Salient features

Headline earnings increased 2% to R3.45 billion (F2011 restated: R3.37 billion) in difficult market conditions. The headline earnings per share were 1 615 cents compared to 1 585 cents in F2011 (restated).
ARM declared an increased dividend of 475 cents per share, compared to the F2011 dividend of 450 cents per share.
Sales revenue increased 18% to R17.53 billion due to increased sales volumes achieved.
ARM maintained a robust financial position with net cash (excluding partner loans) of R2.3 billion (F2011: R2.6 billion).
   
arrow  Key performance indicators
 
 
Significant sales volume increases across all ARM commodities excluding ferrochrome and Nkomati Mine chrome ore.
Satisfactory cost containment at Two Rivers Mine, the PCB coal operations, the manganese ore mines, the manganese alloy operations, the Nkomati Mine and the chrome ore mine.
Update on growth projects:
 
The Khumani Iron Ore Expansion Project from 10 mtpa to 16 mtpa was successfully handed over to the mine approximately one year ahead of schedule and well below budget.
Full production ramp-up to 6.4 mtpa was achieved at Goedgevonden Coal Mine.
Significant improvement in the operational performance during the ramp-up phase of the Nkomati Nickel Mine in the second half of the financial year.
Lubambe Copper Project (previously Konkola North Copper Project) is progressing on time and within budget with plant commissioning expected by the end of the 2012 calendar year.
   
arrow  Operational overview
Nkomati, Beeshoek and Khumani mines achieved in excess of two million fatality-free shifts while Black Rock Mine, Dwarsrivier Mine and Cato Ridge Works each achieved in excess of a million fatality-free shifts.
The ARM Lost time Injury Frequency Rate (LTIFR) improved from 0.43 in F2011 to 0.40 in F2012.
Regrettably, four lives were lost as a result of three accidents.
Our performance against our internal HIV & Aids benchmark improved, for the first time exceeding the high standard we set for our operations in F008.
Total Corporate Social Responsibility investment (which includes expenditure in terms of Corporate Social Investment, Local Economic Development and the ARM BBEE Trust) im proved from R125 million in F2011 to R126 million in F2012.
ARM contri buted to 24 classrooms, 5 schools, 4 school halls and three crèches in F2012.
ARM has for the second year met application level A+ of the Global Reporting Initiative (GRI) G3 guidelines and has been successfully assured for third consecutive year.
   
arrow  Sustainability review