 5.58
Off-mine operating cost U...
36
1.71%
2.07%
1.97%
2.30%
1.50%
1.70%
1.90%
2.10%
2.30%
2.50%
1H F2013 2H 2013 1H F2014 Steady
state
64%
75% 75%
78%
50%
...
37
There has been an increase in resource tonnes and average grade of the target area.
Total resource (indicated + inferre...
38
*The forecasted capital expenditure for F2015 to F2016 is an estimation based on approved projects and projects under c...
39
Projects pipeline and operations
Rovuma Resources Exploration
5
2
3
6
7
1
Kalplats
Lubambe Extension Area
Beeshoek Vill...
40
We do it better
40
Thank you
41
We do it better
41
Appendix
42
Accounting policy change
ARM has implemented changes to its accounting policies following changes to
IFRS.
The changes ...
43
Accounting policy change
Assmang is no longer proportionately consolidated.
ARM’s share of Assmang is now disclosed as ...
44
Transnet’s Market Demand Strategy
by 2019
Saldanha
Western Cape
Eastern Cape
Lesotho
Free State
Northern Cape
KwaZulu-N...
45
1H F2014 1H F2013 % change
ARM Platinum
(100% basis)
Modikwa
PGMs in concentrate Ounces, 6E 154 911 176 701 (12)
Cash c...
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African Rainbow Minerals HY 2014 financial results presentation

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African Rainbow Minerals HY 2014 financial results presentation

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African Rainbow Minerals HY 2014 financial results presentation

  1. 1. 1 “ARM’s headline earnings increased by 66% as a result of increased contributions from the iron ore, manganese ore, Two Rivers, Nkomati and Goedgevonden mines.” Patrice Motsepe Executive Chairman
  2. 2. 2 Two Rivers Mine Plant Patrice Motsepe, Executive Chairman Overview and strategy
  3. 3. 3 Certain statements in this report constitute forward looking statements that are neither reported financial results nor other historical information. They include but are not limited to statements that are predictions of or indicate future earnings, savings, synergies, events, trends, plans or objectives. Such forward looking statements may or may not take into account and may or may not be affected by known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward looking statements. Such risks, uncertainties and other important factors include among others: economic, business and political conditions in South Africa; decreases in the market price of commodities; hazards associated with underground and surface mining; labour disruptions; changes in government regulations, particularly environmental regulations; changes in exchange rates; currency devaluations; inflation and other macro-economic factors; and the impact of the AIDS crisis in South Africa. These forward looking statements speak only as of the date of publication of these pages. The Company undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of publication of these pages or to reflect the occurrence of unanticipated events. Disclaimer
  4. 4. 4 Group structure ARM’s effective interest in Modikwa Mine is 41.5%, local communities hold 8.5% of Modikwa Mine.1 ARM’s shareholding in Two Rivers will reduce to 51% once the transfer of Kalkfontein portions 4, 5 and 6 and the Tweefontein prospecting rights has been effected. 2 Platinum Australia submitted a revised feasibility study during 2013, thereby completing Phase II of the exploration programme and earning 44% participation in the Kalplats Project. 3 PGM Exploration 46% Kalplats 3 Nickel, PGMs & Chrome 50% Nkomati Platinum PGMs 41.5% Modikwa 1 55% Two Rivers 2 100% Charge Chrome 50% Machadodorp Chrome Ore 50% Dwarsrivier Manganese Alloys 50% Cato Ridge 25% Cato Ridge Alloys 50% Machadodorp 27% Sakura Iron Ore 50% Khumani 50% Beeshoek Manganese Ore 50% Nchwaning 50% Gloria Ferrous 100% 10% Coal 20% Participating Coal Business Coal 51% Coal 51% Goedgevonden Copper 100% Copper 40% Lubambe and Lubambe Extension Copper Exploration 50% Lusaka & Kabwe Gold: Harmony 14.6% Exploration 100% Base metals Coal Manganese Ore PGMs Iron Ore
  5. 5. 5 Salient features Headline earnings increased by 66% to R2.34 billion (1H F2013: R1.41 billion). Headline earnings per share were 1 084 cents compared to 654 cents per share in the corresponding period. Basic earnings of R1.71 billion were negatively affected by exceptional items of R627 million. The largest exceptional item related to a R510 million unrealised mark-to- market loss on the Harmony investment.
