Trading statement in respect of the year ended 30 June 2016

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 headline earnings for the financial year ended 30 June 2016 (F2016) were negatively affected by a decline in the average US Dollar commodity prices realised for all the commodities which ARM produces, partly offset by the positive impact of a weaker average Rand/US Dollar exchange rate. Cost control initiatives resulted in unit production costs at most operations being well contained and in some instances being reduced in comparison to the previous corresponding period (F2015).

The restructuring of the ARM Broad-Based Economic Empowerment Trust (the Trust) was completed on 22 April 2016. As part of this restructuring, the Trust (which previously owned 28.6 million ARM shares) sold 12.7 million ARM shares to a wholly-owned subsidiary of ARM. Following completion of this transaction, the number of shares used in any calculation of “per share” information will exclude both the ARM shares held by the wholly-owned subsidiary and those owned by the Trust. As this change was effective from 22 April 2016 it only proportionately impacts F2016 weighted average number of shares in issue. The weighted average number of shares in issue at 30 June 2016 used in the calculation of per share information included in this trading statement is therefore 212 990 000 shares (F2015: 217 232 000 shares).

Accordingly, ARM announces that headline earnings per share for F2016 are expected to decrease by between 36% and 41% compared to F2015 to between 475 cents and 510 cents (F2015: 803 cents).

ARM’s F2016 basic earnings were largely impacted by an attributable impairment of the Lubambe Copper Mine assets of R1 404 million after non-controlling interest as reported in the results for the six months ended 31 December 2015. Basic earnings per share are therefore expected to decline to a basic loss per share of between 255 cents and 275 cents (F2015: 48 cents profit).

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 F2016 provisional financial results will be released on 8 September 2016.

For all investor relations queries, please contact:

Jongisa Magagula
Corporate Development and Head of Investor Relations
Office: +27 11 779 1300
Email: jongisa.magagula@arm.co.za

Johannesburg
19 August 2016

Sponsor to ARM
Deutsche Securities (SA) (Proprietary) Limited