Highlights of F2007

Record headline earnings, up by 161% to R1.2 billion
First dividend declared of 150 cents per share
Record sales of PGMs and iron, manganese and chrome ores
Extensive capital programme undertaken during the year:
- Construction of 10 million tonnes per annum Khumani Iron Ore Mine on schedule
- Go-ahead for 6.7 million tonnes per annum Goedgevonden Coal Project and Richards Bay Coal Terminal entitlement of 3.2 million tonnes per annum achieved
- Expansion to 100 000 tonnes per month completed at Nkomati Mine, ahead of schedule and on budget

Financial summary and statistics
		GROUP
For the year ended 30 June		F2007 Rm	F2006 Rm	F2005 Rm	F2004 Rm
Income statement
Sales		6 152	4 622	5 485	3 885
Headline earnings		1 207	462	339	47
Headline earnings per share (cents)		580	225	166	37
Basic earnings per share (cents)		586	293	225	865
Dividend declared after year-end per share (cents)		150	n/a	n/a	n/a

Balance sheet
Total assets		18 144	14 611	11 766	11 460
Total interest bearing borrowings		4 044	2 252	1 574	1 831
Shareholders' equity		11 218	10 393	7 972	7 954

Cash flow
Cash generated from operations		2 537	1 243	1 661	603
Cash generated from operations per share (cents)		1 219	606	813	471
Cash and cash equivalents		1 039	193	47	328

Number of employees		7 725	6 943	6 107	5 162

Exchange rates
Average rate US$1 = R		7.20	6.40	6.21	6.90
Closing rate US$1 = R		7.07	7.16	6.65	6.26

JSE performance
Ordinary ARM share price (cents)
– high		13 799	5 225	3 800	4 800
– low		5 320	3 200	2 550	3 250
– year end		12 349	4 825	3 399	3 400
Volume of shares traded (thousands)		40 203	39 711	51 382	26 547
Number of ordinary shares in issue (thousands)		209 730	206 367	204 437	204 208

Financial statistics	Definition number
Interest cover (times)	1	6.9	8.5	8.5	5.4
Return on operational assets (percent)	2	25.1	17.6	20.6	7.5
Return on capital employed (percent)	3	16.4	9.2	8.2	8.2
Return on equity (percent)	4	11.1	4.5	5.2	0.7
Debt:equity ratio	5	0.36	0.22	0.20	0.23
Net debt:equity ratio	6	0.27	0.17	0.16	0.19
Net asset value per share (cents)	7	5 187	4 967	3 185	3 246
Market capitalisation (R million)	8	25 900	9 957	6 949	6 943
Dividend cover	9	3.87	n/a	n/a	n/a
EBITDA before exceptional items (R million)	10	2 903	1 552	1 864	625
EBITDA margin	11	47	34	34	16

Definitions

Interest cover (times): Profit before exceptional items and finance costs divided by finance costs.
Return on operational assets (percent): Profit from operations divided by tangible non-current and current assets excluding capital work in progress.
Return on capital employed (percent): Profit before exceptional items and finance costs, divided by average capital employed.
Capital employed comprises non-current and current assets less trade and other payables and provisions.
Return on equity (percent): Headline earnings divided by ordinary shareholders’ interest in capital and reserves.
Debt:equity ratio: Total debt divided by total equity.Total debt comprises long-term borrowings, overdrafts and short-term borrowings Total equity comprises total shareholders' interest.
Net debt:equity ratio: Total debt less cash and cash equivalents divided by total equity.Total debt comprises long-term borrowings, overdrafts and short-term borrowings.Total equity comprises total shareholders' interest.
Net asset value per share (cents): Ordinary shareholders' interest in capital and reserves divided by number of shares in issue.
Market capitalisation (R million): Number of ordinary shares in issue multiplied by market value of shares at 30 June.
Dividend cover: Headline earnings per share divided by dividend per share.
EBITDA before exceptional items: Earnings before interest, taxation, depreciation, amortisation and exceptional items.
EBITDA margin (percent): EBITDA before exceptional items divided by sales.

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