  6. 6. 6 Salient features ARM Ferrous’ contribution to headline earnings increased by 108% from R1.04 billion (restated) to R2.15 billion mainly as a result of: - higher US Dollar prices realised for iron ore and - a weaker Rand. ARM Platinum’s contribution to headline earnings increased from R299 million to R363 million. The increase was achieved despite lower US Dollar PGM and nickel prices.
  7. 7. 7 Salient features Increased sales volumes were achieved in: - iron ore - PGMs - nickel - manganese alloys - export coal from Goedgevonden - chrome concentrate and - copper. Decrease in unit production costs achieved at Nkomati Nickel Mine. Cost increases at Dwarsrivier and Two Rivers were lower than inflation.
  8. 8. 8 Lubambe Copper Mine: - the concentrate specification issues have been resolved. - challenges with the late commissioning of the vertical shaft have also been resolved. Earthworks have commenced at the Sakura manganese alloy smelting project. Update on growth projects
  9. 9. 9 Safety ARM managed operations completed 23 months without a fatality. The Lost Time Injury Frequency Rate (LTIFR) remained constant at 0.41 per 200 000 man-hours compared to the corresponding period.
  10. 10. 10 Headline earnings (R million) Headline earnings 454 1 562 1 997 1 406 2 341 1 260 1 812 1 454 2 331 0 500 1 000 1 500 2 000 2 500 F2010 F2011 F2012 F2013 F2014 First half (1H) Second half (2H) Headline earnings increased by 66% compared to the corresponding period.
  11. 11. 11 Headline earnings per share (Rands) Headline earnings per share 2.14 7.34 9.37 6.54 10.84 5.93 8.51 6.78 10.81 0.00 2.00 4.00 6.00 8.00 10.00 12.00 F2010 F2011 F2012 F2013 F2014 First half (1H) Second half (2H)
  12. 12. 12 Iron Ore 35% Manganese 19% Chrome 6% Coal 5% Platinum 23% Nickel 12% Copper 0% Iron Ore 40% Manganese 17% Chrome 3% Coal 5% Platinum 20% Nickel 11% Copper 4% Iron ore and copper sales contribution increased. Sales composition: segmental analysis 1H F2014 sales split1H F2013 sales split
  13. 13. 13 EBITDA margins have improved. The copper mine is not reflected as it is in early stage ramp-up. EBITDA margins by commodity EBITDA margins 11% 29% 29% 30% 43% 58% 4% 23% 31% 27% 38% 48% -30% -10% 10% 30% 50% 70% Chrome Manganese Nickel Platinum Coal Iron Ore 1H F2013 1H F2014
  14. 14. 14 ARM strategy Operational efficiencies Quality growth continues in ARM’s portfolio of commodities Acquisitions and partnerships Africa Owner operator Entrepreneurial management Profit focused Partner of choice Employer of choice World-class management team Responsible community development
  15. 15. 15 Copper produced (thousand tonnes) Lubambe Mine ramp-up Steady state production is expected in F2016. 26.0 38.0 45.0 45.0 14.9 10.6 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 45.0 50.0 F2013a F2014e F2015e F2016e F2017e Actual Estimate
  16. 16. 16 Quality growth opportunities • Manganese ore expansion beyond 3 mtpa • Iron ore expansion • Expansion of Modikwa Platinum Mine • Lubambe Copper Extension • Exploration with Rovuma Resources • Thermal coal projects
  17. 17. 17 Operational efficiencies ARM’s objective is to have its operations below the 50th percentile on the global cost curve. Two Rivers Platinum Goedgevonden Coal Khumani Iron Ore Manganese Ore Modikwa Platinum Manganese Smelters Lubambe Copper (2016) Nkomati Nickel Dwarsrivier Chrome Ore Commodity Unit cash cost Percentile on cost curve (based on cumulative production) 25% 50% 75% 100% Beeshoek Iron Ore
  18. 18. 18 ARM Exploration ARM Exploration continues with base metal exploration in Northern Mozambique. ARM Exploration is investigating and evaluating brownfields exploration opportunities in several African countries.
  19. 19. 19 Mergers and Acquisitions ARM continues to evaluate value adding acquisitive growth opportunities. ARM’s strong financial status, positions it favourably to pursue value adding acquisitive growth.
