Trading statement in respect of the six months ended 31 December 2017 (1H F2018)

In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited, a listed company is required to publish a trading statement as soon as it is satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported on next will differ by at least 20% from those of the previous corresponding period.

ARM’s basic earnings per share for 1H F2018 are expected to improve to between 912 and 930 cents compared to the basic loss per share of 134 cents reported for the comparative six months ended 31 December 2016 (1H F2017).

The basic loss reported for 1H F2017 included the following special items:

• an attributable impairment of the Nkomati assets of R711 million after tax;
• an attributable impairment of the Modikwa assets of R734 million after tax and non-controlling interest; and
• an impairment loss of R422 million within the Assmang joint venture related to the sale of Dwarsrivier Mine.

Headline earnings for 1H F2018 have been positively affected by an increase in average realised US Dollar commodity prices for most of the commodities that ARM produces, which was partly offset by a stronger average realised Rand/US Dollar exchange rate.

Headline earnings per share for 1H F2018 are expected to increase by between 10% and 16% to between 986 and 1 037 cents (1H F2017; 893 cents).

The financial information on which this trading statement is based has neither been reviewed nor reported on by the external auditors of ARM.

The Company’s 1H F2018 financial results will be released on 16 March 2018.

For all investor relations queries please contact:

Jongisa Magagula
Corporate Development and Head of Investor Relations
Office: +27 11 779 1507
Mobile: +27 82 562 5288
Email: jongisa.magagula@arm.co.za

Johannesburg
27 February 2018

Deutsche Securities (SA) Proprietary Limited