We do it better ABOUT ARM
We do it better
ABOUT ARM
About ARM
African Rainbow Minerals (ARM) is a leading South African diversified mining and minerals company with long-life, low unit cost operations.
ARM mines and beneficiates iron ore, manganese ore, chrome ore, platinum group metals, copper, nickel and coal. ARM also produces manganese and chrome alloys and has an investment in gold through its shareholding in Harmony.
1 ARM’s effective interest in Modikwa Mine is 41.5%,
local communities hold 8.5% of Modikwa Mine.
2 ARM’s shareholding in Two Rivers will reduce to 51%
once the transfer of Kalkfontein portions 4, 5 and 6
and Tweefontein prospecting rights has been effected.
Coal
PGMs
100% 100% 10% 51% 100% 100% 14.6%
Gold:Harmony
Manganese Ore
Base Metals
Iron Ore
PGMs
41.5% Modikwa1
55% Two Rivers2
Iron Ore
50% Khumani
50% Beeshoek
PGM Exploration
46% Kalplats
Manganese Alloys
50% Cato Ridge25% Cato Ridge Alloys50% Machadodorp27% Sakura
Chrome Ore
50% Dwarsrivier
Charge Chrome
50% Machadodorp
Coal
20% Participating Coal Business
Copper
40% Lubambe and Lubambe Extension Area
Coal
51% Goedgevonden
Manganese Ore
50% Nchwaning 50% Gloria
Copper Exploration
50% Lusaka and Kabwe
Nickel, PGMs & Chrome
50% Nkomati
Strategic Servicesand Exploration
Where we operate
Lubambe Extension Area
Lubambe Copper Mine
Zambia
Western
Southern
Central
Copperbelt
Lusaka
Northwestern
Eastern
MuchingaLuapula
Northern
Malaysia
South Africa
Zambia
South Africa
Western Cape
Eastern Cape
Northern Cape
North West
Free State
Lesotho
KwaZulu-Natal
Limpopo
Malaysia
Kuching
Sarikei
Sibu
Bintulu
Miri
BruneiSouth China Sea
SakuraFerroalloys Project
Sabah
Sarawak
“ARM achieved record headline earnings in F2014 and declared an increased dividend of 600 cents per share. Excellent performances from Nkomati and Two Rivers mines as nickel and PGM’s contribution to headline earnings increased significantly.”Patrice Motsepe, ARM Executive Chairman
Salient features
200
450475
510
600
(cents)
Dividends per share
0
100
200
300
400
500
600
700
F2014F2013F2012F2011F2010
807
1 585 1 6151 735
1 900
(cents)
0
500
1 000
1 500
2 000
2 500
F2014F2013F2012F2011F2010
Headline earnings per share
Headline earnings per share increased from 1 735 cents per share to 1 900 cents per share.
Increased dividend declared of 600 cents per share.
Costs were well controlled at the Nkomati, Dwarsrivier and Two Rivers mines.
Lubambe Copper Mine produced 23 791 tonnes copper as it continued its ramp-up.
Sakura Ferroalloys Project began construction; R790 million has been spent to date.
The Lost Time Injury Frequency Rate (LTIFR) was reduced from 0.48 (per 200 000 man-hours) to 0.37 in F2014.
Khumani, Black Rock and Dwarsrivier mines each completed more than two million fatality-free shifts.
Continued improvement in the implementation of HIV & Aids and Tuberculosis (TB) management programmes.
Overall employment equity performance is ahead of 2014 Mining Charter targets.
Total Corporate Social Responsibility (CSR) expenditure increased to R283 million.
58
100126
169
283
(R million)
Total CSR expenditure
0
50
100
150
200
250
300
350
F2014F2013F2012F2011F2010
(per 200 000 man-hours)
Lost Time Injury Frequency Rate (LTIFR)
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
F2014F2013F2012F2011F2010
0.77
0.43 0.40
0.48
0.37
ARM strategy
Owner operator Profit focusedEntrepreneurial management
Partner of choicePartnering with
communities, workers and other stakeholders
World-class management team
Employer of choice
Quality growth continues in
ARM’s portfolio of commodities
Africa
Operational efficiencies
Acquisitions and partnerships
All operations to be
below the 50 th percentile
Ramping up volumes
and initia
ting new
growth projects
Continuing to
assess
acquisitions and jo
int
venture opportunitie
s ARM Exploration
Project pipeline and operations
ARM’s objective is that all operations should be below the 50th percentile
Percentile on cost curve (based on cumulative production)
25% 50% 75% 100%
Commodityunit cash
cost
Dwarsrivier Chrome Ore
Two Rivers Platinum
Goedgevonden Coal
Khumani Iron Ore
Manganese Ore
Modikwa Platinum
Lubambe Copper (2016)
Nkomati Nickel
Manganese smelters
Beeshoek Iron Ore
Contact details
African Rainbow Minerals LimitedRegistration number: 1933/004580/06Incorporated in the Republic of South AfricaJSE share code: ARIADR ticker symbol: AFRBYISIN: ZAE000054045
Registered and Corporate OfficeARM House29 Impala RoadChislehurstonSandton2196
PO Box 786136, Sandton, 2146
Telephone: +27 11 779 1300Fax: +27 11 779 1312E-mail: [email protected]: http://www.arm.co.za
Company SecretaryAlyson D’Oyley, BCom, LLB, LLMTelephone: +27 11 779 1300Fax: +27 11 779 1318E-mail: [email protected]
Business DevelopmentStompie ShielsExecutive: Business DevelopmentTelephone: +27 11 779 1476Fax: +27 11 779 1312E-mail: [email protected]
Investor RelationsJongisa MagagulaCorporate Development and Head of Investor RelationsTelephone: +27 11 779 1507Fax: +27 11 779 1312E-mail: [email protected]
Betty MolloManager: Investor Relations and Corporate DevelopmentTelephone: +27 11 779 1478Fax: +27 11 779 1312E-mail: [email protected]
AuditorsExternal Auditors: Ernst & Young Inc.Internal Auditors: KPMG
BankersABSA Bank LimitedFirstRand Bank LimitedThe Standard Bank of South Africa LimitedNedbank Limited
SponsorsDeutsche Securities (SA) Proprietary Limited
Transfer SecretariesComputershare Investor Services Proprietary LimitedGround Floor, 70 Marshall StreetJohannesburg 2001PO Box 61051, Marshalltown, 2107Telephone: +27 11 370 5000Fax: +27 11 688 5222E-mail: [email protected]: http//www.computershare.co.za
DirectorsP T Motsepe (Executive Chairman)M P Schmidt (Chief Executive Officer)F Abbott*M ArnoldDr M M M Bakane-Tuoane*T A Boardman*
A D Botha*J A Chissano (Mozambican)*W M Gule**A K Maditsi*D V Simelane
Dr R V Simelane*Z B Swanepoel*A J Wilkens
* Independent Non-executive** Non-executive
Forward looking statementsCertain 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 HIV & 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.