  20. 20. 20 Outlook Global commodity prices and currencies remain volatile. The Chinese economy remains supportive of demand for the commodities that ARM produces.
  21. 21. 21 Outlook The South African mining industry is being challenged by rising costs for labour, fuel and electricity. ARM is focussing on containing costs to ensure that its operations continue to be positioned below the 50th percentile of the global cost curves.
  22. 22. 22 Aerial view of Lubambe Copper Mine Mike Schmidt, Chief Executive Officer Operational review
  23. 23. 23 Contribution to headline earnings (R million) Commodity Six months ended 31 December 2013 2012 % change Platinum Group Metals 206 152 36 Nkomati Nickel and Chrome 157 147 7 Ferrous Metals* 2 153 1 035 108 Coal (34) 105 (132) Copper (122) (21) >(250) Exploration (24) (36) 33 Gold - 32 - Corporate and Other* 5 (8) - ARM Headline Earnings 2 341 1 406 66 Divisional headline earnings * Includes IFRS 11 adjustments related to ARM Ferrous.
  24. 24. 24 No fatalities on ARM managed mines in 1H F2014 Lost Time Injury Frequency Rate (LTIFR) per 200 000 man hours worked Improvement in safety record 0.00 0.50 1.00 1.50 2.00 2.50 3 month moving average 12 month moving average
  25. 25. 25 2 061 3 619 1 697 359 701 (982) (209) (8) 0 1 000 2 000 3 000 4 000 5 000 6 000 1H F2013 Exchange rate Commodity dollar prices Volume Cash cost Non cash cost Corporate and other 1H F2014 Factors subject to market conditions Factors subject to management’s control Segmental profit variance analysis Unaudited profit variance analysis – Profit from operations before exceptional items (R million)
  26. 26. 26 Copper sold for 1H F2014 was 14 325 tonnes. 1H F2014 vs. 1H F2013 sales volumes % change Changes in sales volumes 55% 22% 9% 4% 4% 4% -1% -7% -21% Nkomati chrome concentrate GGV Export coal Ferromanganese PGMs Iron ore Nickel Dwarsrivier chrome ore Manganese ore GGV Eskom coal
  27. 27. 27 1H F2014 vs. 1H F2013 realised prices % change Changes in US Dollar realised prices -22% -15% -14% -14% -13% -8% -7% -6% 14% 19% 27% Export coal ($/t) Nickel ($/lb) Manganese ore ($/t) FeMn ($/t) Rhodium ($/oz) Platinum ($/oz) Copper ($/lb) Chrome concentrate ($/t) Palladium ($/oz) Exchange rate (R/$) Iron ore ($/t)
  28. 28. 28 Spot prices on 26 February 2014 vs. 1H F2014 realised prices % change Spot price comparison to 1H F2014 -4% - 1% 2% 3% 3% 3% 3% 4% 8% 13% 16% Iron ore ($/t) Copper ($/lb) Platinum ($/oz) Nickel ($/lb) Palladium ($/oz) Chrome concentrate ($/t) Export coal ($/t) Gold ($/oz) Manganese ore ($/t) Exchange rate (R/$) FeMn ($/t) Rhodium ($/oz)
  29. 29. 29 Unit cost changes by commodity 1H F2014 vs. 1H F2013 on-mine production unit cost % change Nkomati C1 cash cost net of by products decreased 15% to $4.35/lb produced -20% -10% 0% 10% 20% 30% 40% 50% Nickel PGM: Two Rivers Chrome ore Manganese ore Manganese alloys Iron ore PGM: Modikwa GGV Coal PCB Coal
  30. 30. 30 COSTS ANALYSIS ARM Ferrous Manganese ore operationsIron ore operations Electricity 4% Labour 30% Consumables 63% Other 3% Electricity 5% Labour 62% Consumables 28% Other 5% Manganese alloy operations Electricity 27% Labour 21% Consumables 48% Other 4%
  31. 31. 31 COSTS ANALYSIS ARM Platinum Modikwa Platinum MineTwo Rivers Platinum Mine Nkomati Nickel Mine Electricity 6% Labour 54% Consumables 22% Other 18% Electricity 10% Labour 41% Consumables 24% Other 25% Electricity 6% Labour 50% Consumables 36% Other 8%
  32. 32. 32 COSTS ANALYSIS ARM Coal PCB operationsGoedgevonden Mine Labour 39% Consumables 28% Electricity 3% Other 30% Labour 15% Consumables 36% Electricity 2% Other 47% The transition of PCB from underground to open-cast mining is expected to be completed by 2016.
