“Headline earnings increased by 15% to R1.95 billion.

A maiden interim dividend of R2.50 per share was

declared.

ARM completed the disposal of Lubambe Mine and

increased its interest in Two Rivers Mine to 54%.”

Patrice Motsepe

Executive Chairman

Overview and strategy

Patrice Motsepe, Executive Chairman

Khumani Iron Ore Mine

Disclaimer

Certain 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 AIDS epidemic 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.

3

Group structure

ARM’s effective interest in Modikwa Mine is 41.5%, local communities hold 8.5%.1

ARM’s interest in Two Rivers Mine increased to 54% from 9 November 2017 when the mine’s

amended mining right was executed by the Department of Mineral Resources.

2

PGM Exploration

46% Kalplats

Nickel, PGMs & Chrome

50% Nkomati

Platinum

PGMs

41.5% Modikwa1

54% Two Rivers 2

100%

Charge Chrome

50% Machadodorp

Manganese Alloys

50% Cato Ridge

25% Cato Ridge Alloys

50% Machadodorp

27% Sakura

Iron Ore

50% Khumani

50% Beeshoek

Manganese Ore

50% Nchwaning

50% Gloria

Ferrous

100% 10%

Coal

20% Participating CoalBusiness (PCB) 3

Coal

51%

Coal

51% Goedgevonden

(GGV) 3

Copper

100%

Copper

40% Lubambe and

Lubambe Extension

Area 4

Gold:Harmony

14.3%

4

ARM’s effective interest in GGV is 26% and 20.2% in PCB.3

The disposal of ARM’s 40% effective interest in Lubambe and Lubambe Extension Area was

completed on 22 December 2017.4

Salient features

Headline earnings increased by 15% to R1 945 million compared to R1 693 million in the corresponding period (1H F2017).

Headline earnings per share were 1 023 cents (1H F2017: 893 cents).

Maiden interim dividend of 250 cents per share declared.

5

Salient features

Basic earnings were R1 753 million (1H F2017: R254 million basic loss).

The basic loss in 1H F2017 included an attributable impairment of the Nkomati Mine and Modikwa Mine assets of R711 million and R734 million after tax and non-controlling interest, respectively.

Higher US Dollar prices were realised for all commodities in ARM’s portfolio except iron ore, platinum and chrome concentrate.

The average Rand/US Dollar exchange rate strengthened by 4% to R13.39/US$ (1H F2017: R13.98/US$).

Disposal of ARM and Vale’s 80% interest in Lubambe Mine was completed on 22 December 2017.

6

Salient features

ARM’s interest in Two Rivers Mine increased to 54% from 9 November 2017 after the mine’s amended mining right was executed by the Department of Mineral Resources (DMR).

Cash dividends received from the Assmang joint venture were R1 000 million (1H F2017: R988 million).

Since the period end, ARM received a cash dividend of R2 000 million from Assmang (in February 2018).

Net debt reduced to R1 102 million (31 December 2016: R3 508 million).

Net debt to equity reduced to 4.4% from 15.4% at 31 December 2016.

7

Safety

Regrettably an employee, Mr Fabian Majoro, was fatally injured when he was exposed to irrespirable atmosphere underground at Modikwa Mine on 9 October 2017. The Board and management express their sincerest condolences to the family, friends and colleagues of Mr Majoro.

The Lost Time Injury Frequency Rate (LTIFR) for 1H F2018 was 0.41 per 200 000 man-hours (1H F2017: 0.33).

8

Six-monthly headline earnings (R million)

9

1 406

2 341

1 026

507

1 693

1 945

2 331

1 767

718

544

1 503

0

500

1 000

1 500

2 000

2 500

F2013 F2014 F2015 F2016 F2017 F2018

First half (1H) Second half (2H)

Six-monthly headline earnings per share (cents)

10

654

1 084

473

233

893

1 0231 081

816

330

261

791

0

200

400

600

800

1000

1200

F2013 F2014 F2015 F2016 F2017 F2018

First half (1H) Second half (2H)

EBITDA margins by commodity

11

(2%)

12%

26%

38%

41%

43%

(7%)

18%

24%

44%

30%

30%

(20%) (10%) 0 10% 20% 30% 40% 50%

Copper*

Nickel

PGM

Iron Ore

Manganese

Coal (GGV)

1H F2017 1H F2018

* The disposal of ARM’s interest in Lubambe Mine was completed on 22 December 2017.

