13 August 2008
In respect of the twelve month period ended 30 June 2008
In terms of paragraph 3.4(b) of the Listings Requirements of the JSE Limited (“the JSE”) 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.
The ARM results for the 12 months to June 2008 have been significantly impacted by the following sales volume and commodity price increases:
- Volume increases were achieved in platinum group metals (PGMs), manganese ore and chrome ore.
- Commodity price increases were achieved mainly during the second half of the financial year in PGMs, ferrous ores and alloys, especially manganese, and in local and export thermal coal.
These positive impacts have been slightly offset by lower nickel prices, increased exploration spending through TEAL in Africa and significant increases in certain operational costs. In addition, sales of ferromanganese alloys were lower as the result of reduced production because of the smelter accident at Cato Ridge Works on 24 February 2008.
Accordingly, ARM announces that it expects headline earnings per share to increase for the 12 months ended 30 June 2008 to between 1700 and 2000 cents per share (headline earnings for the 12 months to June 2007 were 580 cents per share). Basic earnings per share are expected to be in the range of 1900 and 2300 cents per share (basic earnings for the 12 months to June 2007 were 586 cents per share)
The above estimates do not include the effects of the insurance claim against insurers for asset damage and business interruption losses at the Cato Ridge operations.
This trading statement has not been reviewed or reported on by the external auditors of ARM.
The Company’s full year results will be released on Monday 1 September 2008.
For all investor relations queries please contact:
Corporate Development & Head of Investor Relations
Office: +27 11 779 1507
Mobile: +27(0) 83 411 2881