  33. 33. 33 Iron ore and manganese ore sales volumes on a 100% basis (million tonnes) ARM Ferrous *Manganese ore sales exclude intra-group sales. 4.5 4.0 6.8 7.4 7.7 1.5 1.5 1.6 1.5 1.4 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 1H F2010 1H F2011 1H F2012 1H F2013 1H F2014 Iron Ore Manganese ore*
  34. 34. 34 PGM and nickel production on a 100% basis 353 361 384 409 427 3 785 4 886 6 014 11 258 11 859 1 000 3 000 5 000 7 000 9 000 11 000 13 000 150 200 250 300 350 400 450 1H F2010 1H F2011 1H F2012 1H F2013 1H F2014 Nickeltonnes 6EPGMthousandounces PGMs (000 oz) Nickel (tonnes) ARM Platinum
  35. 35. 35 Cash operating cost 1H F2012 1H F2013 1H F2014 On-mine operating costs US$/lb 10.65 6.08 5.58 Off-mine operating cost US$/lb 3.17 2.35 2.63 PGM, copper and cobalt by-product credits US$/lb (3.31) (3.04) (3.62) Chrome by-product credit US$/lb (0.28) (0.26) (0.23) C1 cash cost net of by products US$/lb 10.24 5.13 4.35 On-mine cost per tonne milled R/t 328 297 283 Nickel produced (thousand tonnes) Average concentrator recoveries (%) Average milling grade (% nickel content) Sustained improvement in Nkomati operational performance 3.8 5.3 6.0 11.2 11.9 0 2 4 6 8 10 12 14 1H F2010 1H F2011 1H F2012 1H F2013 1H F2014 0.50% 0.39% 0.30% 0.42% 0.39% 0.25% 0.30% 0.35% 0.40% 0.45% 0.50% 0.55% 1H F2010 1H F2011 1H F2012 1H F2013 1H F2014 62% 65% 62% 72% 77% 50% 55% 60% 65% 70% 75% 80% 1H F2010 1H F2011 1H F2012 1H F2013 1H F2014
  36. 36. 36 1.71% 2.07% 1.97% 2.30% 1.50% 1.70% 1.90% 2.10% 2.30% 2.50% 1H F2013 2H 2013 1H F2014 Steady state 64% 75% 75% 78% 50% 55% 60% 65% 70% 75% 80% 1H F2013 2H 2013 1H F2014 Steady state Copper produced per six months (tonnes) Average concentrator recoveries (%) Average milling grade (% nickel content) Lubambe Mine ramp-up Average mill head grade (% copper content) 2H F2013 1H F2014 Steady State On-mine operating costs US$/lb 3.10 2.62 1.35 Off-mine operating cost US$/lb 0.41 0.61 0.45 C1 cash cost US$/lb 3.51 3.23 1.80 On-mine and off-mine cost per tonne milled US$/t 119 107 71 Cash operating costs 3 230 11 641 10 567 22 500 0 5 000 10 000 15 000 20 000 25 000 1H F2013 2H 2013 1H F2014 Steady state
  37. 37. 37 There has been an increase in resource tonnes and average grade of the target area. Total resource (indicated + inferred) Description AMEC statement Feb 2014 AMEC statement Feb 2013 Variance % change Resource tonnage Mt 134.00 105.00 29.00 28 Total Copper grade % 4.07 3.66 0.41 11 Acid soluble Copper grade % 0.46 0.59 (0.13) (22) Cobalt grade % 0.06 0.09 (0.03) (33) True thickness Metres 10.43 10.74 (0.31) (3) Contained copper Mt 5.46 3.84 1.62 42 Lubambe Extension Area
  38. 38. 38 *The forecasted capital expenditure for F2015 to F2016 is an estimation based on approved projects and projects under consideration. Capital expenditure (R million)* Capital expenditure: segmental analysis Actual 1H F2014: R1.4 billion 3 494 4 321 3 489 2 850 3 000 3 200 0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 5 000 F2011a F2012a F2013a F2014e F2015e F2016e ARM Platinum ARM Ferrous ARM Coal ARM Copper