ARM strategy

Operational

efficiencies

Quality growth

continues in

ARM’s existing

portfolio of

commodities

Acquisitions and

partnershipsAfrica

Owner operatorEntrepreneurial

management

Profit and cash flow

focused

Partner of choiceEmployer of choice

World-class

management team

Partnering with communities, workers

and other stakeholders12

Operational efficiencies

ARM’s objective is to ensure that all operations are below the 50th percentile

Two Rivers

Platinum

GGV

Coal

Khumani

Iron Ore

Manganese

Ore Operations

Modikwa

Platinum

Nkomati

Nickel

Commodity

Unit cash

cost

Percentile on cost curve (based on cumulative production)

25% 50% 75% 100%

PCB Coal

Operations

Cato Ridge

Ferromanganese

Beeshoek

Iron Ore

13

Sakura

Ferroalloys

(F2021)

Operational review

Mike Schmidt, Chief Executive Officer

Nkomati Nickel Mine

Headline earnings / (loss) by division / operation

15

six months ended 31 December

R million 2017 2016 % change

ARM Platinum 226 179 26

Two Rivers Mine 173 205 (16)

Modikwa Mine 36 (54)

Nkomati Mine 17 28 (39)

ARM Ferrous 1 765 1 779 (1)

Iron ore division 873 1 023 (15)

Manganese division 872 378 131

Chrome division* (9) 374 (102)

Consolidation adjustment 29 4

ARM Coal 160 99 62

Goedgevonden Mine 35 (26)

PCB Operations 125 125 -

ARM Copper** (6) (72) 92

ARM Corporate and other** (200) (292) 32

Headline earnings 1 945 1 693 15

Headline earnings from continuing operations 1 951 1 387 41

Headline earnings from discontinued operations (6) 306 (102)

* The Chrome Division headline earnings for the six months ended 31 December 2016 include R378 million relating to the sale of ARM’s effective 50% stake in the Dwarsrivier Mine.

** Results for the six months ended 31 December 2016 have been re-presented following the classification of Lubambe Mine as an asset held for sale. As such, intercompany

interest accrued to ARM Company from Lubambe Mine of R130 million (1H F2017: R106 million) has been eliminated from both ARM Copper and Corporate and other.

Segmental EBITDA split by commodity (%)

16

16% 19%24% 29%

19% 20%

8%10%

8%

5%3%

59%57% 44%

56%

57%39%

14%11%

12% 13% 31%33%

6% 4%8%

5%

4% 7%

(6%)

(20%)

0%

20%

40%

60%

80%

100%

F2013 F2014 F2015 F2016 F2017 1H F2018

PGM Nickel Iron Ore Manganese Chrome Coal (GGV) Copper

2 100

2 845

145

1 710

88

(400)

(351)

(438)

(9)

0

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

1H F2017 Exchangerate:

Operations

Exchangerate:

Corporate*

US Dollarcommodity

prices

Volume Cash cost Non-cashcost

Corporateand other

1H F2018

Unaudited profit variance analysis – Profit from operations before special items (R million)

Segmental profit variance analysis

Increase

Decrease

17

* Movement in realised foreign exchange gains and losses on ARM US Dollar loans to Lubambe Mine of US$198 million at 21 December 2017 (31 December 2016:

US$170 million).

1H F2018 versus 1H F2017 sales volume changes (%)

Changes in sales volumes

Increase

Decrease

* External sales only.

** Includes Sakura Ferroalloys sales volumes.

18

(31%)

(14%)

0% 0% 3% 4%

10%

17%

31%

Nickel Eskomand local

coal

Copper Exportcoal

PGMs Ironore*

Manganeseore*

Manganesealloys**

Chromeconcentrate

1H F2018 versus 1H F2017 average realised US Dollar price changes (%)

Changes in average realised US Dollar prices

Increase

Decrease

19

R/US$ average exchange rate strengthened by 4% from R13.98/US$ to R13.39/US$.

* Includes GGV Mine and PCB operations.

** Includes Sakura Ferroalloys.

(61%)

(24%)

(8%)(0%)

9% 16%

24% 32%

40%

69%

80%

Nkomatichrome

concentrate($/t)

Two Riverschrome

concentrate($/t)

Platinum($/oz)

Exportiron ore

($/t)

Nickel($/lb)

Exportthermal

coal($/t)*

Exportmanganese

ore($/t)

Copper($/lb)

Palladium($/oz)

Manganesealloys($/t)**

Rhodium($/oz)

1H F2018 versus 1H F2017 average realised Rand price changes (%)

Changes in average realised Rand prices

Increase

Decrease

20

(62%)

(27%)

(12%)(4%)

5% 11%

18% 26%

34%

62%

72%

Nkomatichrome

concentrate(R/t)

Two Riverschrome

concentrate(R/t)

Platinum(R/oz)

Exportiron ore

(R/t)

Nickel(R/lb)

Exportthermal

coal(R/t)*

Exportmanganese

ore(R/t)

Copper(R/lb)

Palladium(R/oz)

Manganesealloy(R/t)**

Rhodium(R/oz)

* Includes GGV Mine and PCB operations.

** Includes Sakura Ferroalloys.

23%

23%

18%

0%

(1%)

(18%)

(25%) (20%) (15%) (10%) (5%) 0% 5% 10% 15% 20% 25% 30%

Manganese alloys***

Manganese ore**

Coal: GGV and PCB

PGM: Two Rivers and Modikwa

Iron ore

Nickel *

South African Inflation

(CPI) at 4.8%

1H F2018 versus 1H F2017 on-mine unit production costs Rand per tonne basis (%)

Unit cost changes by commodity

Increase

Decrease

* The change in nickel unit costs refers to C1 cash costs net of by-products on a US Dollar per pound basis.

** Nchwaning II Shaft at the manganese ore operations was closed for the entire duration of 1H F2017.

*** Excludes Sakura Ferroalloys Project.

21

ARM Ferrous: Iron ore

Iron ore operational performance - 100% basis

1H

F2018

1H

F2017

%

change

Export sales

volumes

000

tonnes7 387 7 288 1

Local sales

volumes

000

tonnes1 734 1 517 14

Change in on-mine

unit production

costs

% (1) 4 -

Capital

expenditureR million 609 368 65

Iron ore sales volumes (Mt) – 100% basis*

Sales volumes increased by 4% to a record 9.1 million tonnes.

On-mine unit production costs at Khumani Mine were kept flat at R201 per tonne.

Beeshoek Mine on-mine unit production costs decreased by 5%.

Beeshoek Mine rail link to the Saldanha Export Channel has been commissioned.

22* Per annum

10

12

14

16

18

20

F2013 F2014 F2015 F2016 F2017 F2018e F2019e F2020e

Export Local

ARM Ferrous: Manganese ore

Manganese ore operational performance - 100% basis

1H

F2018

1H

F2017

%

change

Export sales

volumes

000

tonnes1 516 1 348 12

Local sales

volumes*

000

tonnes40 69 (42)

Change in unit

production costs% 23 (11)

Capital

expenditureR million 540 782 (31)

Manganese ore sales volumes (000t) – 100% basis*

Sales volumes increased 10% to 1.6 million tonnes while production volumes increased 43% to 1.9 million tonnes.

Average realised US Dollar prices for export manganese ore increased by 24%.

On-mine unit production costs increased by 23% mainly as a result of Nchwaning II Shaft being closed for the entire duration of 1H F2017.

23

* Excluding intragroup sales

* Per annum

2 000

2 500

3 000

3 500

4 000

4 500

F2013 F2014 F2015 F2016 F2017 F2018e F2019e F2020e

ARM Ferrous: Manganese alloys

Manganese alloys operational performance - 100% basis

1H

F2018

1H

F2017

%

change

Sales volumes

(South Africa)

000

tonnes57 97 (41)

Sales volumes

(Sakura)

000

tonnes105 42 150

Change in unit

production costs% 23 7 -

Capital

expenditureR million 17 4 >200%

Manganese alloys sales volumes (000t) – 100% basis*

Average realised US Dollar prices increased by 69%.

Sales volumes increased 17% to 162 thousand tonnes as the Sakura Ferroalloys Project ramped up.

The Sakura Ferroalloys Project is now fully operational.

24

* Per annum

100

150

200

250

300

350

400

450

F2013 F2014 F2015 F2016 F2017 F2018e F2019e F2020e

South African operations Sakura

Two Rivers Mine production volumes decreased by 14% as a result of a decline in the grade due to split reef mining.

Modikwa Mine production volumes increased by 16% due to higher tonnes milled which was offset by a 6% decline in grade.

Unit production cost (on a Rand per PGM ounce basis) increased by 14% at Two Rivers and 3% at Modikwa.

ARM’s interest in Two Rivers Mine increased to 54% from 9 November 2017.

ARM Platinum: PGMs

PGM operational performance - 100% basis

1H

F2018

1H

F2017

%

change

Production6E PGM

ounces422 104 407 846 3

Modikwa cash cost R/oz 6E 8 832 8 559 3

Two Rivers cash cost R/oz 6E 6 655 5 838 14

Capital expenditure * R million 644 718 (10)

PGM production volumes (000 ounces) – 100% basis*

25

* Capital expenditure for ARM Platinum including Nkomati Mine.

* Per annum

0

200

400

600

800

1 000

F2013 F2014 F2015 F2016 F2017 F2018e F2019e F2020e

Nkomati Nickel Two Rivers Modikwa

ARM Platinum: Nickel

Nickel production increased by 2% however sales volumes decreased by 31% due to shipping delays.

Nkomati Mine head grade reduced from 0.28% nickel to 0.24% due to processing of very low grade MMZ stockpile material.

Construction of pile wall 2 in the Western Section to improve slope stability was completed. We continue to progress with buttressing work. The mine has reverted back to the old life-of-mine pit design.