  39. 39. 39 Projects pipeline and operations Rovuma Resources Exploration 5 2 3 6 7 1 Kalplats Lubambe Extension Area Beeshoek Village Pit Manganese ore expansion beyond 3 mtpa Sakura Ferroalloys Exploration to feasibility Project development and ramp-up Steady state (>15 years life-of-mine) Declining operations 4 2 3 6 7 1 Lubambe Copper Mine Modikwa Platinum Mine Expansion Beeshoek Iron Ore Mine Thermal coal mines Manganese and chrome smelters Manganese ore mines Two Rivers Platinum Mine Modikwa Platinum Mine Nkomati Nickel Mine Goedgevonden Thermal Coal Mine Dwarsrivier Chrome Mine Khumani Iron Ore Mine Stage of development 5 4 Iron ore expansion beyond 16 mtpa
  40. 40. 40 We do it better 40 Thank you
  41. 41. 41 We do it better 41 Appendix
  42. 42. 42 Accounting policy change ARM has implemented changes to its accounting policies following changes to IFRS. The changes affect disclosures made in the financial statements but do not affect the earnings or the segmental analysis.
  43. 43. 43 Accounting policy change Assmang is no longer proportionately consolidated. ARM’s share of Assmang is now disclosed as a single line item on the consolidated income statement as “Income from joint venture” ARM’s share of Assmang is disclosed on the statement of financial position as “Investment in joint venture” ARM’s share of Assmang is disclosed on the cash flow statement as “Dividends received from joint venture”
  44. 44. 44 Transnet’s Market Demand Strategy by 2019 Saldanha Western Cape Eastern Cape Lesotho Free State Northern Cape KwaZulu-Natal North West Gauteng Mpumalanga Port Elizabeth Coega (Ngqura) East London Durban Richards Bay Maputo Port Kimberly Johannesburg RAILAGE ROUTES ROADROUTES Manganese Division Nchwaning & Gloria Mines Coal Division Goedgevonden Impunzi And Tweefontein Mines Iron Ore Division Beeshoek & Khumani Iron Ore Mines Coal export capacity to be increased to 97.5 mtpa (81 mtpa by 2015) Manganese ore export capacity to increase to 16 mtpa by 2018/2019 Iron ore export capacity to increase to 82.5 mtpa by 2020
  45. 45. 45 1H F2014 1H F2013 % change ARM Platinum (100% basis) Modikwa PGMs in concentrate Ounces, 6E 154 911 176 701 (12) Cash cost R/kg, 6E 213 441 187 418 14 Cash operating margin % 18 20 Two Rivers PGMs in concentrate Ounces, 6E 193 503 179 513 8 Cash cost R/kg, 6E 165 667 164 629 1 Cash operating margin % 38 34 Nkomati Nickel sales Tonnes 11 859 11 258 5 Chrome ore / concentrate sold kt 117 76 55 C1 cash cost net of by-products produced US$/lb 4.35 5.13 (15) Cash operating margin % 30 33 ARM Copper (100% basis) Lubambe Copper sales Tonnes 14 325 2 874 >250 C1 cash cost US$/lb 3.23 4.30 (25) Cash operating margin % - - ARM Ferrous (100% basis) Iron ore Sales tonnes Mt 7 738 7 433 4 Change in costs compared to comparable period % 11 25 EBITDA margin % 13 48 Manganese ore Sales tonnes (excl intra-group sales) Mt 1 411 1 513 (7) Change in costs compared to comparable period % 6 26 EBITDA margin % 7 26 Chrome ore Sales tonnes kt 477 483 (1) Change in costs compared to comparable period % 1 7 EBITDA margin % 1 6 Manganese alloy Sales tonnes (excl intra-group sales) kt 117 107 9 Change in costs compared to comparable period % 11 7 EBITDA margin % 12 12 ARM Coal (100% basis) GGV Total saleable production Mt 3.77 4.41 (15) On mine saleable cost R/tonne 207 158 31 PCB Total saleable production Mt 5.98 6.65 (10) On mine saleable cost R/tonne 417 302 38 Operational summary

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