Nickel production volumes are expected to reduce from F2018 to F2020 due to the processing of very low grade MMZ stockpile and lower waste stripping rates.

Nickel C1 cash costs net of by-products

1H F2018 1H F2017 % change

On-mine cash cost* US$/lb 10.38 7.02 48

Off-mine cash cost US$/lb 0.79 3.34 (76)

By-product credits US$/lb (6.23) (4.31) 45

C1 cash cost

net of by-productsUS$/lb 4.95 6.05 (18)

On-mine unit cost* R/t milled 339 356 5

Off-mine unit cost R/t milled 26 177 (85)

Total unit cost R/t milled 337 431 (22)

26

Nickel production volumes (tonnes) – 100% basis*

* Per annum

* On-mine unit production costs including capitalised waste stripping costs.

10 000

12 000

14 000

16 000

18 000

20 000

22 000

24 000

F2013 F2014 F2015 F2016 F2017 F2018e F2019e F2020e

Revised guidance

ARM Coal: GGV and PCB

ARM and Glencore are continuing negotiations to restructure the ARM Coal partner loans to improve ARM’s obligations in terms of these loans.

GGV on-mine unit production costs increased by 9% to R315 per tonne, impacted by a 9% decrease in production volumes.

PCB on-mine unit production costs increased by 23% to R334 per tonne. On-mine production costs in the previous period benefited from the processing of stockpile ore built up during the Tweefontein Optimisation Project.

GGV and PCB operational performance - 100% basis

1H

F2018

1H

F2017

%

change

Total export sales

volumesMt 8.35 8.33 -

Total Eskom sales

volumesMt 2.55 2.44 5

GGV on-mine

saleable costR/t 315 289 9

PCB on-mine

saleable costR/t 334 273 22

Saleable production volumes (tonnes) – attributable*

27

* Per annum

0

1 000

2 000

3 000

4 000

5 000

6 000

F2013 F2014 F2015 F2016 F2017 F2018e F2019e F2020e

GGV PCB

ARM Copper

Lubambe Mine operational performance - 100% basis

1H F2018 1H F2017 % change

Milled tonnes 000t 539 545 (1)

Mill head grade % Cu 2.12 2.09 1

Concentrator recovery % 81.9 84.6 (3)

Copper produced tonnes 9 380 9 644 (3)

Copper sold tonnes 9 269 9 255 -

C1 cash cost US$/lb 2.82 2.22 27

28

The disposal of ARM and Vale’s interest in the Lubambe Mine was completed on 22 December 2017.

ARM realised net proceeds from sale of R492 million.

Lubambe Mine net proceeds from sale – attributable

(R million)

Cash proceeds from sale* 741

Less: Settlement of overdraft facility (164)

Withholding and properties transfer tax (91)

Foreign exchange movement 6

Net proceeds from sale 492

* Includes the reimbursement of funding provided to Lubambe Mine

after 1 May 2017 of R155 million.

Net debt to equity ratio

R million 1H F2018 1H F2017 F2017

Cash and cash equivalents 1 919 1 335 1 488

Total borrowings (3 021) (4 843) (2 759)

Long-term borrowings (2 311) (3 618) (2 002)

Short-term borrowings (710) (1 225) (757)

Net debt (1 102) (3 508) (1 271)

Total equity 24 926 22 781 24 040

Net debt to equity ratio 4.4% 15.4% 5.3%

Less: Partner loans (1 692) (2 347) (1 719)

ARM Coal loans from Glencore (1 578) (1 564) (1 605)

Vale / ARM joint operation from ZCCM-IH - (669) -

Modikwa loan from Anglo Platinum (114) (114) (114)

Less: ARM BBEE Trust loans (Nedbank; Harmony) (473) (500) (528)

Adjusted net cash/ (debt) 1 063 (661) 976

Attributable cash and cash equivalents at ARM Ferrous 3 198* 2 588 3 165

* Since the period-end ARM received a dividend of R2 000 million from Assmang. 29

3 489

2 918

3 326

2 352 2 383 2 600

2 800 2 800

-

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

F2013a F2014a F2015a F2016a F2017a F2018e ** F2019e ** F2020e **

ARM Platinum ARM Ferrous ARM Coal ARM Copper

Capital expenditure (R million)*

Capital allocation: segmental analysis

* Capital expenditure includes (i) deferred stripping at Nkomati and Khumani mines, (ii) Eskom sub-station as a finance lease at Nkomati Mine (iii) financed fleet replacement and sustaining capital expenditure but excludes the Sakura Ferroalloys Project. ** The forecasted capital expenditure for F2018 to F2020 is an estimation based on approved projects and projects under consideration.

30

Actual

1H F2018: R1 147 million

1H F2017: R1 159 million

We do it better

31

Thank you